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CA Intermediate · Corporate and Other Laws · The Limited Liability Partnership Act, 2008

Meera, Karan and Tanvi are partners of a limited liability partnership, Sundaram Analytics LLP. The LLP agreement is silent on the number of partners who must be designated partners. Meera wants to know the minimum number of designated partners an LLP must have and the residency requirement for them. Which statement is correct under the LLP Act, 2008?

An LLP must have at least two designated partners, each being an individual, and at least one of them must be resident in India. A body corporate can be a partner but must act through a nominee individual, so the residency and individual requirements still apply.

  1. AAt least two designated partners, who must be individuals, and at least one of them must be resident in IndiaCorrect
  2. BAt least two designated partners, who may be individuals or bodies corporate, and none need be resident in India
  3. CAt least three designated partners, all of whom must be resident in India
  4. DAt least one designated partner, who must be a resident individual

Explanation

Every LLP must have at least two designated partners who are individuals, and at least one of them must be resident in India. A body corporate partner can only act through a nominee who is an individual. Option B is wrong because designated partners must be individuals and residency is mandatory for at least one.

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