Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · Limited Liability Partnership

Mehta & Co., a Surat partnership firm, is planning an LLP. Its advisers list items for the incorporation document. Which item is NOT among the particulars the Act requires the incorporation document to state?

The profit-sharing ratio is not a required particular of the incorporation document. The Act requires the name, proposed business, registered office address, and names and addresses of partners and designated partners, while sharing ratios belong in the LLP agreement.

  1. AThe name and address of persons who are to be designated partners on incorporation
  2. BThe address of the registered office of the LLP
  3. CThe proposed business of the LLP
  4. DThe profit-sharing ratio of each partnerCorrect

Explanation

Section 11(2) requires the name, proposed business, registered office address, names and addresses of partners and designated partners, plus other prescribed information. The profit-sharing ratio is a matter for the LLP agreement, not a stated particular of the incorporation document under the Act.

Did you get it right without looking?

One question tells you little. A timed set on Limited Liability Partnership shows your real accuracy, how long you take and where you lose marks.

Practise Limited Liability PartnershipFree diagnostic mock

More Limited Liability Partnership questions