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CA Foundation · Business Laws · The Limited Liability Partnership Act, 2008

Nisha plans a new venture and asks which statement about the minimum number of partners in an LLP is correct under the LLP Act, 2008.

An LLP needs a minimum of two partners, and the LLP Act sets no upper limit on their number. Thus, unlike the older cap for ordinary partnerships, any number of partners above two is permissible in an LLP.

  1. AAt least seven partners are required
  2. BAt least three partners are required
  3. CAt least two partners are required, and there is no maximum limit on the number of partnersCorrect
  4. DAt least two partners and not more than twenty are allowed

Explanation

An LLP must have at least two partners, and the Act sets no maximum limit on the number of partners. If the number falls below two for more than six months, the remaining partner who carries on business is personally liable. The twenty-partner cap applied to old partnership rules, so it is wrong.

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