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

Three professionals plan to form Anvay Associates LLP. Which statement about the minimum and maximum number of partners is correct?

An LLP must have at least two partners, and there is no maximum limit on the number of partners. Limits such as twenty partners or a minimum of seven belong to other forms of business and do not apply to an LLP.

  1. AAn LLP needs at least two partners and there is no upper limit on the number of partnersCorrect
  2. BAn LLP needs at least two partners and can have at most twenty partners
  3. CAn LLP needs at least seven partners and has no upper limit
  4. DAn LLP can be formed by one person alone with no other partner

Explanation

An LLP must have at least two partners, and the Act sets no maximum limit. The twenty-partner cap applies to ordinary partnership firms under the Companies Act earlier, not to LLPs. Seven is the minimum for a public company, not an LLP.

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