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CSEET · Fundamentals of Accounting · Partnership and LLP Accounts

Under the Limited Liability Partnership Act, 2008, which statement about the name of an LLP is correct?

Section 15 of the LLP Act, 2008 requires every limited liability partnership to have either the words limited liability partnership or the acronym LLP as the last words of its name. Company-style suffixes such as Private or Ltd are not the prescribed ones.

  1. AIt must have the words 'limited liability partnership' or 'LLP' as the last words of its nameCorrect
  2. BIt must have the word 'Private' as the last word of its name
  3. CIt may use either 'LLP' or 'Ltd' as the last word
  4. DIt need not contain any specific words

Explanation

Section 15 requires every LLP to have either the words limited liability partnership or the acronym LLP as the last words of its name. 'Private' and 'Ltd' relate to companies. A name without the words is not permitted for an LLP.

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