CA Foundation · Accounting · Partnership and LLP Accounts
Under the Limited Liability Partnership Act, 2008, which statement about designated partners of an LLP is correct?
An LLP must have at least two designated partners, and at least one must be resident in India. Designated partners are individuals who take responsibility for the LLP's legal compliances and filings. Not every partner holds this role; the incorporation document or LLP agreement identifies them.
- AAn LLP needs only one designated partner, who may be a non-resident
- BAn LLP must have at least two designated partners, and at least one of them must be resident in IndiaCorrect
- CEvery partner of an LLP is automatically a designated partner with no need for any appointment
- DAn LLP must have at least three designated partners, all of whom must be resident in India
Explanation
Every LLP must have at least two designated partners who are individuals, and at least one of them must be resident in India. Designated partners are responsible for statutory compliances such as filing returns. Option C is wrong because the LLP agreement or the incorporation document names them, and not every partner holds the role.
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