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CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership

Under the LLP Act, 2008, what is the minimum number of designated partners that every LLP must have, and what condition applies to them?

Every LLP must have at least two designated partners who are individuals, and at least one of them must be resident in India. A body corporate partner can only act through individual nominees, and one designated partner alone is insufficient.

  1. ATwo designated partners who are individuals, at least one being resident in IndiaCorrect
  2. BTwo designated partners who may be bodies corporate, none needing to be resident in India
  3. CThree designated partners, all resident in India
  4. DOne designated partner who is an individual resident in India

Explanation

Section 7(1) requires at least two designated partners who are individuals, and at least one of them must be resident in India. Bodies corporate cannot themselves be designated partners; they act through nominees. A single designated partner does not meet the minimum.

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