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

Under the LLP Act, 2008, which statement correctly describes the minimum membership and the status of an LLP?

An LLP must have at least two partners and is a body corporate with perpetual succession. Its existence is separate from its partners, so the death, retirement or insolvency of a partner does not dissolve it.

  1. AAn LLP needs at least two partners and is a body corporate with perpetual successionCorrect
  2. BAn LLP needs at least seven partners and is an unincorporated association
  3. CAn LLP needs at least three partners and has no separate legal identity
  4. DAn LLP needs at least two partners but ends whenever any partner dies

Explanation

An LLP must have at least two partners. It is a body corporate and a separate legal entity with perpetual succession, so the death or exit of a partner does not end it. The other options either state the wrong minimum or deny its corporate status.

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