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CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership

Which of the following correctly describes a requirement relating to the name of an LLP under the LLP Act, 2008?

Every LLP must have either 'Limited Liability Partnership' or 'LLP' as the last words of its name. A name cannot be registered if it is undesirable or identical or too nearly resembles another LLP, a company or a registered trade mark.

  1. AThe name must end with the word 'Private' or 'Limited'
  2. BThe name must have 'Limited Liability Partnership' or 'LLP' as its last wordsCorrect
  3. CThe name may end with any word if the LLP has more than ten partners
  4. DThe name need not differ from that of an existing company if the business is different

Explanation

Every LLP must have either the words 'limited liability partnership' or the acronym 'LLP' as the last words of its name. The Act also bars names that are undesirable or identical or too nearly resembling another LLP, a company or a registered trade mark. Hence the other options are wrong.

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