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CA Foundation · Accounting · Partnership and LLP Accounts

Which of the following is a feature of a Limited Liability Partnership (LLP) registered in India?

An LLP is a body corporate with a legal identity separate from its partners. It has perpetual succession, needs a minimum of two partners, and partners' liability is limited to their agreed contribution, so death or insolvency of a partner does not dissolve it.

  1. AIt is a body corporate with a legal identity separate from its partnersCorrect
  2. BIt must have a minimum of seven partners at all times
  3. CEvery partner has unlimited personal liability for the LLP's debts
  4. DIt ceases to exist on the death or insolvency of any partner

Explanation

An LLP is a body corporate and a legal entity separate from its partners, with perpetual succession. It needs only two partners, the liability of partners is limited to their agreed contribution, and death or insolvency of a partner does not end the LLP.

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