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

Which of the following persons is eligible to be a partner in an LLP at the time of incorporation, according to the LLP Act, 2008?

Any individual or body corporate may become an LLP partner, subject to the disqualifications of unsound mind or undischarged insolvency for individuals. There is no requirement of Indian citizenship or professional qualification, though only individuals can be designated partners.

  1. AAn individual or a body corporate, provided the individual is not of unsound mind or an undischarged insolventCorrect
  2. BOnly individuals who are Indian citizens and residents
  3. COnly body corporates, but not individuals
  4. DOnly individuals above 21 years who are chartered accountants

Explanation

Any individual or body corporate may be a partner, but a body corporate cannot be a designated partner since only individuals can be. An individual is disqualified if of unsound mind or an undischarged insolvent. The Act does not require citizenship or any professional qualification to be a partner.

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