Limited Liability Partnership (LLP) is owned and managed by its members/partners.
An LLP is required to have at least 2 Partners and 2 designated partners and designated partners can also be the partners of the LLP. There is no restriction on the maximum number of partners /designated partners.
The Limited Liability Act, 2008 has prescribed eligibility criteria for being a partner and designated partner of LLP.
Who can become a Partner of LLP?
Following persons are qualified to become a partner of LLP –
- Individuals (includes both Indian national & resident and Foreign national)
- Body Corporate
Who can become a Designated Partner of LLP?
Unlike partners, only Individuals can become the Designated partner. Unlike partners, at least one of the Designated Partners of the LLP shall be a resident of India.
Disqualifications from becoming a Partner/Designated Partner
An individual shall be disqualified from becoming a partner or Designated Partner of the LLP when he/she is a
- Declared as unsound Mind by the Court of Competent Jurisdiction, or
- Undischarged insolvent, or
- Has applied for being adjudicated as an insolvent and his/her application is pending before appropriate authority, or
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