CAIIB · BRBL · Chapter 17

Introduction to Limited Liability Partnership (LLP) Act 2008

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

Which Act governs the formation and regulation of Limited Liability Partnerships in India?

A

The Limited Liability Partnership Act, 2008 governs the formation and regulation of LLPs in India.

Q

Under Section 6(2) of the LLP Act 2008, after how many months does the sole remaining partner become personally liable for LLP obligations?

A

After six months of carrying on business alone

Q

What is the minimum number of designated partners required in an LLP under Section 7(1) of the LLP Act 2008?

A

Every LLP must have at least two designated partners who are individuals.

Q

What capabilities does an LLP acquire upon registration under Section 14 of the LLP Act 2008?

A

Right to sue, hold property, and have a common seal

Q

Under Section 7(1) of the LLP Act 2008, how many designated partners of an LLP must be resident in India?

A

At least one designated partner must be a resident in India.

Q

In Bank of Beirut SAL vs HRH Prince Adel EL-Hashemite 2016, what was held regarding an LLP certificate obtained by fraud?

A

Certificate remains genuine; LLP liable for post-registration acts

Q

How is 'resident in India' defined for the purpose of designated partners under the LLP Act 2008?

A

A person is considered a resident in India if they have stayed in India for not less than 182 days during the immediately preceding one year.

Q

Under Section 13(4) of the LLP Act 2008, what is the daily penalty for failing to maintain a registered office?

A

₹500 per day each for LLP and every partner

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