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    Question

    Which statement about a designated partner in the

    context of a Limited Liability Partnership is not true?
    A At least two designated partners must be individuals Correct Answer Incorrect Answer
    B At least two designated partners shall be resident in India Correct Answer Incorrect Answer
    C Designated partners can be appointed based on the LLP agreement Correct Answer Incorrect Answer
    D Every designated partner must obtain a Designated Partner Identification Number Correct Answer Incorrect Answer
    E The term "resident in India" refers to a person who has stayed in India for at least 120 days during the financial year as per section 7 of the LLP Act Correct Answer Incorrect Answer

    Solution

    LLP Act Section 7 In a Limited Liability Partnership there must be at least two designated partners, both of whom must be individuals, with at least one being a resident in India . The LLP agreement can specify the designated partners, or they can be chosen from among the partners. Before becoming a designated partner, an individual must give their consent to the LLP. The LLP must file the particulars of each designated partner with the registrar within 30 days of their appointment. Designated partners must also obtain a Designated Partner Identification Number from the Central Government.

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