Raju and his friend Anil have approached you to help them to form a LLP. The object of the proposed LLP is to run a charitable school which provides…
CA Foundation · Business Laws · PYQS · May 2025
Raju and his friend Anil have approached you to help them to form a LLP. The object of the proposed LLP is to run a charitable school which provides free education to the poor children. What would be your suggestion in accordance of provisions of the Limited Liability Partnership Act, 2008?
Suggested Answer and Working Notes:
The essential requirement for forming LLP is carrying on a lawful business with a view to earn profit. Thus, LLP cannot be formed for charitable or non-economic purpose. In the instant case, Raju and Anil cannot form LLP to run a charitable school which provides free education to the poor children. In view of above it is suggested to them that they can form a section 8 company for this purpose.
Topics: The Limited Liability Partnership Act, 2008
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