Mohan and Rakul, both resident in India, along with Mr. John and Ms. Kate (both non-resident Indians), decide to form an LLP, "Mohan John LLP", with…

CA Intermediate · Corporate and Other Laws · MTP · September 2026
Mohan and Rakul, both resident in India, along with Mr. John and Ms. Kate (both non-resident Indians), decide to form an LLP, "Mohan John LLP", with an initial capital contribution of ₹ 1,00,000 each. The LLP is incorporated on 15th October 2025. The LLP proposes to appoint Mr. John and Ms. Kate as its only designated partners and seeks advice from its Company Secretary. Advise the LLP.

Suggested Answer and Working Notes:

Provisions: Section 7(1) of the LLP Act, 2008 mandates that every LLP have at least two individual designated partners, and that at least one of them be a person resident in India. "Resident in India", per the Explanation to Section 7 means an individual who has stayed in India for not less than 120 days during the immediately preceding financial year. Analysis: As proposed, neither Mr. John nor Ms. Kate satisfies the resident-in-India test, so appointing them as the LLP's only designated partners would contravene Section 7(1). Conclusion: The correct advice is that Mohan John LLP must appoint at least one of Mohan or Rakul (both resident in India) as a designated partner, alongside either Mr. John or Ms. Kate . Mr. John and Ms. Kate cannot together be the LLP's sole designated partners.

Topics: The Limited Liability Partnership Act, 2008

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