Minimum Number of Partners

• An LLP must have at least two partners at the time of incorporation.
  
• These partners can be individuals or bodies.
  
• A partnership cannot be formed with a single individual.
  
• If the number falls below two, the LLP must add a partner promptly.
  
• Prolonged functioning with only one partner may lead to legal consequences.
  

Designated Partner Requirement

• Out of the total partners, at least two must be designated partners.
  
• Designated partners are responsible for statutory compliance and filings.
  
• At least one designated partner must be a resident in India.
  
• Designated partners must obtain a DPIN (Designated Partner Identification Number).
  
• Their details must be filed with the Ministry of Corporate Affairs (MCA).
  

Maximum Number of Partners

• There is no upper limit on the number of partners in an LLP.
  
• LLPs are flexible and can accommodate any number of partners as per business needs.
  
• Additional partners can be added after incorporation by amending the LLP agreement.
  
• Each partner must contribute to the LLP as agreed in the agreement.
  
• Partner additions and exits must be duly updated in official records.
  

Partner Eligibility

• Any individual competent to contract can become a partner.
  
• Body corporates, including companies and LLPs, can also be partners.
  
• Foreign nationals and foreign entities are allowed, with compliance with regulations.
  
• Disqualified individuals, such as those declared insolvent or convicted, cannot join.
  
• All partners must provide valid identity and address proof for registration.
  

Consequences of Reduced Number

• If the number of partners drops below two for more than six months, it affects compliance.
  
• The sole remaining partner may become personally liable for the LLP’s obligations.
  
• The LLP may face penalties for non-compliance with the minimum partner requirement.
  
• It is essential to restore the minimum number promptly.
  
• Registrar of Companies (RoC) may take action for persistent non-compliance.