Eligible Individuals

• Any person, whether Indian or a foreign national, can become a partner in an LLP.
  
• The individual must be competent to contract under the Indian Contract Act, 1872.
  
• A minimum of two partners is required to form an LLP.
  
• At least one designated partner must be a resident in India.
  
• Individuals with a valid Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) are eligible.
  

Eligible Body Corporates

• A company incorporated in India or abroad can act as a partner in an LLP.
  
• Limited Liability Partnerships themselves can become partners in another LLP.
  
• Foreign LLPs and foreign companies can also participate, subject to regulatory compliance.
  
• Registered trusts, societies, and co-operative societies are not eligible to become partners.
  
• Only recognized legal entities can be admitted as body corporate partners.
  

Designated Partners Requirement

• Among the partners, at least two must be designated partners at all times.
  
• Designated partners are responsible for statutory and legal compliance.
  
• One designated partner must be an Indian resident, as per the Act.
  
• Both individuals and nominees of body corporates can be designated partners.
  
• Their consent must be filed with the Registrar through prescribed forms.
  

Disqualifications and Restrictions

• Individuals declared insolvent or of unsound mind are not eligible.
  
• Persons convicted of any offence involving moral turpitude within the last five years are disqualified.
  
• Partners must not be undischarged bankrupts.
  
• Disqualified directors under the Companies Act may be barred.
  
• Regulatory approvals are required for foreign nationals and entities.
  

Role of Foreign Participants

• Foreign nationals or foreign entities can become partners in LLPs under FEMA regulations.
  
• They must comply with applicable foreign investment guidelines issued by the Reserve Bank of India.
  
• Non-resident individuals require a valid visa and identification documents.
  
• Foreign corporations must file additional compliance documents with the MCA.
  
• Cross-border participation is permitted but subject to sector-specific restrictions.