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    Question

    Under Section 7 of the Limited Liability Partnership

    (LLP) Act, 2008, which of the following statements correctly describes the mandatory requirements for Designated Partners?
    A Every LLP must have at least three designated partners, of whom all must be Indian residents. Correct Answer Incorrect Answer
    B An LLP must have at least two designated partners who are individuals, and both must be residents in India. Correct Answer Incorrect Answer
    C An LLP must have at least two designated partners who are individuals, and at least one of them must be a resident in India. Correct Answer Incorrect Answer
    D Only individuals who are also shareholders in a public company can be appointed as designated partners. Correct Answer Incorrect Answer
    E There is no requirement for a designated partner to be an Indian resident, provided they hold a valid DIN. Correct Answer Incorrect Answer

    Solution

    Correct Answer: Option 3. The "Designated Partner" is a unique feature of the LLP structure, acting as the primary point of contact for regulatory compliance, similar to a Director in a company. The "Two Individual" Rule Every LLP must have at least two designated partners who are individuals. If a body corporate (like a Company or another LLP) is a partner in the LLP, it must nominate an individual to act as its designated partner.

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