Number of partners in LLP

Save Share

This query is : Resolved

Quick Summary

A Limited Liability Partnership (LLP) requires a plurality of partners, meaning at least two individuals. If all but one partner retires or leaves, the LLP technically ceases to exist as it no longer meets the plurality requirement. There is no automatic conversion to a sole proprietorship; you must inform the relevant authorities about the change in structure.

Swapnil Jain

Swapnil Jain (Querist)

16 January 2020 I am curious to understand what happens if only one partner remains in LLP. Rest all partners are retired for summer or the other reasons

Amol S Joglekar

Amol S Joglekar (Expert)

16 January 2020 partnership represents PLURALITY. A single person does not satisfy the condition of PLURALITY and hence there exists no LLP when only 1 of the partners remains.

Swapnil Jain

Swapnil Jain (Querist)

16 January 2020 Thank you

But after retirement of all the partners except one, does the company gets converted in proprietary?

Amol S Joglekar

Amol S Joglekar (Expert)

16 January 2020 No automatic route as such. You need to inform the authority about the same.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now