Can a minor be a partner in an LLP?

There is no statutory prohibition on persons under 18 years of age being proposed as members of an LLP but under general contract law, any contract (in this case the LLP members’ agreement) entered in to with a minor is voidable until they reach the age of 18, with the result that such a member may be able to avoid his …

Can minor be a partner in the partnership form of business?

A partnership firm cannot be formed with a minor as the only other member. “Section 30 of the Indian Partnership Act, clearly lays down that a minor cannot become a partner, though, with the consent of the adult partners, he may be admitted to the benefits of partnership.

How old do you have to be to be a member of an LLP?

16 or over
LLP members can be: Individuals aged 16 or over. Companies (who are called ‘corporate members’) Of any nationality and country of residence.

Who Cannot be appointed as partner in LLP?

It is clarified that as per section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. An HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its Karta cannot become designated partner in LLP.

When can a minor become a partner?

After turning 18 the minor partner can choose to become a partner of the firm. But he may choose to not become a partner. In this case, the minor partner has to give a public notice about this decision. And the notice has to be given within 6 months of gaining a majority.

Can minor become member of a company?

A minor can become a member of a company through gift and/or inheritance but he cannot buy shares. Furthermore, he will hold shares through his guardian and his guardian will act as a member at all places and will guar the interest and manage the rights and liabilities of the minor.

Who is called minor partner?

A person who is under the age of 18 is regarded as a minor. Generally, a minor cannot be appointed as a partner. But with the consent of all the partners, a minor may be admitted for sharing profits of the firm. Such a partner, if admitted, is called a minor partner.

Are all partners equal in an LLP?

An LLP operates like a general business partnership, where management duties are equally divided between partners. A partnership agreement should set out how business decisions will be made.

How many members must an LLP have?

2
Every LLP must have at least 2, formally appointed, designated members at all times. If there are fewer than 2 then all members will deemed to be a designated member.

Who can become designated partner of a LLP?

In case of a LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.

What are the rights of a minor partner?

Rights of a Minor Partner A minor partner will obviously have the right to his share of the profits of the firm. A minor partner on attaining majority has the right to become a partner of the firm. He has six months from attaining majority to decide if he will execute this right.