__________________ is/are not true with regard to Limited liability partnership.

(A) Separate Legal entity

(B) Unlimited liability for one partner

(C) Indian Partnership Act, 1932 is applicable

(D) Perpetual Succession

(E) Unlimited liability of partners

Choose the correct answer from the options given below :

(B), (C) and (E) Only

The correct answer is option (3)  :(B), (C) and (E) Only

(A) Separate Legal entity- This statement is true. LLP has a separate legal entity. Partners and LLP are distinct from each other like a company.

(B) Unlimited liability for one partner- This statement is not true. LLP comes with additional feature of partners liability being limited. LLP is different from a partnership as it operates like a partnership, but in a LLP each partner is protected from personal liability, except to the extent of his capital contribution in the LLP.

(C) Indian Partnership Act, 1932 is applicable- This statement is not true. Limited liability partnership Act, 2008 is applicable on LLP. This act came into effect from 31st March, 2009.

(D) Perpetual Succession-  This statement is true. LLP is a body corporate and a legal entity separate from its partners. It has perpetual succession like a limited liability company. The limit of partners in a LLP is not applicable unlike an ordinary partnership firm. The LLP Act, 2008 specifies that atleast one of the partners in the LLP is a citizen of India and an Indian national.

(E) Unlimited liability of partners- This statement is not true. LLP comes with additional feature of partners liability being limited. LLP is different from a partnership as it operates like a partnership, but in a LLP each partner is protected from personal liability, except to the extent of his capital contribution in the LLP.

Note: There was a mistake in NTA question. So one of the options modified to make the question correct.