The Maximum Number of Partners LLP Can Have Is — All You Need to Know

Choosing the right business structure is crucial for long-term success. Among the various options available in India, the Limited Liability Partnership (LLP) has become increasingly popular. It offers the benefits of a company (like limited liability) while preserving the flexibility of a traditional partnership.

One of the most frequently asked questions is:
“What is the maximum number of partners LLP can have?”

Let’s understand the legal framework and how LLPs differ from traditional partnerships in this regard.

What About Traditional Partnership Firms?

Traditional partnerships are governed by the Indian Partnership Act, 1932. While this law does not specify a maximum limit, there’s a common misconception rooted in another law:

• Section 464 of the Companies Act, 2013, along with Rule 10 of the Companies (Miscellaneous) Rules, 2014, sets a limit of 50 members in associations or partnerships formed to carry on a business for profit.

This is often interpreted as the limit for partnership firms. However, this rule doesn’t function as a direct ceiling imposed by the Indian Partnership Act.

Clarification on Rule 10: Applicability to Partnerships

It’s important to understand the context of Rule 10 of the Companies (Miscellaneous) Rules, 2014:

• This rule does not directly govern partnership firms in the same way it governs companies.

• It applies to associations or partnerships formed to acquire gain, restricting them from exceeding 50 members unless registered under another applicable law, such as the Companies Act.

• The rule is meant to prevent large associations from bypassing company registration while functioning like companies.

• It does not broadly apply to the day-to-day operations or governance of traditional partnerships.

So while it creates a functional cap of 50 for unregistered partnerships seeking profit, it doesn’t override the Partnership Act directly.

LLP vs Partnership Firm: Key Differences in Number of Partners