CAIIB · Banking Regulations & Business Laws · Module D — Commercial & Other Laws with Reference to Banking Operations
CAIIB BRBL Unit 29 — The Limited Liability Partnership Act, 2008 (Unit 29): Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper IV of the December 2026 cycle (Sunday 20 December 2026)
This is the free practice page for CAIIB BRBL Unit 29 — The Limited Liability Partnership Act, 2008 (Unit 29) (Module D — Commercial & Other Laws with Reference to Banking Operations). The CAIIB Mock Centre holds 120 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
BRBL · Module D120 MCQs in the Mock Centre5 free belowPaper on 20 December
Key facts examiners test from this unit
The LLP and its partners — an LLP is a body corporate separate from its partners, with perpetual succession and limited liability; it needs two partners and two individual designated partners, one resident in India.
Incorporation and partners' relations — two or more persons form an LLP for a lawful business with a view to profit; the Registrar's certificate is conclusive; the LLP agreement, or else the First Schedule, governs the partners.
Conversion and compliance — firms, private companies and unlisted public companies may convert into LLPs with the same members and, for companies, no subsisting charge; LLPs file yearly accounts and returns or pay daily penalties.
Changed since the textbook
Significant beneficial owners of LLPs (9 Nov 2023). The LLP (Significant Beneficial Owners) Rules, 2023, notified on 9 November 2023, treat as a significant beneficial owner any individual who, alone or with others, holds at least 10% of the contribution, voting rights or rights to distributable profits indirectly, or together with any direct holding, or exercises significant influence or control. Source: MBG Corporate Services
Register of partners and beneficial interest declarations (27 Oct 2023). The LLP (Third Amendment) Rules, 2023, in force from 27 October 2023, require every LLP to keep a register of partners in Form 4A at its registered office, with each partner's details and contribution, and to enter changes within 7 days. A registered partner who does not hold the beneficial interest in his contribution declares it in Form 4B within 30 days, a beneficial owner not on the register declares in Form 4C, and the LLP reports the declarations to the Registrar in Form 4D. Source: SCC Online
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 120 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
Under Section 27(1), an LLP is not bound by a partner's act in dealing with a person if the partner had no authority to act and that person:
Why (c): Section 27(1): an LLP is not bound by anything done by a partner in dealing with a person if the partner had no authority to act for the LLP and the person knew that he had none, or did not know or believe him to be a partner. (a) is wrong: Being a new customer does not defeat the LLP's liability. (b) is wrong: The mode of payment is irrelevant. (d) is wrong: The other party's nature is not the test.
Question 2 of 5
Under Section 8 of the LLP Act, for what is a designated partner liable?
Why (c): Section 8 makes a designated partner responsible for the LLP's compliance with the Act and liable to all penalties imposed on the LLP for its contraventions. (a) is wrong: He is not liable for the LLP's debts without limit. (b) is wrong: Other partners' taxes are their own. (d) is wrong: Section 8 does not make him answer for other partners' wrongs.
Question 3 of 5
Under Section 22, on the incorporation of an LLP, its partners are:
Why (d): Section 22: on incorporation, the persons who subscribed their names to the incorporation document are its partners; others may become partners under the LLP agreement. (a) is wrong: Every subscriber becomes a partner, not only designated partners. (b) is wrong: The Registrar does not choose partners. (c) is wrong: Bankers do not name partners.
Question 4 of 5
Under which Schedule of the LLP Act does a private company convert into an LLP?
Why (a): Section 56 and the Third Schedule govern the conversion of a private company into an LLP. (b) is wrong: The Second Schedule is not the route for a company. (c) is wrong: The Fourth Schedule is not the route for a private company. (d) is wrong: The First Schedule sets partners' default rights.
Question 5 of 5
Each designated partner's penalty for late filing can go no higher than:
Why (d): Each designated partner's penalty for late filing is capped at ₹50,000. (a) is wrong: ₹10,000 is too low. (b) is wrong: ₹2 lakh is not the cap. (c) is wrong: ₹25,000 is too low.
0 of 5 answered.
Traps in this unit
Using the old 182-day residency test.
Holding partners liable for the LLP's debts.
Forming an LLP without a profit motive.
Practise all 120 questions on Unit 29. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the BRBL Online Mock Centre unlocks all 5,800+ BRBL questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.