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Microlesson · 5-min read

Incorporation Document, Statement & Effect of Registration (Sections 11, 12 & 14)

# Step 2 — Incorporation Document (Section 11)

## Pre-requisites

1. Two or more persons associated for carrying on a lawful business with a view to profit must subscribe their names to the incorporation document.

2. The document is filed with the Registrar of the State in which the LLP's registered office is to be situated, in the prescribed form with prescribed fees.

## Statement to be Filed Along with Incorporation Document

It must be made by both:

  • (i) An Advocate OR a Company Secretary OR a Chartered Accountant OR a Cost Accountant, who is engaged in the formation of the LLP; AND
  • (ii) Any one of the persons who subscribed his name to the incorporation document,

declaring that all the requirements of the Act and rules made thereunder in respect of incorporation and matters related to it have been complied with.

## Mandatory Contents of the Incorporation Document

1. In the prescribed form;

2. Name of the LLP;

3. Proposed business of the LLP;

4. Address of the registered office;

5. Name and address of each partner on incorporation;

6. Name and address of each designated partner on incorporation;

7. Such other information as may be prescribed.

## Punishment for False Statement (Section 11(3))

If a person makes the statement above, knowing it to be false:

  • Imprisonment which may extend to 2 years, AND
  • Fine of minimum ₹10,000, maximum ₹5,00,000.

(Note: This is one of the few criminal offences left in the LLP Act after the 2021 decriminalization.)

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# Step 3 — Registration & Certificate of Incorporation (Section 12)

  • Once Section 11 requirements are met, the Registrar shall, within 14 days:
  • Register the incorporation document, AND
  • Issue a Certificate of Incorporation in the name specified.
  • The certificate is signed by the Registrar and authenticated by his official seal.
  • The certificate is conclusive evidence that the LLP is incorporated by the name specified therein.

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# Step 4 — Effect of Registration (Section 14)

1. The subscribers to the incorporation document automatically become the partners of the LLP.

2. From registration, the LLP — by its name — has the capacity to:

  • Sue and be sued;
  • Acquire, own, hold, develop or dispose of property (movable/immovable, tangible/intangible);
  • Have a common seal (optional — only if it decides to have one);
  • Do and suffer such other acts and things as bodies corporate may lawfully do and suffer.

## The big takeaway

Incorporation gives the LLP its separate legal personality — the foundation stone for limited liability. Compare this with Section 9 of the Companies Act, 2013 (effect of registration of a company).

Worked example

### Example 1

Q. An incorporation document was filed accompanied by a statement signed only by a Chartered Accountant engaged in the formation. The Registrar refused to register. Is the refusal justified?

A. Yes. Section 11 requires the statement to be signed by both (i) a professional (Advocate/CS/CA/CMA) AND (ii) a subscriber to the incorporation document. A single signature does not satisfy the requirement.

### Example 2

Q. A common seal is shown in the LLP Agreement of XYZ LLP. Is it mandatory?

A. No. Section 14 says the LLP may have a common seal if it decides to have one — it is optional, unlike older regimes where the common seal was mandatory.

⚠️ Common exam mistakes

  • Forgetting that the statement under Section 11 requires two signatories (a professional + a subscriber).
  • Treating the common seal as mandatory — it is optional post LLP Act, 2008.
  • Believing that the Certificate of Incorporation is only prima facie evidence — it is conclusive evidence.
  • Confusing the 14-day registration window of LLP Act with timelines under the Companies Act.
Bare-Act text Sections 11, 12 & 14 · Limited Liability Partnership Act, 2008 · click to expand
Section 11 — For LLP to be incorporated, two or more persons associated for carrying on a lawful business with a view to profit shall subscribe their names to an incorporation document, filed with Registrar with prescribed fees. A statement by an advocate/CS/CA/CMA engaged in formation AND by a subscriber shall also be filed confirming compliance. False statement is punishable with imprisonment up to 2 years and fine of ₹10,000 to ₹5,00,000. Section 12 — Registrar shall, within 14 days, register the document and issue a certificate of incorporation which is conclusive evidence of incorporation. Section 14 — On registration, the LLP by its name shall be capable of suing and being sued, acquiring/holding/disposing of property, having a common seal if it decides to, and doing things bodies corporate may lawfully do.
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