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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Statement I: For incorporating an LLP, two or more persons associated for carrying on a lawful business with a view to profit must subscribe their names to the incorporation document. Statement II: The statement of compliance filed with the incorporation document may be made by an advocate, a Company Secretary, a Chartered Accountant or a Cost Accountant engaged in the formation, together with one who subscribed to the document. Which is correct?

Both statements are correct. Section 11(1) requires two or more persons associated for a lawful business with a view to profit to subscribe to the incorporation document, and the compliance statement is made by an advocate, Company Secretary, Chartered Accountant or Cost Accountant engaged in formation, along with one subscriber.

  1. AOnly Statement I is correct
  2. BOnly Statement II is correct
  3. CBoth statements are correctCorrect
  4. DNeither statement is correct

Explanation

Section 11(1)(a) requires two or more persons associated for a lawful business with a view to profit to subscribe their names. Section 11(1)(c) permits the statement to be made by an advocate, CS, CA or Cost Accountant engaged in formation and by one subscriber. Both statements match the Act.

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