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Section 14 of the Limited Liability Partnership Act, 2008: Effect of Registration

On registration, an LLP is capable, by its name, of (a) suing and being sued, (b) acquiring, owning, holding, developing or disposing of property, movable or immovable, tangible...

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LLP & Partnership
Published
October 1, 2026
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Oct 1, 2026
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Last updated: October 2026Verified against: Government sources

Section 14 lists what an LLP can do once it is registered: sue and be sued, acquire and dispose of property, have a common seal if it wants one, and do the other acts a body corporate may lawfully do. All of it is done "by its name". It gives practical content to the idea in section 3 that an LLP is a legal entity separate from its partners. For forming an LLP, our LLP registration service takes you through to the certificate.

Section 14 at a glance

ClauseCapacity
(a)Suing and being sued
(b)Acquiring, owning, holding and developing or disposing of property, movable or immovable, tangible or intangible
(c)Having a common seal, if it decides to have one
(d)Doing and suffering such other acts and things as bodies corporate may lawfully do and suffer

"On registration" and "by its name"

Two phrases frame the section.

"On registration." The capacity begins when the LLP is registered. Section 12 provides for registration of the incorporation document and the certificate of incorporation, which is conclusive evidence of incorporation by the name specified (see section 12). Before registration, there is no LLP and so no capacity under this section.

"By its name." The LLP acts under the name on its certificate. Under section 15(1) that name must end with the words "limited liability partnership" or "LLP", and under section 21 invoices, official correspondence and publications must carry the name, registered office address and registration number, with a statement that it is registered with limited liability (covered in the articles on sections 15 and 21).

Clause (a): suing and being sued

The LLP can bring proceedings and can be proceeded against in its own name. The text of section 14 does not set out any procedure or any special court; it states the capacity. For a dispute with a customer, a supplier or a tenant, the LLP is the party on record, not the partners individually. Whether and when partners may be liable themselves is a separate question for the sections on liability (26 to 30) and is not addressed here.

Example. Prism Print LLP is owed Rs 4 lakh by a customer. Under 14(a), the LLP can sue in its own name. If a vendor claims money from the LLP, the claim is against the LLP.

Clause (b): property

The LLP can acquire, own, hold, develop or dispose of property, whether movable or immovable, tangible or intangible. Each part matters:

  • Acquiring, owning, holding: the LLP, not a partner, is the owner of its property.
  • Developing or disposing: it can build on, improve, sell or transfer it.
  • Movable or immovable: machinery and stock as well as land and buildings.
  • Tangible or intangible: physical assets and also assets with no physical form.

The text uses these words only; it does not give examples. Contributions by partners are covered in the later chapter on contributions (sections 32 and 33).

Clause (c): a common seal, if it decides

"Having a common seal, if it decides to have one." A seal is optional. The LLP may have one but need not. The text does not state any effect on the validity of documents of having or not having a seal, so do not assume one. Certificates issued by the Registrar are sealed by the Registrar (section 12(3)), which is different from the LLP's own seal.

Clause (d): other acts of a body corporate

"Doing and suffering such other acts and things as bodies corporate may lawfully do and suffer." This is the residual clause. The Act defines "body corporate" in section 2(1)(d) to include an LLP registered under the Act. So an LLP's capacity is not limited to clauses (a) to (c); it extends to what bodies corporate may lawfully do. The word "lawfully" carries a limit: if some other law bars bodies corporate from an act, this clause does not give the LLP a way around it. "And suffer" covers the things done to the LLP, such as being sued.

How section 14 fits with sections 3 and 4

SectionRole
3(1)The LLP is a body corporate and a legal entity separate from its partners
3(2)Perpetual succession
4The Indian Partnership Act, 1932 does not apply, save as otherwise provided
14Lists what the separate entity can do from registration

Read together: section 3 states what the LLP is, section 14 states what it can do (see sections 3 and 4). Our general guide on effect of registration of LLP: legal personality covers the same ground in plain terms.

Practical points

  • Have contracts, bank documents and property deeds in the LLP's registered name.
  • Do not sign business contracts in a partner's own name when the LLP is the intended party.
  • A seal is optional; decide whether you want one and record it in your own records.
  • For the liability of partners, read the chapter on extent and limitation of liability rather than relying on section 14.

Need help with setting up an LLP?

Registration gives the LLP its capacity, so a clean incorporation matters from the first day. Our LLP registration team handles the filing, and can advise on how your business should hold assets and contract in the LLP's name.

Key takeaways

  • The capacities in section 14 begin on registration and are exercised by the LLP's name.
  • An LLP can sue and be sued (14(a)).
  • It can acquire, own, hold, develop or dispose of movable and immovable, tangible and intangible property (14(b)).
  • A common seal is optional (14(c)).
  • It may do what bodies corporate may lawfully do and suffer (14(d)).

Read next

Disclaimer: Based on the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021, as consulted on 1 October 2026. Forms, fees and procedure are set by the LLP Rules, 2009 as amended from time to time. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 14

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Can an LLP sue in its own name?

Yes. Section 14(a) says that on registration an LLP is capable, by its name, of suing and being sued.

Can an LLP own property?

Yes. Section 14(b) covers movable and immovable, tangible and intangible property.

Section 14: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Yes. Section 14(a) says that on registration an LLP is capable, by its name, of suing and being sued.

Yes. Section 14(b) covers movable and immovable, tangible and intangible property.

No. Section 14(c) says it may have one if it decides to.

Yes, clause (d): such other acts and things as bodies corporate may lawfully do and suffer.

On registration, as the section opens.

No. It deals with the LLP's capacity. Partner liability is in the later chapter on liability.