States play a primitive role in the construction of legal relationships that are instigated, modified or extinguished at an international level. The paper intends to examine the criteria of statehood based upon the two theories of statehood i.e. constitutive theory and declaratory theory. The Montevideo Convention on the Rights and Duties of States of 1933 derived its significance from the declaratory theory which is highly acknowledged by the states at present. The object of this paper is to ascertain up to what extent these theories are sustainable as the method for determining whether a territorial entity is qualified to become a State under international law or not. The paper also discussing the rights and obligations of the states entitled and imposed upon by the international law respectively for their smooth functioning within its territory and between other States.
