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LLP Registration Fee

A partnership in which the partners have restricted liability is known as an LLP. It may display traits common to both partnerships and corporations. An individual partner in an LLP is not accountable or liable for the wrongdoing or carelessness of any other partner. The costs and other main pointers for LLP incorporation in India will be covered in full in this article.
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What is a Limited Liability Partnership?

The Limited Liability Partnership Act of 2008 serves as the foundation for limited liability partnerships in India. The Limited Liabilities Partnership Act of 2008 went into force on March 31, 2009, and was formally published on January 9, 2009, in the Indian Government Gazette. The rules governing this act were subsequently released on April 1, 2009, and revised in 2017. On April 2, 2009, the LLP underwent formal incorporation. Many new business owners find LLPs appealing since they are relatively inexpensive to set up, require no minimum capital investment, and have fewer compliance requirements than other business entities.

Advantages of Limited Liability Partnership

  • The partners’ liability is strictly capped at the amount of their investment.
  • LLPs are easily transferable from one person to another, and there is no audit necessary for businesses with annual revenues under Rs. 40 lakh and capital contributions of Rs. 25 lakh.
  • LLP has the authority to possess and transfer property, and they may do so in their own name.
  • Even if a partner passes away, an LLP is still regarded as existing because it is a separate legal body, and partners, as well as juristic individuals unrelated to the partnership, are each capable of suing or being sued.
  • No dividend tax applies to LLPs.

LLP Registration Fee

The amended LLP (Limited Liability Partnership) incorporation rules had been made public by the Ministry of Corporate Affairs (MCA). These guidelines went into effect on February 10, 2018. The following is part of the MCA charge for LLP Registration:

#1 LLP Registration with RUN-LLP Service

Through the RUN service on MCA, LLP name reservation requests may be made. The request must be filled out online and submitted after paying a cost of Rs. 200. The payment cannot be made using the pay later option. The applicant must review the guidelines for choosing an LLP name before submitting a name reservation application.

#2 Registration of LLP using Form FiLLiP

This electronic form is for LLP incorporation. It must be submitted digitally using the MCA Portal. The fee payable is determined by the total sum of the startup contributions for the LLP. The user can upload the electronic form and create an SRN by selecting the Pay Later option. Before the final date noted on the PayLater Challan, payments may be made at a later time.
Amount of Contribution (Rs.) Fees (Rs.)
Up to 1,00,000
500
1,00,000 < contribution < 5,00,000
2000
5,00,000 < contribution < 10,00,000
4000
More than 10,00,000
5000

#3 Form 3 - Registration of an LLP

The LLP Agreement may be registered with the MCA using this electronic form. It must be submitted digitally using the MCA Portal. The fee payable is determined by the total sum of the startup contributions for the LLP. The user can upload the electronic form and create an SRN by selecting the Pay Later option. Before the final date noted on the PayLater Challan, payments may be made at a later time.
Amount of Contribution (Rs.) Fees (Rs.)
Up to 1,00,000
50
1,00,000 < contribution < 5,00,000
100
5,00,000 < contribution < 10,00,000
150
More than 10,00,000
200

#4 LLP Registration - Stamp Duty

The entire LLP incorporation process does not necessitate the payment of stamp duty. LLP Registration Fee does not include Stamp Duty, unlike other entity incorporations on MCA.

Additional Fees Associated With Registering an LLP in India

  • Name reservation for LLP, which is only valid for 90 days before it expires.
  • Both specified parties must pay a fee for digital signatures, which varies depending on the certifying body.
  • Registration form costs
  • LLP agreement drafting costs
  • DDI form charges
  • Stamp duty, which varies from state to state, is paid to execute the LLP agreement.
  • Fee for the agreement’s registration within 30 days after registration. This fee is dependent on capital contribution, and if it is not filed within 30 days, a late fee of 100 rupees per day will be charged.

The Cost of Legal Services for Registering an LLP in India

It is wise to budget for expert legal fees while forming an LLP in India. This is done to make sure that everything proceeds lawfully and without incident. The legal professionals at SetIndiaBiz are the best choice if you’re seeking reasonably priced legal assistance. They will take care of everything, including the drafting of the LLP agreement, the reservation of the LLP name, registration processes, and post-incorporation compliance formalities.

The requirements for obtaining LLP registration

  • An LLP must be established by a minimum of two people.
  • No cap on the number of partners
  • Starting an LLP doesn’t require any minimum capital other than stamp duty.
  • There should be one Indian resident.
  • An LLP should have a unique name.
  • The name shouldn’t be the same as an existing company.

Documents Needed to Register an LLP

You require scanned copies of the following papers to register an LLP:

From associates:

  • Passport or PAN card (foreign nationals or NRIs)
  • Voter ID, passport, driver’s license, and Aadhar card
  • Recent bank statement, phone, mobile, power, and gas bills
  • Passport size photo
  • Document in blank form with sample signature
The first three documents must be self-attested by one partner. All documentation for NRIs or foreign nationals must be apostilled or notarized (if they are currently in India or another country that is not a member of the Commonwealth) (if from a commonwealth country).

Relating to the registered office:

  • Utility costs
  • English rental agreement notarized
  • English property deed or sale deed with owner’s letter of no objection (in case of owned property)

Why do entrepreneurs favor LLP registration over partnership registration?

  • LLP is a distinct legal entity, but a partnership firm’s liability is only as great as its partners’ contributions.
  • The liability of a partnership is unrestricted in a partnership.
  • There must be two designated partners for an LLP to form.
  • The cap on partnerships is set at 50 partners.
  • While partnership firms are registered with the Registrar of Business, LLP registration is required and must be done with the Ministry of Corporate Affairs.
  • Although there are no restrictions on using names in partnerships, LLP names should be distinctive and should not be identical to any other names.
  • An LLP has greater credibility than a partnership firm.

About Setindiabiz

Setindiabiz is an organized team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. The views, statements and recommendations expressed in this article or post are only for the sole objective of providing information, and it does not constitute professional advice or recommendation of the company. Neither the author nor the company or its affiliates accepts any liability for any loss or damage arising from any information in this article or any actions taken in reliance thereon.

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