Cost Of LLP Registration In India

Cost Of LLP Registration In India – An LLP, or limited liability partnership, is a unique type of business structure that blends features of traditional partnerships and corporations. One of the primary reasons for the increasing popularity of LLPs is the ease of formation and operation. Not only is it a cost-effective option, but it also provides property owners with protection against legal liabilities. This article will explore the benefits and associated costs of LLP registration in India.

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While an LLP shares some similarities with both corporations and partnerships, it is a distinct business structure. The most significant advantage of establishing an LLP rather than a conventional partnership is that the member’s assets are not at risk if the company encounters financial difficulties. This distinguishes it from a traditional partnership, in which the partners are personally liable for the company’s debts. In this blog post, we will delve into the expenses associated with registering an LLP in India.

Procedure To Register An LLP In India

The Limited Liability Partnership (Second Amendment) Regulations, 2022, implemented by the Ministry of Corporate Affairs (MCA), have simplified and increased the transparency of the LLP registration process. The LLP (2nd Amendment) Regulations, 2022 require that PAN and TAN numbers be issued simultaneously with the certificate of incorporation for LLPs.

This eliminates the need for separate applications for PAN and TAN, reducing the hassle of the process. Online registration options are available, which can significantly reduce the time and effort required to establish an LLP traditionally. The process of registering an LLP involves the following steps:

To register an LLP, the following are required:

Personal Digital Signature
Completion of the RUN-LLP form to register a new LLP name.
Organization form for Limited Liability Partnership, including DIN application and PAN and TAN application.

The LLP (Second Amendment) Regulation, 2022 contains several significant changes, including:

The number of designated partners allowed at the time of incorporation has been raised from 2 to 5 (without DIN).
LLP paperwork can now be completed entirely online.
PAN and TAN will be issued along with the LLP’s Certificate of Incorporation.
An interim resolution professional has been designated to sign the Statement of Account and Solvency on behalf of the LLP.
Form 9 must be made available online so that partners can provide their consent.

Incorporation Cost Of An LLP In Registration In India

The Ministry of Corporate Affairs (MCA) has established fee slabs based on the capital contribution to an LLP to determine the incorporation fee. The fee slabs outlined by the MCA are as follows:

The incorporation charge for a limited liability partnership with a capital commitment of less than 1 lakh rupees is 500 rupees.
The incorporation charge is RS. 2,000 for a limited liability partnership with a capital commitment of more than RS 1,00,000 but less than Rs 5,00,000.
The incorporation charge is RS 4,000 for a limited liability partnership with a capital commitment that exceeds Rs 5,00,000 but does not exceed Rs 10,00,000.
The incorporation charge for a limited liability company with a financial investment of more than 10 lacks is 5000.

Other Costs Involved In Registering An LLP In India

Reservation of the name of the LLP, which is valid for 90 days, after which it expires.
Digital signature charges for both designated partners vary based on the certifying agency used.
Registration form fees.
Fee for drafting the LLP agreement.
DIN form fees.
Stamp duty for executing the LLP agreement, which varies by state.
Fee for registering the agreement within 30 days of registration, which depends on the capital contribution. If not filed within 30 days, a penalty of ₹ 100/- per day will be incurred.

Professional Legal Fees Associated With LLP Registration In India

The Indian government has made LLP registration mandatory and more accessible, with a minimal and affordable fixed cost. To ensure a legitimate and smooth process, it is recommended to allocate professional legal fees when registering an LLP in India. Legal Hub India offers affordable counsel and can assist with all aspects of the process, including drafting the LLP agreement, reserving the LLP name, completing registration procedures, and complying with post-incorporation formalities.

LLP registration in India is one of the many legal services offered by Legal Hub India. We serve businesses of all sizes and types and provide hassle-free and effective LLP registration at affordable prices. Having a team of highly skilled and experienced specialists, we are the ideal option if you’re seeking a dependable and knowledgeable service provider for LLP registration in India. You may concentrate on expanding your company while we take care of the procedure with efficiency and care thanks to our skilled team of experts.