How Much Does it Cost to Register LLP Company in India?
How Much Does it Cost to Register LLP Company in India – The purpose of this blog post is to tell you How Much Does it Cost to Register LLP Company in India? Setting up an LLP company in India can be an attractive option for entrepreneurs due to its flexible structure and low compliance requirements. However, before embarking on this journey, it is necessary to understand the cost involved in registering an LLP company.
LLPs are governed by the Limited Liability Partnership Act of 2008 and must be registered with the Ministry of Corporate Affairs. Unlike a traditional partnership business, the partners of an LLP have limited liability, which means that their personal assets are not at risk if the LLP incurs any liabilities or losses. This page explains the various charges associated with LLP registration in India.
How Much Does it Cost to Register LLP Company in India?
The incorporation fee for LLP depends on the capital contribution to it. The following are the costs of registering an LLP company in India:
Registration Fees
The first step in forming an LLP company is to register it with the Ministry of Corporate Affairs in India. The registration fees depend on the contribution made by the partners. The fees are as follows:
- Contribution up to Rs. 1 lakh: Rs. 500 as registration fees.
- Contribution between Rs. 1 lakh and Rs. 5 lakhs: Rs. 2,000 as registration fees.
- Contribution between Rs. 5 lakhs and Rs. 10 lakhs: Rs. 4,000 as registration fees.
- Contribution above Rs. 10 lakhs: Rs. 5,000 as registration fees.
These fees are subject to change, so it is advisable to check the latest fees on the MCA website or consult a professional from Legal Hub India.
Digital Signature Certificates
LLP registration requires obtaining Digital Signature Certificates for the designated partners. DSC is an electronic form of identification that facilitates secure online transactions. The approximate cost for obtaining a DSC is around Rs. 1,500 to Rs. 2,000 per partner, depending on the certifying authority and validity period.
Professional Fees
Engaging the services of a professional, such as a chartered accountant or company secretary, is highly recommended during the LLP registration process. These professionals provide valuable guidance, ensure compliance, and assist in preparing the necessary documents. The professional fees for LLP registration vary depending on the complexity of the case and the experience of the professional. On average, the professional fees can range from Rs. 5,000 to Rs. 30,000.
Stamp Duty
Stamp duty is applicable to the LLP agreement, which is a crucial document outlining the rights, responsibilities, and profit-sharing ratios of the partners. The stamp duty varies from state to state in India and is calculated based on the capital contribution or the total value of the LLP agreement. The stamp duty cost can range from a few hundred rupees to a few thousand rupees.
Additional Expenses
There are some additional expenses that may arise during the LLP registration process. These include notarization charges for documents, printing and stationery costs, courier charges, and any other incidental expenses. These costs can vary based on the requirements and preferences of the LLP and the professionals engaged.
Other Costs Involved in Registering an LLP in India
- Name reservation for LLP, which is valid only for 90 days before it expires.
- Both the designated parties have to pay a fee for the digital signature, which varies depending on the Certifying Authority.
- cost of the registration form; LLP Agreement Drafting Cost
- DDI Form Fee
- Stamp duty to be paid for executing the LLP agreement, which varies from state to state
Fee for registration of agreement within 30 days of registration. This fee is dependent on the capital contribution, and if it is not filed within 30 days, a late fee of Rs 100 per day will be charged.
Conclusion
Hope you got the answer to your question “How much does it cost to register an LLP company in India?”. Registering an LLP company in India involves a number of costs that need to be considered while planning your business venture. Legal Hub India can help you complete the process efficiently and effectively. From registration fees and DSC to professional fees and stamp duty, these expenses are accounted for to ensure a smooth and hassle-free registration process.
Frequently Asked Questions
Q – Are there any stamp duty charges for LLP registration?
A – Yes, stamp duty is applicable on LLP agreements. The rate of stamp duty can vary from state to state. The stamp duty charges typically range from a few hundred to a few thousand rupees, depending on the state.
Q – Are there any other costs associated with LLP registration?
A – Yes, there may be an additional cost involved. These may include expenses for obtaining Digital Signature Certificate, drafting LLP agreements, and obtaining PAN and TAN. Other incidental expenses may also arise during the registration process.
Q – How did Legal Hub India help to Register an LLP Company in India?
A – Legal Hub India can assist in registering an LLP company in India by providing comprehensive legal services and guidance during the registration process.
Q – How many partners are required to form an LLP in India?
A – To form an LLP in India, a minimum of two partners is required. However, there is no upper limit on the maximum number of partners an LLP can have.
