LLP Registration in India: Benefits
LLPs are similar to corporations in that they exist independently from their partners. To form a limited liability partnership (LLP), any amount of minimum capital can be used. LLP partners are liable for only the amount they contributed to the LLP.
The primary advantage of establishing an LLP is that it is easier to set up and administer, with fewer procedures involved in incorporating. LLPs also charge lower registration fees than corporations, and audits are not mandated. A private limited company’s annual ROC compliance is lower.
Registering an LLP in India Cost
The incorporation fee for an LLP (Limited liability partnership) depends on the amount of capital contributed. According to the MCA, the following slabs apply:
- It costs ₹ 500/- to incorporate a limited liability partnership with a capital contribution of less than ₹ 1 lakh.
- For the formation of a limited liability partnership with an initial capital contribution of over ₹ 1 lakh but less than ₹ 5 lakhs, the fee is ₹ 2000/-
- In addition, there is a fee of ₹ 4000/- for incorporating a limited liability partnership with a capital contribution that exceeds ₹ 5 lakhs but does not exceed ₹ 10 lakhs –
- ₹5000/- for the incorporation of a limited liability partnership with a capital contribution of more than ₹ 10 lakh.
Additional LLP Registration Costs in India
- The name of the LLP (Limited liability partnership) is reserved for 90 days, after which it expires.
- Both the certifying agency and the designated partner charge for digital signatures
- on registration forms
- the LLP agreement draft fee
- DIN form fees
- Stamp duty towards execution of the LLP agreement which varies from state to state
- Fee towards the registration of the agreement within 30 days of Registration. This fee depends on capital contribution and if it is not filed within 30 days will result in the incurring of a ₹ 100/- per day late fee.
Legal Fees for Registering an LLP in India
While registering an LLP in India, it is prudent to earmark legal fees for professional services. This is to ensure that the whole process goes smoothly and is legitimate from start to finish. Vakilsearch can provide affordable legal advice, from drafting LLP agreements and reserving name reservations to assisting with registration procedures, post-incorporation compliance, and other legal matters.