In the lively world of business, the Limited Liability Partnership (LLP) has appeared as a popular choice for organizations and people trying a flexible and positive felony structure. As an LLP mixes the benefits of a partnership with the restricted duty of a company, it has become a wanted choice for many companies in India. However, while becoming a member of an LLP, it is important to understand the stamp duty fees for LLP deals and forms across one-of-a-kind states in India. This article aims to provide a full review of the stamp duty fees for LLP deals and forms in specific Indian states, helping you handle the legal world with ease.
LLP Agreement Stamp Duty
An LLP agreement is a written paper explaining the rights, duties, and jobs of the LLP members. It gives easy operations and clear contact among the parties, therefore working as an example of unity. States in India charge different stamp fees for LLP deals. The stamp duty rates for LLP deals in many of the big states are set out here:
- Maharashtra: whichever is more, 0.2% of the capital contribution, or ₹1,500
- Delhi: 0.1% of the capital contribution, whichever is higher—₹200
- Karnataka: whichever is higher—0.2% of the capital contribution, or ₹200
- Tamil Nadu: 0.1% of the capital contribution, whichever is more—₹100
For the most current information, it is essential to speak with legal experts or relevant authorities since the stamp duty costs could vary.
LLP Registration Stamp Duty
LLP registration consists of submitting the required documentation to the Registrar of Companies (ROC) and receiving a Certificate of Registration. Different Indian states have varying stamp duty paid for LLP registrations as well. The stamp duty rates for LLP registrations in some of the big states are laid out here:
- Mumbai: ₹ 200
- Delhi: ₹ 200
- Karnataka: ₹ 200
- Tamil Nadu: ₹ 100
Like with LLP agreements, it’s far vital to check the present-day stamp duty fees for LLP applications for your specific state before starting the filing process.
Stamp Duty Charges: Their Significance
Understanding the stamp duty charges for LLP deals and applications is important for several reasons:
- Legal compliance: Paying the necessary stamp duty is a legal responsibility; failing to pay might result in fines and registration process delays.
- Cost planning: Knowing the stamp duty charges in advance helps businesses and LLP partners to budget and plan their costs appropriately.
- Smooth operations: Ensuring that all legal processes, including stamp duty payments, are finished properly helps to avoid possible disagreements or problems in the future.
- Professional believability: Demonstrating a full understanding of legal requirements, such as stamp duty charges, can improve the trustworthiness and expertise of an LLP.
LLP Registration Stamp Duty Charges by Different States
LLP registration in India involves filing necessary documents with the Ministry of Corporate Affairs (MCA). Apart from the central registration fees, each state imposes stamp duty charges for LLP registration. These charges may vary significantly from one state to another.
| State | Capital Contribution & LLP Agreement Stamp Duty | Less than Rs.1 Lakh | Rs. 1 Lakh to Rs. 5 Lakh | Rs. 5 Lakh to Rs. 10 Lakh | Rs. 10 Lakh & Above |
|---|---|---|---|---|---|
| Andhra Pradesh | 500 | 500 | 500 | 500 | 500 |
| Arunachal Pradesh | 100 | 100 | 100 | 100 | 100 |
| Assam | 100 | 100 | 100 | 100 | 100 |
| Bihar | 2500 | 5000 | 5000 | 5000 | 5000 |
| Chhattisgarh | 2000 | 2000 – 5000 | 5000 | 5000 | 5000 |
| Goa | 150 | 150 | 150 | 150 | 150 |
| Gujarat | 1000 | 2000 – 5000 | 6000 – 10000 | 10000 | – |
| Haryana | 1000 | 1000 | 1000 | 1000 | 1000 |
| Himachal Pradesh | 100 | 100 | 100 | 100 | 100 |
| Jammu Kashmir | 100 | 100 | 100 | 100 | 100 |
| Jharkhand | 2500 | 5000 | 5000 | 5000 | 5000 |
| Karnataka | 1000 | 1000 | 1000 | 1000 + (500 For Every 5 Lakh Increase) | – |
| Kerala | 5000 | 5000 | 5000 | 5000 | 5000 |
| Madhya Pradesh | 2000 | 2000 – 5000 | 5000 | 5000 | 5000 |
| Maharashtra | 1% of Capital (minimum of 500) | % of Capital | % of Capital | 1% of Capital (15000 Max) | – |
| Manipur | 100 | 100 | 100 | 100 | 100 |
| Meghalaya | 100 | 100 | 100 | 100 | 100 |
| Mizoram | 100 | 100 | 100 | 100 | 100 |
| Nagaland | 100 | 100 | 100 | 100 | 100 |
| New Delhi | 1% of Capital | 1% of Capital | – | 1% of Capital (Max: 5000) | 1% of Capital (Max: 5000) |
| Orissa | 200 | 200 | 200 | 200 | 200 |
| Punjab | 1000 | 1000 | 1000 | 1000 | 1000 |
| Rajasthan | 4000 (Min of 2000) | 2000 on every 50000 multiple, max of 10,000 | 10000 | 10000 | – |
| Sikkim | 100 | 100 | 100 | 100 | 100 |
| Tamil Nadu | 300 | 300 | 300 | 300 | 300 |
| Tripura | 100 | 100 | 100 | 100 | 100 |
| Uttar Pradesh | 750 | 750 | 750 | 750 | 750 |
| Uttarakhand | 750 | 750 | 750 | 750 | 750 |
| West Bengal | 150 | 150 | 150 | 150 | 150 |
| Dadra and Nagar Haveli | 1000 | 2000 – 5000 | 6000 – 10000 | 10000 | – |
| Daman and Diu | 150 | 150 | 150 | 150 | 150 |
Conclusion
In conclusion, the stamp duty charges for LLP deals and applications change across different states in India. It is crucial for businesses and LLP partners to be informed of these charges and meet the law requirements to ensure an easy and successful LLP setup. By knowing the stamp duty charges and getting professional advice when necessary, LLPs can manage the legal environment with confidence and focus on growing successful companies.
