Since an LLP combines elements of both a corporate and a partnership business form, it is referred to as a hybrid of a corporation and a partnership. In this article, we will be investigating the costs involved in registering an LLP in India.
A limited liability partnership (LLP) is comparable to a corporation in that it exists independently of its partners. Any amount of minimum capital can be used to form a limited liability partnership (LLP). The partners’ liability would be limited to the amount they agreed to contribute to the LLP in India.
The primary advantage of an LLP is that it is simpler to set up and administer, with lesser procedures involved in the incorporation process. Moreover, an LLP has a lower registration fees levy than a corporation and there is no requirement for a mandated audit. Yearly ROC compliance is lower than that of a private limited business.
Incorporation Cost to Register an LLP in India
The incorporation fee for an LLP depends on the capital contribution to it. The following are fee slabs outlined by the MCA:
- ₹ 500/- for the incorporation of a limited liability partnership with a capital contribution of less than ₹ 1 lakh.
- ₹ 2000/- for the incorporation of a limited liability partnership with a capital contribution of more than ₹ 1 lakh but less than ₹ 5 lakhs
- ₹ 4000/- for the incorporation of 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.
| LLP incorporation takes roughly 10 days, subject to official approval and response from the competent department, between acquiring DSC to filing Form 3. |
Other Costs Involved in Registering an LLP in India
- Reservation of the name of LLP which is valid for 90 days, after which it expires.
- Digital signatures charge for both designated partners, which depend on the certifying agency
- Form fees for Registration
- LLP agreement drafting 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.
Professional Legal Fees Involved in Registering an LLP in India
It is prudent to earmark professional legal fees while registering an LLP in India. This is to ensure that the process goes smoothly and is legitimate all the way through. If you’re looking for affordable counsel, you should seek the advice of the legal experts at Vakilsearch, who will handle everything, from the drafting of the LLP agreement, and reservation of LLP name to registration procedures and post-incorporation compliance formalities.
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