All about Stamp Duty on LLP Agreement

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Stamp Duty on LLP Agreement is an important concept to understand before you incorporate an LLP Company. Furthermore, LLP Agreement is the last step in the complete procedure of LLP Company Registration. In this article, you will get to know about one of the most important steps under LLP Registration i.e. Stamp Duty on LLP Agreement. We will also read about the document requirement for LLP Company Registration.

What is an LLP Agreement?

It is a legal document that constitutes all the information about the operation of the LLP Company starting from the incorporation to the winding up.

In addition, The LLP Agreement is an important document that highlights the contrasts between the partners of LLP.

Therefore, The LLP Agreement must be filed to the MCA within the thirty days of incorporation of an LLP or a successful LLP Company Registration.

The LLP Agreement acts as legally binding for the partners and it specifies the responsibilities and rights of each partner in the LLP Company.

It is important to note that every partner must sign the legal agreement and the LLP  must operate as per the agreements. Furthermore, the partners need to resolve disputes as per the terms mentioned in the LLP Agreement. In case the term is missing, the partners need to resolve their dispute as per the LLP Act.

The basic content of LLP has the following:

  • Name of the LLP
  • Date of the Agreement and the partners or designated partners agreeing to the agreement
  • Definition of terms
  • Business Address
  • Business Activity
  • Duration of LLP Company
  • Auditing, Bookkeeping and Accounting, etc.
  • Contribution of each partner and the medium of contribution
  • Allocation and Distribution of Profits
  • Terms and Conditions for dissociation of partners
  • Partner’s rights to assess and access the financial and other records of the LLP Company
  • General Provisions and the details of the Arbitrator
  • Other Important Terms and Conditions

What is a Stamp Duty?

Stamp Duty is the tax collected by the state government. The LLP Agreement must be on a stamp paper. Therefore, to notarize the LLP Agreement each state levies Stamp Duty at different rates.

Know all about the Stamp Duty on LLP Agreement

The Stamp Duty on LLP Agreement is mandatory. Every business applying for LLP Registration needs to pay the respective stamp duty on LLP Agreement as per their state.

It is important to note that every state has a different Stamp Duty Act and there are no fixed charges for Stamp Duty. In addition, the charges of Stamp Duty may also differ as per the paid-up capital or amount contribution to have LLP Company Registration.

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Basic Stamp Duty on LLP Agreement as per different states in India:

State Capital Contribution & LLP Agreement Stamp Duty
Amount Contribution is Less than Rs. One Lakh Amount Contribution is between Rs. One Lakh to Rs. Five Lakh Amount Contribution is between Rs. Five Lakh to Rs. Ten Lakh Amount Contribution is Rs. Ten Lakh or More
Andhra Pradesh 500 500 500 500
Arunachal Pradesh 100 100 100 100
Assam 100 100 100 100
Bihar 2500 5000 5000 5000
Chhattisgarh 2000 2000 – 5000 5000 5000
Goa 150 150 150 150
Gujarat 1000 2000 – 5000 6000 – 10000 10000
Haryana 1000 1000 1000 1000
Himachal Pradesh 100 100 100 100
Jammu Kashmir 100 100 100 100
Jharkhand 2500 5000 5000 5000
Karnataka 1000 1000 1000 1000 + (500 For Every 5 Lakh Increase)
Kerala 5000 5000 5000 5000
Madhya Pradesh 2000 2000 – 5000 5000 5000
Maharashtra 1% of Capital(minimum of 500) % of Capital % of Capital 1% of Capital(15000 Max)
Manipur 100 100 100 100
Meghalaya 100 100 100 100
Mizoram 100 100 100 100
Nagaland 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
Punjab 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
Tamil Nadu 300 300 300 300
Tripura 100 100 100 100
Uttar Pradesh 750 750 750 750
Uttarakhand 750 750 750 750
West Bengal 150 150 150 150
Dadra and Nagar Haveli 1000 2000 – 5000 6000 – 10000 10000
Daman and Diu 150 150 150 150

Along with paying the Stamp Duty on LLP Agreement, you also need to submit other documents to get LLP Registration in India.

Document Required for LLP Registration in India

Document Required for LLP Registration

You can categorize the Document Requirement for LLP Company Registration as follows.

  • Documents of LLP Partners
    • Photographs of Partners
    • PAN Card and Aadhar Card of Partners
    • Address Proof of all the Partners, for example, Latest Bank Statements, Mobile or Telephone Bill, Electricity Bill
    • Other Proof of Identities such as Driving License, Passport and Voter ID Card
  • LLP Office or Business Premises Proof
    • Previous three months electricity bill or any other latest utility bill
    • No Objection Certificate(NOC) from the Owner or the Rent Agreement between Company and the Owner
  • Document for Foreigners or NRIs to get LLP Registration
    • Passport (Mandatory)**
    • Address Proof
    • Notarized Translation Copies if the documents are in another language except English.

LLP registration Advantages and Disadvantages

Moreover, If you want any other guidance relating to LLP Registration. please feel free to talk to our business advisors at 8881-069-069.

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