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Government fees payable by LLPs during Incorporation and Annual Compliance

This section of the study material is about the fee that is to be paid by an LLP during incorporation as well as during annual compliance procedures. Refer to this quick note for knowing the fee requirements. Click here to download the material.



 

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Government fees payable by LLPs during Incorporation and at the time of Annual Compliance

An entrepreneur or a consultant for early stage businesses must have a sense of the statutory fees payable by LLPs to the Registrar of Companies (ROC). As you will see, for most steps the fee for incorporation and annual compliance by LLPs is calculated based on the amount of capital contribution in the LLP. You can also view the Fee Calculator on the LLP website. For quick reference, we have listed the fee payable for various steps below (as of 10 September 2012)1:

1. Fee for obtaining a Director Identification Number (payable while uploading Form

DIN - 1)

Rs. 100 per designated partner (an LLP must have a minimum of two designated partners at

least)

2.Fee for Reservation of Name (payable while uploading Form 1) - Rs. 200

3.Fee for registration of the LLP (payable while filing incorporation details as per Form 2):
 

Maximum capital contribution in the LLP

Fee

Rs. 1 lakh or less

Rs. 500

Greater than Rs. 1 lakh but less than Rs. 5 lakhs

Rs. 2000

Greater than Rs. 5 lakhs but less than Rs. 10 lakhs

Rs. 4000

Greater than Rs. 10 lakhs

Rs. 5000

3.Fee for submitting details of appointment of designated partners (Form 4) - Rs. 50

4.Fee schedule for filing each of the following forms below:

Form 3 (details of LLP agreement)

Form 8 (Statement of Accounts and Solvency)

1 These fees are subject to updation by the Central Government.
 

Form 11 (Annual Return of the LLP)

Note: Forms 8 and 11 are submitted at the time of annual compliance.

The fee for filing each of the forms above is as per the schedule below:

Maximum capital contribution in the LLP

Fee

Rs. 1 lakh or less

Rs. 50

Rs. 1 lakh – 5 lakhs

Rs. 100

Greater than Rs. 5 lakhs but less than Rs. 10 lakhs

Rs. 150

Greater than Rs. 10 lakhs

Rs. 200

Stamp duty on LLP Agreement

In addition to the fee payable on Form 3, stamp duty must be paid on the LLP Agreement. As explained in the video Module 1: Understanding a Partnership Deed, different states have enacted their own stamp duty legislation. Therefore, stamp duty payable on LLP agreements will vary, depending on the state in which the LLP is incorporated, and where the LLP Agreement is stored. After the LLP Act was passed, most states have not amended their stamp duty legislation to specifically provide for stamp duty payable on LLPs. The MCA has clarified that if a state has no specific entry for stamp duty payable on LLPs, the rate of stamp duty will on LLPs in that state will be the same as that applicable to ordinary partnerships.

 





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