How much does an LLP cost in India?
How much does an LLP cost in India?
Limited Liability Partnership (LLP) is an alternative business structure in India, especially for small and medium-sized enterprises. The LLP form of business provides the benefits of limited liability to its partners, meaning that the company’s debts and liabilities are not their personal responsibility.
LLPs are registered with the Ministry of Corporate Affairs and are controlled by the Limited Liability Partnership Act 2008. In contrast to a standard partnership business, an LLP’s partners have limited liability, implying that their personal assets are not at risk if the LLP incurs any obligations or losses. In this article, we learn about the various costs associated with registering for LLP in India.
How much does an LLP cost in India?
The cost of registering an LLP in India depends on several factors, such as the state where the business is registered, the number of partners involved, and the services of a professional, among others. Here are some of the main costs associated with registering an LLP in India:
- Registration Fees: The LLP registration fees in India vary depending on the authorized capital of the LLP. For example, for an LLP with an authorized capital of up to Rs. 1 lakh, the registration fee is Rs. 500. For an authorized capital between Rs. 1 lakh to Rs. 5 lakhs, the fee is Rs. 2000. The fee increases as the authorized capital increases.
- Professional Fees: It is advisable to engage the services of a professional such as a chartered accountant or a company secretary for registering an LLP in India. The professional fees charged depend on the complexity of the process and the services required.
- Stamp Duty: The LLP agreement must be printed on non-judicial stamp paper, and the amount of stamp duty payable depends on the state where the LLP is registered.
- Miscellaneous expenses: Other expenses incurred during the LLP registration process include notarization charges, fees for obtaining digital signatures, charges for obtaining the PAN and TAN numbers for the LLP, cost of the Memorandum of Association and the cost of setting up a company bank account.
In summary, the cost of registering an LLP in India can vary from a few thousand rupees to several tens of thousands of rupees, depending on various factors. However, the benefits of limited liability and the ease of compliance make the LLP form of business an attractive option for entrepreneurs in India. It is recommended to consult a professional to understand the exact cost of registering an LLP in India.
IndiaFilings can assist you in registering for LLP quickly and easily.
