Fees for LLP Registration in India

Introduction

Setting up a Limited Liability Partnership (LLP) is a preferred choice for entrepreneurs in India who want the flexibility of a partnership along with limited liability protection. Before you start, understanding the fees involved in LLP registration is essential as it helps you plan your budget effectively and avoid surprises.

How Much Does LLP Registration Cost in India?

When registering an LLP, the government fees vary based on the capital contribution declared during incorporation. This fee structure influences your overall investment in setting up the LLP.

Note: These fees only cover government charges. Other costs, such as stamp duty, professional fees, and PAN/TAN charges, are additional and vary by state and service provider.

What is an LLP?

An LLP is a hybrid business structure that offers the advantages of a partnership firm with the benefit of limited liability protection, governed by the LLP Act, 2008. It allows partners to manage the business flexibly while limiting their personal liability.

Benefits of LLP Registration

• Limited Liability: Personal assets of partners are protected, reducing financial risk.
• Separate Legal Entity: LLP can own property and enter into contracts in its own name.
• No Minimum Capital Requirement: LLPs can be started with any amount of capital.
• Tax Efficiency: LLPs are taxed like partnerships and avoid dividend distribution tax.
• Flexibility in Operations: Internal structure can be decided mutually by partners.
• Lower Compliance Requirements: Annual filings are simpler than those of a private limited company.

Who Should Consider LLP Registration?

• Professional Services Firms: Chartered Accountants, lawyers, architects, and consultants seeking a formal business structure with limited liability.
• Startups and SMEs: Businesses requiring ease of management combined with legal protection.
• Joint Ventures: Entities wanting a flexible agreement on profit-sharing and responsibilities.
• Businesses Avoiding Complex Compliance: Those preferring less stringent annual filing and disclosure requirements.

Documents Required for LLP Registration

• Identity Proof: PAN Card and Aadhaar Card of all designated partners.
• Address Proof: Passport, Voter ID, Driving License, or any government-issued document.
• Registered Office Proof: Utility bill (electricity/water) or rent agreement with NOC from the owner.
• Digital Signature Certificate (DSC): Mandatory for designated partners to sign electronic forms.
• Name Approval: Application for LLP name approval through the MCA portal.

Process of LLP Registration in India

• Obtain DSC and DIN: Partners must obtain Digital Signature Certificates and Director Identification Numbers.
• Name Reservation: File RUN-LLP form to reserve a unique LLP name.
• Incorporation Filing (Form FiLLiP): Submit details of partners and the LLP.
• Draft LLP Agreement: Prepare and file LLP Agreement within 30 days of incorporation (Form 3).
• Apply for PAN and TAN: Necessary for tax compliance post-registration.
• Open Bank Account: Use incorporation documents to open a current account in the LLP’s name.

Additional Costs Involved

• Digital Signature Certificate (DSC): ₹1,000 to ₹1,500 per partner, required for signing electronic documents.
• Professional Charges: Typically ₹5,000 to ₹15,000 depending on the complexity and service provider.
• Stamp Duty: Varies by state; applicable on LLP Agreement and incorporation documents.
• PAN and TAN Application: Separate government fees apply.
• Annual Compliance Charges: Annual filing and audit (if applicable) costs vary depending on compliance partners.

Challenges in LLP Registration

• Name Approval Delays: MCA may reject names similar to existing entities, causing delays and requiring reapplication.
• Late Filing Penalties: Filing Form 3 (LLP Agreement) late results in penalties of ₹100 per day.
• MCA Portal Glitches: Technical issues on the portal can cause frustration and delay.
• Understanding Legal Requirements: Non-legal professionals might find LLP rules and compliance difficult, risking errors.

Simplify Your LLP Registration Journey with EbizFiling

EbizFiling ensures a seamless LLP registration experience by offering expert-backed, end-to-end assistance:

• Expert Guidance: Get clarity on whether LLP is the right fit for your business.
• Name Approval & DSCs: We handle name reservation and quick procurement of digital signatures.
• Accurate Documentation: Support in preparing and verifying all required documents.
• Complete Filing: From FiLLiP and Form 3 to PAN & TAN applications, we manage it all.
• Affordable Pricing: Transparent costs with no hidden fees.
• Post-Incorporation Help: Support with bank account setup, compliance, and annual returns.
• Quick Turnaround Time: Streamlined processes that reduce waiting periods and ensure timely registration.

Partnering with EbizFiling saves your time, reduces errors, and ensures your LLP registration is done right the first time.

Stay Compliant: Your LLP Duties After Registration

• Annual Return (Form 11): Must be filed within 60 days of the financial year-end to report basic details of the LLP. Non-filing attracts penalties of ₹100 per day.
• Statement of Accounts & Solvency (Form 8): To be filed within 30 days after six months from the end of the financial year, detailing the LLP’s financial position.
• Income Tax Return Filing:
  – Due by 31st July for LLPs not requiring audit.
  – Due by 31st October for LLPs requiring audit (if turnover > ₹40 lakh or capital contribution > ₹25 lakh).
• Change Notifications: Notify MCA promptly for any changes in designated partners or registered office to avoid penalties.

You can validate it from Income Tax Department, MCA

Conclusion

LLP registration in India offers a practical and cost-effective option for many businesses. By understanding the government fees and additional costs, you can plan your investment well. EbizFiling’s expert assistance ensures your LLP registration and compliance are smooth, accurate, and timely.

Suggested Read :

Purpose Form 8 LLP

Importance of an LLP Certificate

LLP agreement vs Partnership Deed

Importance of LLP Certificate of Registration

How to Register an LLP?

FAQ