Stamp Duty on LLP Agreement

Stamp duty on LLP agreement

LLP registration does not end by getting the certificate of incorporation. An agreement with MCA has to be filed, after getting a certificate.

At the last step of online LLP registration you need to enter into an agreement and file it with MCA. An agreement must be filed within 30 days of incorporation. An LLP agreement is nothing but a written contract between all the partners of an LLP.

Various Clauses agreed by the partners are included in the LLP Agreement. Roles and responsibilities of the partners of an LLP are defined in the agreement. All the partners must sign the agreement. An LLP works and functions according to the agreement. With the help of the applicable clauses in an LLP agreement the disputes (if any), are resolved. The resolution will be according to the LLP Act, in case of absence of any clause.

An agreement should be on a stamp paper and also be notarized. Stamp duty is the matter of a state. There is no fixed rate at which stamp duty is charged, very state has a different stamp duty act; stamp dutyrate differs from state to state. With the amount of capital contributed in the LLPsss, the stamp duty also changes.

How is the Stamp Duty paid on LLP Agreement?

The stamp duty to be paid on an LLP agreement depends on the state in which it is registered and the amount of capital contribution.

It can be paid in two ways:
  • by purchase of non-judicial stamp paper or
  • by franking the agreement from the bank.

The agreement must be filed with MCA in how many days? Is there any penalty levied for delay in filing the same?

With MCA the LLP must be filed within 30 days of incorporation. Late fees of Rs. 100/- per day will be charged by MCA for filing an agreement after the due date.

Stamp duty charges by different states of India

StateCapital Contribution#colspan#colspan#colspan
Up to 1 Lakh1 to 5 Lakh5 to 10 Lakh10 Lakh and above
Andhra Pradesh500500500500
Arunachal Pradesh100100100100
Delhi1% of Capital1% of Capital50005000
Himachal Pradesh100100100100
Jammu and Kashmir100100100100
Madhya Pradesh20002000—500050005000
Maharashtra1% of Capital
(Min of 500)
1% of Capital1% of Capital1% of Capital
(MaX Of 15000)
Rajasthan4000 (Min of 2000)2000 on every
50000 multiple,
max of 10,000
Tamil Nadu300300300300
Uttar Pradesh750750750750
West Bengal150150150150
Written by: CS Rohini Sehgal
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