All about Stamp Duty on LLP Agreement

Stamp Duty on LLP Agreement is a crucial idea to be aware of prior to deciding to create an LLP Company. In addition, an LLP Agreement is a final step in the process for LLP Company Registration. This is why you should be familiar with stamp duty as well as the LLP Agreement. In this article, you'll learn about the most essential steps of LLP Registration i.e. Stamp Duty on LLP Agreement. We will also discuss the requirements for documents to LLP Company Registration.

What is an LLP Agreement?

The LLP Agreement is a crucial document that outlines the agreements between the members of LLP.

Therefore, the LLP Agreement must be submitted with the MCA within thirty days after the formation of an LLP or the satisfactory LLP Company Registry.

The LLP Agreement acts as a legal contract between the partners. It also outlines the rights and obligations of every partner of the LLP Company. Simply put it's a legal document that contains all information regarding the functioning and operation of an LLP Company starting from the incorporation and ending with the winding up.

It is vital to keep in mind that each partner has to sign the legal contract and the LLP must function according to the agreement. In addition, the partners must settle disputes according to the clauses in the LLP Agreement. If the clause is not present, the partners have to settle their dispute in accordance with the LLP Act.

The fundamental contents of LLP include the following elements:

• Name of the LLP
  
  

• Effective date Agreement and the parties or designated partners who agree to the agreement
  
  

• Definition of terms
  
  

• Business Address
  
  

• Business Activity
  
  

• Duration of LLP Company
  
  

• Auditing, Bookkeeping, Accounting, and more.
  
  

• Contribution of each partner, as well as the method of contribution
  
  

• Allocation and Distribution of Profits
  
  

• Terms and Conditions of dissociation for partners
  
  

• Rights of the Partner to evaluate and review information on the finances and documents for the LLP Company
  
  

• General Provisions as well as the specifics of the Arbitrator
  
  

• Other Important Terms and Conditions
  
  

What is a Stamp Duty?

Stamp Duty is a tax that is collected from the government of the State. It is the tax that the state government collects. LLP Agreement must be on the stamp paper. Thus, in order to notarize the LLP Agreement each state levies Stamp Duty at different rates.

Be aware of what is the Stamp Duty on LLP Agreement

It is important to note that the Stamp Duty on LLP Agreement is compulsory. Any business that applies for LLP Registration is required to pay the Stamp Duty on LLP Agreement according to the laws of their state.

It is vital to know that each state has its own distinct Stamp Duty Act and there are no set fees to pay Stamp Duty. Furthermore, the cost of Stamp Duty can vary based on the amount of capital contribution required to be registered as an LLP Company Registration.

Generally speaking, the fundamental Stamp Tax in the LLP Agreement as per different states in India is as in the following manner:

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

Alongside making payment for the Stamp Duty on the LLP Agreement, you also must submit additional documents to obtain an LLP Registration in India.

Document Requirement for LLP Company Registration in India

The Document can be classified as follows: Requirements required for LLP Company Registration as follows.

• Documents of LLP Partners
  
  

• Photographs of Partners
  
  

• PAN Card and Aadhar Card of LLP Partners
  
  

• address proof for all Partners such as Latest Bank Statements and Mobile or Telephone Bill or Electricity Bill
  
  

• Other ID Proofs like Driving License or Passport as well as an ID Card
  
  

• LLP Office or Business Premises Proof
  
  

• The previous three months' electricity bill or any other utility bill
  
  

• There is no objection Certificate(NOC) issued by the owner as well as the Rental Agreement between the Company and the Owner
  
  

• Document for Foreigners or NRIs to get LLP Registration
  
  

• Passport (Mandatory)**
  
  

• Address Proof
  
  

Notarized Translation Copies when they are written in a different language other than English