Limited Liability Partnership Firm

How Much Does It Cost To Register An LLP In India?

calendar17 Mar, 2023
timeReading Time: 4 Minutes
How Much Does It Cost To Register An LLP In India?

A Limited Liability Partnership is the phrase’s complete form (LLP). A limited liability partnership (LLP) is a kind of hybrid business form that combines elements of conventional partnerships with those of corporations. Certain aspects of an LLP are comparable to those of a company, while others are comparable to those of a partnership. The ease with which one may establish and run a limited liability partnership (LLP) is a major factor in the rising popularity of LLPs. It is a wonderful tool for safeguarding property owners from legal action, and it is available at a reasonable cost. The primary advantage that a Limited Liability Partnership has over a traditional Partnership Business is that its members are not personally responsible for the debts and liabilities of the company. This is not the case with a traditional Partnership Business. This is the primary advantage that a Limited Liability Partnership has over a traditional Partnership Business. In this blog we will discuss how much does it cost to register an LLP in India.

Advantages of a Limited Liability Partnership

Before we discuss the cost to register an LLP in India, let’s discuss the advantages & procedure to register an LLP in India. A Corporation and the adaptability of a Partnership Business are combined in an LLP organization. As neither partner is responsible for the dishonest behavior of another Partners, individual partners are protected from the joint liability that arises as a consequence of another partner’s transgressions since there is no joint liability. LLPs are often used by privately held professional practices, in addition to micro and small corporations.

Procedure to Register an LLP in India

The process to register an LLP has been streamlined and made more transparent as a result of the implementation of the Limited Liability Partnership (Second Amendment) Regulations, 2022 by the Ministry of Corporate Affairs (MCA)[1].

A Limited Liability Partnership (LLP) may now have a maximum of five Designated Partners, up from the previous limit of two (without DPIN). According to the LLP (2nd Amendment) Regulations, 2022, limited liability partnerships (LLPs) are required to have their PAN and TAN numbers issued at the same time as their certificates of incorporation. It is possible for you to avoid the hassle of applying for both a PAN and a TAN in this way. The time it takes to form a limited liability partnership (LLP) is significantly reduced by the availability of online filing options. It may be possible to reduce the amount of time and effort required to establish an LLP traditionally by completing the registration process online instead.

The Process Of Registering A Limited Liability Partnership (LLP) Consists Of The Following Steps:

  • Your Personal Digital Signature
  • When you want to register a new LLP name, use the RUN-LLP form.
  • Form of Organization for Limited Liability Partnership (Includes DIN Application and PAN and TAN Application)

The LLP (Second Amendment) Regulation, 2022 Has A Number Of Other Similarly Significant Revisions, Including The Following:

  • At the time of incorporation, there can be 5 Designated Partners instead of only 2. (Without DIN).
  • LLP paperwork may now be completed in its whole and fully online.
  • Upon the granting of the LLP’s Certificate of Incorporation, the issuing of a PAN as well as a TAN will take place.
  • To sign the Statement of Account and Solvency on behalf of the LLP, an expert in interim resolution has been designated.
  • It is imperative that Form 9 be made accessible over the internet so that partners may provide their consent.

Cost to Register an LLP in India

The following steps need to be performed in order to register an LLP or to convert an existing business, private corporation, or unlisted public company into a Limited Liability Partnership:

a A Limited Liability Partnership that may accept a maximum contribution of Rs. 1,00,000 INR 500
b Limited Liability Partnerships that have contributions ranging from one lakh rupees to five lakh rupees INR 2000
c A Limited Liability Partnership with a contribution that falls in between 5 and 10 lakhs of rupees. INR 4000
d Limited Liability Partnerships (LLPs) whose contributions is more than Rs. 10 lakh rupees.   INR 5000

In accordance with the Act or by these regulations, the following information must be included in any and all documents, forms, statements, notices, the Statement of Accounts and Solvency, annual returns, and applications for the conversion of a business, private company, or unlisted public company into a Limited Liability Partnership (LLP):

a Excluded from consideration is any Limited Liability Partnership with a total capital contribution of less than one lakh rupees INR 50
b Limited Liability Partnerships with contributions comprising more than one lakh rupees but less than five lakh rupees   INR 100
c A Limited Liability Partnership with a contribution that falls in between 5 and 10 lakhs of rupees. INR 150
d Limited Liability Partnerships with a contribution of more than 10 lakh rupees INR 200

The following fees are applicable, with the exception of those associated with applications to convert pre-existing firms, private corporations, or unlisted public companies into LLPs:

  1. A two-hundred-rupee application fee is required in order to reserve a name in accordance with Section 16(a).
  2. Ten thousand rupees for an application to change one’s name in accordance with Section 18
  3. The costs for submitting a Name Reservation Application are Rs. 10,000 per Rule 18(3).
  4. A charge of Rs 5,000 must be paid in order to re-register the company name in accordance with Regulation 18. (3).
  5. The application to get a DPIN, which is required by Rule 10(5), has a charge of one hundred rupees attached to it.

Conclusion

LLP, limited liability partnership, is a modern form of partnership with many more benefits as compared to a partnership firm under the partnership Act. LLP registration has been made easier by the Indian government by providing all kind of necessary information on the portal along with the prescribed fees and charges. Some of the important information related to the cost of registration of not to register an LLP but also related to the conversion of various types of firms into LLP. The costs are fixed at a very minimal and affordable rate so that no person who aspires to incorporate an LLP does not get forbidden to do so just due to high incorporation efforts and costs.

Also Read:
How To Apply For LLP Registration In India

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