What is an LLP Agreement?

LIMITED LIABILITY PARTNERSHIP AGREEMENT or LLP AGREEMENT means any written agreement between:

  • The partners of the Limited Liability Partnership or
  • Between the Limited Liability Partnership and its partners

which determines the mutual rights and duties of the partners and their rights and duties in relation to that limited liability partnership.

How is the LLP Agreement Prepared?

LLP Agreement has certain Clauses which has to be discussed, agreed and Signed by all the Partners of LIMITED LIABILITY PARTNERSHIP
An LLP agreement has to be made and printed on Stamp Paper bearing a certain amount of Stamp Duty (see table below).

For payment of stamp duty on LLP agreement, stamp paper is purchased of the requisite value. There are many different stamp papers (14 varieties in 10 denominations of INR 50, 100, 500, etc.) main classification includes judicial and non-judicial stamp paper. The stamp paper used in courts for court fees payment and judicial activities is judicial stamp paper. The stamp paper used for paying stamp duty on an LLP agreement is non-judicial stamp paper.

While Buying a Non-Judicial Stamp Paper you need to provide the following details:

  • Names of parties to the agreement (First party, second party, etc.), 
  • Addresses of the parties,
  • Document name that is the LLP agreement and
  • Stamp Paper Value. 

What is the validity of a Stamp Paper?

As per Section 54 of Indian Stamp Act, 1899 if the stamp paper is unused, unspoilt and fit for use a refund may be granted by the Collector after deduction of 10 paise per rupee, if the purchase of the same is made within 6 months. Further, as per Section 52B(b) of The Maharashtra Stamp Act and Section 52C of Bombay Stamp (Gujarat Amendment) Act, 2016 states that if any stamp has been purchased and it is neither used nor any allowances are claimed on it within a period of six months, it will be treated as invalid.

Filling of LLP Agreement

The LLP Agreement has to be filled with Ministry of Corporate Affairs (MCA) within 30 days of Incorporation of LIMITED LIABILITY PARTNERSHIP in LLP FORM 3. Stamp duty for LLP Agreement should not be paid on MCA Portal. 

The Stamp Duty payable for LLP Agreement is a State subject and the same may be paid as per the State Stamp Act. In case there is no stamp duty specified for a specific state, the stamp duty is payable on the partnership agreement in view of the Finance Bill, 2009.

  • Sanctions for delay in filling the LLP agreement

Delay in Filling of LLP Agreement may cause a fine of upto Rs. 100 per day.

  • Below is the list of Stamp Duty to be paid for preparing LLP AGREEMENT for different states as per Capital Contribution. The Stamp Duty on LLP Agreement is updated as per the Finance Act 2009 and Respective State Stamp Acts
Sr.No STATE Upto INR 1 Lakh INR 1 to Rs. 5 Lakh INR 5 to Rs. 10 Lakh INR 10 Lakh and above
1. Andhra Pradesh

(आंध्र प्रदेश)

500 500 500 500
2. Arunachal Pradesh

(अरुणाचल प्रदेश)

100 100 100 100
3. Assam

(आसाम)

1000 1000 1000 1000
4. Bengal

(West Bengal/पश्चिम बंगाल)

150 150 150 150
5. Bihar

(बिहार)

2500 5000 5000 5000
6. Chhattisgarh

(छत्तीसगढ)

For share contribution up to INR 50, 000 – 1000

For share contribution in excess if INR 50, 000 – 2 % of the share contributed subject to a maximum of 5000

2 % of the share contributed subject to a maximum of 5000 2 % of the share contributed subject to a maximum of 5000 2 % of the share contributed subject to a maximum of 5000
7. Delhi

(दिल्ली)

1% of Capital 1% of Capital 1% of Capital

(Max : 5000)

1% of Capital

(Max : 5000)

8. Goa

(गोवा)

500 1000 5000 5000
9. Gujarat

(गुजरात)

1000

(1 rupee for every 100 rupees up to maximum of INR 10, 000)

2000-5000

(1 rupee for every 100 rupees up to maximum of INR 10, 000)

6000-10000

(1 rupee for every 100 rupees up to maximum of INR 10, 000)

10000
10. Haryana

(हरयाणा)

1000 1000 1000 1000
11. Himachal Pradesh

(हिमाचल प्रदेश)

200 200 200 200
12. Jammu and Kashmir

(जम्मू और कश्मीर)

For contribution in excess of INR 50, 000 – 2% of the value; up to maximum of 5000

(1000 for contribution of up to INR 50, 000)

For contribution in excess of INR 50, 000 – 2% of the value; up to maximum of 5000 For contribution in excess of INR 50, 000 – 2% of the value; up to maximum of 5000 5000
13. Jharkhand

(झारखंड)

2500 5000 5000 5000
14. Karnataka

(कर्नाटक)

2000

(500 for contribution of up to INR 50, 000)

2000 2000 2000
15. Kerala

(केरल)

1000 1000 1000 1000
16. Madhya Pradesh

(मध्य प्रदेश)

2000 2000-5000 5000 5000
17. Maharashtra

(महाराष्ट्र)

500 + 1% of capital up to maximum 15000

(500 –  for capital contribution of up to INR 50, 000)

500 + 1% of capital up to maximum 15000 500 + 1% of capital up to maximum 15000 500 + 1% of capital up to maximum 15000
18. Manipur

(मणिपुर)

100 100 100 100
19. Meghalaya

(मेघालय)

100 100 100 100
20. Mizoram

(मिजोरम)

100 100 100 100
21. Nagaland

(नागालैंड)

100 100 100 100
22. Orissa

(ओडिशा)

200 200 200 200
23. Punjab

(पंजाब)

1000 1000 1000 1000
24. Rajasthan

(राजस्थान)

2000 for every INR 50, 000 worth contribution

(2000 for contribution up to INR 50,000)

4000-10000

(2000 for every INR 50, 000 contribution up to maximum INR 10, 000.)

10000

(2000 for every INR 50, 000 contribution up to maximum INR 10, 000.)

10000

(2000 for every INR 50, 000 contribution up to maximum INR 10, 000.)

25. Sikkim

(सिक्किम)

100 100 100 100
26. Tamil Nadu

(तमिलनाडु)

1000 1000 1000 1000
27. Telangana

(तेलंगाना)

500

(For capital contribution of up to INR 5000– 100)

500 500 500
28. Tripura

(त्रिपुरा)

100 100 100 100
29. Uttar Pradesh

(उतार प्रदेश)

40 – for each capital contribution of INR 1000 or part thereof in excess of INR 1000

(For capital contribution of up to INR 10, 000 – 100)

40 – for each capital contribution of INR 1000 or part thereof in excess of INR 1000 40 – for each capital contribution of INR 1000 or part thereof in excess of INR 1000 40 – for each capital contribution of INR 1000 or part thereof in excess of INR 1000
30. Uttarakhand

(उत्तराखंड)

750 750 750 750
31. Dadra and Nagar Haveli

(दादरा और नगर हवेली)

 

1000 2000 – 5000 6000 – 10000 10000
32. Daman and Diu

(दमन और दीव)

 

1000

(For Capital Contribution of upto INR 50,000- Rs. 500)

1500 5000 5000

LLP Registration can be done through Registration Arena in Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, Uttar Pradesh, Madhya Pradesh  and all other Indian cities. To know more about LLP Registration CLICK HERE

We also provide other services like Private Limited Registration, Nidhi Company Registration, Producer Company Registration, Import Export Code, Company ROC Filing, Company Annual Compliance, ISO Certification, GST Registration, GST Filings, Trademark Registration, LLP ROC Filing, Digital Signature Services, etc. in Mumbai, Delhi, Pune, Bangalore, Chennai, Hyderabad, Kolkata, Kerala and all other cities in India.

Ask for free leagal Advice