Introduction

Beginning on the journey of LLP Registrations is a very exciting venture leads to initiation of an exciting business endeavor. However, behind these endeavors include a practical aspect that needs to be considered- LLP registration fees, associated costs in the registering process of an LLP which is very crucial for business to consider, because this would help business in pre-planning their budget for the business to be spend in registration and the compliance costs. In this blog we would be discussing about professional fees, services cost and the compliance cost. In this article we would be discussing about the LLP registration and their compliance cost in each and every step as well as the total cost of incorporation of the LLP.

Category of Costs

The following are the categories where there would be costing:-

Government Fees
Stamp Duty
Professional Fees
Digital Signature Certificate (DSC) Cost
Name Reservation Fees
Registered Office Fees
Stationary and Printing Costs
Legal and Consultation Fees
Miscellaneous Expenses
Compliance Cost
Training and Awareness Cost, Cost of training of employees or partners
Foreign Contribution Regulation Act(FCRA) Registration Cost( if applicable) , if capital contributions from foreign is made.

LLP Registration Fees

LLP registration fees comprises of many different section fees specified at each step of the registration process. The breakdown of the LLP registration fees is as follows:

Obtaining DSC

DSC can be obtained from the MCA website Ministry Of Corporate Affairs – Acquire DSC (mca.gov.in), the issuing agencies have the authority to issue DSC, generally its cost varies depending upon if one wants signature or wants signature with encryption , the issuing agency it is acquiring the DSC from as well the duration for the DSC to be valid.. Generally it Ranges from: Rs. 500 to Rs. 2000.

DIN application

The DIN application form fees depends upon the, capital contribution made in the LLP and the issuance costs a fee. Minimum it costs Rs. 500, it may increase depending upon the capital contribution of the partners

Reserving name cost

There is cost associated with reserving the name of the LLP.It depends upon the uniqueness of the LLP, minimum it costs Rs. 1000.

If the name is unique not much in demand than it costs on the lower end.

Else it costs more if the name is generic and it is very much in demand in the market for its reservation

Incorporation of LLP

The cost of recieving incorporation certificate from an LLP varies depending upon capital contributions made by the partners the costs are:

LLP with contribution amount between 1 lakh and 5 lakh, a fee of Rs. 2,000.
LLP with contribution amount between 5 lakh and 10 lakh, a fee of Rs. 4,000.
LLP with a contribution amount of more than 10 lakh, a fee of Rs. 5,000.

Certificate of incorporation cost as Company

This cost isn’t charged separately, it gets charged generally in the incorporation as an LLP cost. These costs also vary depending as per the above factor that is capital contribution

LLP Agreement cost

Drafting of the LLP Agreement cost depends upon various factors:

The fees of the legal professional who drafted the agreement, various depending upon their charges that is Rs. 5000 to Rs. 1000
The Stamp Duty to make this agreement valid, generally Rs. 500 to Rs. 2000
Filling of the Agreement.

Minimum costs in the registration processis around 10, 000 approximately, capital contribution is calculated separately and this changes depending upon various factor this is not the exact cost. The categories of cost included above are government fees- charged by authorities like RoC( Registrar of Company), Stamp Duty,

Additional Costs

The additional costs that we need to consider in addition to the registration cost is that of:

Legal Consultation
Notary Charges
Currior
Stationary fees( paper printing)
Renting of an Office Cost
Additonal Complaince Cost- audit filling fees and expenses.

For these there might be cost of another Rs. 15,000 which is minimum

Conclusion

Hence, in toal it may cost around Rs. 25,000, where around 10,000 is the minimum cost in the resgisteting process as well as another 15,ooo in other expenses which may vary on many dpeending factors as well as the capital contribution which is different from these costs. The stated costs are not exact but an estimation. From this we conclude that registering an LLP includes various costs like contributing to the overall costs like compliance and legal services, knowing the estimation is crucial for business owners for planning their budget in the registration of an LLP.By staying informed about the services required and associated costs, businesses can make strategic decisions to optimize the overall registration cost and ensure seamless compliance with regulatory requirements.”

FAQs

General costs in LLP incorporation?

Registration fees for an LLP include costs for name reservation, filing with the Registrar of Companies (RoC), and stamp duty, among others.

Is there any compliance cost in an LLP?

Yes, ongoing compliance costs may include annual filing fees, audit expenses, and other regulatory requirements, depending on the business activities.

Do different state charge differently for their stamp duty?

Yes, the charges in stamp duty vary as per the states, different state charge different stamp duty.

What are the services included in LLP formation?

Services maybe consulting of legal professionals, consultants, drafting of LLP agreement fees and others depending upon the services availed for the formation of LLP.

Business Registration

NGO

COMPLIANCES

Change In Business

BIS & CDSCO

Government Registration

FSSAI

Environmental

LLP Registration Fees and Associated Fees

Aaryan Mishra

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