February 08, 2024 at 06:42 AM
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.
The following are the categories where there would be costing:-
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:
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.
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
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
The cost of recieving incorporation certificate from an LLP varies depending upon capital contributions made by the partners the costs are:
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
Drafting of the LLP Agreement cost depends upon various factors:
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,
The additional costs that we need to consider in addition to the registration cost is that of:
For these there might be cost of another Rs. 15,000 which is minimum
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.”
Registration fees for an LLP include costs for name reservation, filing with the Registrar of Companies (RoC), and stamp duty, among others.
Yes, ongoing compliance costs may include annual filing fees, audit expenses, and other regulatory requirements, depending on the business activities.
Yes, the charges in stamp duty vary as per the states, different state charge different stamp duty.
Services maybe consulting of legal professionals, consultants, drafting of LLP agreement fees and others depending upon the services availed for the formation of LLP.