Introduction
Limited Liability Partnership (LLP) is a popular business structure in India, offering the flexibility of a partnership with the advantages of limited liability. Since its introduction under the Limited Liability Partnership Act, 2008, LLPs have gained traction among small businesses, startups, and professionals due to their minimal compliance requirements and cost-effective nature.
One of the most common questions entrepreneurs have is about the LLP registration cost in India. Understanding these costs is crucial for budgeting and financial planning. In this article, we provide a detailed breakdown of the expenses involved in LLP registration, including government fees, professional charges, and additional costs.
Components of LLP Registration Cost
The total cost of LLP registration in India includes several components, such as government fees, professional fees, and optional expenses. Let’s explore these costs in detail.
1. Government Fees for LLP Registration
The government charges specific fees at different stages of the LLP registration process. These fees vary based on the contribution amount (initial capital) of the LLP.
(i) Digital Signature Certificate (DSC)
- Every designated partner in an LLP must obtain a Digital Signature Certificate (DSC) to sign the online forms digitally.
- The cost of a DSC varies between ₹800 – ₹2,500 per partner, depending on the agency and the validity period (typically 1-3 years).
(ii) Director Identification Number (DIN)
- Each designated partner must apply for a Director Identification Number (DIN), which is required for filing LLP incorporation documents.
- The government fee for obtaining a DIN is ₹500 per partner.
(iii) LLP Name Reservation Fee (RUN-LLP)
- Before registering an LLP, the proposed business name must be reserved through the Reserve Unique Name (RUN-LLP) service.
- The name reservation fee is ₹200 per application.
(iv) LLP Incorporation Fee (FiLLiP Form)
The incorporation fee depends on the capital contribution of the LLP:
- Contribution up to ₹1 lakh – ₹500
- ₹1 lakh to ₹5 lakh – ₹2,000
- ₹5 lakh to ₹10 lakh – ₹4,000
- Above ₹10 lakh – ₹5,000
(v) LLP Agreement Stamp Duty
The LLP Agreement must be executed on stamp paper, the cost of which varies from state to state.
- Typically, stamp duty is based on the capital contribution of the LLP and ranges between ₹500 – ₹5,000.
(vi) Form 3 & Form 11 Filing Fees
- Form 3 (LLP Agreement Filing): ₹50 – ₹1,000 (based on contribution amount)
- Form 11 (Annual Return Filing): ₹50 – ₹1,000
2. Professional Fees for LLP Registration
Many businesses prefer to hire professionals such as Company Secretaries (CS), Chartered Accountants (CA), or Legal Experts to ensure smooth registration. The cost for professional services varies but typically falls within the range of ₹5,000 – ₹15,000, depending on the complexity of the LLP structure and location.
3. Additional Costs
Besides the mandatory government and professional fees, there are some additional costs associated with LLP registration:
(i) Trademark Registration (Optional but Recommended)
- If you want to protect your LLP’s brand name, applying for a trademark registration is advisable.
- The cost of trademark registration in India is ₹4,500 for individuals/startups and ₹9,000 for companies.
(ii) GST Registration (If Applicable)
- LLPs engaged in businesses exceeding an annual turnover of ₹40 lakh (₹20 lakh for services) must obtain GST registration.
- While the government does not charge fees for GST registration, professional fees may range from ₹1,500 – ₹5,000.
(iii) Bank Account & Other Compliance Costs
- Opening a business bank account is essential, and banks may require an initial deposit of ₹5,000 – ₹10,000.
- Compliance with MCA filings, tax registrations, and annual audits may require additional professional fees.
Summary of LLP Registration Costs
| Expense Category | Estimated Cost (₹) |
|---|---|
| Digital Signature Certificate (DSC) | ₹800 – ₹2,500 per partner |
| Director Identification Number (DIN) | ₹500 per partner |
| Name Reservation (RUN-LLP) | ₹200 |
| Incorporation Fee (FiLLiP Form) | ₹500 – ₹5,000 |
| LLP Agreement Stamp Duty | ₹500 – ₹5,000 |
| Form 3 & Form 11 Filing Fees | ₹50 – ₹1,000 |
| Professional Fees | ₹5,000 – ₹15,000 |
| Optional Trademark Registration | ₹4,500 – ₹9,000 |
| GST Registration (if required) | ₹1,500 – ₹5,000 |
| Business Bank Account Deposit | ₹5,000 – ₹10,000 |
Conclusion
The total cost of LLP registration in India varies based on the number of partners, capital contribution, and additional requirements. On average, a small LLP with two partners can expect to pay anywhere between ₹10,000 – ₹25,000, including government fees and professional charges.
While registering an LLP is cost-effective compared to a private limited company, it is essential to consider ongoing compliance costs such as annual filings, tax audits, and other regulatory requirements.
If you are planning to register an LLP, consulting with legal and financial experts can help you navigate the process smoothly and avoid unnecessary expenses.
By understanding these costs in advance, entrepreneurs can make informed decisions and ensure hassle-free LLP registration in India.
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