The submission of an LLP agreement with the Ministry of Corporate Affairs is the final step in registering an LLP. After receiving the LLP`s certificate of creation, the LLP agreement duly signed by LLP`s partners must be filed within 30 days. If the LLP agreement is not submitted, a fine of 100 ru. per day will be inflicted without a ceiling. It is therefore important to prepare and submit the LLP agreement quickly after its creation. An LLP agreement contains different clauses, as agreed by the partners. The LLP agreement defines the roles and responsibilities of LLP partners. It must be signed by all partners. An LLP works in accordance with the agreement. In the event of a dispute, it is resolved in accordance with the applicable clauses of an LLP agreement. In the absence of a clause, the resolution will be adopted in accordance with the LLP Act. Stamp duty on contract is paid either by Judicial Stamp Paper or by e-stamping from Stock Holding Corporation of India Limited (SCHIL), wherever possible. Stamp duty varies from state to state.
The LLP agreement must be printed on non-judicial stamp paper. Once printed on stamp paper, it must be signed by LLP partners and certified notarized. The value of the stamp paper on which the LLP agreement or stamp duty on the LLP agreement is printed depends on the state of incorporation and the amount of the partners` capital contribution. It is clear from the above that the LLP agreement is an absolute necessity for the inclusion of LLP. The LLP act must not be printed on standard paper; Otherwise, the Authority rescinds the requirement. Instead, the applicant must choose that the paper stamped with the non-judicial state serves this purpose. Don`t forget to get an out-of-court stamp on the agreement once these conditions are met. Stamp duty varies from state to state and depends on the partner`s capital allocation. The table above would help gain access to the stamp rate in different countries. Please direct CorpBiz experts for technical advice on stamp duty on the LLP agreement.
The initial LLP agreement will be established and forwarded to the Registrar within 30 days of registration, and if a limited liability partnership does not extradite the original LLP agreement within a specified time frame, there will be a penalty of 100/- per day without a fixed ceiling. It is therefore very important to submit the initial agreement as soon as possible in order to avoid the sanction. An LLP agreement must be affixed to stamp paper with a certain amount of tax stamped (see table below) and must be duly authenticated. The LLP agreement must be affixed to the stamp duty rate to be paid based on the state in which the LLP is registered. Make sure the agreement is printed on non-judicial stamp paper. MCA requests such a document to validate the inclusion of an LLP. The applicant must give consent to the MCA within 30 days of the creation of LLP. Violation of such conditions entails specific penalties which must be reimbursed in accordance with the determination of the competent authority. We can therefore conclude that this agreement is an essential part of the creation process, which must be addressed without delay by the applicant. As stated in the previous paragraphs, the LLP must pay the stamp duty corresponding to the LLP agreement or the partnership agreement.