Stamp Duty for LLP Agreement — State-wise & Contribution-based
The LLP agreement — the document that governs the rights and duties of partners — must be executed on stamp paper of the correct value, and the stamp duty varies by state and by the capital contribution. Paying the right stamp duty is essential for a valid agreement and smooth filing. This guide explains stamp duty on an LLP agreement.
Why stamp duty applies
Stamp duty is a state subject, so the amount payable on an LLP agreement is governed by the Stamp Act of the state where the LLP is registered. The LLP agreement is executed on stamp paper (or e-stamp) of the applicable value and then filed with the ROC in Form 3 within 30 days of incorporation.
How the amount is determined
- It depends on the state of the registered office, and
- generally increases with the capital contribution of the LLP (many states use slabs based on contribution).
Because each state’s schedule differs, check the current stamp duty schedule for your state and contribution slab before executing the agreement. Under-stamping can render the document inadmissible and cause penalties.
Process
- Finalise the LLP agreement terms after incorporation.
- Determine the stamp duty for your state and capital contribution.
- Execute the agreement on stamp paper / e-stamp of that value, signed by all partners with witnesses.
- File Form 3 with the ROC within 30 days.
TAXAJ handles LLP registration including drafting and stamping the LLP agreement, and can arrange e-stamp paper.
Frequently asked questions
How much stamp duty is payable on an LLP agreement?
It varies by state and capital contribution — there is no single national figure; check your state’s stamp schedule.
On what value of stamp paper should the LLP agreement be executed?
On stamp paper equal to the stamp duty applicable in your state for your LLP’s contribution slab.
What happens if the LLP agreement is under-stamped?
It can be treated as improperly stamped — inadmissible as evidence and liable to penalty until the deficit and penalty are paid.
Registering an LLP? TAXAJ drafts and correctly stamps your LLP agreement and files Form 3. Register your LLP with TAXAJ →
Related guides: LLP registration · E-stamp paper · Check LLP status
