Overview: The partnership deed stamp duty varies from state to state in India so it is always advisable to choose the right value of stamp paper for partnership deed in order to make the terms, conditions and clauses of the partnership deed legally enforceable, thereby providing you legal protection against any sort of fraudulent activities caused by your partners. This post focuses on the importance of stamp paper value for partnership deeds in India and why choosing the appropriate partnership deed stamp duty is necessary!
Table of ContentsThe partnership deed/agreement and the LLP agreements are vital legal documents that are subject to the same rate of the stamp paper value in India. State governments prescribe the stamp duty rates for partnership deeds/LLP agreements; hence it varies across several states in India, and an attempt is made to cover the stamp duty rates or stamp paper value for partnership deed or LLP agreements at one place for your ease.
The LLP agreement is a written document that is regarded as the constitution of the LLP and defines the relationship between the partners of the LLP per se and their relationship with the LLP. The LLP agreement should be printed on plain paper, and the stamp duty for partnership deed or on the LLP agreement must be paid by way of purchasing the non-judicial stamp paper of appropriate value. Please refer to the below section to know the stamp duty rate in your state.
As per section 23 of the LLP Act, it is mandatory to file the LLP Agreement with the ROC within 30 days of its incorporation in FORM-3. The ROC will object to the registration of LLP agreement if the same is not executed on correct stamp duty. Notary attestation of the LLP agreement is also desirable. The LLP agreement is a crucial document, and you should be very careful while calculating the stamp duty on the LLP agreement, as any short payment of the stamp duty would make the LLP agreement an unenforceable in the court of law.
