LLP Agreement Stamp Paper Value in Karnataka: All You Need to Know
When forming a Limited Liability Partnership (LLP) in Karnataka, one of the mandatory requirements is the LLP agreement. This agreement is a legal document that outlines the rights and responsibilities of the partners, as well as the terms and conditions of the LLP.
To make the LLP agreement legally binding, it needs to be printed on a non-judicial stamp paper. In Karnataka, the value of the stamp paper required for the LLP agreement varies depending on the capital contribution of the partners. In this article, we’ll provide you with all the details you need to know about LLP agreement stamp paper value in Karnataka.
Determining the LLP Agreement Stamp Paper Value
The value of the stamp paper required for the LLP agreement is determined by the LLP Act, 2008. As per the act, the stamp duty payable on the LLP agreement is based on two factors:
1. Capital Contribution of the Partners: The stamp duty payable on the LLP agreement is directly proportional to the total capital contribution of the partners. In Karnataka, the LLP agreement stamp paper value is as follows:
• For capital contribution less than or equal to Rs. 1 lakh – Rs. 200
• For capital contribution greater than Rs. 1 lakh but less than or equal to Rs. 5 lakhs – Rs. 500
• For capital contribution greater than Rs. 5 lakhs but less than or equal to Rs. 10 lakhs – Rs. 1000
• For capital contribution greater than Rs. 10 lakhs but less than or equal to Rs. 50 lakhs – Rs. 1500
• For capital contribution greater than Rs. 50 lakhs – Rs. 2000
2. The State in which the LLP is Registered: The stamp duty payable on the LLP agreement also varies from state to state. In Karnataka, the stamp duty is governed by the Karnataka Stamp Act, 1957.
Steps to Purchase LLP Agreement Stamp Paper in Karnataka
To purchase the LLP agreement stamp paper in Karnataka, follow the below-given steps:
1. Determine the LLP agreement stamp paper value based on the capital contribution of the partners.
2. Visit the authorized stamp vendor in your area and provide them with a copy of the LLP agreement.
3. Pay the required amount of stamp duty and obtain the stamp paper.
4. Print the LLP agreement on the stamp paper and get it signed by all the partners.
5. File the LLP agreement along with the necessary documents with the Registrar of Companies.
Conclusion
In summary, LLP agreement stamp paper value in Karnataka is based on the capital contribution of the partners and is governed by the Karnataka Stamp Act, 1957. It is mandatory to purchase the stamp paper of the appropriate value and print the LLP agreement on it to make it legally binding. As such, it is important to ensure that all required documents are in order to avoid any legal complications in the future.