Legal Requirement

• Stamp Duty on LLP Agreement is mandatory under the Indian Stamp Act or respective State Stamp Acts
  
• It validates the agreement as a legally enforceable document
  
• The agreement must be executed on non-judicial stamp paper of appropriate value
  
• Without proper stamping, the agreement is considered inadmissible in legal proceedings
  
• It is a one-time duty paid at the time of incorporation or when the agreement is amended
  

State-Wise Applicability

• Stamp duty is a state subject, and rates vary based on the location of the registered office of the LLP
  
• Each state prescribes its own slab rates or fixed charges for LLP agreements
  
• Some states charge based on the capital contribution, while others apply a fixed fee
  
• The LLP must verify applicable rates with the local Stamp Authority or Registrar
  
• It is essential to use stamp paper issued from the state where the LLP is registered
  

Based on Capital Contribution

• In many states, stamp duty is calculated proportionately to the amount of capital contributed by the partners
  
• Higher capital typically attracts higher stamp duty
  
• Non-monetary contributions must also be valued and included in the calculation
  
• Accurate declaration of capital is essential for correct stamp duty computation
  
• Understatement or misclassification may lead to penalty or invalidation
  

Payment and Execution

• Stamp duty must be paid before or at the time of signing the LLP Agreement
  
• Payment is usually made through non-judicial stamp paper, e-stamping, or franking
  
• All partners must sign the stamped agreement to make it legally binding
  
• Proper stamping ensures the document is valid for filings and dispute resolution
  
• The executed copy must be retained for audit and legal compliance
  

Filing with Registrar

• A stamped and signed copy of the LLP Agreement must be filed with the Registrar of Companies through Form 3
  
• Filing must be done within 30 days from the date of incorporation or change
  
• Late filing may attract additional government fees and penalties
  
• The Registrar does not verify stamp duty but expects it to be compliant with state law
  
• It is the duty of the LLP and its partners to ensure appropriate stamp duty is paid