FDI
in
Limited Liability
Partnerships (LLPs): FDI in LLPs is permitted, subject to the following conditions:
FDI in Limited Liability
Partnerships (LLPs): FDI in LLPs is permitted, subject to the following conditions:
(a) FDI will be allowed, through the Government approval route, only in LLPs operating
in sectors/activities
where 100%
FDI
is allowed, through the automatic route and there are no FDI-linked performance conditions (such as 'Non Banking Finance Companies' or 'Development of Townships, Housing, Built-up infrastructure and Construction-development projects' etc.).
(b) LLPs with FDI
will not be allowed
to operate in agricultural/plantation activity, print media or real estate business.
(c)
An Indian
company, having
FDI, will
be permitted
to make downstream investment in
an LLP only if both-the company, as well as the LLP-
are operating in
sectors where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions.
(d) LLPs with FDI will not be eligible to make any downstream investments.
(e) Foreign Capital participation in LLPs will be allowed only by way of cash
consideration,
received by
inward remittance, through normal
banking channels
or by debit
to
NRE/FCNR
account of the person
concerned, maintained with an authorized dealer/authorized bank.
(f) Investment in LLPs by Foreign Portfolio Investors (FPIs) and Foreign
Venture Capital Investors (FVCIs) will not be permitted.
LLPs will also not be
permitted to avail External Commercial Borrowings (ECBs).
(g) In case the LLP
with FDI has a body corporate that is a designated partner or nominates an individual to act as a designated partner in accordance with the provisions of Section 7 of
the LLP
Act, 2008, such a body corporate
should only be a company registered in India under the Companies Act, 1956 and not any other body, such as an LLP or a trust.
(h) For such LLPs, the designated partner "resident in India", as defined under the 'Explanation' to Section 7(1) of the LLP Act, 2008, would also have to satisfy the definition of "person resident in India", as prescribed under Section 2(v)(i) of the Foreign Exchange Management Act, 1999.
(i)
The designated
partners
will be responsible for
compliance
with all the
above conditions and also liable for all penalties imposed on
the LLP for their contravention, if any.
(j) Conversion
of a company with FDI, into an LLP, will be allowed only if the above stipulations (except clause 3.2.5(e) which would be optional in case of
a company) are met and with the prior approval of FIPB/Government.
|
FDI in Limited Liability Partnerships (LLPs): FDI in LLPs is permitted, subject to the following conditions:
have to satisfy the definition
of "person resident
in India", as prescribed under Section
2(v)(i) of the Foreign Exchange Management Act, 1999.
|
||
(h)
|
The designated partners will be responsible for
compliance
with all the above conditions and also liable
for all penalties imposed on the LLP for their contravention, if any
|
|
(i)
|
Conversion of a company with FDI, into an LLP,
will be allowed only if
the above stipulations (except clause 3.2.5(e) which
would be optional in case of a company) are met
and with the prior approval of FIPB/Government.
|
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