In a recent regulatory development, the Ministry of Corporate Affairs (MCA) has issued fresh guidelines for foreign Limited Liability Partnerships (LLPs) operating in India, aimed at improving transparency, regulatory oversight, and compliance alignment with domestic business laws. These guidelines are part of the government’s continuing effort to create a robust legal framework for cross-border partnerships while facilitating smoother operations for foreign firms. Foreign LLPs must now formally register with the MCA before commencing any commercial activity in India, regardless of the sector or scale of operation.

As per the new directive, all foreign LLPs establishing a place of business in India must file Form 27 (Registration of particulars by Foreign LLPs) along with certified incorporation documents, details of partners, and proof of registered office. Additionally, they are required to appoint an authorized representative resident in India who will be responsible for regulatory communications and compliance filings. Failure to comply with these requirements may attract penalties, suspension of operations, or restrictions on remittance of profits, making it imperative for foreign LLPs to act promptly and align with the revised norms.

The guidelines also mandate that foreign LLPs submit annual statements, including audited financial reports and details of business transactions in India, to ensure compliance with the Foreign Exchange Management Act (FEMA) and related corporate regulations. These steps are expected to strengthen the legal standing of foreign LLPs and enhance investor confidence by ensuring financial accountability and corporate transparency. Legal experts have welcomed the move, noting that it closes critical gaps in monitoring foreign LLP operations and reinforces India’s commitment to international best practices in business regulation.