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Can foreign nationals be partners in an LLP?

Legal Eligibility

  • Yes, foreign nationals are allowed to be partners in a Limited Liability Partnership (LLP) in India.
  • Both individuals and foreign bodies can participate in LLPs
  • There are no restrictions under the LLP Act, 2008, on nationality or residency for a general partnership.
  • The foreign national must be competent to contract as per Indian law.
  • The inclusion must comply with foreign investment policies and sectoral regulations.

Designated Partner Requirement

  • At least one designated partner must be a resident in India.a
  • A foreign national can also become a designated partner, subject to the appointment of at least one Indian resident.
  • The foreign partner must obtain a Designated Partner Identification Number (DPIN)
  • A valid Digital Signature Certificate (DSC) is required for electronic filings.
  • Their consent and details must be filed with the Registrar of Companies.s

Regulatory Compliance

  • Foreign partners must comply with the Foreign Direct Investment (FDI) rules under FEMA.
  • LLPs with foreign investment must operate in sectors where 100% FDI is allowed through the automatic route.
  • Activities requiring prior government approval are not permitted for foreign-invested LLPs
  • All transactions must be reported to the Reserve Bank of India (RBI), if applicable.e
  • Sectoral restrictions and investment caps must be adhered to

Documentation and Process

  • Foreign individuals must provide notarized and apostilled identity and address proof.f
  • Passport and visa documents are essential for verification.
  • Proof of residence and recent photographs must be submitted.d
  • All documentation must meet the MCA and RBI compliance standards.s
  • Forms are filed electronically through the Ministry of Corporate Affairs (MCA) portal.

Operational Participation

  • Once admitted, foreign nationals enjoy the same rights, duties, and liabilities as Indian partners.
  • They can contribute capital, share profits, and participate in decision-making.g
  • They are bound by the LLP agreement and Indian laws applicable to the business.s
  • Withdrawal or resignation must follow due legal process and be updated in the records.

Their capital contributions and profit withdrawals must be regulated through proper banking channels.

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