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.
0 Comments