In a move to improve regulatory oversight and investor transparency, the Government of India is set to launch a dedicated FDI Tracker for Limited Liability Partnerships (LLPs). This digital tool, being jointly developed by the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI), will allow for real-time monitoring of foreign direct investment (FDI) inflows into LLPs across sectors. The initiative is aimed at bringing LLPs on par with companies in terms of foreign investment governance and aligning reporting with FEMA and FDI policy guidelines.

The FDI Tracker will feature an integrated dashboard on the MCA portal, enabling LLPs to report foreign investments through standardized online forms linked to the FIRMS portal. Features will include auto-validation of investor credentials, dynamic linking of LLPIN with PAN and FDI transaction IDs, and compliance alerts for reporting deadlines. The tool will also support sectoral analysis, ownership pattern tracking, and automated generation of filings under Form LLP(I) and LLP(II). This will streamline the FDI reporting process, which has previously been seen as opaque and fragmented in the LLP framework.

Regulators and legal experts have welcomed the development, citing that it will enhance data integrity, reduce the risk of non-compliance, and improve investor confidence in India’s LLP sector. The tracker is expected to benefit foreign-funded professional services, fintech, e-commerce, and consulting LLPs that increasingly attract cross-border partnerships. The MCA has announced that the FDI Tracker will be launched in early 2026, with pilot testing and stakeholder training sessions scheduled later this year. Once operational, it will play a pivotal role in strengthening India’s FDI ecosystem and ensuring transparent governance for alternative business structures.