Foreign
Direct Investment (FDI) is permitted in Limited Liability Partnership (LLP),
subject to following conditions.
a.
FDI is allowed with the approval of
Foreign Investment Promotion Board
(FIPB) in LLP’s operating in sectors/activities where 100% FDI is
allowed, through the automatic route. LLPs with FDI will not be allowed to
operate in agricultural/plantation activity,print media or real estate
business.
b.
An Indian company, having FDI, will be
permitted to make downstreaminvestment in an LLP only if both-the company, as
well as the LLP- are operatingin sectors where 100% FDI is allowed, through the
automatic route.
c.
Foreign Capital participation in the
capital structure of LLPs will be allowed only by way of cash consideration,
received by inward remittance, through normal banking channels..
d.
Investment in LLPs by Foreign
Institutional Investors (FIls) and Foreign VentureCapital Investors (FVCIs)
will not be permitted.
e.
LLPs will not be permitted to avail
External Commercial Borrowings (ECBs).
f.
LLPs with FDI will not be allowed to
make any downstream investments.
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. A company with FDI can
be converted toan LLP, with the prior
approval of FIPB.
(Pioneers of online incorporation in
India)
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