TMI BlogForeign Direct Investment (FDI) in Limited Liability Partnership (LLP)X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under the Companies Act, 1956 or a Venture Capital Fund is eligible to accept FDI. 2. It has now been decided that Limited Liability Partnership (LLP) formed and registered under the Limited Liability Partnership Act, 2008 shall be eligible to accept Foreign Direct Investment (FDI) subject to the conditions given in Annex I. 3. A copy of Press Note No. 1 (2011 series) dated May 20, 2011 issued in this regard by Department of Industrial Policy Promotion (DIPP), Ministry of Commerce Industry, Government of India is enclosed. A reference is also drawn to paragraph 3.2.5 of the Consolidated FDI Policy Circular 1of 2013 dated April 5, 2013 issued by DIPP, in the matter. 4. Reserve Bank has since amended the Principal Regula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LP) in Limited Liability Partnerships (LLPs) formed and registered under the Limited Liability Partnership Act, 2008. 1. Eligible Investors: A person resident outside India or an entity incorporated outside India shall be eligible investor for the purpose of FDI in LLPs. However, the following persons shall not be eligible to invest in LLPs: (i) a citizen/entity of Pakistan and Bangladesh or (ii) a SEBI registered Foreign Institutional Investor (FII) or (iii) a SEBI registered Foreign Venture Capital Investor (FVCI) or (iv) a SEBI registered Qualified Foreign Investor (QFI) or (v) a Foreign Portfolio Investor registered in accordance with Securities and Exchange Board of India(Foreign Portfolio Investors) Regulation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent under the Scheme. Note: Investment by way of profit share will fall under the category of reinvestment of earnings 4. Entry Route: Any FDI in a LLP shall require prior Government/FIPB approval. Any form of foreign investment in an LLP, direct or indirect (regardless of nature of ownership or control of an Indian Company) shall require Government/FIPB approval. 5. Pricing: FDI in an LLP either by way of capital contribution or by way of acquisition / transfer of profit shares , would have to be more than or equal to the fair price as worked out with any valuation norm which is internationally accepted/ adopted as per market practice (hereinafter referred to as fair price of capital contribution/profit share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation certificate (as per paragraph 5 above) as regards pricing at the earliest but not later than 30 days from the date of receipt of the amount of consideration. The report would be acknowledged by the Regional Office concerned, which would allot a Unique Identification Number (UIN) for the amount reported. (ii) The AD Category I bank in India, receiving the remittance should obtain a KYC report in respect of the foreign investor from the overseas bank remitting the amount. (iii) Disinvestment / transfer of capital contribution or profit share between a resident and a non-resident (or vice versa) shall require to be reported within 60 days from the date of receipt of funds in Form FOREIGN DIRECT INVESTMENT-LLP(II) as given in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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