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Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 A company was incorporate in India as wos of a Company Incorporated outside India.
Now there is planning to convert the indian WOS company into LLP.

LLP has an object covered under automatic rout of FDI.

Now the equerry are

1. Company Incorporated outside india or its nominee can be the Designated partner of the LLP?

2. Is the India FDI Policy allowed to invest in such LLP directly by such Holding Company or through its nominee?

You may refer the page no. 16 and 17 of FDI Policy.

Your suggestions are solicited.

Regards

Anand

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 Dear Anand,

yes a non-resident/foreigner can be a designated partner in a LLP in India. However, atleast one designated partner should be Indian resident.

Once the conversion is allowed, i see no reason why company itself cannot invest.

Querist : Anonymous

Querist : Anonymous (Querist)

22 November 2013 Thanks Nikhil,

Happy Morning.
In continuation of the matters discussed above it became complicated due to the FDI policy.
According to the FDI Policy my points are for your due consideration

(a) LLPs with FDI will be allowed, through the Government approval route, in those sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions.
b)An Indian company, having FDI, will be permitted to make downstream investment in LLPs only if both the company, as well as the LLP are operating in sectors where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions.
c)In case the LLP has a body corporate as a designated partner, the body corporate should only be a company registered under the Companies Act and not any other body, such as an LLP or a trust.
d)Conversion of a company with FDI into an LLP will be allowed only if the above stipulations are met and with the prior approval of FIPB/Government.

Points are related to the LLP only.

You may refer the page 16 and 17 of the FDI policy.

We are expecting your responce at earliest

Thanks

Anand

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