Formation of an llp with foreign partners

3 partners(all of whom are USA ie.foreign citizens) want to form a LLP in India. Say their names are P,Q & R

P: US citizen and lives in US

Q: US citizen but he is a 'Person of Indian origin' since his father, mother etc. were from India. He has the 'PIO' card'

R: US citizen but residing > 182 days in a year in India since the past 6-7 years

 

I've read that LLP can be formed with Foreign Partners provided there is at least one Indian partner. So do Q or R satisfy the condition of an Indian partner based on the above data??

Also, what is the minimum stake that an Indian partner should have in the LLP? Can it be just 1%?

Replies (3)

You can firm LLP,  R satisfies the conditions of Resident in India.

There is no restriction in the Act that Indian partner should have minimum stake, it depends on your LLP Agrrement.

Yes, the LLP Act 2008 allows Foreign Nationals including Foreign Companies & LLPs to incorporate a LLP in India provided at least one designated partner is resident of India. However, the LLP/Partners would have to comply with all relevant Foreign Exchange Laws/ Rules/ Regulations/ Guidelines.

1) Is FIPB permission required? If yes, what is the procedure and estimated for the same?

2) Is there any other Foreign Exchange Laws/ Rules/ Regulations/ Guidelines that requires compliance?

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