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LLP registration with FDI in India – Foreign direct investment compliance for Limited Liability Partnerships, RBI approval process, FEMA guidelines, and expert consultancy services for foreign investors and NRIs setting up business in India.

LLP with FDI (Foreign Direct Investment) Registration in India

A Limited Liability Partnership (LLP) is a popular business structure in India, offering flexibility and limited liability protection. With the ease of doing business in India, Foreign Direct Investment (FDI) in LLPs has become an attractive option for global investors looking to establish a presence in India.
 

India allows FDI in LLPs under automatic and government approval routes, subject to specific compliance and regulatory requirements. This guide will cover types of registration, the process, required documents, exemptions, and the timeline for LLP registration with FDI.

Why Choose LLP for FDI in India?

  • Limited Liability Protection: Personal assets of partners remain protected.

  • Ease of Compliance: Less stringent compliance compared to private limited companies.

  • Tax Benefits: LLPs are not subject to dividend distribution tax.

  • Flexibility in Management: No restriction on profit-sharing ratios among partners.

  • No Minimum Capital Requirement: LLPs can be incorporated with any amount of capital.

Types of LLP with FDI Registration

Types of LLPs eligible for FDI in India – Guide to FDI-compliant LLP structures, 100% FDI under automatic route, RBI and FEMA compliance, foreign partner eligibility, and expert assistance for LLP FDI registration in India.

1

Foreign Direct Investment (FDI) Route

Under this route, 100% FDI is allowed in LLPs operating in sectors where foreign investment is permitted without government approval. This is applicable for industries that do not have performance-linked conditions or caps.

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2

Government Approval Route

If an LLP is engaged in a sector that requires prior government approval, it must seek clearance from the Department for Promotion of Industry and Internal Trade (DPIIT) and the Foreign Investment Facilitation Portal (FIFP).

Eligibility Criteria for FDI in LLPs

  • FDI is permitted only in sectors where 100% FDI is allowed under the automatic route.

  • LLPs must not engage in agriculture, real estate, and print media.

  • At least one designated partner must be a resident of India.

  • Foreign investment must comply with FEMA (Foreign Exchange Management Act) guidelines.

"LLP with FDI registration in India – Expert services for setting up LLP with foreign direct investment, 100% FDI under automatic route, RBI and FEMA compliance, NRI and foreign investor LLP formation, and legal advisory for FDI approval process.

Step-by-Step Process for LLP Registration with FDI

Step 1: Digital Signature Certificate (DSC) for Partners

All designated partners must obtain a Digital Signature Certificate (DSC) from a government-recognized certifying agency.
 

Step 2: Director Identification Number (DIN) Application

Each partner must apply for a Director Identification Number (DIN) through the MCA portal.

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Step 3: Name Approval via RUN-LLP Form

The LLP’s name must be unique and comply with MCA (Ministry of Corporate Affairs) guidelines. Apply for name approval through the Reserve Unique Name (RUN-LLP) form.
 

Step 4: Incorporation Filing (FiLLiP Form Submission)

Submit the FiLLiP form (Form for Incorporation of LLP) along with:

  • Registered office proof

  • Partners’ identity and address proofs

  • Subscription sheet signed by partners
     

Step 5: LLP Agreement Drafting & Filing

The LLP Agreement defines the rights, duties, and profit-sharing between partners. It must be filed in Form 3 within 30 days of incorporation.
 

Step 6: FDI Compliance & Reporting

Foreign investors must report the FDI inflow via:

  • FC-GPR Form (Foreign Currency-Gross Provisional Return) within 30 days.

  • Annual Return Compliance under FEMA and RBI guidelines.
     

Step 7: PAN, TAN & GST Registration

Obtain PAN (Permanent Account Number), TAN (Tax Deduction Account Number), and GST (Goods and Services Tax) registration to commence business operations.

Timeline for LLP Registration with FDI

Process Stage
Estimated Time
DSC & DIN Application
1-2 Days
Name Approval
2-3 Days
Incorporation Filing
5-7 Days
LLP Agreement Submission
7-10 Days
FDI Compliance & Reporting
15-20 Days
PAN, TAN & GST Registration
3-5 Days
Total Estimated Time
15-30 Days

Documents Required for LLP with
FDI (Foreign Direct Investment)

Documents required for LLP with FDI in India for foreign partners – Passport, address proof, notarized KYC, foreign national DSC, FDI declaration, RBI and FEMA compliance documents, and expert consultancy for LLP registration with foreign investment.

For Foreign Partners:

  • Passport (Notarized & Apostilled)

  • Address Proof (Utility Bill/Bank Statement)

  • Recent Photographs

  • Specimen Signature

Documents required for LLP with FDI in India for Indian partners – Checklist for KYC, PAN, DIN, DSC, LLP agreement, RBI and FEMA compliance documents, expert assistance for FDI registration and LLP formation with foreign investment.

For Indian Partners:

  • PAN Card

  • Aadhaar Card/Voter ID/Driving License

  • Utility Bill (Not older than 2 months)

  • Passport-sized Photos

Documents required for registered office address of LLP with FDI in India – Proof of registered office, rent agreement, utility bill, NOC from owner, and RBI/FEMA compliance for LLP formation with foreign direct investment.

For Registered Office Address:

  • Utility Bill (Electricity/Water Bill)

  • Rent Agreement (If rented)

  • No Objection Certificate (NOC) from the landlord

Exemptions & Special Benefits for LLPs with FDI

  • No Minimum Capital Requirement: Unlike private limited companies, LLPs can operate without a minimum capital limit.

  • Lower Compliance Costs: Fewer regulatory filings compared to companies.

  • Tax Exemptions: LLPs are taxed as partnerships, avoiding double taxation.

  • 100% Repatriation of Profits: Foreign investors can repatriate profits without restrictions under FEMA guidelines.

Compliance & Post-Incorporation Requirements

  • Annual ROC Filing (Form 8 & Form 11)

  • Income Tax Filing (ITR 5)

  • FEMA & RBI Compliance for FDI Reporting

  • GST Return Filing (If applicable)

  • Auditor Appointment (If turnover exceeds ₹40 lakhs)

Frequently asked questions

Whatsapp us to help you in registering the partnership firm
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