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What's New

Government allows FDI in LLP

The government on Wednesday approved the much awaited foreign direct investment policy in LLP. Initally  Foreign direct investment in LLPs will be allowed only in those sectors where 100% foreign ownership is permitted for example sectors like information technology , manufacturing, power, roads etc.  

LLPs with foreign investments will not be allowed in agricultural or plantation activity, print media and real estate business or downstream investments.

The government has also imposed stringent conditions to prevent its misuse. An Indian company having foreign direct investment 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.

Foreign participation in the LLPs will be allowed only by way of cash considerations, received by inward remittance through normal banking channels. will provide detialed  review of the policy allowing FDI in LLP, once the same is issued by Government of India


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