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Change in Ownership of LLP from Resident to Non-Resident and Vice Versa

A person Resident outisde India may invest in an existing LLP by acquiring the stake of existing Resident Individual or vice versa. In these scneario, the LLP is required to report the such transfer of stake with RBI in LLP Forms

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Scope of Work:

  • 1. Preparation of documents; 


    2. Preparation of Form FC-TRS;


    3. Obtaining RBI Approval Certificate;


Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country.

Every LLP shall be required to have atleast two Designated Partners who shall be individuals and at least one of the Designated Partner shall be a resident of India.

FDI is permitted under the automatic route in LLPs operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions.

2 Modes of FDI in LLP (Limited Liability Partnership). A direct investment is when a foreign entity makes a direct investment in an Indian firm. An indirect investment is one that is made by a foreign entity into a domestic entity.

An LLP engaged in 100% Automatic sectors (not being subject to FDI-linked performance related conditions) is eligible to receive Foreign Direct Investmentfrom person resident outside India on a repatriable basis.

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