A Limited Liability Partnership (LLP) is a business structure which is a\nlegal entity like a private limited company or a partnership firm. It is\nregulated by the Limited Liability Partnership Act, 2008. It is a unique\nstructure which has the characteristics pertaining to a company as well as a\npartnership. Just like a Company, an LLP is a legal entity separate from its\npartners and thus can sue and be sued in its own name, has perpetual\nsuccession. There is no minimum capital requirement to form an LLP. In\ncomparison to a company, an LLP requires minimal expenses for its formation and\nhas low compliance requirements. An LLP also has the characteristics of a\npartnership in terms of the liability of the partners, which only extends to\nthe contribution made by such partners in the assets of the partnership firm\nand does not extend to the personal assets of such partners. Scroll down to\ncheck LLP Registration for NRIs and Foreign Nationals.<\/p>\n\n\n\n
An LLP must have at least two directors and one of them must be a citizen\nof India and residing in India. <\/p>\n\n\n\n
There are largely three ways through which a foreign business can enter\nthe Indian market, namely:<\/p>\n\n\n\n
Prior to 2015, foreign nationals and NRIs looking to enter the Indian\nmarket and invest in India opted to do so by incorporating a private limited\ncompany in India. However, in November 2015, the Government of India, with a\nview to increasing foreign investments in India, relaxed the norms regulating\nthe automatic route of 100% Foreign Direct Investment and there are no Foreign\nDirect Investment related performance requirements. NRIs and foreign nationals\nare now free to start or invest in an LLP due to the relaxations granted to\nNRIs and foreign nationals.<\/p>\n\n\n\n
To apply for LLP Registration<\/a><\/strong>\nfor NRIs and Foreign Nationals in India, there are certain pre-requisites that\nneed to be complied with:<\/p>\n\n\n\n The LLP Registration for\nNRIs and Foreign Nationals involves the below-mentioned steps:<\/p>\n\n\n\n All the proposed\npartners of the LLP are required to have a valid digital signature and obtain a\nvalid Digital Signature Certificate. To obtain a Digital Signature Certificate,\nthe NRIs and Foreign Nationals must submit the signed Digital Signature\nCertificate application, along with copies of a valid passport and address\nproof, to the Certifying Authority. This step can take up to one to three days.\nA valid Digital Signature Certificate is imperative to obtain the Digital\nPartner Identification Number.<\/p>\n\n\n\n Once the proposed\npartners have obtained a valid Digital Signature Certificate, they can apply to\nobtain a valid Digital Partner Identification Number, which is a necessary\nrequirement for the incorporation of the LLP. This step can take up to one to\ntwo days.<\/p>\n\n\n\n Once the Digital\nPartner Identification Number for the proposed partners has been obtained, an\napplication must be made to the Ministry of Corporate Affairs to reserve the\nname of the LLP. The name should be in tune with the guidelines in this regard\nlaid down by the Ministry of Corporate Affairs. The name must be unique and\ndistinct and must not be identical or similar to the name of an existing LLP.\nThe application can contain up to six proposed names for the LLP as per the\nprovisions of the Limited Liability\nPartnership Act, 2008. Once a\nname has been approved by the Government of India, an application for\nincorporation of the LLP can be filed within 60 days of such approval. This\nstep can take up to one to seven days.<\/p>\n\n\n\n Once the name of the\nLLP has been approved by the Government of India, an application for\nincorporation of the LLP along with the requisite documents, can be made to the\nMinistry of Corporate Affairs. After assessing the applicant and if it is found\nsufficient, a certificate of incorporation is granted by the Ministry of\nCorporate Affairs. This step can take up to one to seven days.<\/p>\n\n\n\n Once the certificate of LLP Registration for NRIs and Foreign\nNationals<\/strong> is received, the LLP agreement must be signed and filed with the\nMinistry of Corporate Affairs within 30 days of receipt of the certificate of\nincorporation. <\/p>\n\n\n\n Post-2015, LLP Registration for NRIs and foreign nationals has become the most cost-efficient and the quickest route for foreign businesses to enter the Indian market. An NRI<\/strong>[1]<\/strong><\/a><\/sup> or a foreign national looking to invest in India can choose the LLP route by keeping in mind the necessary legal and policy compliances. Investing or registering one’s LLP is more beneficial than the incorporation of a company owing to the countless benefits that an LLP has over a company right from the incorporation stage to expenses or compliances involved.<\/p>\n\n\n\nLLP Registration for NRIs\nand Foreign Nationals – Procedure<\/h2>\n\n\n\n
Conclusion<\/h2>\n\n\n\n