Foreign Nationals registering LLP in India

India has a huge population and with that a larger market which attracts the foreign nationals to do business in India. Earlier they have done business through Private Limited Companies because the government of India allows 100% FDI under the automated route for many private sectors and also the cost for Private limited incorporation is low. But the government has improved over time and finally allows 100% FDI in LLP under the automated route.

What is Foreign Direct Investment(FDI) in LLP?

FDI is the controlling ownership in a business enterprise in one country by a share based in another country. After the change in the FDI regulations, now 100% FDI is permitted in LLP under the automatic route. There are other FDI benefits as well wherein LLPs will be allowed to make an investment in another company/LLP sector with 100% FDI under automated route and there will be no conditions for FDI-linked performance.

What is Private Equity Capital?

Equity which means shares issued by a company and Private Equity is the stock of capital that is not intimated on a public exchange instead it is the direct investment in the enterprise. The private equity capital comes from the retail and institution investors. Since India has continuously kept up the financial growth and the diversity in India attracts foreign nationals to invest in the Indian Market. This is a detailed guide of a Foreigner Nationals registering an LLP in India.

Incorporation of a Limited Liability Partnership is a very new form of business introduced in India under the LLP Act 2008. Before November 2015, incorporation of LLP was not allowed without Government approval for the Foreign Nationals. Due to this terms and conditions LLP for the Foreigners was a very lengthy and expensive process, but after 2015 with the introduction and amendment in Law the LLP incorporation for foreign national is equally easy. It is the best business for to establish a small firm in India under FDI.

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