LLP Registration Process for NRIs and Foreign Nationals

For the process of incorporating an LLP for NRIs or foreign nationals required a copy of passport, address proof and other documents same as for the Indian national.

For many, who have no idea on getting started with LLP registrations in India, there could be a whole range of questions about the whole process of starting a start-up!

Can an NRI be a member of an LLP?

Yes, an NRI or foreign national can become a member in an LLP.

What will be the amount of contribution has to be made by the NRIs or foreign nationals?

No limit is prescribed for contribution.

How many NRIs or foreign nationals can become members in an LLP?

Any number of NRIs or foreign national can become members in an LLP provided at least one partner must be India citizen and Indian resident.

What are the other documents required from the NRIs or foreign national?

  • Copy of Passport
  • Address Proof

All the documents must be signed by foreign nationals or NRIs.

Indian Entry for NRIs and Foreign Nationals

  • India has a huge population and with a large market of investing opportunities which attracts the Foreigners or NRIs to do business in India. After the government's decision to allow 100% FDI in LLP under the automatic route; it has become easy for foreign nationals and NRI's to open a business in India. However, the process is a bit different for NRI's when compared to foreign nationals.
  • Foreign Nationals and NRIs have started businesses in India through a private limited company, as it allowed for 100% Foreign Direct Investment (FDI) under the automatic route for several sectors.
  • Though, the cost for the purpose of incorporation of a private limited company is relatively low as compared to the effort required to maintain the compliance was an inhibiting factor.
  • To allow the NRIs and Foreign Nationals to freely invest their money in various sectors of businesses in India and to improve foreign investment; the Government now allowed 100% FDI in LLP as under the automatic route.


Foreign Direct Investment (FDI): FDI is the controlling ownership in a business enterprise in one country by a share based in another country. Post changes to FDI regulations, 100% FDI is allowed, through 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 the automated route and there will be no conditions for FDI-linked performance.

Non-Resident Indian (NRI): A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for employment, residence, education or any other purpose.

A resident of India: Residence of India requires to stay in India for at least 182 days in a financial year or 365 days spread out over four consecutive years.

Requirements For Registering an LLP

Conditions for getting incorporated

The LLP Act 2008 allows the FDI including Foreign Companies and LLPs for incorporation in India but there needs to be a minimum of one designated partner who is an Indian(both the Indian Citizen and Resident). The partners also need to fulfil the relevant Foreign exchange laws/regulations/guidelines/rules. There are certain steps associated with the incorporation of a Limited Liability Partnership for NRIs

Incorporation of Company by NRIs

The incorporation of a private limited company or investment in a particular company has undoubtedly been the most preferred strategy for entry into India for NRIs and Foreign Nationals. 100% FDI under the automatic route has been the primary driver for the popularity of private limited companies’ amongst the NRIs and Foreign Nationals.

The opening of Branch Office by NRIs

Opening a branch office indeed requires the approval from RBI and is a very cumbersome process when compared to the incorporation of a private limited company. Further, only the well-established businesses possessing a good track record regarding finances are allowed to open a branch office in India. Thus, entry into India through the establishment of a Branch Office has indeed been much preferred by the Foreign Nationals and NRIs.

Registration of LLP by NRI or Foreign Nationals

Before November 2015, investment in LLP by NRI or Foreign Nationals required Government approval. It made LLP incorporation involving the Foreign Nationals/NRIs a long, cumbersome and expensive process. Thus, Private Limited company registrations were preferred over LLP registration by NRIs and Foreign Nationals. With the relaxation in the FDI norms in November 2015; LLP registration can be done easily by NRIs and Foreign Nationals making it an ideal investment vehicle for the purpose of establishing a small business in the country of India withforeign direct investment.

LLP Registration Process for NRIs and Foreign Nationals

A minimum of two persons are required to form an LLP in the country of India; It has been recommended that at least one of the Partners of the LLP be both an Indian Citizen and Indian Resident- similar to the requirement for registration of a company in India.

The overall process for LLP registration is done in five major steps which are listed below:

  • Step 1: Digital Signature id obtained for the Partners. It takes 1-3 days.
  • Step 2: DPIN is obtained for partners. It takes 1-2 days.
  • Step 3: Name approval is obtained for the LLP from the Indian Government. This process may take 1-7 days.
  • Step 4: Incorporation application is filed with the Government. It takes 1-7 days.
  • Step 5: LLP Agreement is filed within 30 days of incorporation with the Government.

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