The Limited Liability Partnership is governed by the laws drafted under the Limited Liability Partnership Act, 2008. LLP is considered a newer form of the business model as it combines a partnership firm and that of a joint-stock company. Furthermore, as prescribed according to Section 7 of the Limited Liability Partnership Act, all the members are named designated partners. The firm needs to comply with all the rules and regulations of the Limited Liability Partnership Act 2008, Foreign Exchange Management Act,1999, and Income tax act 1961.
When a foreign national wants to become a designated partner of LLP, its incorporation is done accordingly. Let’s look at the procedure to register an LLP with foreign nationals:
A digital signature certificate is a way to validate any soft copy documents required at the time of registration of an LLP. Any designated director can acquire DPIN through a certifying agent who has the required authority to issue DSC by paying the necessary amount. Therefore, it is compulsory that all the designated partners who want to incorporate an LLP obtain a DPIN.
A unique identification number will be issued by the Ministry of Corporate Affairs of India to every proposed designated partner. It is a unique identification number obtained with the help of DSC, giving a specific number to every proposed partner.
However, when we talk about an LLP with foreign nationals as its directors, the issue of DPIN is not mandatory. However, the issue of the DSC of the authorized representative is mandatory.
Once the proposed designated partners are done with DSC and DPIN, name approval becomes the second step. An LLP name needs to be selected, keeping in mind the kind of business it is involved in, and also, the name should be such that it comes out to be unique to not create any confusion in the minds of the general public. Furthermore, any name selected for the LLP should always end with the suffix “LLP”.
Once the central government approves the name, now the designated partner needs to start with the proper documentation. Filing of eForm-2 FiLLiP with the Ministry of Corporate Affairs will be done. After approval of the form, the LLP shall be incorporated.
A few documents need to be filed with the FiLLiP form.
All the below-mentioned documents that are executed outside India's boundaries, including identity and address proofs of foreign nationals, are required to be duly executed and notarized.
Once the incorporation of LLP is completed, all the designated partners with mutual consent will execute an agreement that will lay down all the terms and conditions according to which the partnership will work in the future. E-form 30 shall be filed by all partners within 30 days of incorporation to apply for the agreement.
The government of India, along with the Ministry of Corporate Affairs, has made the task of incorporating an LLP with foreign nationals easy and hassle-free so that it boosts the Indian economy. Furthermore, to keep a watch on the people coming in India, there are rules and regulations formed under LLP Act 2008 and FEMA.