India allows FDI in limited liability partnership firms
May 24th, 2011 - 5:45 pm ICT by IANSNew Delhi, May 24 (IANS) India Tuesday announced it would allow foreign direct investment (FDI) in limited liability partnership (LLP) firms in a calibrated manner, a move that would help attract greater overseas funds and latest technologies in the country.
“The government has reviewed the extant policy on foreign direct investment and decided to permit FDI in LLP firms,” the ministry of commerce and industry said in a statement.
Limited liability partnership firm is a new business structure in India formed under the Limited Liability Partnership Act, 2008. A hybrid of existing partnership firms and full-fledged companies, it is a separate legal entity, liable to the full extent of its assets with the liability of the partners being limited to their agreed contribution in the firm.
The Cabinet Committee on Economic Affairs recently gave its approval to such investments.
However, overseas investments in LLP firms would be allowed with certain conditions. It will be permitted only in the sectors where 100 percent FDI is allowed through automatic route.
LLPs with FDI will not be allowed to operate in agricultural/plantation activity, print media or real estate business, the official statement said. Such firms will not also be allowed to make any downstream investments.
- Foreign direct investment norms eased for Limited Liability partnerships - May 11, 2011
- Limited Liability Partnership Bill passed in House - Dec 12, 2008
- Government favours foreign equity in limited partnerships - Sep 29, 2010
- India eases investing norms for foreign firms - Mar 31, 2011
- India eases overseas investment norms for commodity exchanges - Apr 10, 2012
- India eases joint venture norms to draw foreign funds (Lead) - Mar 31, 2011
- Automatic approval to FDI in greenfield pharma projects to continue: RBI - Dec 12, 2011
- Kerala traders shut down to protest FDI - Feb 22, 2012
- FDI norms for real estate may be relaxed: Sharma - Sep 16, 2010
- Foreign investment in pharma to face competition check - Oct 11, 2011
- Aviation stocks climb on FDI hopes - Apr 11, 2012
- Finance ministry okays FDI in multi-brand retail - Nov 17, 2011
- FDI limit hike proposed in broadcasting sector - Aug 09, 2011
- Parliament logjam: Government may agree to adjournment motion - Nov 29, 2011
- 'Efforts on to allow FDI in multi-brand retail' - Mar 16, 2012
Tags: assets, business structure, cabinet committee, economic affairs, estate business, foreign direct investment, full extent, hybrid, limited liability partnership, limited liability partnership act, llps, may 24, ministry of commerce, new business, New Delhi, overseas investments, partnership firm, plantation activity, sectors, separate legal entity