{"id":20472,"date":"2019-06-24T18:00:29","date_gmt":"2019-06-24T12:30:29","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=20472"},"modified":"2021-01-27T14:28:05","modified_gmt":"2021-01-27T08:58:05","slug":"registration-of-limited-liability-partnership-llp-with-foreign-directors","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/registration-of-limited-liability-partnership-llp-with-foreign-directors\/","title":{"rendered":"Registration of (LLP) Limited Liability Partnership With Foreign Directors"},"content":{"rendered":"<p class=\"has-drop-cap\">Due to increase in investment opportunities in India and been a developing country, people from both domestic as well as foreign countries are investing in Indian <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> like never before. People are getting huge return due to which newer business forms are popping up like registration of Limited Liability Partnership and One person company etc.<\/p>\n\n\n\n<p>As\nforeign investment has also been increased in India and foreigners are\ninvesting &nbsp;huge amount to start business\nin India so they want to have full control of that particular business.&nbsp; But , government for governance purposes\nwants to make someone&nbsp; liable for any\nviolation while carrying on the business. So, in almost all business forms one\nperson should be resident in India. <\/p>\n\n\n\n<p>Let&rsquo;s\ntalk about the rules and regulation for registration of Limited Liability\nPartnership with foreign directors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What do you mean by registration of Limited Liability Partnership (LLP)? <\/h2>\n\n\n\n<p>Limited\nLiability Partnership is governed by Limited Liability Partnership Act 2008 in\nIndia. Limited Liability Partnership or LLP is a newer &nbsp;form of business model which has both the characteristics\nof partnership as well as Joint stock company. <\/p>\n\n\n\n<p>In case of LLP all the members are called as &nbsp;designated partners as provided in Section &ndash; 7 of LLP Act 2008 and LLP need to comply primarily with rules and regulation of Limited Liability Partnership Act 2008 , FEMA Act and Income tax act 1961.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Registration-of-Limited-Liability-Partnership-1.jpg\" alt=\"Registration of Limited Liability Partnership\" class=\"wp-image-20492\" width=\"466\" height=\"338\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Registration-of-Limited-Liability-Partnership-1.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Registration-of-Limited-Liability-Partnership-1-300x218.jpg 300w\" sizes=\"(max-width: 466px) 100vw, 466px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Basic conditions for Registration of Limited Liability Partnership (LLP)<\/h2>\n\n\n\n<ul><li><strong>What is the minimum and maximum number of designated partners which are required to incorporate an LLP?<\/strong><\/li><\/ul>\n\n\n\n<p>The\nminimum number of LLP required to start an LLP is 2 and there is no upper limit\nfor incorporating an LLP. However, at least one designated partner should be\nresident in India.<\/p>\n\n\n\n<ul><li><strong>Whether\nforeign company or LLP can reserve name of its main company (name of his foreign\ncompany or foreign LLP in foreign country) in India?&nbsp; <\/strong><\/li><\/ul>\n\n\n\n<p>A\nforeign company or foreign LLP can reserve its existing name (i.e original name\nas in the country of incorporation) provided it did&rsquo;t resemble the name of\nalready existing LLP or company in India.<\/p>\n\n\n\n<ul><li><strong>What are\nthe basic cautions to be taken while choosing&nbsp;\na name ?<\/strong><\/li><\/ul>\n\n\n\n<p>The name of the LLP should be unique and should comply with the LLP Name guidelines of MCA.<\/p>\n\n\n\n<p>However,\nit should not be same , similar , identical to the existing company or LLP in\nIndia. It should not be similar to registered trademark. Also, it should not be\noffensive.<\/p>\n\n\n\n<ul><li><strong>Do\nforeign LLP need to have a place of business in India ?<\/strong><\/li><\/ul>\n\n\n\n<p>Every\nforeign LLP need to have a place of business in India and file Form-27 (Registration\nof particulars by Foreign Limited Liability Partnership) from\nwhere it will carry out the business activities.<\/p>\n\n\n\n<ul><li><strong>What is\nthe procedure for registration of LLP?<\/strong><\/li><\/ul>\n\n\n\n<p>The concept of LLP came up in 2008 but <strong><a href=\"https:\/\/enterslice.com\/limited-liability-partnership\">registration of LLP<\/a><\/strong> with foreign director required to be approved from the government which was time consuming and lengthy process. But later on that condition was removed and 100% FDI was approved under automatic route of business where&nbsp;&nbsp; 100% FDI is allowed. This made incorporation of LLP with foreign partners quite easy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Procedure for registration of Limited Liability Partnership (LLP) <\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"619\" height=\"296\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-registration-with-foreign-directors.png\" alt=\"Registration of Limited Liability Partnership \" class=\"wp-image-20473\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-registration-with-foreign-directors.png 619w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-registration-with-foreign-directors-300x143.png 300w\" sizes=\"(max-width: 619px) 100vw, 619px\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Requirement of Digital Signature and Designated Partner Identification Number (DPIN)<\/h3>\n\n\n\n<p>Digital\nSignature Certificate is a tool to authenticate any online form or soft copy of\ndocument to give assent to it. Therefore , all the proposed designated partner\nneed to obtain DPIN before applying for incorporation of LLP. DPIN can be\nobtained by applying to certifying agent who has necessary authority to issue\nDSC by paying necessary fees.<\/p>\n\n\n\n<p>Every\nproposed designated partner also required to have an identification number\nissued by Ministry of Corporate Affairs of India. It is unique identification\nnumber obtain with the help of DSC giving a specific number to every proposed\npartner . It is necessary to have DPIN for incorporation of LLP.<\/p>\n\n\n\n<p>However,\nthere is no mandatory requirement to apply and obtain DPIN or DIN for\nDesignated Partners of FLLP in case of foreign LLP but the DSC of the authorized\nrepresentative is mandatory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Name Approval<\/h3>\n\n\n\n<p>The\ndesignated partner after obtaining DSC and DPIN shall apply for name for the\nLLP. The name of LLP should be unique and should not resemble the name of\nalready exiting LLP to avoid any confusion in the mind of general public and\nother authorities. Also , every LLP formed , the name of LLP should always end\nwith suffix &ldquo;LLP&rdquo; . <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Incorporation\nof LLP<\/h3>\n\n\n\n<p>After\napproval of name by government the next step to be taken by the designated\npartner is to prepare proper documentation for filing of&nbsp;&nbsp;&nbsp;&nbsp; eForm &ndash;2&nbsp;\nFiLLiP with MCA . After approval of form the LLP would be incorporated.<\/p>\n\n\n\n<p>Following\ndocuments are required to be filed along with form FiLLiP:<\/p>\n\n\n\n<ol><li>Consent of partners<\/li><li>Address&nbsp; proof of registered office of LLP<\/li><li>PAN\ncard of designated partners<\/li><li>Utility\nbill of proposed registered office of LLP <\/li><li>NOC&nbsp; from landlord<\/li><li>List of\nmain object of an LLP<\/li><li>&nbsp;NOC of\nforeign body corporate for usage of name (In case of foreign entities intending\nto incorporate LLPs in India)<\/li><li>Copy of\nRental agreement <\/li><li>Details of LLP\/company in which partner are\nmembers or directors in India or abroad.<\/li><\/ol>\n\n\n\n<p><\/p><div class=\"shadow2\"> Note &ndash; All the aforesaid documents executed outside India including identity and address proofs of foreign nationals should be duly executed and required to be notarized.<\/div>\n\n\n\n<br><h3 class=\"wp-block-heading\">LLP\nAgreement<\/h3>\n\n\n\n<p>After\nincorporation of LLP, the partners shall execute LLP agreement with the consent\nand keeping in mind the interest of all the designated partners and is to be\nfilled with the ROC in e-form 3 within 30 days of incorporation of LLP. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the rules\nand regulation to keep in mind while incorporating a foreign LLP?<\/h2>\n\n\n\n<p>A\nforeign LLP need to follow following compliances while incorporating an Limited\nLiability Partnership:<\/p>\n\n\n\n<ol><li>A foreign LLP need to have more than two designated partners , moreover it is mandatory for all the foreign LLP to have atleast one resident designated partner in India.<\/li><\/ol>\n\n\n\n<ul><li>&nbsp;100% <strong>FDI<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Foreign_direct_investment\"><strong>[1]<\/strong><\/a><\/sup> is permitted in case of foreign LLP therefore they are not required to take government permission. However , they can operate in sector\/ businesses in which 100% FDI is approved.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-Registration-1.jpg\" alt=\"Registration of Limited Liability Partnership\" class=\"wp-image-20493\" width=\"328\" height=\"328\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-Registration-1.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-Registration-1-150x150.jpg 150w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-Registration-1-300x300.jpg 300w\" sizes=\"(max-width: 328px) 100vw, 328px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>With the measure taken by the Government and Government authorities it is clear that there intention is to boost the economy by making compliance&rsquo;s and other rules and regulation easy for easier entry of the foreign investment. Along with that government also want to have some control those who are coming in India market. As they might exploits the resources of the country . Hence , necessary rule are made both in FEMA, Limited Liability Partnership Act 2008 as well as in Company Act 2013. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/llp-formation-procedure-india\/\">Limited Liability Partnership Registration Procedure in India: A Complete Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Due to increase in investment opportunities in India and been a developing country, people from both domestic as well as foreign countries are investing in Indian market like never before. People are getting huge return due to which newer business forms are popping up like registration of Limited Liability Partnership and One person company etc. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":20499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[209,2568],"tags":[226,706],"acf":{"service_id":"3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Registration of Limited Liability Partnership (LLP) With Foreign Directors<\/title>\n<meta name=\"description\" content=\"Registration of Limited Liability Partnership is a newer form of business model which has characteristics of both partnership and Joint stock company.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/registration-of-limited-liability-partnership-llp-with-foreign-directors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Registration of Limited Liability Partnership (LLP) With Foreign Directors\" \/>\n<meta property=\"og:description\" content=\"Registration of Limited Liability Partnership is a newer form of business model which has characteristics of both partnership and Joint stock company.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/registration-of-limited-liability-partnership-llp-with-foreign-directors\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-24T12:30:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-27T08:58:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-registration-with-foreign-directors-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":549,"readingTime":4,"nextPost":{"id":20524,"slug":"nbfc-prudential-norms-nbfc-compliances"},"prevPost":{"id":20447,"slug":"credit-information-companies-cic"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/LLP-registration-with-foreign-directors-1.jpg","postTerms":"Business Registrations","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/20472"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=20472"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/20472\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/20499"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=20472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=20472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=20472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}