Relaxes rules on foreign direct investment in limited liability partnerships (LLPs)
03 Mar 2017
On 3 March 2017, the Reserve Bank of India made amendments to the Foreign Exchange Management Regulations (Transfer or issue of Security by a Person Resident outside India), 2000.
According to the new regulations, a company that has received foreign investment can be converted into an LLP under the automatic route if it is engaged in a sector where FDI is permitted up to 100% under the automatic route and there are no FDI-linked performance conditions. Previously, such companies were required to obtain prior government approval for such conversion.
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Type:
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Entry and establishment (Approval and admission)
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Industry:
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Sources:
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Reserve Bank of India, Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2017, https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10876&Mode=0, 03 Mar 2017
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Lexology, Reserve Bank of India Further Relaxes Rules on Foreign Direct Investment in LLPs, http://www.lexology.com/library/detail.aspx?g=2dfcb3b1-457d-427d-bfb1-7616e597c1f5, 17 Apr 2017
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SKP Business Consulting LLP, The Reserve Bank of India liberalises foreign direct investment in limited liability partnership , http://www.skpgroup.com/data/mailer/skp_business_alert_volume_8_issue_13_The_RBI_liberalises_FDI_in_LLPs.html, 14 Mar 2017
