Limited Liability Partnership is registered as per provisions of Limited Liability Partnership Act 2008/ LLP is separate legal entity from its partners. As LLP is modern type of Partnership and must have minimum two partners to run business. LLP Must have one Indian resident partner and second can be Appointed as Foreign National / NRI Partner in LLP. It can be noted that the regulation refers to two terms ‘Person’ and “person resident in India. Let us elaborate who is a ‘Person’ and what does it mean “person resident in India”.
Foreign National person can become partner in LLP or designated partner in LLP. Foreign national is eligible investor for registration of LLP. Government had given relaxation for Foreign Direct Investment in LLP. For Automatic route 100 % FDI is allowed.
As discussed above Foreign National person can become partner however there are some restrictions. Following termed persons cannot become partner in Indian LLP.
Following are list of documents required by Foreign / NRI to become Partner in LLP.
Following are conditions to become partner in Limited Liability Partnership
Digital Signature Certificate is first step. Apply for Digital Signature of Foreign partner in LLP. DSC is utilized for making application of DIN Registration and other necessary filing to MCA. Generally validity of DSC is 2 Years from date of registration
After registration of DSC , application need to made to MCA in Form DIR 3. This is for DIN Registration for Foreign NRI Partner. For DIN Registration incoming partners documents need to be submitted to MCA. Certification from Professional CA/CS/CMA is required.
For Appointment of Foreign Partner in LLP in existing LLP. LLP shall conduct a meeting between partner and pass a resolutions. This resolution may have details of new partners details, date of appointment , other terms and conditions. LLP May appoint any existing partner to act on behalf of LLP for filing at MCA.
LLP agreement is key document which have major details of LLP. LLP Operates is business as per terms and conditions of LLP agreement. This agreement need to be executed per with terms and conditions for appointment of partner in LLP. This agreement will have capital introduced , roles, duties etc. Check LLP Format for addition of Partner.
Form 4 of LLP is toward giving intimation to Ministry of Corporate Affairs for intimation of addition of Foreign Partner in LLP. This form need to be filing with use of DSC of existing partner and new Foreign partner of LLP. Certification form Practicing Chartered Accountant or Company Secretory of CMA is required.
Below is approx. government fees & other expenses require for addition of Foreign Partner in LLP
|1||DIN Government Fees||500|
|2||Digital Signature (DSC)
For Foreign National
Limited Liability Partnership Act given legal procedure to add Foreign National to appoint as as Partner in existing Limited Liability Partnership. Incoming Partner must have valid documents and he not banned to become partner in LLP. Income Foreign Partner need to apply for DSC and DIN number. Existing LLP need to pass board resolutions and make application to be MCA in Form 4. For Automated route 100% FDI is allowed.