Limited Liability Partnership
As per Foreign Direct Investment (FDI) regulations, 100% FDI in LLP is allowed
under the automatic route. In most sectors, 100% FDI is allowed in LLP through the
automatic route, and there are no FDI-linked performance conditions. LLPs are
permitted to invest in another company or LLP in sectors in which 100% FDI is
allowed by default. NRIs or Foreign Nationals can start or invest in a LLP.
- A LLP should be registered with the Ministry of Corporate Affairs.
- A LLP is easy to run, and the obligations and liabilities of the LLP are that of the LLP only and not of the Partners.
- It is suitable for professionals, micro and small business owners.
- A LLP structure isn’t convenient to raise funds from angel investors, private equity or venture capital.
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