Tuesday, May 24, 2011


Government Permits FDI in LLP Firms

The Government of India has reviewed the extant policy on FDI and decided to permit FDI in LLP firms, subject to specified conditions.

Accordingly, the following changes are made in ‘Circular 1 of 2011-Consolidated FDI Policy’, which became effective from April 1, 2011:


“Limited Liability Partnership” means a Limited Liability Partnership firm, formed and registered under the Limited Liability Partnership Act, 2008.


“3.3.5 FDI in Limited Liability Partnership (LLPs): FDI in LLPs is permitted, subject to the following conditions:

(C) Renumbering of the present paragraph 3.3.5, as paragraph 3.3.6: The present paragraph 3.3.5 is renumbered as paragraph 3.3.6, , to read as below:

“3.3.6 FDI in Other Entities : FDI in resident entities other than those mentioned above, is not permitted.”

3.0 The above decision will take immediate effect.

4.0 The above provisions will be incorporated in the next Circular on Consolidated FDI Policy to be issued on 30.9.2011.

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