FDI in Limited Liability Partnerships

Ineligible Investors

1. Citizen entity of Pakistan / Bangladesh

2. FII, FVCI, QFI, FPI

LLP Eligibility

1. LLP can operate only in sectors where

– 100% FDI is allowed through automatic route

– There are no FDI linked performance conditions (NBFC, Constructions)

2. Not allowed to operate in agricultural, plantation activities, print media or real estate business

3. LLP with FDI are not eligible to make any downstream investments

Pricing

1. Fair price as per internationally accepted valuation method

2. Valuation certificate by CA or Cost accountant or Approved valuer

Mode of Payment

1. Inward remittance

2. Debit to NRE / FCNR

Reporting

1. Investment to be report to RBI in Form FDI-LLP (I)

2. UIN issued by RBI

3. Disinvestment to be reported within 60 days in Form FDI-LLP (II)

ECB : not permitted to LLP

A Resident shall not borrow / lend in INR from / to a Non-Resident, except where permitted.

Borrowing by Individual, Firm etc (other than Company) from NRI/ PIO

1. Receipt by Inward Remittance or from NRE, NRO, FCNR

2. Period of loan not exceeding 3 years

3. Interest rate not exceeding 2% over prevailing bank rate

4. Amount borrowed cannot be repatriated outside India

5. Cannot be used for investment (capital or otherwise) in Company, Partnership Firm, proprietary or any entity.

6. Cannot be used for Re-lending

7. Use only for own business (except business of Chit fund, nidhi, agriculture, real estate business*, farmhouses, TDR)

Borrowing by Indian Company from NRI/ PIO

1. NCD by public offer

2. Interest rate does not exceed SBI’s PLR+ 300 basis points

3. Redemption not less than 3 years

4.  Cannot carry on agriculture, real estate, TDR, nidhi, chit fund business

Repatriable

1. % of NCD issued to NRI to total NCDs issued, shall not exceed the sectorial cap under FDI

2. Inward Remittance or from NRE/FCNR

Non Repatriable

1. Also from NRO