Komoto Corporation is a foreign company registered in Japan. The company is supplying high quality machines and tools used in paper manufacturing to various countries across the globe. Considering the pro-business polici

Key advantages of using an Limited Liability Partnership (LLP) firm as an Special Purpose Vehicle (SPV) as compared to a company are as follows: Low cost of incorporation of an LLP; Flexibility of rules of management and governance based on Agreement between the contracting Partners; Partners can be companies while management is run by Designated Partners who are individuals. By this, there is separation between ownership and management; Low annual maintenance cost; There may not be any necessity of getting the accounts audited before the project takes off; An LLP firm does not have to pay Dividend Distribution Tax (DDT) on share of profits transferred to the Partners, which makes it tax efficient; Voluntary winding of an LLP firm which has no creditors is very easy and can be done without intervention of any court or tribunal; Investment in LLP Firms is permitted only in sectors in which 100% FDI is permitted through automatic route without any performance linked conditions. Accordingly, Komoto Corporation is advised.