Under what conditions 'Foreign Direct Investment' in limited liability partnership is permitted.
CS Executive · Economic, Business and Commercial Laws · PYQS · June 2019
Under what conditions 'Foreign Direct Investment' in limited liability partnership is permitted.
Answer & Explanation:
Foreign Direct Investment (FDI) in Limited Liability Partnership (LLPs) is permitted subject to the following conditions: FDI is permitted under the automatic route in Limited Liability Partnership (LLPs) operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI linked performance conditions. An Indian company or an LLP having foreign investment, is also permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route and there are no FDI-linked performance conditions. FDI in LLP is subject to the compliance of the conditions of Limited Liability Partnership Act, 2008.
Topics: Foreign Exchange Management Act (FEMA) / Limited Liability Partnership (LLP)
Related Questions in this Topic
- Distinguish between Apartment and Building under Real Estate (Regulation and Development) Act, 2016
- Distinguish between Vested and Contingent Interest under Transfer of Property Act, 1882.
- Distinguish between Right of Lien and Stoppage in transit under Sale of Goods Act, 1930.
- Distinguish between Partnership at will and Particular Partnership under Indian Partnership Act, 1932.
- Distinguish between Special Agent and General Agent under Indian Contract Act, 1872