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    Government Permits FDI in LLP Firms
    MCA issues corrigendum on filing of Balance Sheet and Profit & Loss Account in extensible Business Reporting Language (XBRL) mode
    Approval for FDI in Limited Liability Partnership firms
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    May 24, 2011
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    Foreign direct investment in LLPs permitted subject to sectoral eligibility, compliance and designated partner obligations.
    FDI in LLPs is permitted only where the LLP operates in sectors allowing full foreign investment on the automatic route without FDI-linked performance conditions, and admission is via the Government approval route. Excluded activities include agriculture/plantation, print media and real estate. Foreign capital must be by cash inward remittance or debit to specified non-resident accounts; FIIs and FVCIs cannot invest and LLPs with FDI cannot take ECBs or make downstream investments. Designated partners must be resident as defined under foreign exchange law, corporate designated partners must be Indian companies, and designated partners bear compliance responsibility and penalty liability. Conversion of a company with FDI to an LLP requires prior approval.
    May 13, 2011
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    XBRL filing coverage updated for listed companies and subsidiaries, excluding banking, insurance, power and NBFCs.
    Corrigendum to Circular No. 9/2011 revises the Coverage in Phase I for mandatory XBRL filings: the requirement applies to all companies listed in India and their subsidiaries that meet the prescribed paid up capital or turnover thresholds, and expressly excludes banking companies, insurance companies, power companies, Non Banking Financial Companies (NBFCs) and overseas subsidiaries of these companies.
    May 11, 2011
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    Foreign Direct Investment in LLPs permitted in open automatic sectors with government approval, subject to funding and ownership limits.
    FDI in LLPs is permitted in sectors allowing full automatic FDI without performance conditions, via Government approval, excluding agriculture, print media and real estate, and prohibiting downstream investments. Foreign capital must be remitted in cash through authorized banking channels or debited to permitted nonresident accounts; FII/FVCI investments and ECBs are disallowed. Indian companies with FDI may invest in LLPs only where both operate in fully open automatic sectors. Body corporate designated partners must be companies under the Companies Act. Conversion of a company with FDI into an LLP requires prior government approval, and designated partners are liable for compliance and penalties.

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