TaxTMI 
TaxTMI 
Review of the policy on Foreign Direct Investment- Allowing FDI in Limited Liability Partnership firms-amendment to paragraphs 2.1, 3.3.5 and 3.3.6 of ‘Circular 1 of 2011 - Consolidated FDI Policy’
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....otion (FC-I Section) Press Note No. 1(2011 Series) Review of the policy on Foreign Direct Investment- Allowing FDI in Limited Liability Partnership firms-amendment to paragraphs 2.1, 3.3.5 and 3.3.6 of 'Circular 1 of 2011 - Consolidated FDI Policy' PRESS NOTE NO. 1 (2011 SERIES), DATED 20-5-2011 The Government of India has reviewed the extant policy on FDI a....
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....to the following conditions: (a) FDI in LLPs will be allowed, through the Government approval route, only for LLPs operating in sectors/activities where 100 per cent FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions (such as 'Non Banking Finance Companies' or 'Development of Townships, Housing, Built-up infrastr....
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.... by inward remittance, through normal banking channels or by debit to NRE/FCNR account of the person concerned, maintained with an authorized dealer/authorized bank. (f) Investment in LLPs by Foreign Institutional Investors (FIIs) and Foreign Venture Capital Investors (FVCIs) will not be permitted. LLPs will also not be permitted to avail External Commercial Borro....
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....ponsible for compliance with all the above conditions and also liable for all penalties imposed on the LLP for their contravention, if any. (j) Conversion of a company with FDI, into an LLP, will be allowed only if the above stipulations are met and with the prior approval of FIPB/Government. (C) Renumbering of the present paragraph 3.3.5, as paragraph 3.....