TaxTMI 
TaxTMI 
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Third Amendment) Regulations, 2014
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....provided, the amendment shall be deemed to have come into force from 20th day of May 2011. Amendment to Regulation 2 2. In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May, 2000), in Regulation 2, after clause (vii), the following new clause shall be inserted, namely:- "(viiA) 'Limited Liability Partnership (LLP)' means a partnership formed and registered under the Limited Liability Partnership Act, 2008." Amendment to Regulation 5 3. In Regulation 5, after the sub-regulation (8), the following new sub-Regulation shall be added, namely:- "(9) A person resident outside India (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India, (other than an entity in Pakistan or Bangladesh), not being a registered Foreign Institutional Investor or Foreign Venture Capital Investor or Qualified Foreign Investor registered with SEBI or Foreign Portfolio Investor registered in accordance with SEBI guidelines, may contribute foreign capital either by way of capital contribution or by way of acquisition/transfe....
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....l route; or (d) Agricultural/plantation activity and print media; or (e) Sectors ineligible to accept FDI i.e. any sector which is prohibited under extant FDI policy (Annex A to Schedule 1 to Notification No. FEMA 20/2000-RB dated 3rd May 2000) as well as sectors/activities prohibited in terms of Regulation 4(b) to Notification No. FEMA 1/2000-RB dated 3rd May, 2000 as amended from time to time. 3. Eligible investment Contribution to the capital of an LLP would be an eligible investment under the scheme. Note: Investment by way of 'profit share' will fall under the category of reinvestment of earnings. 4. Entry Route FDI in a LLP shall require prior Government/FIPB approval. Any form of foreign investment in a LLP, direct or indirect (regardless of nature of 'ownership' or 'control' of an Indian Company) shall require Government/FIPB approval. 5. Pricing FDI in a LLP either by way of capital contribution or by way of acquisition/transfer of profit shares, would have to be more than or equal to the fair price as worked out with any valuation norm which is internationally accepted/adopted as per....
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....ceipt of funds in Form FOREIGN DIRECT INVESTMENT-LLP(II) as specified by Reserve Bank from time to time. 8. Downstream investment (a) An Indian company, having foreign investment (direct or indirect, irrespective of percentage of such foreign investment) will be permitted to make downstream investment in an LLP only if both, the company as well as the LLP, are operating in sectors where 100% FDI is allowed under the automatic route and there are no FDI- linked performance related conditions. Onus shall be on the LLP accepting investment from Indian Company registered under the provisions of the companies Act, as applicable to ensure compliance with downstream requirement as stated above. (b) A LLP with FDI under this scheme will not be eligible to make any downstream investments in any entity in India. 9. Other Conditions (i) In case an LLP with FDI has a body corporate as a designated partner or nominates an individual to act as a designated partner in accordance with the provisions of Section 7 of the Limited Liability Partnership Act, 2008, such a body corporate should only be a company registered i....
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....ued by Office of Registrar for LLP. 18 THE GAZETTE OF INDIA : EXTRAORDINARY 3. 4. Date of Registration Whether existing LLP or new LLP If existing LLP, give registration number allotted by RBI for FDI, if any. 2 Details of the foreign investor Name Designated Partner Identification No. (DPIN): Address Country Constitution/Nature of the investing Entity [Specify whether 1. Individual 2. LLP 3. Company 4. Foreign Trust 5. Private Equity Fund 6. Pension Provident Fund 7. Sovereign Wealth Fund (SWF)' 8. 9. Financial Institution 10. Partnership/Proprietorship Firm NRIS/PIO 11. Others (please specify)] Date of receipt of funds Amount 5. (i) 6. (iii) Activity of the LLP Description of the main business activity. NIC Code It is confirmed that 100% FDI is allowed under automatic route as per FDI policy without any FDI-linked performance related conditions. Details of Government Approval (ref. no. of approval letter and date). [Copy enclosed] Name of the AD bank through whom the remittance is received. 7. Address of the AD bank ....
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....Act, 1967 (UAPA). We confirm that the investment complies with the provisions of all applicable Rules and Regulations. 5. Unique Identification Numbers given for all the remittances received so far as consideration for capital contribution and acquisition of profit shares (details as above), by Reserve Bank. R (Signature of the Applicant)* (Name in Block Letters) (Designation of the signatory) : Place: Date: (*To be signed by Designated Partner/Authorised Signatory of the LLP) CERTIFICATE TO BE FILED BY THE DESIGNATED PARTNER/AUTHORISED SIGNATORY OF THE LIMITED LIABILITY PARTNERSHIP ACCEPTING THE INVESTMENT: 20 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II-SEC. 3(i)] In respect of the abovementioned details, we certify the following: 1. All the requirements of the Limited Liability Partnership Act, 2008 have been complied with. 2. Terms and conditions of the Government approval, if any, have been complied with. 3. The LLP is eligible to issue capital contribution/profit shares under these Regulations. 4. The LLP has all original certificates issued by AD Category - I banks in India, evidencing receipt of amount of consi....
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.... applicable) Name of the buyer Constitution / Nature of the investing Entity Specify whether à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° : असाधारण Transfer from non-resident to resident 1. Individual 2. LLP 3. Company 4. Foreign Trust 5. Private Equity Fund 6. Pension/ Provident Fund 7. Sovereign Wealth Fund (SWF") 8. Partnership/Proprietorship firm 9. Financial Institution 10. NRIS/PIOS 11. Others Date and Place of Incorporation Address of the buyer (including e-mail, telephone number, Fax no.) 5 Name of the seller Constitution / Nature of the disinvesting partner Specify whether 1. Individual 2. LLP 3. Company 4. Foreign Trust 5. Private Equity Fund 6. Pension/ Provident Fund 7. Sovereign Wealth Fund (SWF) 8. Partnership/ Proprietorship firm 9. Financial Institution 10. NRIS/PIOS 11. others Date and Place of Registration Address of the seller (including e-mail, telephone Number, Fax no.) 6 Particulars of earlier FIPB approvals. 7 Details regarding capital contrib....