It ‘s been more than 1 year since when the LLP Act 2008 was notified but still there is no policy for allowing foreign investment in such a flexible form of business , which offers tremendous operational advantages. Since the introduction of LLP, lot of non residents are looking to form LLP to carry on their business but in absence of the policy , they were left stranded.
Department of Industrial Policy & Promotion (DIPP) has issued the much awaited discussion paper on allowing Foreign Direct Investment (FDI) into LLP. Currently there is no policy in respect of the FDI in LLP and this discussion paper will pave the way for regulatory framework for allowing FDI in this newly introduced form of business. The discussion paper is open for public comments till 31st October 2010.
A concept to change the way laws are complied in 21st century, envisioned a way back, has been brought to turn it into reality. The concept is to provide solution to intricacies involved in Indian Legal Jurisprudence with utilization of information technology beyond imagination.
The government has decided to clarify the foreign investment rules under the new limited liability partnership (LLP) framework. An official confirmed to FE that the ministry of corporate affairs has urged the department of industrial policy & promotion to work out the necessary guidelines as foreign investors are asking for clarity. The haste follows clearance of the tax treatment for LLPs in Budget 2009-10.