Know About Foreign Direct Investment In LLP Companies In India

The Indian market is an attractive market for business owners all over the world. Companies from various countries invest their money in India as they expect a huge profit. This is due to the large population of India and cheap labor available in India. The Central Government has taken several steps to increase Foreign Direct Investment in India. Due to the reforms of the government, the Indian market seems to be easy for foreign investors and foreign companies to establish their business. There are several controversies concerning FDI as it can hinder the growth of Indian companies. But it is strongly believed that FDI can help in the growth of the economy of India. It can also offer employment opportunities to people in India. Thus India can soon top the list of the developed nations in the world.
There are several companies registered as LLP in India that run with investment from foreign counties.
Here you can know about Foreign Direct Investment in India and the procedure for the same.
In India, it is easy to register a company from other countries, and it is also legal to invest in Indian companies. The following are the ways that people in other countries establish their business or come up with investments in India.

Establish An Indian Company

Entrepreneurs from countries can set up an Indian company and register the company as a Limited Liability Company or a private company. The registration of the Indian company by a foreigner or a foreign resident can be done in the following ways.

1) The Indian company is registered as a joint venture Company where the maximum partnership is from an Indian firm, and the other is the foreign individual.
2) The Indian company can be registered as wholly own subsidiary, and it is the foreign company that holds complete ownership of it.

Establish A Foreign Company In India

A business owner from a foreign country can enter the Indian market by establishing an international company. This can be done in three ways Liaison Office: This is a representative office which acts as a link between the head office in a foreign country and entity in India. The liaison office staffs perform research on the Indian market and inform about its results to the head office in another country.

Branch Office: This is the most straightforward way to establish a foreign company in India. It performs the following functions on behalf of the head office in a foreign country.

  • Export and Import
  • Take up consultancy work
  • Undertake IT services
  • Offers technical support and collaboration between the parent company and company in India.

Project Office: The foreign company can be established in India by setting up a project office in India.
This would help to take up specific projects for their business.

Registering A Foreign Company In India
There are specific requirements to be satisfied for registering a legal business in India from other countries.
The registration can be done online through the online MCA portal. Click on the appropriate link and fill the application form for registering the foreign company in India. You have to upload certain documents to complete the registration process. Some of the mandatory documents required are listed below

  • The application of DIN and DSC
  • Address proof of the company
  • PAN, TAN of the company
  • Incorporation certificate of the company in a foreign country
  • An Indian company can receive the Foreign Direct Investment in the following different routes
  • Individuals or companies owned by foreigners need not go for approval of the Foreign
  • Investment Promotion Board for its investment in India when you follow the Automatic Route.
  • Foreign companies under the government route must go for approval of FIPB.
  • FDI And Limited Liability Partnership Company

An individual from another country or a foreign business owner can very well establish a company in India by registering it as a Limited Liability Partnership company. This eases up the formalities of the company registration process. Thus there is an attractive opportunity for foreign individuals and foreign companies to invest in Indian companies. Make sure to follow the norms of an LLP to receive FDI from other companies. The above are the things to know about FDI and the opportunities with LLP companies in India

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