While Foreign Direct Investment ("FDI") is normally made into an Indian company, it is not uncommon for Indian Limited Liability Partnerships to also receive and make foreign investments. This could occur where the promoters do not wish to start a company, in order to have greater control over the operating entity or because they do not want to spend the time required for corporate compliance and reporting required in the case of a company.
In order to capture the statistics relating to inward and outward FDI by Limited Liability Partnerships in India, a notification by the Reserve Bank of India dated 21 October 2015 has specified that all Limited Liability Partnerships which have received FDI or made FDI abroad (i.e. made overseas investments) shall submit a Foreign Liabilities and Assets return in the prescribed format to the Reserve Bank of India by 15 July of each year.
The form is the same as was prescribed for Indian companies by the 18 June 2014 notification of the Reserve Bank of India.
The instructions to the form state that information provided by individual companies will be kept confidential and only consolidated aggregates will be released by the Reserve Bank of India.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
