Foreign Direct Investment In Limited Liability Partnership

Limited Liability Partnership ("LLP") is a hybrid entity with advantage of a company and operational flexibility of a partnership. The concept was introduced by the Ministry of Corporate Affairs through Limited Liability Partnership Act, 2008 on 9^th January, 2009.

Setting up of LLP in India has various advantages. Some of the significant advantages are as follows:

• contribution by the partners may consist of tangible, movable or immovable or intangible property or other benefit including money, promissory notes, and other agreements to contribute cash or property and contracts for services performed or to be performed.
• No requirement of holding quarterly board meetings.
• Distribution of profits to partners of the LLP is exempt from tax.