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Entity Guide

LLP Registration for Foreign Partners in India

An LLP can be a lean, tax-efficient India vehicle for foreign partners and NRIs — but FDI into an LLP has conditions. Here’s when it works and how to set it up.

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In short: Foreign nationals and NRIs can be partners in an Indian LLP, and 100% FDI is allowed in an LLP under the automatic route — but only in sectors where 100% FDI is otherwise permitted under the automatic route with no FDI-linked performance conditions. An LLP needs at least two designated partners, one of whom must be resident in India. LLPs suit services and professional firms; a company remains better for raising equity.

Can foreigners and NRIs form an LLP in India?

Yes — foreign nationals and NRIs can be designated partners in an Indian LLP, subject to the FDI conditions below and the requirement that at least one designated partner is resident in India.

When is FDI in an LLP allowed?

FDI into an LLP is permitted only in sectors where 100% FDI is otherwise allowed under the automatic route with no FDI-linked performance conditions. In sectors that are capped, on the government route, or carry performance conditions, FDI into an LLP is not permitted. Downstream-investment conditions also apply where an LLP invests further. Confirm your sector on FDI entry routes and sector caps.

Requirements

  • Minimum 2 designated partners
  • At least 1 designated partner resident in India
  • DSC and DPIN for each designated partner
  • An executed LLP agreement (capital, profit share, management)
  • A registered office in India (rent agreement, NOC and utility bill)
  • Apostilled / consularised KYC for foreign partners (passport, address proof)

How to register an LLP — step by step

  1. 1

    Digital Signature Certificate (DSC) for partners

    Class 3 DSCs for every proposed designated partner.

  2. 2

    Name reservation (RUN-LLP)

    Reserve the LLP name on the MCA portal, checked against MCA and trademark databases.

  3. 3

    FiLLiP incorporation filing

    File FiLLiP with partner KYC, registered office proof and consent forms; DPINs are allotted through FiLLiP.

  4. 4

    LLP agreement filing (Form 3)

    File the executed LLP agreement (capital, profit share, management) within 30 days of incorporation.

  5. 5

    PAN & TAN

    PAN and TAN are issued along with incorporation for tax filings and TDS.

  6. 6

    FDI reporting to the RBI (Form LLP-I)

    Where foreign capital is brought in, report the capital contribution on the RBI FIRMS portal in Form LLP-I.

LLP vs private limited company

FeatureLLPPrivate Limited
Equity fundingNo — partner capital onlyYes, VC/PE-ready
Annual complianceLowerHigher
FDIConditional — see aboveBroad automatic
Best forServices & professional firmsStartups & growth

Ongoing LLP compliance

  • Annual Form 8 (Statement of Account & Solvency) and Form 11 (Annual Return)
  • Income-tax return
  • Audit if the contribution or turnover thresholds are crossed
  • FDI / FLA reporting where foreign capital is contributed

See India post-entry support for the wider compliance calendar.

Frequently asked questions

Can an NRI or foreign national be a partner in an Indian LLP?
Yes. NRIs and foreign nationals can be designated partners in an Indian LLP, provided at least one designated partner is resident in India.
Is 100% FDI allowed in an LLP in India?
Yes, but only in sectors where 100% FDI is otherwise permitted under the automatic route with no FDI-linked performance conditions. In other sectors, FDI into an LLP is not allowed.
LLP or private limited company — which is better for foreign investors?
An LLP suits services and professional firms wanting lighter compliance and pass-through simplicity. A private limited company is better if you plan to raise equity, issue ESOPs or scale — and it has broader automatic FDI access.
What is the resident-partner requirement for an LLP?
At least one designated partner must be resident in India (present 120+ days in the financial year); the others can be foreign nationals or NRIs.

Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last updated: July 2026.

LLP the right vehicle for you?

We confirm sector eligibility and register the LLP end-to-end.

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