Ans.
· Foreign investment is permitted under the automatic route in LLPs
operating in sectors/ activities where 100% Foreign Direct
Investment (FDI) is allowed, through the automatic route and there are no FDI linked
performance conditions.
· Foreign Investment in LLP is subject to the compliance of LLP Act, 2008.
· Pricing guidelines norms - The price at which
investment is made in an LLP should not be less than the fair price worked out
as per any valuation norm which is internationally accepted or adopted as per
market practice. Further, a valuation certificate to this effect shall be
issued by the Chartered Accountant or by a practising Cost Accountant or by an
approved valuer from the panel maintained by the Central Government.
· In case of transfer of capital contribution
or profit share from a person resident in India to a person resident outside
India, the transfer should not be for consideration less than the fair price of
capital contribution or profit share of LLP.
Further, in case of transfer of capital contribution or profit share
from a person resident outside India to a person resident in India, the
transfer should not be for consideration more than the fair price of capital
contribution or profit share of LLP.
· The amount of consideration should be paid by
way of inward remittance from abroad through banking channels out of funds held
in NRE/FCNR(B)/NRO Account maintained in accordance with the FEMA Regulation.