A person resident outside India who intends to engage in trading, manufacturing, or service-related activities may incorporate a new entity in India. Depending on the sector, and guided by the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (commonly known as FEMA NDI Rules 2019), foreign investors may choose to incorporate:
These entities are recognized as Indian businesses and must comply with applicable local laws and statutory provisions.
Foreign investment in LLPs is permitted under the automatic route only in sectors where 100% FDI is allowed and where there are no FDI-linked performance conditions. This route makes FDI in LLP a viable and flexible option for eligible sectors.
Incorporation follows:
These laws are administered by the Ministry of Corporate Affairs (MCA) through the Registrar of Companies (ROC). Pro Tip: If you are planning to incorporate a FEMA LLP, ensure that the sector is fully open to FDI under the automatic route and that your structure complies with the latest FEMA guidelines
