F.A.Q.

A minimum of two partners will be required for formation of an LLP. There is no limit on the maximum number of partners.

A Foreign National can be appointed as Designated Partner of the LLP. The documents including the Identity Proof and Residential Proofs to be notarized and apostil led from Indian Embassy in their home country.

The mutual rights and duties of partners inter se and those of the LLP and its partners shall be governed by the agreement between partners or between the LLP and the partners. This Agreement would be known as LLP Agreement.

No, these shall not be applicable to LLPs.

The accounts of every LLP shall be audited in accordance with Rule 24 of LLP, Rules 2009. Such rules, inter-alia, provides that any LLP, whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty five lakh rupees, is not required to get its accounts audited. However, if the partners of such limited liability partnership decide to get the accounts of such LLP audited, the accounts shall be audited only in accordance with such rule.

No, at least two individuals required and the maximum limit is fifty. The investors are called as Shareholders of the company.

Yes. Every individual who is contemplating a position of a director in an Indian company must obtain a Directors Identification Number (DIN) before he can become a director in an Indian company. Directors are normally appointed by shareholders. Indian companies law prescribes only an individual can be appointed as a director of a company.

Yes, shares of Private Company are easily transferable among members of the company but for transferring the shares to non-member, the share should be first offered to an existing member and if he refuses to purchase the same, the shares can be transferred to non-members.

Most of the business sectors have been thrown open for foreign participation to the extent of 100%. There are only a handful of sectors where foreign investment is restricted to less than 100%. Further most business sectors have been put under the automatic approval route, which means that the foreigners / foreign companies can remit the investment for the shareholding into India first and later approach the Reserve Bank of India for permission of the foreign holding. This liberalized scheme removes all bottlenecks and greatly reduces the time taken for a foreign company or a foreign individual to kick start their business ventures in India.

A private limited company should file every year with the Registrar of Companies an Annual Return along with a copy of the Balance Sheet and Profit and Loss Statement. Together a Report of the Board of Directors and the Report of the Auditors should also be filed.