Liaison Office : A LO ( also known as Representative Office ) can | ||
undertake only liaison activities , i . e ., it can act as a channel of communication between the head office abroad and parties in |
Q . 19 What is a Limited Liability Partnership ? |
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India . It is not allowed to undertake any business activity in |
Limited Liability Partnerships : The LLP format allows corporate |
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India and cannot earn any income in India . Expenses of such |
business entity along with the benefits of limited liability . At |
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offices are to be met entirely through inward remittances of |
the same time , it allows the members the flexibility of |
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foreign exchange from the head office outside India . |
organizing their internal structure as a partnership based on |
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Permission to set-up a LO in India is initially granted for a |
mutually-agreed terms . Like a private limited company , LLP is |
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period of 3 years and this is likely to be extended from time to |
a body corporate having a distinct legal entity . The LLPs are |
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time . Upon expiry of the validity period , these entities have to |
governed by the LLP Act 2008 . However , the RBI has still not |
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either close down or be converted into a Joint Venture ( JV ) / |
notified the LLP structure in FEMA . |
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Wholly Owned Subsidiary ( WOS ), in conformity with the extant
Foreign Direct Investment policy .
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FDI will be allowed through the government approval route , only in LLPs operating in sectors / activities where 100 % FDI is |
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Specified Activities : |
allowed through the automatic route and sectors are not |
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( i ) |
Representing in India the parent company / group |
subject to additional conditions . |
companies ; |
The other details can be seen from page numbers 16 and 17 |
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( ii ) Promoting export / import from / to India ;
( iii ) Promoting technical / financial collaborations between parent / group companies and companies in India ;
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on the following link-
( http :// dipp . nic . in / English / Policies / FDI _ Circular _ 01 _ 2013 . pdf ).
The LLP act and rules can be seen from the following link-
( http :// www . mca . gov . in / LLP /).
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( iv ) Acting as a communication channel between the parent company and Indian companies . |
The details of registering a New LLP and reporting requirements can be seen from the following links- |
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Branch Office : The BO should be engaged in the activity in which the parent company is engaged . Retail trading activities of any nature are not allowed for a BO in India . A BO is , also not allowed to carry out manufacturing ( except in an SEZ ) or |
( http :// www . mca . gov . in / LLP / RegisterNewComp . html ),
( http :// www . mca . gov . in / LLP / CARFiling . html )
Q . 20 Is it possible to dissolve the LLP in India ?
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processing activities in India , directly or indirectly . Profits |
The details of LLP closure can be seen from the following linkearned |
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by BO are freely remittable from India , subject to |
( http :// www . mca . gov . in / LLP / CloseCompany . html ). |
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payment of applicable taxes | ||