What is the Automatic route and Approval route in FDI? What is the current position of LLPs in India?

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What is the Automatic and Approval route in FDI?

Automatic route

Under the automatic route, the foreign investor or Indian company does not require any approval from the ROI or the GOI for investment. The approval route FDI is acceptable in all areas and activities specified under the Consolidated FDI Policy.

Approval route

Under the approval route or government route, the foreign investor or Indian company should seek prior approval of the Government of India or predetermined bodies. 

What is the current position of LLP’s in India?

The LLP Act 2008 in India was published in the Official Gazette of India on 9 January 2009 and has been in effect since 31 March 2009 the first limited liability partnership was incorporated on 2nd April 2009.

As in many other courts in India, an LLP differs from a limited partnership. A limited liability partnership operates like a limited partnership, but each member in each limited liability partnership is protected from personal liability, except for the limit of capital contributions to the limited liability partnership.

As per the LLP Act, 2008, LLP means a partnership formed and registered under this Act.

For more information about Limited Liability Partnership Registration contact our Chartered Munshi experts. 

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