Home › Circulars › RBI/2013-14/595

LLPs now eligible as Indian Party for overseas investments

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/595 · issued 19 May 2014 · ~1 min read
Quick answerRBI now allows LLPs registered under the LLP Act, 2008 to act as an 'Indian Party' for overseas direct investments, enabling them to make financial commitments to joint ventures or wholly owned subsidiaries abroad under FEMA regulations.

What changed

RBI has amended the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 to include LLPs as an 'Indian Party'. This means LLPs can now undertake financial commitments to or on behalf of a joint venture or wholly owned subsidiary overseas, effective from May 7, 2014.

What it means for you

Banks and lenders must now recognize LLPs as eligible entities for overseas direct investment, expanding the pool of clients who can invest abroad. AD banks need to update their internal processes to handle LLP-related reporting and ensure compliance with the amended FEMA regulations.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Category-I Authorised Dealer Banks, Limited Liability Partnerships (LLPs) registered under LLP Act, 2008, Customers and constituents of AD banks seeking overseas investments

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the effective date for this change?

The amendment is effective from May 7, 2014, the date of publication in the Gazette.

What reporting is required for LLPs making overseas investments?

AD banks must report financial commitments by LLPs in Form ODI Part I and II, and also handle other reporting like APR and disinvestments as per existing rules.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/595 A.P. (DIR Series) Circular No.131 May 19, 2014 To All Category – I Authorised Dealer Banks Madam/ Sir, Overseas Direct Investments – Limited Liability Partnership (LLP) as Indian Party Attention of the Authorised Dealers (AD) is invited to Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 notified by the Reserve Bank vide Notification No. FEMA.120/RB-2004 dated July 07, 2004 and amended from time to time. 2. On a review, it has been decided to notify a Limited Liability Partnership (LLP), registered under the Limited Liability Partnership Act, 2008 (6 of 2009), as an “Indian Party” under clause (k) of Regulation 2 of the Notification ibid. Accordingly, an LLP, may henceforth undertake financial commitment to / on behalf of a JV / WOS abroad in terms of the extant FEMA provisions under Regulation 6 (and regulation 7, if applicable) of the Notification ibid . 3. Necessary amendment to the Notification ibid has been issued vide Notification No. FEMA.299/2014-RB dated March 24, 2014 (copy enclosed), which is effective from the date of publication in the Gazette i.e. May 07, 2014. 4. The AD banks shall report the financial commitment/s undertaken by an LLP in Form ODI Part I and II and also other reporting (APR, disinvestments, etc.) as per the extant reporting requirements. 5. AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (C D Srinivasan) Chief General Manager Encl: Amendment Notification (FEMA.299)
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/595 · issued 19 May 2014. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8882&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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