Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

LLP INVESTMENT

MANOJ KUMAR S (Student CA Final ) (34 Points)

25 July 2021

Can NRIs be partners in an LLP? Can an LLP take loans on interest basis from friends and relatives of partners including NRIs?

Reply
Follow
Share

1 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 25 July 2021

As LLP is modern type of Partnership and must have minimum two partners to run business. LLP Must have one Indian resident partner and second can be Appointed as Foreign National / NRI Partner in LLP. It can be noted that the regulation refers to two terms 'Person' and “person resident in India
Resident of India can only borrow money in Indian rupees from NRIs. The conditions under which he/she can borrow are: Borrowing shall be only on a non-repatriation basis. This means that funds once given cannot be taken back.