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Can investors invest in an LLP?

Can investors invest in an LLP?

Investment in an LLP can be in the form of capital contribution or by way of acquisition of profit shares. NRIs can invest in an LLP which is engaged in a business activity where 100\% foreign investment is allowed under the automatic route without any investment-linked performance conditions.

Can LLP be formed for investment business?

As per the above provision, it is concluded that the RBI approves non-banking financial institutional activities to the companies which are registered under the company act, after fulfilment of certain conditions. Hence an LLP cannot register itself as an NBFC for investment or financing activities as per RBI rule.

How can I start an investment partnership in India?

Incorporate your Business:

  1. The corporate has to be first set up as a normal private/public company under the Companies Act 2013.
  2. Then an application for registration of the company as NBFC has to be made with RBI.
  3. You need 2 crores which are the minimum net owned funds.
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Can partnership firm invest in LLP?

A firm cannot enter into a partnership with LLP. It is their case that though LLP is a kind of partnership having the nature of company the provisions in the LLP are completely frustrating the purport of Section 25 and 49 of the Indian Partnership Act, 1932.

How can I get high return on investment in India?

Now, let us take a quick understanding of each of the best investment options with high returns in India 2021 one by one:

  1. Unit Linked Insurance Plan (ULIP)
  2. Public Provident Fund (PPF)
  3. Mutual Fund.
  4. Bank Fixed Deposits.
  5. National Pension Scheme (NPS)
  6. Senior Citizen Savings Scheme.
  7. Direct Equity.
  8. Real Estate Investment.

Can a partnership be an investment company?

As such, a corporation (or partnership) engaged in the active trade or business of securities trading (as opposed to investing activities) may also qualify as an investment company under Sec. 351.

Can LLP be converted to partnership firm?

No, An existing LLP cannot be converted in a Partnership Firm. There is no provision for such conversion in Limited Liability Partnership Rules, 2009. The Limited Liability Partnership is a modification of the Partnership concept.

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