Secure-business-setup-for-foreign-nationals-India

How to Register an LLP in India for NRIs & Foreign Nationals? (2026)

Introduction

Why Choose an LLP Structure in India? 

India’s robust economic development, startup ecosystem, and lenient FDI policies continue to draw in international investors. Even for foreign citizens and NRIs, registering a Limited Liability Partnership (LLP) has become more efficient and transparent thanks to the Ministry of Corporate Affairs’ (MCA) digital incorporation services.

 

A Limited Liability Partnership (LLP) combines :

  • The operational flexibility of a partnership
  • The limited liability protection of a company

For small and medium-sized ventures, LLP is often the most practical business structure.

 

Core Points

  • NRIs and Foreign Nationals can register an LLP in India with 100% FDI allowed in eligible sectors under FEMA rules.
  • A minimum of 2 partners is required, including at least 1 Indian resident designated partner (120-day residency condition).
  • DSC and DPIN are mandatory for all designated partners before incorporation.
  • Properly notarized and apostilled documents are required for foreign partners.
  • Capital contribution must follow RBI guidelines and be routed through authorized banking channels.
  • Post-registration compliance includes Form 8, Form 11, Income Tax Return filing, and FEMA reporting (if applicable).

Eligibility Criteria for NRIs & Foreign Nationals

Before forming an LLP in India, it’s crucial to know who can do it.

 

1. Eligibility for NRIs

 

Non-Resident Indians (NRIs) can :

  • Become partners or choose partners
  • Put money into investments through inbound remittance
  • Own 100% of eligible sectors

But investors must follow FEMA and sectoral rules.

 

2. Eligibility for Foreign Nationals

 

Foreign nationals are also allowed to:

  • Be companions as planned
  • Put money into LLPs that work in industries where 100% FDI is authorized.
  • Take part in decisions on management

They must obtain a Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN).

 

3. Mandatory Indian Resident Designated Partner

 

Every LLP must have:

  • Minimum 2 partners
  • At least 1 designated partner who is a resident of India

A resident partner is someone who has lived in India for at least 120 days during the financial year. This makes sure that the rules are followed in India.

 

 

Pre Requirements for Foreign-Owned LLPs

Make sure the following things are true before you start the registration procedure.

 

A. Partner Requirements

  • A minimum of two partners, either individuals or corporations
  • A minimum of one resident’s designated partner
  • DSC is required for all designated partners.
  • DPIN is required.

 

B. Registered Office Setup in India

 

In India, an LLP is required to have a registered office.

Documents needed:

  • Proof of ownership or a rental agreement
  • Utility bill (during the last two months)
  • Owner’s No Objection Certificate (NOC)

The Registrar of Companies’ (ROC) jurisdiction is established by the registered office.

 

C. Overview of FDI & FEMA Framework

 

The Reserve Bank of India’s (RBI) FEMA regulations regulate foreign investments in limited liability partnerships.

Important guidelines consist of:

  • 100% FDI is permitted in eligible sectors via the automatic approach.
  • No FDI in industries that are restricted, such real estate and agriculture
  • Foreign investment reporting requirements
  • Receiving capital requires using the appropriate banking channels.

Failure to comply may result in fines.

 

 

What Documents are Required as an NRI or Foreign Nationals?

For approval, you need to have the right Documents.

 

Documents Required for NRIs

  • Notarized passport
  • Proof of an overseas address (bank statement or power bill from the last two months)
  • PAN card (if available)
  • A picture the size of a passport
  • Proof of an Indian address (if needed)

 

Documents Required for Foreign Nationals

  • Passport (notarized and stamped)
  • Proof of address (not older than two months)
  • Copy of your visa (if you’re in India)
  • Picture the size of a passport

 

Step-by-Step Process to Incorporate an LLP with a Foreign Partner

 

Step 1: Obtain Digital Signature Certificate (DSC)

 

All designated partners must secure DSC to file documents electronically on the MCA portal.

 

Step 2: Apply for DPIN

 

Designated Partner Identification Number is required for every designated partner.

 

Step 3: Reserve LLP Name

 

You can reserve a name through MCA’s RUN-LLP service.

The name has to:

  • Be one of a kind
  • Do not violate trademarks
  • Follow the MCA’s rules for naming things

 

Step 4: File Incorporation Application (FiLLiP Form)

 

Send in the form to incorporate, which should include:

  • Information about the partner
  • Contribution of capital
  • Address of the registered office
  • Partners’ agreement

When approved, MCA send :

  • Certificate of Incorporation
  • Identification Number for LLPs (LLPIN)

 

Step 5: Execute and File LLP Agreement

 

Within 30 days of being a corporation:

  • Write an LLP Agreement
  • Explain the ratio of capital contributions to profits
  • Send Form 3 to MCA

This agreement determines how things work within.

 

FDI, FEMA & RBI Compliance Requirements

The RBI keeps an eye on foreign investment in LLPs to make sure it follows FEMA rules.

 

1. Rules for Capital Contributions

  • Must be sent through banks
  • You have to follow the right rules for valuing things.

 

2. Reporting Requirements for RBI

  • Submit Form FDI-LLP(I) by the due date
  • Keep records for examination by regulators

 

3. Restrictions by sector

  • No money spent on illegal activity
  • Rules for downstream investment apply

 

4. Moving Money

  • The transfer of partnership interest must follow rules for pricing and valuing.
  • It is strongly advised to get help with compliance from a professional.

 

Taxation Structure of LLP in India (2026)

LLPs are taxed like partnership firms:

  • 30% income tax on profits
  • 4% Health & Education Cess
  • No dividend distribution tax
  • Profit share exempt in partners’ hands

NRIs and foreign nationals can explore benefits under Double Taxation Avoidance Agreements (DTAA).

 

Annual Compliance for Foreign-Owned LLPs

After incorporation, LLP must file:

  • Form 8 – Statement of Accounts & Solvency
  • Form 11 – Annual Return
  • Income Tax Return
  • FEMA-related filings (if applicable)

Non-compliance can lead to heavy penalties.

 

Estimated Timeline & Cost (2026)

Timeline:

  • DSC & DPIN: 3–5 days
  • Name approval: 2–3 days
  • Incorporation: 5–7 days
  • Total: Approx. 10–15 working days

 

Estimated Cost:  

₹8,000 to ₹25,000 (excluding legalisation of foreign documents)

 

How EbizFiling Support You?

  • We handle complete LLP registration from DSC to incorporation.
  • We manage FEMA and Reserve Bank of India compliance requirements.
  • We provide dedicated expert support at every step.
  • We assist with annual filings and tax compliance.
  • We offer a 100% online process with transparent pricing.

 

Conclusion

In 2026, registering an LLP in India for NRIs and foreign a nationals would be a structured yet easy process. LLP is a great way to get into the Indian market because it has flexible operational structure, digital MCA filings, and open FDI rules.

 

However, strict compliance with MCA regulations, FEMA provisions, and RBI reporting requirements is essential to avoid delays or penalties. With proper documentation and professional assistance from experts like ebizfiling, foreign investors can confidently establish and grow their business in India through the LLP structure while staying fully compliant.

 

FAQs

1. Can NRIs register an LLP in India?

Yes, NRIs can register a Limited Liability Partnership (LLP) in India. At least one designated partner must be a resident of India as per Ministry of Corporate Affairs guidelines.

2. Can foreign nationals become partners in an LLP?

Yes, foreign nationals are allowed to become partners or designated partners in an LLP, subject to FEMA and RBI regulations.

3. Is a resident Indian partner mandatory?

Yes. Under Ministry of Corporate Affairs rules, at least one designated partner must have stayed in India for 120 days during the financial year.

4. What documents are required for NRIs and foreign nationals?

NRIs and foreign nationals must submit a notarized passport copy, valid address proof (bank statement or utility bill), and a passport-size photograph for registration. They must also obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) to complete the incorporation process.

5. Is RBI approval required for LLP registration?

In most sectors, prior approval from the Reserve Bank of India is not required if 100% FDI is allowed under the automatic route.

6. What is the minimum capital requirement?

There is no minimum capital requirement to register an LLP in India.

7. How long does it take to register an LLP in 2026?

The process usually takes 7–15 working days, depending on document verification and approval timelines.

8. Can NRIs open a bank account for the LLP?

Yes, after incorporation, NRIs and foreign nationals can open a current account in the LLP’s name in India.

9. Is physical presence required in India?

No, physical presence is not mandatory. The entire registration process can be completed online through the Ministry of Corporate Affairs portal.

10. What are the compliance requirements after registration?

LLPs must comply with annual requirements including filing Annual Return (Form 11) and Statement of Accounts & Solvency (Form 8) with the Registrar of Companies. Additionally, filing the Income Tax Return and ensuring ROC compliance under the LLP Act, 2008 is mandatory to avoid penalties and legal consequences.

 

About Ebizfiling -

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Author: dhruvi

Dhruvi Darji is a Content Writer at Ebizfiling who turned her passion for writing into a full-time career. She holds a Bachelor's degree in Computer Applications from KSV University and has been writing content professionally since 2023. Over time, she has worked on various topics and enjoys creating simple, clear, and helpful content that helps people gain a better understanding. She also holds a 7-band IELTS score, reflecting her strong grasp of language and communication. Beyond work, Dhruvi enjoys journaling and crafting stories.

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