Whether LLP is eligible to receive ECB?

[Nidhii Parekh]

Dear All

Please suggest if LLP can borrow from Foreign resident?

[CS Mohit Saluja]

Dear Concern,

          Greetings of the Day  !

Under the new framework, the definition of an ‘Indian entity’ specifically includes LLP registered under LLP Act, 2008. The erstwhile framework defined ‘Indian entity’ as a company or a body corporate or a firm in India. But now, as there is no exhaustive list and ‘all entities who are eligible to receive FDI’ are regarded as eligible borrowers, an LLP can now borrow ECB, if it is eligible to receive FDI. 

However, As per the FAQs given on the RBI Website, LLPs can not raise the ECBs. Following is the FAQ provided :

5. Are LLPs eligible to raise ECBs?

As LLPs are not eligible to receive FDI, they cannot raise ECBs.

So at the end we have to go by the RBI circulars/ notifications, and we can say that no ECB can be raised by LLPs

CS Mohit Saluja 

CERTIFIED CSR PROFESSIONAL

and Registered Trade Mark Agent

Mohit Saluja & Associates

Company Secretaries

FCS, L.L.B, M.Com, B.Com(Prof.)

338/7, Central Town

Near Swaran Institute

Jalandhar, Punjab-144001 

Tel: +91 9914558709 (M) 
Email: csmohit...@gmail.com | csmohits...@gmail.com

On Wed, Jun 16, 2021 at 2:05 PM Nidhii Parekh <nidh...@gmail.com> wrote:

Dear All

Please suggest if LLP can borrow from Foreign resident?

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