The Reserve Bank of India issued a notification in March 2017 to address concerns and to bring about changes to the foreign direct investment regulations in limited liability partnerships (LLPs).
The regulatory framework is clearer for Singapore investors and other foreign investors to use LLPs to invest in India, given that:
Also in light of recent tax treaty amendments between India and Singapore, company structures have become less beneficial because capital gains tax applies on investment in shares of Indian companies (after 1 April 2017) that are subsequently transferred by a Singapore tax resident investor.
Read an April 2017 report [PDF 303 KB] prepared by the KPMG member firm in Singapore: LLP – New Operating Entity of choice to be considered by Singapore investors to invest into India
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