Register an LLP in India from France

How to Register a Limited Liability Partnership in India from France

France is the 11th-largest source of FDI into India, with cumulative equity inflows of approximately USD 11.75 billion from April 2000 to March 2025. Over 1,000 French establishments already operate in India, and bilateral trade reached USD 15.21 billion in FY 2024-25. For French consulting firms, technology companies, design studios, and professional services providers seeking a flexible, low-compliance Indian presence, the Limited Liability Partnership (LLP) offers a compelling alternative to incorporating a full company.

An LLP combines the operational flexibility of a partnership with limited liability protection. Unlike a Private Limited Company, an LLP has no mandatory annual audit below a turnover threshold of INR 40 lakh (approximately EUR 44,000) and contribution of INR 25 lakh, significantly reducing compliance costs for French investors starting lean operations in India.

Since 2022, India has permitted 100% FDI in LLPs under the automatic route in sectors where 100% FDI is allowed without FDI-linked performance conditions. The recent modernisation of the India-France DTAA through the February 2026 Amending Protocol further strengthens the tax environment for French investors, reducing dividend withholding taxes and clarifying cross-border income treatment.

FDI Route and Regulatory Requirements

French investors benefit from India's progressive FDI policy when investing in an Indian LLP. FDI in LLPs is permitted under the automatic route, subject to the following conditions:

Eligibility Conditions for FDI in LLPs

• The LLP must operate in a sector where 100% FDI is allowed under the automatic route for companies
• There must be no FDI-linked performance conditions applicable to the sector
• No prior approval from the RBI or DPIIT is required
• The investment must comply with FEMA pricing guidelines and reporting requirements

Eligible Sectors for French LLP Investment

Key sectors open to French FDI in LLPs include IT and software services, management and strategy consulting, engineering design services, architecture and urban planning, environmental consulting, healthcare advisory, renewable energy advisory, and financial services consulting. France's strengths in aerospace consultancy, luxury brand advisory, and infrastructure design align well with India's needs in these sectors.

Restricted Activities

FDI in LLPs is not permitted in sectors with FDI caps (such as defence at 74%, print media at 26%, or multi-brand retail at 51%) or sectors requiring government approval. Agricultural activities, real estate business, lottery, gambling, chit funds, and Nidhi companies are prohibited. French companies planning manufacturing or defence-related activities should consider a Private Limited Company or Wholly Owned Subsidiary.

Press Note 3 Exemption

French investors are not subject to Press Note 3 restrictions. These additional security screening requirements apply only to investors from countries sharing a land border with India (China, Pakistan, Bangladesh, Myanmar, Afghanistan, Nepal, Bhutan). French nationals and companies can invest freely under the automatic route.

DTAA Benefits for France Investors

The Double Taxation Avoidance Convention between India and France was originally signed in 1992 and has been substantially amended by the Amending Protocol signed on 23 February 2026 (pending entry into force pending completion of internal procedures in both countries). This modernisation brings significant changes that benefit French investors.

Revised Withholding Tax Rates

The Amending Protocol (once in force) will establish the following withholding tax rates:

• Dividends (10%+ shareholding): 5% of the gross amount (reduced from previous 10%)
• Dividends (below 10% shareholding): 15% of the gross amount
• Interest: 10% of the gross amount (for bank or financial institution loans)
• Royalties (industrial/commercial equipment): 10% of the gross payment
• Fees for Technical Services: Restricted to cases involving transfer of technical know-how (routine consultancy, advisory, and cybersecurity services expected to fall outside source-based taxation)

Key 2026 Treaty Changes

The February 2026 amendment introduces several significant changes for French investors:

• Full taxing rights on capital gains from share sales assigned to the country where the company is resident
• Deletion of the Most-Favoured-Nation (MFN) clause that previously allowed French investors to claim lower treaty rates negotiated with other OECD countries
• Revised treatment of Fees for Technical Services, limiting source-country taxation to genuine technology transfer

Tax Treatment of LLP Profits

For French partners in Indian LLPs, profit distributions are treated as business income and are not subject to additional withholding in India. The French partner can claim foreign tax credits in France through the DTAA provisions. To claim treaty benefits, the French investor must obtain a Tax Residency Certificate (TRC) from the French tax authority (Direction Generale des Finances Publiques) and submit Form 10F.

Document Requirements and Authentication

Both India and France are signatories to the Hague Apostille Convention, so document authentication follows the simplified apostille process rather than the lengthier embassy attestation route.

Documents Required from the French Side

• Passport copies of all proposed designated partners (notarised and apostilled)
• Address proof of all French partners (justificatif de domicile — utility bill or bank statement, apostilled)
• Board resolution (proces-verbal du conseil d'administration) of the French parent company authorising investment in the Indian LLP (apostilled), if the partner is a corporate entity
• Kbis extract or certificate of incorporation of the French entity (apostilled)
• Power of Attorney (procuration), if a representative will handle the Indian incorporation (apostilled and notarised)
• Proof of investment funds (bank statement of the French entity or individual)

Documents Required in India

• Proof of registered office address in India (rental agreement or ownership deed)
• NOC from the property owner for use of premises as LLP registered office
• Identity and address proof of the Indian resident designated partner
• Digital Signature Certificate (DSC) for all designated partners
• Designated Partner Identification Number (DPIN) for all designated partners

Apostille Process for French Documents

French documents are apostilled by the Procureur de la Republique (Public Prosecutor) at the Tribunal de Grande Instance of the jurisdiction where the document was issued, or by the Cour d'Appel (Court of Appeal) in certain cases. An apostilled document from France is directly acceptable at the Indian MCA portal without further embassy legalisation, saving approximately 2-3 weeks compared to the attestation process. Apostille in France typically costs EUR 15-45 per document and takes 3-7 working days.

Step-by-Step Registration Process

Registering an LLP in India from France follows these key steps using the MCA's FiLLiP (Form for Incorporation of Limited Liability Partnership) integrated platform:

Step 1: Obtain DSC and DPIN

All proposed designated partners (minimum 2, at least 1 must be an Indian resident who has stayed in India for at least 120 days in the preceding financial year) apply for a Digital Signature Certificate. For French partners, the DSC application requires apostilled passport copies and address proof. DPIN for up to 2 designated partners can be generated within the FiLLiP form itself.

Step 2: Reserve LLP Name (RUN-LLP)

File RUN-LLP on the MCA portal. Up to 2 name choices can be submitted per application with a fee of INR 200. The name must include "LLP" or "Limited Liability Partnership" as a suffix and must not be identical or similar to existing companies or LLPs registered in India.

Step 3: File FiLLiP Form

Once the name is approved, file the FiLLiP form which integrates incorporation with DPIN allotment and PAN/TAN generation. Key details include the proposed LLP agreement terms, partner contributions, registered office address, and designation of partners.

Step 4: File LLP Agreement (Form 3)

The LLP Agreement must be filed with the Registrar within 30 days of incorporation using Form 3. This agreement defines the rights and duties of designated partners, profit-sharing ratio (partage des benefices), capital contribution, and management structure. For Franco-Indian LLPs, the agreement should carefully address cross-border profit distribution, dispute resolution (consider ICC Paris arbitration), and exit mechanisms.

Step 5: Receive Certificate of Incorporation

The Registrar of Companies reviews the application and issues the Certificate of Incorporation along with PAN and TAN. Processing typically takes 5-10 working days.

Step 6: FDI Compliance Filings

After receiving foreign investment from France, file Form FDI-LLP(I) with the RBI through the FIRMS/SMF portal within 30 days of receiving the capital contribution. A valuation certificate and FIRC from the Authorised Dealer Bank are required. File FLA Return annually by July 15.

Timeline and Costs

The typical timeline for registering an LLP in India from France is 4-6 weeks, broken down as follows:

Cost Breakdown

• Government filing fees (MCA FiLLiP): INR 500-5,000 (based on contribution amount)
• DSC per designated partner: INR 1,500-2,500
• DPIN fees (included in FiLLiP): Free
• Name reservation (RUN-LLP): INR 200
• Stamp duty on LLP agreement: varies by state (typically INR 1,000-5,000)
• Professional fees (CA/CS): INR 10,000-30,000
• Apostille charges (France): EUR 15-45 per document
• Total estimated cost: INR 20,000-50,000 (approximately EUR 215-540)

There is no minimum capital contribution requirement for an LLP in India. Compare entity costs at our compliance cost comparison.

Post-Registration Compliance

Once your LLP is registered, ongoing compliance requirements include:

• Annual Return: Form 11 (Annual Return of LLP) must be filed within 60 days of the close of the financial year (by May 30)
• Statement of Accounts: Form 8 (Statement of Account and Solvency) must be filed within 30 days from the end of 6 months from the close of the financial year (by October 30)
• Tax returns: Income tax return filing (ITR-5 for LLPs), advance tax payments, and GST returns if applicable
• Statutory audit: Required only if turnover exceeds INR 40 lakh or contribution exceeds INR 25 lakh
• RBI reporting: Form FDI-LLP(I) on each capital contribution, FLA Return annually by July 15
• Transfer pricing: If transactions with the French partner exceed INR 1 crore, transfer pricing documentation and Form 3CEB are mandatory

The lower compliance burden is a major advantage of the LLP over a Private Limited Company. Learn more on our annual compliance services page.

Common Challenges for France Companies

French companies registering an LLP in India typically encounter these specific challenges:

Finding a Qualified Indian Resident Designated Partner

At least one designated partner must have resided in India for a minimum of 120 days in the preceding financial year. Many French firms use a professional resident designated partner service initially until local hiring is complete. This person bears personal liability for compliance with the LLP Act, FEMA regulations, and RBI reporting.

Navigating the New DTAA Provisions

The February 2026 Amending Protocol to the India-France DTAA introduces significant changes including the deletion of the MFN clause and revised dividend withholding rates. French investors who previously structured their investments to benefit from the MFN clause (which allowed claiming lower rates from other OECD treaties) must now reassess their tax planning. Professional tax advisory is strongly recommended during this transition period.

LLP Taxation Rate Differential

Indian LLPs are taxed at a flat rate of 30% (plus surcharge and cess, effective rate approximately 34.94%), which is higher than the 25% corporate tax rate for most Indian companies. However, LLPs avoid dividend distribution tax — profit distributions to French partners are not subject to additional withholding in India. French partners can claim foreign tax credits in France through the DTAA.

Language and Cultural Considerations

While India's corporate regulatory framework operates in English, French companies may encounter challenges with the nuances of Indian legal terminology and regulatory requirements. Key documents including the LLP agreement, FEMA filings, and RBI communications are all in English. Engaging bilingual legal counsel familiar with both French and Indian business practices is recommended.

Sector Eligibility Verification

Not all sectors allowing 100% FDI for companies automatically permit FDI in LLPs. The additional condition of "no FDI-linked performance conditions" narrows eligibility. French companies in sectors with specific export obligations, technology transfer requirements, or local sourcing conditions should verify LLP eligibility with professional FDI advisory before proceeding.

Frequently Asked Questions

Can a French citizen register an LLP in India without visiting India?

Yes. The entire process can be completed remotely. DSC can be issued based on apostilled passport copies, and FiLLiP filing is fully online through the MCA portal. A Power of Attorney (procuration, apostilled) can authorise an Indian representative to handle all filings and bank account opening.

What is the minimum capital contribution required for a French investor in an Indian LLP?

There is no prescribed minimum capital contribution for LLPs in India. Partners can contribute any amount, which must be stated in the LLP agreement. The contribution amount should be commercially reasonable and sufficient to demonstrate the business purpose for FEMA compliance.

How has the 2026 India-France DTAA amendment affected LLP taxation?

The February 2026 Amending Protocol primarily affects dividend withholding (reduced to 5% for 10%+ holdings, increased to 15% for smaller holdings) and capital gains taxation. For LLPs, the key change is the deletion of the MFN clause, which previously allowed French investors to claim lower rates from India's treaties with other OECD countries. Profit distributions from LLPs remain treated as business income.

Is FDI in Indian LLPs allowed under the automatic route for French investors?

Yes, 100% FDI in LLPs is permitted under the automatic route, provided the LLP operates in sectors where 100% FDI is allowed for companies and there are no FDI-linked performance conditions. No prior government approval is required.

What FEMA reporting is required after investing in an Indian LLP?

The LLP must file Form FDI-LLP(I) with the RBI through the FIRMS/SMF portal within 30 days of receiving capital contribution from the French partner. A valuation certificate and FIRC are mandatory attachments. The FLA Return must be filed annually by July 15.

Can a French SAS or SARL be a designated partner in the Indian LLP?

A body corporate (including a French SAS, SARL, or SA) can be a partner in an Indian LLP but cannot serve as a designated partner. Only natural persons can be designated partners under the LLP Act, 2008. The French company must nominate a natural person to act as its representative designated partner.

What are the ongoing annual costs of maintaining an Indian LLP with French partners?

Annual compliance costs for an LLP are lower than a Pvt. Ltd. company. Typical costs include Form 11 and Form 8 filing (INR 5,000-15,000), tax return preparation (INR 10,000-25,000), and statutory audit if applicable (INR 20,000-50,000). Total annual maintenance typically ranges from INR 50,000-1.5 lakh (approximately EUR 540-1,600).