RBI allows LLPs to carry out financial commitment abroad

The Reserve Bank of India (RBI) has allowed Limited Liability Partnership (LLP) firms to carry out financial commitment to/on behalf of joint ventures or wholly-owned subsidiaries of the Indian companies abroad. The RBI in a notification said that it has been decided to notify a Limited Liability Partnership as an ‘Indian Party’. Accordingly, an LLP, may henceforth undertake financial commitment to/on behalf of a JV/WOS abroad.