The government’s post-budget announcement regarding amendments to the Limited Liability Partnership (LLP) Act is set to be a significant catalyst for the Alternative Investment Fund (AIF) ecosystem.
Nandini Pathak, shared her insights on why this shift is critical for international investors:
“Foreign investors are more comfortable with funds being a separate legal entity and face a compliance challenge when investing in trusts. Foreign investors often struggle to classify their investee AIFs which are set up as trusts appropriately in their local legal, tax or compliance reporting and filings.”
Regarding the anticipated legislative changes, Nandini further added:
“She expects a new chapter to be introduced in the LLP Act which would be dedicated to AIFs, with appropriate provisions for ease of operating an investment fund, such as on incorporation procedures, entry and exit of partners, governance matters, filing formalities, and winding up.”
This regulatory evolution marks a proactive step toward enhancing India’s appeal as a global investment destination by simplifying fund operations and aligning with international best practices.
Read More: https://www.vccircle.com/howthe-government-s-move-to-amend-the-llp-act-may-benefit-aifs