non resident

This query is : Resolved

RAMPRASATH R (Querist)
Follow

19 May 2008 can a non resident ie not an NRI can be a partner in a indian firm which is engaged in real estate opeartions

Amit Sharma

Amit Sharma (Expert)
Follow

19 May 2008 Yes he can.

R.V.RAO

R.V.RAO (Expert)
Follow

19 May 2008 Investments with repatriation benefits

A non-resident Indian or a person of Indian origin resident outside India can invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided

i) Amount is invested by inward remittance or out of NRE / FCNR / NRO account maintained with AD bank.

ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business (i.e. dealing in land and immovable property with a view to earning profit or earning income there from) or print media sector.

iii) Amount invested shall not be eligible for repatriation outside India.

Investments with repatriation benefits

NRIs / PIO may seek prior permission of Reserve Bank for investment in sole proprietorship concerns/ partnership firms with repatriation benefits. The application will be decided in consultation with the Government of India.

Restrictions

An NRI or PIO is not allowed to invest in a firm or proprietorship concern engaged in any agricultural/plantation activity or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income therefrom or engaged in Print Media.

SOURCE: www.taxworry.com

[C] Non resident partner

In case one of the partners of the joint venture company is a non resident, approval of Reserve bank of India {RBI} will be required for acquiring shares of the company and establishing place of business in India u/s 19 and 29 of Foreign Exchange Regulation Act 1973 {FERA}. However RBI has granted general permission vide its notification dated 26-4-1993, as amended, u/s 19{1}{d} and u/s 29{1}{b} of FERA to a non resident Indian citizen / person of Indian origin to subscribe to the memorandum and articles of association of a company for the purpose of incorporation in India. And such company is also permitted to issue shares to the non residents subject to the condition that the total face value of shares is not to exceed Rs 10,000/-, the company will not engage in the activity of agriculture / plantation/dealing in real estate other than its development and the company files a declaration with RBI within 90 days of its incorporation. With the on going liberalization more general permissions of RBI are expected.

SOURCE:https://www.sethassociates.com/setting_up_a_joint_venture_in_india.php

FROM ABOVE TWO SOURCES , I OBSERVE RBI DOES NOT ALLOW INV. IN REAL ESTATE AND /AGR/PLANTATION BY NRI /NR.
EVEN TO BE PARTNER WITHOUT INVESTMENT,I FEEL ONE MAY APPLY FOR RBI APPROVAL IN VIEW OF THE SECTORAL RESTRICTIONS FOR INV.
R.V.RAO

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now