Partnership firm with foreign company

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Basant Jajoo (Querist)
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27 February 2014 Can a partnership firm be formed with one Indian partner & other partner as Foreign company (with major share)

Sandeep Dharar

Sandeep Dharar (Expert)
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27 February 2014 yes it can form, with a foreign member.

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Basant Jajoo

Basant Jajoo (Querist)
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27 February 2014 Thanks Sandeep for your reply.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 March 2014 only by approval of RBI.

Please refer FDI policy of Indian government Point 3.2.2 (iii)Investment by non-residents other than NRIs/PIO:
A person resident outside India other than NRIs/PIO may make an application and seek prior approval of Reserve Bank for making investment in the capital of a firm or a proprietorship concern or any association of persons in India. The application will be decided in consultation with the Government of India.

the full text of the policy can be viewed at https://dipp.nic.in/English/Policies/FDI_Circular_01_2013.pdf

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Basant Jajoo

Basant Jajoo (Querist)
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03 March 2014 Thanks Nikhil for your valuable response.

What if the industry falls in Automatic Route allowed by RBI. In that case, I guess, its not required to be approved by the Government.

What is your suggestion in this regard??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 March 2014 it is not industry that is relevant here...

it is the nature of the investee that is relevant here. if you wnat to invest in a partnership firm, you need to seek prior approval.

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Basant Jajoo

Basant Jajoo (Querist)
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03 March 2014 Thanks a lot Sir. Will get back to you after referring to the Policy.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 March 2014 it is not industry that is relevant here...

it is the nature of the investee that is relevant here. if you wnat to invest in a partnership firm, you need to seek prior approval.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 March 2014 you are welcome Basant..

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