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Can a foreigner be a partner in newly constituting firm.

Others 1204 views 2 replies

Hello All,

 

One of my clients isinterested in setting up a partnership firm for some business in service sector. He wanted to know whether his counterpart in UK who is a British Citizen can be a partner in this firm. I am a bit confused. So thought of asking the experts' panel. Could any one throw some light into this, please?

Replies (2)

According to the Indian Partnership Act 1932, the following individuals cannot be partners in a partnership firm in India:

  • Minors (individuals under the age of 18)
  • Persons of unsound mind
  • Insolvent individuals
  • Individuals who have been disqualified by law from entering into a partnership
  • Foreigners are not authorized to do business in India unless the partnership is specifically permitted by the Foreign Exchange Management Act (FEMA).
  • Companies or other legal entities cannot enter into a partnership by their governing documents.

Nahi videshi vyakti farm ka sajhedar nahi ban sakta 


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