CAN AN NRI HOLDING PIO OPEN A PARTNERSHIP FIRM? PLEASE GUIDE ME
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160327 Points)
Replied 24 November 2018
1. A NRI or a PIO residing outside India is allowed to do business in India as a sole proprietor. However, the person should make investments on a non–repatriation basis, subject to satisfaction of certain other conditions. However, an NRI or PIO cannot invest in a proprietary concern, that is engaged in any agricultural or plantation, real estate business or print media sector, even on a non-repatriation basis.
2. An NRI or PIO residing outside India is allowed to invest in a partnership organization in India. However, such investments should be made on a non–repatriable basis, subject to the satisfaction of certain other conditions. However, NRIs or PIOs can make investments in a partnership firm with repatriation benefits after obtaining the approval of the RBI. An NRI or a PIO cannot invest in a partnership concern that is engaged in any agricultural or plantation or real estate business, or in the print media sector.
Sanyam Jain
(5 Points)
Replied 09 September 2021
Hello,
I currently operate a sole-proprietorship firm in India, and for this FY [2021-22], I will be deemed 'NRI'.
I have read and heard conflicting information about whether an NRI can operate a sole-proprietorship firm in India. Can someone please confirm if I as an NRI can continue to operate my firm and if yes, based on which regulation is it permitted and which other regulatory requirements would I need to be mindful of?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160327 Points)
Replied 09 September 2021
As already replied, you can continue to operate the business (other than agricultural activity), but not allowed to repatriate the funds. For more details click on the link...
https://www.hubco.in/articles/can-nri-open-sole-proprietorship-in-india
Sanyam Jain
(5 Points)
Replied 09 September 2021
I've seen this link and there was no notable regulation and/or rule was cited to it - https://bit.ly/3A0CGbb
Is it based on regulation and/or rule [if yes, the citation is needed] or is it mere opinion?
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