To increase the funding of firm/ proprietary concern in India, RBI has liberalized the regulation for investment in capital of firm/ proprietary concern by person resident outside India.
The regulation also gives permission to a firm or a proprietary concern to make payment to a NRI or a PIO who has made investment.
Further, a firm or a proprietary concern in India may make payment to or for the credit of a NRI or a PIO the sum invested by such person in that firm or the proprietary concern or the income accruing to such person by way of profit on such investment.
Frequently asked questions
Can an NRI make Investment in Partnership Firm/ Proprietary Concern in India?
Are there any restrictions on such investments?
Can a NRI invest in a LLP in India?
Who can form a LLP in India?
A citizen/ entity of Pakistan and Bangladesh or
What are the eligibility criteria of LLP for accepting foreign investment?
Can a non-resident other than NRI / PIO make investments in Partnership Firm/ Proprietary Concern in India?
Can NRI / PIO repatriate outside India the investment made in partnership firm/ proprietary concern?
NRIs / PIO may seek prior permission of RBI for investment in sole proprietorship concerns / partnership firms with repatriation benefits.