14 October 2009
A non resident Indian citizen can be a partner in a firm whether any permission is required under the fera act or any permission required at a time of remittance to non resident partner? Please answer it as early as possible.
Investment in Partnership Firm by NRI is govern by Foreign Exchange Management (Investment in Firm or Proprietary concern in India) regulations, 2000.
The Regulation has given general permission to NRI as defined subject to below conditions;
* the firm is not 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 -> Print Media
* the investmen shall be made as contribution to Capital
* Amount invested shall be on Non-rep basis.
* Remittance for investment is to made through AD.
However, it is to be noted that one may be allowed to rep the above capital contribution by following FEM (Remittance of Assets) 2000.
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