Investment in Proprietorship Business / Partnership Firm
Eligibility:
An NRI or PIO resident outside India can invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis.

A person resident outside India other than NRIs / PIO may make an application and seek prior approval of Reserve Bank, for making investment by way of contribution to 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.

Investment:
Amount is invested by inward remittance or out of NRE / FCNR(B) / NRO account maintained with Authorized Dealers / Authorized Banks.

Prohibition:
The firm or proprietary concern is not engaged in any agricultural / plantation or real estate business (i.e. dealing in land and immovable property with a view to earning profit or earning income there from) or print media sector.

Repatriation:
  • Amount invested shall not be eligible for repatriation outside India.
  • NRIs / PIO may seek prior permission of Reserve Bank for investment in sole proprietorship concerns / partnership firms with repatriation benefits. The application will be decided in consultation with the Government of India.