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.