Explore exclusive investment opportunities in Indian partnership firms and proprietary concerns—available to NRIs with prior RBI approval. Tap into India's booming sectors with a customized, regulated, and strategic entry route under FEMA and Indian tax laws.
While FDI in partnership and sole proprietorships requires prior RBI approval, this route offers NRIs unique access to sectors like manufacturing and wholesale trade. These investments demand strategic compliance—covering FEMA, sectoral caps, and tax laws—but provide personalized business control and income flexibility. Our team ensures a seamless journey: from application drafting to RBI coordination, KYC processing, and tax optimization, making your India entry secure, legal, and aligned with growth potential
We assist NRIs in obtaining RBI approvals and ensuring FEMA-compliant investment in Indian partnership firms or proprietary concerns—covering structure, tax planning, sector eligibility, and documentation.
Foreign Direct Investment (FDI) in **Indian partnership firms and proprietary concerns** is permitted **only with prior approval** from the **RBI**.
- The investment must also comply with the provisions of the **Foreign Exchange Management Act (FEMA)**.
- Such investments are evaluated by the RBI on a case-by-case basis, based on the nature of business, compliance standards, and sectoral guidelines.
- Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) can invest in proprietary concerns or partnership firms with RBI approval.
- Investment by **foreign nationals or entities** (non-NRIs) is generally not permitted unless special approval is obtained.
- Investors must submit a formal application to the RBI through an Authorized Dealer Bank (typically the Indian bank handling the transaction).
- Detailed business information, sources of funds, nature of the business, and KYC documents are required.
- Approval is discretionary and depends on RBI’s evaluation of the business and investment proposal.
FDI in partnership/proprietary concerns is only considered in sectors **where 100% FDI is allowed under the automatic route** and **no FDI-linked performance conditions** apply (e.g., manufacturing, wholesale trade).
- Sectors with restrictions or conditions are not eligible for this route.
Income earned by non-residents through the firm or proprietary concern is subject to **income tax** in India.
- **Withholding tax** may apply to payments made to non-resident investors.
- DTAA benefits may be claimed to avoid double taxation in the investor's country of residence.
- RBI-approved investments must be reported appropriately and monitored through **Authorized Dealer Banks**.
- Annual compliance and financial reporting must be maintained as per **Indian tax laws** and **FEMA regulations**.
- The firm or proprietary concern must comply with **Income Tax** and **Goods and Services Tax (GST)** regulations in India.
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We are a team of experienced Chartered Accountants and compliance experts specializing in NRI taxation, remittances, repatriation, and business setup in India. With deep knowledge of FEMA, RBI regulations, and international tax treaties, we offer tailored, end-to-end solutions to help NRIs stay compliant and make confident financial decisions. From tax return filings to cross-border fund transfers and business advisory, we ensure clarity, accuracy, and timely execution—no matter where you are in the world.
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