A foreign entity/individual cannot start all forms of business set-up like the Indian entity/individual has. The two forms of business set-up which a foreigner can start are a company or LLP in India. However, Indian law also allows a foreign entity/individual to invest in Trust of a Venture Capital Fund or in Sole Proprietorship or in Partnership
A foreign entity/individual cannot start all forms of business set-up like the Indian entity/individual has. The two forms of business set-up which a foreigner can start are a company or LLP in India. However, Indian law also allows a foreign entity/individual to invest in Trust of a Venture Capital Fund or in Sole Proprietorship or in Partnership firms or in other entities subject to certain prohibitions, restrictions and approvals.
The approvals which might be required to start a proprietorship or partnership firm in India will be determined on the basis of the residential status of the individual. The status of NRI or PIO may be determined based on the birth place of the NRI/PIO & generations before and their holding of Indian passport, and rest of the provisions shall be applicable accordingly. There are certain privileges for NRI/PIOs when they are starting a Sole Proprietorship or in Partnership firms or Association of persons in India subject to the compliance of prescribed reporting requirements.
A foreigner who is not an NRI/PIO shall start a Sole Proprietorship or in Partnership firms or Association of persons in India after getting approval from the Foreign Investment Promotion Board (FIPB) and shall also comply with the conditions as prescribed by the Central Government. Thus, a company or LLP remains as the most preferable option to invest in India.
The investments are subject to the sector restrictions where certain sectors are specifically prohibited for all foreigners (including NRI/PIO) like real estate (trading in immovable properties), agriculture, etc…
Lawlabz offers complete advisory services for FIPB approvals and investment into India. Our professional and experienced team can help you with all the approvals from RBI and will guide you with necessary steps required in India for such FIPB approvals and investment into India.
FEMA Advisory & approval Package: [Rs.1.5laks per transaction under approval route*]
At Lawlabz, we understand that it is not easy to select the right kind of business form and therefore we can help you in understanding the technicalities that lies behind each form, to enable you to take a right and informed business decision.
We can help you in setting the following form of business
Our scope of services covers everything right from preparing all the documentation till the incorporation of your business entity and enables you to start your business operation.
