Legal Question in Business Law in India

Yes, NRI can be a subscriber to the memorandum of association of a private limited company. Under the exchange laws, NRI can be a shareholder both on repatriation and non-repatriation basis subject to the applicable laws and the use of appropriate banking channels. This does become tricky and lead to non-compliance under the exchange laws, to which the penalty can be upto three times of the amount involved, would suggest you take help of a legal professional in such a case. You may drop us a detailed query at [email protected]

Regards,

Gaurav

I agree with gaurav, however as far as the % of stake of NRI depends on the industry in which you are looking to invest. The new act has just been notified out of which 97 sections are in force and hence once it is in full force the options could be slightly different. To know us better, please click on the links below:

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You may also drop a detailed query at [email protected]

JSR/71013

13.10.2013

Dear Sir / Madam,

YES, an Non Resident Indian (NRI) can form a private limited Company with a resident Indian citizen. There is no limit or restriction on the number of shareholding of the NRI in that Company.

Regards,