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Partnership business is more comfortable to establish with low start-up cost, and it is ideal for the small entrepreneur(s) wants to start a partnership business. In this form of organisation, few like-minded people pool up their resources to form a partnership firm. The Partnership is an ideal form of organisation for medium scale business operations which require a higher amount of capital and risks than a sole proprietorship. 


Foreign Investment : 

There is no restriction for NRI to become a partner in the Indian partnership firm and contributing to the capital infirm. However, there are two ways to infuse capital, i.e. one is on repatriation basis (prior approval of RBI) and second is on the non-repatriation basis (automatic route by FCNR/NRE/NRO account subject to sectoral restrictions.


Non-Resident Indian: Citizens of India, holding Indian Passport, immigrated to any other country for six months or more. A Non-Resident Indian (NRI), being an Indian citizen living abroad possesses several opportunities for investment in India. One of the director/Partner needs to be a resident in India to register in Partnership.

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FAQ - Frequently asked questions

Can a foreign citizen be a partner in a partnership firm in India?

Foreign Nationals can not form Partnership Firm in India. However a foreigner can be a partner or even a designated partner in a Limited Liability Partnership, and this includes foreign companies as well.

Can NRI be shareholders in Indian company?

NRIs can be directors or shareholders as prescribed under the Companies Act 2013 in a private limited company. ... The procedure is the same as for Indian directors or shareholders. NRI-floated companies must have at least one director or shareholder of Indian origin

How many partners are in a partnership?

Number of Partners is minimum 2 and maximum 50 in any kind of business activities. Since partnership is 'agreement' there must be minimum two partners. The Partnership Act does not put any restrictions on maximum number of partners.

Can NRI become partner in LLP?

Yes a NRI can be a partner in a LLP. Since the liberisation of FDI through LLP route from 2015, LLPs can be formed with 100% foreign investments from NRIs and Foreign entities in areas where 100% FDI is allowed. If you want to register a LLP with and want to take a NRI as a partner, you can do so.