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Partnership (NRI’s)

All you know about Partnership (NRI’s)

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

Foreign Investment : There is no restriction for NRI to become partner in Indian partnership firm and contributing to the capital in firm. However there are two ways to infuse capital i.e. one is on repatriation basis (prior approval of RBI) and second is on 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 a number of opportunities for investment in India. One of the director/Partner needs to be a resident in India in order to register in Partnership.

FAQ’s on Partnership (NRI’s)

A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.

It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.

The Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm.

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