A person resident outside India wants to make investment in a partnership firm/proprietorship concern. Advise.

b~ duly complied with. The person acquiring property should file with the Reserve Bank a declaration in the prescribed Form within 90 days.
The property can be transferred by way of mortgage to an authorised dealer as a security for any borrowing. If the asset is sold, sale proceeds can be repatriated only with prior permission of RBI.
Q 19. A person resident outside India wants to make investment in a partnership firm/proprietorship concern. Advise.

.9Lns .

Investment in Firm/Proprietary Concern in India
Provisions for investment in Firm or Proprietary concern in India are contained in Foreign Exchange Management (Investment in Firm or Proprietary concern in India) Regulations, 2000. These include:
Automatic Permission for Investment. A NRI/PIO can invest by way of contribution to the capital of a firm or a proprietary concern in India, provided that remittance is received from abroad and the finn or the proprietary concern is not engaged in any agricultural! plantation activity or real estate business, i.e., dealing in land and immovable property with a view to earning profit or earning income therefrom.
The amount invested shall not be eligible for repatriation outside India. [However, interest
is repatriable).
Where investment is made out of NRSR account of the non-resident investor, the income earned on investment or proceeds of investment shall be credited only to the NRSR account of the investor.
A firm or a proprietary concern in India may make payment to or for the credit of a non-resident Indian or a person of Indian origin the sum invested by such person in that firm or the proprietary concern or the income accruing to such person by way of profit on such investment.
Q 20. A person resident outside India has secured from an Indian company a contract to execute a project in India. Advise as to whether he needs the permission of the Reserve Bank.

.9Lns. Where a person resident outside India has secured from an Indian company a contract to execute a project in India, and
(a) the project is funded directly by inward remittance from abroad; or
(b) the project is funded by a bilateral or multilateral international funding
agency; or
(e) the project has been cleared by an appropriate authority; or
(d) a company or entity in India awarding the contract has been granted term loan
by a Public Financial Institution or a Bank in India for the project;
su~h person shall apply to the Reserve Bank in Form FNC 2 for permission to establish a project or site office in India.
Thus, permission of the Reserve Bank is a mandatory requirement for execution of a project by a person outside India in case the aforementioned conditions are present.