An Non Resident Indian (NRI) is an Indian Citizen who resides in India for less than one hundred & eighty two days during the course of the preceding financial year, or. who has gone out of India or who stays outside India for the purpose of employment, or. who has gone out of India or who stays outside India for carrying on business or vocation outside India, or who has gone out of India or who stays outside India for any other purpose indicating his intention to stay outside India for an uncertain period.
In exercise of the powers conferred by sub-sections (1) and (2) of Section 469 of the Companies Act, 2013 (CA, 2013), the Central Government, vide Notification GSR 91(E) dated 01st February, 2021 has amended the Companies (Incorporation) Rules, 2014 which shall come into force on the 1st day of April, 2021 and may be called the Companies (Incorporation) Second Amendment Rules, 2021.
The Ministry of Corporate Affairs (‘MCA’) amends One Person Companies (‘OPCs’) Rules vide aforesaid amendment. MCA amends Rule 3 related to One Person Company, Rules 6 related to One Person Company to Convert Itself into a Public Company or a Private Company in Certain Cases and Rule 7 related to Conversion of private company into One Person Company.
Before the aforesaid amendment, only a natural person who is an Indian citizen and resident in India are allowed to incorporate a OPC y. However, by making the amendment in sub rule (1) of Rule 3 for words, “and resident in India”, following words substituted “whether resident in India or otherwise”. By this amendment, now Non-Resident Indians (‘NRIs’) is also allowed to incorporate OPCs in India.
Further, for the purpose of this rule, the period of resident in India has been reduced from 182 days to 120 day. Now amended Sub Rule (1) of Rule 1 may be read as under-
“(1) Only a natural person who is an Indian citizen whether resident in India or otherwise –
(a) shall be eligible to incorporate a One Person Company;
(b) shall be a nominee for the sole member of a One Person Company.
Explanation I – for the purpose of this rule, “Resident in India” means a person who has stayed in India for a period of not less than one hundred and twenty days during the immediately preceding financial year
Explanation II.- For the purposes of this rule, while counting the number of days of stay of a director in India for the financial year 2018-2019, any period of stay between 01.01.2018 till the date of notification of this rule shall also be counted.”
Now, OPC can be converted into any kind of company any time and without any limit of paid up capital and turnover.
As per the changes, an Indian citizen will now have to stay out of the country for 240 days, against 182 previously to become a non-resident.
By getting PR of another country, you will not lose your Indian citizenship.
There is no such specific restrictions on the withdrawal of the contribution by the partners as per LLP Act,2008 and LLP Rules,2009Â and is guided by the provisions contained in the LLP Agreement.
Even after you become NRI, you will remain as a partner in the Indian partnership firm
NRI can continue even as partner of Indian LLP even after becoming NRI. after becoming NRI. ❖ Fresh investment in LLP towards capital may be made through NRO to make it distinctively clear that fresh investment is also on non-repatriation basis.