• NRI investment in India with POA

Hello Sir / Madam,

Me and my wife are NRI's and we wish to invest in a business in India. 
Firstly, I would like to invest on my wife's name. And since my wife will not be present in India to do the registration procedures, I would like to get a Power Of Attorney(POA) for the same so that I can do the investment procedure on her behalf.

Now, we would first like to register a partnership firm in India with my wife as a partner along with my friends who are resident Indians and Invest in land through that firm.

Is it possible for me to do the whole procedure on her behalf. (register the firm, open bank account for the firm, register land for the firm). What is the procedure for the same and if it is only a POA, then what should be mentioned in the same.

Thanks & Regards
Manoj
Asked 1 year ago in Property Law from Hyderabad, Telangana
Religion: Hindu
1, Yes you can do business In India after forming a partnership firm with your wife.
2. once Firm is registered you can represent the firm as well your wife in the capacity of a co-partner for which you do not need any POA.
3. However, to avoid any future hassles you can well execute POA in your name by your wife.
Devajyoti Barman
Advocate, Kolkata
5149 Answers
54 Consultations
4.9 on 5.0
Then a registered POA in your name by your wife will take care of your problem.
Devajyoti Barman
Advocate, Kolkata
5149 Answers
54 Consultations
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1) power of attorney can be executed by your wife should authorise you to open bank accounts ,operate the bank accounts , 

2) for formation of partnership firm it is better your wife personally signs partnership deed . Registration of firm is not mandatory 

3) POA should be attested before Indian consulate 
Ajay Sethi
Advocate, Mumbai
23107 Answers
1213 Consultations
5.0 on 5.0
NRIs can make direct investments in proprietary / partnership concerns in India as also in the primary issues of shares / debentures of Indian companies.  NRIs are permitted to make direct investment in partnership/ proprietorship concerns in India as also by way of subscription to shares/ debentures of Indian companies. They are also permitted to place funds in company deposits.Investments made will either be on repatriation or on non repatriation basis depending on the terms and conditions applicable under the existing schemes for NRI investment .
Reserve Bank has granted general permission to NRIs to invest by way of capital contribution in any proprietary or partnership concern in India engaged in any industrial, trading or commercial activity on non – repatriation basis subject to the following conditions:

(a) The amount invested should be remitted from abroad through normal banking channels or by transfer of funds held in investor’s bank accounts in India .

(b) The concern or the NRI does not engage in any agricultural/ plantation activity or real estate business i.e. dealing in land and immovable property with a view to earning profit or income there from .

(c) The amount invested and income accruing thereon are not eligible for repatriation outside India and are payable only in non convertible Indian rupees.

Consequently, it will not be necessary for such partnership/ proprietorship concerns in India to obtain permission of Reserve Bank for receiving capital contribution from NRIs provided the conditions mentioned in the Notification are satisfied. The firm should, however, submit the declaration in Form DIN to the concerned Regional Office or the Reserve Bank in whose jurisdiction it is situated within a period of 90 days from the receipt of investment . The profits due to the NRI investor may be credited to his ordinary Non Resident Account maintained within a bank in India.
NRIs and Foreign Nationals must always choose to invest or start a Private Limited Company or Limited Company in India. Business entities like Private Limited Company and Limited Company only allow for Foreign Direct Investment (FDI) into India under the automatic route. NRIs and Foreign Nationals are not allowed to invest or start a Proprietorship or Partnership or One Person Company in India, while FDI in LLP requires prior approval from the Reserve Bank of India.
Companies Act, 2013 permits NRIs, PIOs, Foreign Nationals and Foreign Residents to act as a Director of an Indian Company. To become a Director of an Indian Company, the person must fist obtain a Director Identification Number (DIN) after obtaining Digital Signature Certificate. 
An LLC or Limited Liability Company is a partnership firm, where the personal assets of each of the partners are protected by legal formalities, but without any burdensome paperwork and fees. The rules and regulations of each of the LLC firm differ widely depending on its geographical location and the laws of the respective states where it is located. However, there are some common rules which are similar for all LLC firms, no matter where it is located.
The procedure for Incorporation of a Company with Foreign National or Foreign Entities or NRIs is similar to that of an incorporation of a private limited company with Indian Directors and Indian Shareholders. Notarization of foreign identity proof, address proof and and other documents of foreign origin is one of the additional steps to be complied with while incorporating a company with NRIs or Foreign Entities.
T Kalaiselvan
Advocate, Vellore
13915 Answers
127 Consultations
5.0 on 5.0
Firm has different entity other than a person. If you are not a partner of the firm it is difficult to manage the things which are mention in your query. But, when a decision is taken by the partners of the firm and they entrusted you to act on behalf of them through a power of attorney, then you act. But opening of bank account of the firm, the partner’s signature is important and they can only do. They will put the signature in the application for starting the account after the starting of account they can entrust any one to operate the same through producing their decision taken in the meeting.
Ajay N S
Advocate, Ernakulam
1905 Answers
19 Consultations
5.0 on 5.0
You require a GPA executed by her in your favour to authorize you to invest in the business and also execute the partnership deed on her behalf. The GPA should be attested by the Indian Consulate if your wife is not to come to India to register it. The partnership deed can be registered by you on her behalf before the registrar if the GPA authorizes you to do so. A comprehensive POA will cater to all the purposes mentioned by you. 
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0

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