NRI Guide

NRI Business Setup in India

NRIs can own and run businesses in India across almost every sector. The key is choosing the right structure and getting the FEMA and repatriation set-up right from day one.

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In short: An NRI can start a business in India as a private limited company, an LLP, or — with a resident partner — a partnership or proprietorship. A private limited company is usually best: 100% NRI ownership is allowed under the automatic route in most sectors, profits are repatriable when funded through NRE or inward remittance, and it needs at least one resident-Indian director. FC-GPR reporting to the RBI applies within 30 days of share allotment.

Can NRIs start a business in India?

Yes. Under the FEMA Non-Debt Instruments Rules, NRIs and OCI cardholders can invest in and run businesses in India across almost every sector. Most sectors permit 100% NRI ownership under the automatic FDI route — no prior government approval, only post-investment reporting to the RBI.

Structure options for NRIs

Structure	NRI ownership	Repatriation	Best for
Private Limited Company	Up to 100%	Repatriable via NRE / inward remittance	Most NRIs, funding, growth
LLP	Allowed under automatic route where sector permits	Repatriable if structured correctly	Services / professional firms
Partnership / Proprietorship	Only with resident involvement	Non-repatriable	Small local ventures

Some activities — agriculture, plantation, print media and real-estate trading — remain restricted for NRIs.

Repatriable vs non-repatriable investment

Investment funded through NRE funds or a direct inward remittance is repatriable under Schedule I of the FEMA NDI Rules — dividends and sale proceeds can flow back abroad after tax. Investment funded from an NRO balance is non-repatriable / domestic under Schedule IV, subject to the USD 1 million per financial year remittance facility.

Requirements for an NRI-owned company

At least 1 director resident in India (present 182+ days in the year)
NRI can be director and 100% / majority shareholder
Passport & OCI-card KYC — apostilled or consular-notarised
No statutory minimum paid-up capital
Registered office in India (rent agreement, NOC, utility bill)

FEMA, tax & repatriation

FC-GPR filed within 30 days of share allotment on the RBI FIRMS / SMF portal
Share valuation per FEMA pricing guidelines by a CA / SEBI-registered merchant banker
DTAA relief on India-source income under the applicable treaty
TDS applies on payments to NRIs (interest, rent, capital gains)
Annual Foreign Liabilities & Assets (FLA) return to the RBI by 15 July

Frequently asked questions

Can an NRI start a company in India?

Yes. An NRI can incorporate and own a private limited company or LLP in India, holding up to 100% of the shares in most sectors under the automatic FDI route, provided at least one director is resident in India.

Can an NRI be the sole director of an Indian company?

No — a company needs at least one director who is resident in India (present 182+ days in the year). An NRI can be a director and the majority or sole shareholder, but must appoint at least one resident co-director.

Can NRIs repatriate business profits from India?

Yes, if the investment was made on a repatriable basis through NRE funds or inward remittance (Schedule I of the FEMA NDI Rules). Dividends and sale proceeds can then be remitted abroad after applicable taxes. Investment from NRO funds is non-repatriable, subject to the USD 1 million per year facility.

Can an NRI run a proprietorship or partnership in India?

Only on a non-repatriable basis and with restrictions — some sectors (agriculture, plantation, print media, real-estate trading) are barred. For most NRIs a private limited company or LLP is a better, repatriable and limited-liability structure.

Do NRIs pay tax on income from an Indian business?

Income earned in India is taxable in India. An NRI can claim relief under the applicable Double Taxation Avoidance Agreement (DTAA); we structure the entity and remittances to be tax-efficient across both countries.

Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last updated: July 2026.

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