Requirement of resident individual

We like to draw your kind attention that the requirement of a resident individual in following entity structures as follows:

 

·In case Body corporate: As per section 149(2) of the Companies Act, 2013, every company shall have at least one Resident director under the composition of the board of directors in the company

 

·In case of LLP: As per section 7(1) of the LLP Act, 2013, Every LLP shall have at least 2 Designated Partners who are individual and out of one shall be resident in India.

 

Note: Resident individual is that individual who stays in India for a total period of not less than one hundred and eighty-two days during the financial year.

 

·In case of other place of business (Branch office, liaison office, project office): As per section 380(1)(d) of the Companies Act, 2013 , Every Place of business also require one or more persons resident in India authorized to accept documents on behalf of the company.

·In case of Partnership Firm: NRI can become a partner in Indian partnership firm subject to certain conditions such as

 

1.       Investment on Non repatriation basis: The NRI may invest into the partnership firm on non-repatriation basis.

 

2.        Investment on repatriation basis: If the NRI makes any investment on repatriation basis, then he shall take prior approval from government (RBI).

 

·In case of a Sole proprietorship: NRI can set up a Sole Proprietorship firm. But the investment will be on non-repatriable basis.

 

Note: Repatriation means: capital invested once cannot be taken back by the NRI to any country outside India.

 

Note: NRI cannot invest in a partnership firm or not act as a sole proprietorship business that is engaged in:

1.      agricultural

2.      plantation

3.      Real estate

4.      media