SETTING UP A SOLE PROPRIETORSHIP BY AN OVERSEAS CITIZEN OF INDIA(OCI)

A person with Overseas Citizenship of India (OCI) can live and work in India indefinitely. However unlike an Indian Citizen, he cannot vote, have no right to hold constitutional offices, and no right to buy agricultural properties. He is also exempt from registration with the Foreigners Regional Registration Officer (FRRO) on his arrival in India.

An OCI is allowed to set up a proprietorship concern in India, on non-repatriation basis. The money to conduct the business should come from Indian Bank accounts in INR. The OCI should have a PAN Number and Indian Valid Address proof (ideally Aadhaar). The OCI can also buy/rent/ lease immovable property in India for the purpose of his business, except agricultural land.

If the OCI intends to put in any money at any point in time in the business from an overseas account, such a transfers qualify as an FDI and FDIs are not permitted in Sole Proprietorship.

The basic licenses/registrations required are registration under the Shops and Establishment Act and GST Registration.

Important documents required are Passport, Aadhar, PAN and address proof for the business establishment.