RBI has given general permission to NRIs to invest on non-repatriation basis by way of capital contribution in any proprietary or partnership concern engaged in any industrial, commercial or trading activity in India, subject to FEMA provisions.
RBI has not prescribed clear guidelines on continuation of proprietary concern or as a partner in a firm in India. In general, it may be considered that, a person leaving India can continue his / her business operations in India and continue to be a partner in a firm in India. However, it shall be ensured that the firm or proprietary concern Is not engaged in any agricultural / plantation activity or real estate business or print media.
If existing business activity is specifically prohibited for NRIs, then Recent Immigrant will have to either discontinue the business operation or obtain required permission from RBI for the same.