Finance, Forex and Investments

Can a NRI become a share holder and/or a director in a Indian private limited company?

An NRI wants to invest in private limited company situated in India and wants to become a director. In this senario are there any restrictions from Government or Reserve Bank of India. Are there any web sites which will be of some help? Early reply will be apperciated

Public Comments

1. According to the Ministry of Commerce & Industry, at the Department of Industrial Policy & Promotion, on its bulletin board (see source below), after reading through the bulletin, it would be apparent that Yes an NRI (non-resident Indian) can become a shareholder in an Indian private limited company. As to whether they could become a director would be completely dependent upon the rules governing that company, not so much government regulations. I hope this helps. Please look at the source, as it is a very good source of info. It specifically speaks to the topic of transfer of shares, and it talks about NRIs being shareholders. A good sign that an NRI of course CAN become a shareholder. Best of success to you.