CA Gurpreet Singh
To understand how to start a business in India if you are an NRI/PIO/OCI, we should firstly get well conversant with the meaning of the terms NRI/PIO/OCI.
Difference between NRI/PIO/OCI
|Full Form||Non-Resident Indian||Person of Indian Origin||Overseas Citizenship of India|
|Who is||A NRI is one who stays abroad for some reason(employment, business) but has citizenship of India.||A person who is not an Indian citizen but he or his ascendants was an Indian citizen by the virtue of constitution or Citizenship Act 1955.||A person registered as an Overseas Citizen of Indian under section 7A of the Citizenship Act|
|What all activities can be undertaken by them in India?||All activities||Activity as mentioned in Visa.||All activities except mountaineering, missionary and research work and existing PAP/RAP which require specific permit.|
Note:- OCI should not be mistaken with Dual Citizenship. India does not grant dual citizenship.
What is a PIO card?
PIO card was launched in 1999 to make the visits of PIOs to India easier, flexible and to provide several other benefits like:
ELIGIBILITY for PIO
A person who at any time held an Indian passport or his parents or grandparents were born or permanently resided in India, provided that they had not at any time acquired citizenship of Afghanistan, China, Bhutan, Nepal, Sri Lanka, Bangladesh and Pakistan; or who is a spouse of an Indian citizen or a person of Indian origin.Online GST Certification Course by TaxGuru & MSME- Click here to Join
What is a OCI card?
OCI card scheme was started on 2nd December, 2005 to provide certain privileges to the People of Indian Origin who have moved from India and have acquired citizenship of a foreign country (except Pakistan and Bangladesh).
A foreign national, who was eligible to become citizen of India on 26.01.1950, or was a citizen of India on or at anytime after 26.01.1950, or belonged to a territory that became part of India after 15.08.1947, and their children and grand children, is eligible for registration as Overseas Citizen of India, provided that the person has never been a citizen of Pakistan or Bangladesh.
PIO Card v/s OCI card
A PIO (Person of Indian Origin) card allows for visa-free travel to and from India. However, a PIO card is only valid for 15 years. Also, if your stay in India is going to exceed 180 days on any single visit you will need to register within 30 days of the expiry of 180 days with the concerned Foreigners Regional Registration Officer/Foreigners Registration Officer or local Police Authorities.
Unlike a PIO, an OCI card has lifelong visa-free travel and does not require the holder to register with any office regardless of the length of their stay.
Steps to start business in India by NRI/PIO/OCI
For more clarity on the topic you can refer the below mentioned linked which comprises of FAQ’s published by the Bureau of Immigration.
Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author do not owns any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.