Hi all,
I have a unregistered partnership firm in India with my wife as the only other partner. The firm is into stock market investments and trading. The firm has a capital of 50-70 crore in demat account. Current setup:
- Partnership firm PAN
- Current account with a private bank
- Trading and demat account with Zerodha
We’re planning to relocate abroad and both of us will become NRI. Want to understand what changes we need to make. Would appreciate guidance from anyone who has been through this, or from CAs on this forum.
1. Partnership structure
- Can a partnership firm in India continue when all partners are NRI?
- Should we induct a resident partner with small share before leaving?
- Does the firm need any RBI approval, or just intimation?
2. Bank account
- Can the firm’s current account continue as-is?
- Can NRI partners operate it from abroad via net banking?
- What documents will the bank ask for?
3. Zerodha demat and trading
- Can the firm’s account continue?
- What documents are needed from NRI partners?
- What brokerage rate applies, resident partnership rate or NRI rate?
- Is PIS required when the account is in firm’s PAN?
- Does adding a resident managing partner change Zerodha’s treatment?
4. FEMA compliance
- Any reporting required when partner status changes?
- What happens to capital we already contributed as residents?
- How do profit distributions to NRI partners flow, NRO only? Any repatriation limits?
5. Practical experience Anyone here actually run a partnership firm from abroad after becoming NRI? What unexpected issues came up? What would you do differently?
Also, can I withdraw few crores every year from the firm and send abroad without any issues?