Yes, it is possible for Non-Resident Indians (NRIs) to open and conduct a business in India. FEMA and Reserve Bank of India (RBI) regulations enable NRIs to establish businesses in almost all industries except for controlled industries such as agriculture and trading in real estate. NRIs may establish a new business or invest in a pre-existing Indian firm with different business formats such as Private Limited Company, LLP, or Proprietorship depending upon government approval and foreign investment regulations.

Key Points About NRI Business Setup in India

Types of Business Formats Permitted for NRIs:

• Private Limited Company (PLC): Should have two directors (one should be a resident Indian).
• Limited Liability Partnership (LLP): Permitted under the automatic route in specific sectors.
• Sole Proprietorship & Partnership: Opening a proprietorship or partnership can be done by NRIs, but RBI and FEMA compliance must be ensured.
• Branch Office (BO), Liaison Office (LO), or Wholly Owned Subsidiary (WOS): Foreign companies are allowed to have it.

Tax Compliance: NRIs are required to comply with Indian tax laws and pay relevant taxes depending upon the nature of business or investment, such as corporate tax, GST, and capital gains tax under Indian legislation.