Opening of Prop. Firm by Foreign National

Hi Amit,

You haven't mentioned if the foreign national would be selling the medical equipment through retail trade or wholesale? Per the RBI's Master Circular on FDI—No 2/2007-08 dated 2nd July 2007 a non-resident non-Indian can invest in a proprietary concern in India as long as the business to be carried on by the concern is not amongst the list of forbidden activities like Retail trading, business of chit funds, agricultural activities, etc. Trading in Medical equipment as such is certainly not prohibited, but he wouldn't be able to carry it out it involves selling across the counter. The government hasn't yet opened Retail sector to the FDI.So I think if your foreign national wants to engage in wholesale trade of medical equipment, he ought to be able to set up a proprietary concern in India. I am assuming of course that the foreigner is not a Paki or a Bangladeshi! Thanks,

CA Sanjeev Bedi

--- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com, "mundhra_amit" wrote:>> Dear members,> > I have a query regarding opening of a Proprietory concern by a foreign > national in india. Whether this is allowed. Whether norms of FDI will > be applicable in this case. The foreign national wants to import goods > i.e. medical equipments to india and sell it locally. Please advice.>