Typical Problems Faced By NRIs While Starting A Business In India?

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AHLAWAT ASSOCIATES ADVOCATES
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Typical Problems Faced By NRIs While Starting A
Business In India?
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• As India's economy is booming by leaps and
  bounds, many NRIs business tycoons explore
  opportunities to invest their hard-earned money
  In India, set up business ventures, provide jobs
  to fellow Indians, and get a handsome profit out
  of it.
• But, for NRIs, setting up companies is not an
  easy task. There are many problems that
  discourage them from investing money in India.
  Here few problems are mentioned. Just cast a look
  at them-

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1. Excessive Bureaucracy

• Bureaucracy is a system in which chosen officers
  follow rigid rules and regulations (as dictated
  by the government) and give their nod to various
  projects related to different fields, such as
  business, construction, administrative decisions,
  etc.
• When NRIs start the official procedure of
  launching their businesses in India, self-serving
  bureaucrats delay their projects and don't give
  the required approval easily.
• They tend to move NRIs from one department to
  another in the name of different formalities. It
  creates stampedes the creativity of NRIs, and
  they abandon their idea of doing business in
  India.

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2. Large scale Corruption

• Corruption is rampant in many government
  departments in India. It is a mind-blowing
  challenge for NRIs who want to set up business in
  India. It is also rampant in the private sector,
  making it difficult for new business
  organizations to set their business organization
  in India.
• For example- Many Indians banks don't release
  funds even though they approve the loan
  application. There are some corrupt officers in
  banks who raise an unwarranted objection to halt
  the release of funds.

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3. No Clear Rights To NRIs

• In India, there is no clarity on the legal rights
  of NRIs. For example- if NRIs try to buy
  home/office for the launch of their business
  organizations, locals cheat them by selling
  farmland and agricultural land unlawfully.
• To solve this problem, NRI investors must deal
  with certified real estate brokers only in
  consultation with any startup lawyers in India.
  This will help NRIs to deal with the rules of the
  Foreign Exchange Management Act (FEMA).

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4. Forceful Land Grabbing Problem

• Forceful and illegal land grabbing is another
  problem faced by NRIs in India. In most of the
  cases, the land grabber and person taking illegal
  possession of the land of NRIs are known to the
  buyer.
• So, to avoid this hassle NRIs must engage in land
  dealings in consultation with the real estate
  broker, local family members or a reputed law
  firm in India.

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5. Requirement Of Indian Residents

• Companies Act, 2013 allow NRIs, foreign
  nationals, and PIOs to act as directors in an
  Indian company. However, this creates a lot of
  problems for many individuals as they must Indian
  nationals.
• However, there are many Indian companies that
  help NRIs to find willing persons as directors in
  exchange for a fixed remuneration. Even Corporate
  Law firms in India can help them find such
  persons through referrals and other relevant
  sources.

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Final Words
These are some main problems faced by NRIs in
India when they come here with a business point
of view. However, the best law firms in India can
help them to get rid of all these issues easily
and start their business activities in this
country.
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