134. Starting a new business in

India

Q: Dear Mr. Chand, My husband is an OCI holder & a citizen of the UK. He wants to start a business of trading (may be importing some electronic items from neighboring foreign countries & exporting the same to another European, American or other countries). Can he legally do such a business under his proprietary concern or as a partnership with other OCI holders or Indian nationals? What are the kind of restrictions placed on him to do a business in India? Thanks & Regards, Meera A. Any person who goes to India for the purpose of employment and has income from any source in India is required to provide an undertaking that all taxes have or will be paid. As regards to your question, whether you need a clearance certificate or not would depend on the type of visa you are currently using to stay in India since the last four years and the source of funds to live in India for the last four years if you did not work in India. There is always a possibility that when leaving India after a four year stay an officer checking your passport may question you on such matters. On one of the previous pages, there is a question regarding how to get income tax clearance to leave India, do read this for more information.