OCI card holder and participation in Indian business — a regulatory perspective…
It is often assumed that an OCI card holder is equivalent to a resident Indian for the purpose of participating in Indian business entities.
From a regulatory standpoint, this assumption is incorrect.
OCI status is an immigration classification.
Business participation, capital contribution, and ownership rights are governed by residential status under FEMA and the applicable FDI framework.
While company or LLP laws may permit appointment or association, FEMA compliance determines the permissibility and structure of such participation.
In practice, this distinction is usually noticed only at a later stage — during bank KYC, audit, or due diligence — when corrective action becomes complex.