Tuesday, February 7, 2012

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN





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2point6billion.com discusses investment news and events from the emerging markets of Asia - including India, China and the ASEAN countries. It is produced by the Asian foreign direct business advisors at Dezan Shira & Associates from their offices across emerging Asia.




End of the Month Deadline for India Business Visa Holders

Oct. 28 – Foreign employees in India currently holding business visas and working on projects or contracts will be required to return to their home countries on the expiry of their visa or by the end of this month, whichever is earlier, reports The Economic Times.

The Indian Ministry of Commerce and Industry is insisting on tougher visa measures that will significantly impact expatriate employees visiting the country on business. While expatriate-based staff should have employment visas, India is now insisting all foreign nationals must apply for employment visas in their home country in order to enter India before they arrive.

Business visas can still be issued although there it is not clear how this will be implemented. According to the government, business visas will only be issued where there is a “bonafide business purpose” and the conditions provided in the guidelines are satisfied. Establishing an industrial/business venture; exploring possibilities to set up industrial business ventures; and purchasing or selling industrial products in India are the activities specifically listed under business activities. Otherwise, an employment visa must be obtained.

Chris Devonshire-Ellis, senior partner of Dezan Shira & Associates in Mumbai and publisher of 2point6billion.com recommended that foreigners with existing multiple-entry business visas carry some sort of documentary proof that fulfill business visa requirements and have this ready to provide to the immigration authorities.

“If they are involved in establishing a business, then I recommend pertinent application documents or a signed letter by their law firm or advisers confirming they are required in India for documentation signatory purposes,” Devonshire-Ellis said. “The same is true for business meetings, I recommend an letter from an Indian contact confirming the nature of the visit is obtained together with an itinerary. If these are not provided, the situation from 1st November according to the government’s guidelines could result in entry being denied even if in possession of a valid business visa.”

Individuals and companies requiring assistance in this matter may email india@dezshira.com for assistance.

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13 Responses to End of the Month Deadline for India Business Visa Holders

  1. Emma says:

    Will the visas be cancelled once you have left the country by that date?

  2. Chris Devonshire-Ellis says:

    They haven’t said that. However, if you are working there you will need to obtain an Employment Visa. If you want to use an existing business visa you will have to produce documentation showing you are either in the process of establishing a company or are buying or selling product. Otherwise you may be refused entry. We’ll have to wait and see what happens on 1st November for arrivals on business visas. The situation is somewhat ambigous. – Thanks Chris

  3. sabrina says:

    What about those being on a business visa already in india?
    I just came here and got to know about it today. Do I need to fly out until sunday?
    Or can I stay?
    I am a freelancer for a german company in germany, but also train people here in india which requires to be here for a bit and then leave again.

  4. Barbara says:

    What about people who are just about to finish establishing a business but only start business in the next few weeks? I have received B Visa beginning of the year which is still valid until March next year. The Company I have formed just got ready and its planned to start business now. Can I still rely on the B Visa?

  5. Chris Devonshire-Ellis says:

    There are several areas open to question I would agree. Sabrina, it sounds as if you are a case for requiring an employment visa. I think you need to look at getting that. Barbara, you seem to be OK, for the immediate period, however if your company is starting its business now and you are to be based in India and are working here for that company, you too will need to obtain an employment visa. If you need assistance contact Dezan Shira & Associates at india@dezshira.com. Thanks – Chris

  6. Tom says:

    Chris – I work with a French NGO and am here for several months at a time to track the progress on a project. The NGO has no office in India so there’s no Indian organisation to employ me. At the moment I have a multi year business visa. Will that continue to work? If not, how would I apply for a business visa if there is no Indian organisation to employ me?

  7. Anke says:

    I completed my consultancy work recently and just staying on until February without doing anything. Have a B Visa. Is that ok? Anke

  8. Chris Devonshire-Ellis says:

    Tom; are you being paid to work in India? If you are, then technically you’re breaking the law. If you’re challenged over your visa status, they could ask you to leave. Anke, it seems as you’re not working, you’ll be OK. However, even then you really ought to be on a tourist visa rather than a business one, and again if challenged, could face problems. The government has not been very clear about many of these issues, however now we are beyond the deadline so it’ll be interesting to see how they enforce it. In both of your cases, I’d be inclined to be aware you could face challenges and to be prepared for that.

  9. Lee says:

    I have a multi-entry visa to do attend meetings and track the progress of an project for a NGO. I do not earn any money in India. I am still in India and wondering if I should just leave as I usually would via the airport? Or do I need to go to the Immigration office to get anything for exiting the country? If I leave and need to come back, can I use the same visa?

  10. Chris Devonshire-Ellis says:

    It’s not clear Lee, however our experience the past three weeks suggests you should be ok. But please take with you supporting documentation just in case. I should point out that even if you are not being paid in India, if however you are receiving renumeration for your time being spent there – then you are de facto employed in India and are in breach of visa and employment regulations. – Chris

  11. Don says:

    I am in India on a Business Visa. My father have a company incorporated here and I am a designated director of this company. I understand that company directors are eligible for Business Visa: “Foreign nationals who are partners in the Business and/or functioning as Directors in the company.” I am leaving India next week. Will I face any problem leaving or re-entering India? Is there any other registration formalities required? Thanks!

  12. Lee says:

    Don, I was able to leave India on the 11th without problems.

  13. Mathieu says:

    Hello all, anymore news on the situation? I just got to know about it yesterday and I am on a 1 year business visa…

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