Business Visa Problems

Tozzi

Hello Forum,

this is my first post here, so forgive me if I introduce myself with a call for help.

I'm afraid I might be really having a serious problem.

I'd rather not go too much into details here for now, since the whole thing is ongoing and I don't want to get myself into it even deeper.
Suffice to say, I was naive, but have not knowingly or deliberately done anything illegal.
Lets say it was a chain of unfortunate misunderstandings.

Fact is, I have formed a Private Limited Company in India a few years ago, while I was there on tourist visa.
Now it looks like my application for Business visa will be refused on those grounds. They said they would report it to Home Affairs.

What are the likely consequences? A fine? A visa refusal? Banned for 5 years?
How long will it approximately take until I find out?

Thanks,
Steve

capt_mahajan

I don't think they can fine you, though they can go after your company in India.

Worst consequences? No visas in future.

Likely consequences, dunno. Requires an expert with details of your situation to answer that.

__________________
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Outside the machine

Haylo

I can't answer your questions, but perhaps other members can. Good luck finding the answers you need.

No doubt this is the last thing on your mind right now, but if you can report on what happens, it would be a great help to others who may find themselves in your situation in the future. If others had done that, I'd be in a position to help you.

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Tozzi

I will definitely post more details here, as soon as I find out more.
I have spent quite some time on this forum in the past few days and I wish I had found it earlier. *sigh*.

Meanwhile trying to be prepared for the worst, while not losing hopes.
"Trial-Error" is not a good way to deal with Indian authorities...
And don't believe everything they tell you, even if it's at the Consulate General's Office.

My CA has put it this way: "At the embassary level, they often do not know much about these things."

a_f_d

what do they say your offence is?
it seems to me it's a very grey area as to what visa you need to form a company - e.g. if it's a Business visa how do you get one without a letter from e.g. the company you haven't founded yet?

AndyD 8-)#

jcbrum

You can set up a business on a tourist Visa but,you cannot trade until you have acquired a Business visa.

John

a_f_d

well you're the expert, but that sounds surprisingly logical to me <G>

AndyD 8-)#

Tozzi

As a director of my company I have taken up work in India, while on tourist visa (or so they might say?).
On the other hand, the company has not taken up trade yet. No salaries paid yet, either.

Before I formed the company, I had actually asked for a business visa, but was told at the consulate, that I should form it while on my existing 5 year tourist visa, then apply for the business visa with my company documents (memorandum and articles).

Now they are blaming me exactly for that. I was not supposed to form a company while on tourist visa. Those were the officer's exact words. He asked me to give a written statement, which I did. Haven't heard from them since, though.

I have a feeling that things are getting stricter every day, and my timing is just off by a year or so.

labrol

It is a case of a different officer different interpretation or even the same officer different interpretation depending on his mood, his need or his state of mind. Too many grey areas. If your partners in India can pull some strings in the foreign office, even at the level of a section officer who deals with transfers, it will be a breeze.

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nycank

Let me try and understand some details for the sake of clarifying things in my mind.

1. You formed a Company in India, few years ago ? 2? >3 ?

2. You had a 5 year tourist visa ? On a US passport or another ?

3. Since then, the registered company has not done any trade or business income ?

4. You now do not have a valid visa to India ?

From my limited understanding; if you have not paid taxes since the company has not done any business or trade, any official in the MEA will be sceptical. Even though your visa officer may not be an expert on business matters; most Embassies have a Economic Section, and sometimes a fairly sizeable staff manning that section - It is them who advise and counsel the official who is handling your visa case.

If they were to allow a company to be formed with a non-indian heading/owning a major chunk of the shares/ownership without any trade or revenue; they might be rightly suspicious. Specially if you formed a company is a certain vertical, where the company did not need a sizeable CAPEX and has no OPEX and no revenue.

What kind of a business are we talking about ? I am sure you used the services of a Lawyer when forming and registering a company ? What is his/her advise to you ?

I am sure there are many smarter biz type folks in this forum you are more clued than I am, I'm sure they'll chime in too

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a_f_d

I didn't know that 5 year T visas were available in Germany.

AndyD 8-)#

federica

They are, but as a "normal" tourist you don't get them, and even for others it's very difficult to get. Normally they were offered p.ex. to travel agents visiting India often. Nowadays I'm not sure whether they are still given.

Tozzi

In 2001/2002 it was very easy to get 5 year tourist visa in Germany.
Also, at that time, the "180 days" stamp was usually missing, and the Panaji FRRO issued RC/RP with no questions asked.

In 2005, I asked to cancel my tourist visa and issue a business visa, as I intended to form a company. However, I was told at the consulate to first form the company, then apply for business visa, providing the documents.

In the following year, the company was formed with 100% foreign capital, together with my mom, tourism sector, and bought a small piece of land.
(By now, 15% are held by a newly appointed Indian director).

Due to very unlucky circumstances (mistyped CIN etc.) I was not able to produce valid certified documents until recently.

After my 5-year visa ran out, I applied for business visa again, but since some important documents were still missing, was issued a 1-year tourist visa instead. At that time, the consulate was fully aware of me having formed a company.

Also, the advocate who was assisting me back then was unfortunately not very capable, to put it mildly. However, I have found a very good CA now, and earlier this year we sorted out all the paperwork, did all the DIN and PAN things, handed in the tax declarations for the past years and handled the FEMA (RBI) stuff, just before my latest tourist visa expired.
I am awaiting his advice.

The company won't receive any income anytime soon. First, we'll need to build, which will be the next nightmare around the corner.

Now to add insult to injury, temperatures dropped to 1°C and it started snowing today. I was supposed to fly today.

nycank

Did you apply for a B Visa formally ?Or it was all verbal and informal ?

Was this in writing ? or verbal ? In any case, do make an appointment with the Commerce section of the consulate in Frankfurt or Embassy in Berlin.

Make sure you have all the possible documents with you. Do seek the help of your local representative in the Bundestag to approach the local indian consulate.

All the best.

Tozzi

I had a filled in application, but they didn't accept it, so it was unfortunately verbal and informal.

Verbal. That's when I was asked to hand in a written statement, which I did fax the same afternoon. It basically sums up what I posted here. Now it's been a week and I haven't heard from them yet.

Thanks for the advice!
While this sounds like quite drastic measures, I guess you're right.