Employment v. Business Visa

debbie4121 · Jan 14th, 2008, 16:41

From our visit to the Embassy in Birmingham in September.

We were given a 6 month business visa, on the basis that if you have not held a business visa before, that is the maximum they will give you.

They said next time, we would definitely get either a 12 month or 2 year visa, but probably 12 months. Whether this will have the 180 day stamp on it seems to depend on the whim of the Embassy at the time.

My neighbours got a 12 month business visa with no 180 day restriction, and were told to register with the Foreigner's Office. When they went, within 14 days of arrival to register for their Residency Card, they were sent away and told to come back again after 6 months.

We went to the Foreigner's Office a couple of weeks ago, and were told that as long as we had a 12 month visa with no 180 day restriction stamp, then they would issue the Residency card within 10-15 days, no problem. To do anything in India now, it seems, you need Residency.

My friend, who is English, has worked for an Indian company for the past 10 years on an employment visa. She went back to London in August for a month (as usual) to renew this, only to be told that they would have to send all her documents to Delhi for approval, which could take 3 months. As she only had 10 days or so remaining on her existing visa, she flew straight back to India, and has had to renew this here, which has been a major drama.

I think it all depends what kind of mood the man at the desk is in when you get there!!

Sorry, am rambling a bit!! Hope this makes sense.

Aishah · Jan 14th, 2008, 16:50

This makes a lot of sense, Debbie. Visa renewing and FRRO registration etc. also come under the whim of the official in front of you. Can be very stressful. I know there can be difficulties with Employment Visas, these days. Personally know of quite a few people from overseas who could not convert Business Visa into Employment Visa, once their company became registered here as an Indian company. They were told that their jobs could all be done by Indians. They had to return to own country and no longer work here as they formerly had.

Darwish · Jan 15th, 2008, 11:43

Who sais that you cannot earn in India while on Business visa?

I know of quite some foreign people with an Indian company, getting long term Business visa's for this purpose.

Is there really a MUST for an employment visa if you have an Indian company registered. When they tell you that indians can do the job so no employment visa. Sounds to me like robbery.

Better don't bother about employment visa crap and just take a business visa and keep extending that.

Darwish · Jan 18th, 2008, 10:34

i asked the chartered accountant of my associates what is the exact rule about a business visa. you are perfectly allowed to earn from in India. The only difference between Business visa and employment visa is that a business visa is used when there is a foreign subject and an indian subject.

In case people have set up their own company in India and they aren't granted an employment visa, they just keep on having business visa's (which are a less headacke to get).

Aishah · Jan 18th, 2008, 11:44

And I think you'll find the earnings in rupees will be in the Indian person's name, Darwish. My business Visa was only in my name and I was not allowed to earn rupees. I could export, spend rupees, but not earn them here.

capt_mahajan · Jan 18th, 2008, 11:46

Hmm, looks like the 'indian person' should be absolutely trustworthy and honest. Property in his/her name, rupee earnings likewise...

.. and a legal system which would make enforcing anything a nightmare.

Darwish · Jan 18th, 2008, 12:14

Why is it that the accountant here explains me that i could earn without a problem. They will send to my account abroad having to pay income tax. Which is somehow my tax. Some of the money will be sent by havala system to avoid taxes.

if it is really so strict as you say How could ANY foreign subject do Business in India???

Aishah · Jan 18th, 2008, 17:30

Quote:

Originally Posted by capt_mahajan

Hmm, looks like the 'indian person' should be absolutely trustworthy and honest. Property in his/her name, rupee earnings likewise...

.. and a legal system which would make enforcing anything a nightmare.

Exactly Captain - until x-Visa is converted to PIO card. What is havala system Darwish?

Darwish · Jan 18th, 2008, 17:32

Havala system is a quite reliable air system in which money could be transferred from India abroad or vice versa without Banks and Crappy impossible bureaucracy involved. If an Indian wants to send money abroad the tax rate is 40% or more. With this Havala system this tax could be avoided.

Aishah · Jan 18th, 2008, 17:40

Is this done via a company, in other words is Havala the name of the company that does it? This sounds very useful information - is it legal?

capt_mahajan · Jan 18th, 2008, 17:42

=crossposted=

Quote:

If an Indian wants to send money abroad the tax rate is 40% or more

the tax rate is zero, if it is legal money you are sending. There are no taxes on sending money abroad.

If you havent paid any income tax on the money in india, the money is 'black' and you cant send it through legal/banking channels anyway.

The havala system has been under scrutiny internationally since has been used by terrorist groups.. I would be a little careful doing this.

The havala system is also illegal in India.

PS Transferring 'black money' abroad through the havala system breaks many laws. You may well get the DRI (Directorate of Revenue Intelligence) on your back, and they are tough, and you will probably get investigated for organised crime, terrorist and drug links.

Aishah · Jan 18th, 2008, 17:57

Mmmm - all clear to me now, thank you, Captain!

Nick-H · Jan 18th, 2008, 19:02

Just to add a little more explanation: it is an underground, international, recordless way of moving money from one country to another. It works entirely on trust. Person "A" in, say, London, gives £100 to his havala contact, nominating, say, his family member in Mumbai to receive it. The London havala man communicates this to his contact in Mumbai, who delivers Rs.7,500 to the nominee.

Money flows both ways, so it is seldom necessary for the havala guys to physically exchange cash.

It is actually a very remarkable system, although others may say (doubtless with justification) that it is the cover for illegal money movement and laundering.

Aishah · Jan 18th, 2008, 21:24

Sounds a bit like operations depicted in 'Shantaram' with Mumbai mafia money launderers. I can't imagine it as a 'reliable air system', sounds rather risky to me.

capt_mahajan · Jan 18th, 2008, 21:35

Hawala was originally a Muslim/Middle Eastern system, and later was used (and probably still is/) by a lot of Indian and Pakistani migrant workers in the Gulf to send money home.

It is reportedly very reliable.

It has been used also for all kinds of tax evasion, criminal and terrorist activity... Mohammad Atta is supposed to have received money through this system from Dubai before the WTC attacks.

Jan 14th, 2008, 16:50	#17
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 3,506	This makes a lot of sense, Debbie. Visa renewing and FRRO registration etc. also come under the whim of the official in front of you. Can be very stressful. I know there can be difficulties with Employment Visas, these days. Personally know of quite a few people from overseas who could not convert Business Visa into Employment Visa, once their company became registered here as an Indian company. They were told that their jobs could all be done by Indians. They had to return to own country and no longer work here as they formerly had. __________________ "Life can only be understood backwards, but it must be lived forwards."

Jan 18th, 2008, 11:46	#21
capt_mahajan Reproof of life Join Date: Sep 2005 Location: India Posts: 7,691	Hmm, looks like the 'indian person' should be absolutely trustworthy and honest. Property in his/her name, rupee earnings likewise... .. and a legal system which would make enforcing anything a nightmare. __________________ . The cynic must remember that he is a spy (Epitectus) Customised moderating

Jan 18th, 2008, 19:02	#28
Nick-H Moderator Join Date: Oct 2004 Location: Chennai, India Posts: 22,874	Just to add a little more explanation: it is an underground, international, recordless way of moving money from one country to another. It works entirely on trust. Person "A" in, say, London, gives £100 to his havala contact, nominating, say, his family member in Mumbai to receive it. The London havala man communicates this to his contact in Mumbai, who delivers Rs.7,500 to the nominee. Money flows both ways, so it is seldom necessary for the havala guys to physically exchange cash. It is actually a very remarkable system, although others may say (doubtless with justification) that it is the cover for illegal money movement and laundering. __________________ . IndiaMike Mod Team (The Grumpy One)

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Business Visa Letter from Indian Business partner.	Candyji	India Expat Area	15	May 7th, 2008 18:25
Employment or Business Visa	MattFS218	India Expat Area	0	Oct 4th, 2006 13:46
Business visa to Employment visa	autonics	Indian Visa and Passport Questions	4	Jun 13th, 2006 17:23
Business v employment visa	fea	Indian Visa and Passport Questions	1	Jun 4th, 2006 00:25
Sponsors--Business Visa--Starting export business with indian business partner	davsea	India Expat Area	11	Feb 7th, 2006 01:34

Jan 14th, 2008, 16:41	#16
debbie4121 Member Join Date: Jan 2008 Location: Goa Posts: 2	From our visit to the Embassy in Birmingham in September. We were given a 6 month business visa, on the basis that if you have not held a business visa before, that is the maximum they will give you. They said next time, we would definitely get either a 12 month or 2 year visa, but probably 12 months. Whether this will have the 180 day stamp on it seems to depend on the whim of the Embassy at the time. My neighbours got a 12 month business visa with no 180 day restriction, and were told to register with the Foreigner's Office. When they went, within 14 days of arrival to register for their Residency Card, they were sent away and told to come back again after 6 months. We went to the Foreigner's Office a couple of weeks ago, and were told that as long as we had a 12 month visa with no 180 day restriction stamp, then they would issue the Residency card within 10-15 days, no problem. To do anything in India now, it seems, you need Residency. My friend, who is English, has worked for an Indian company for the past 10 years on an employment visa. She went back to London in August for a month (as usual) to renew this, only to be told that they would have to send all her documents to Delhi for approval, which could take 3 months. As she only had 10 days or so remaining on her existing visa, she flew straight back to India, and has had to renew this here, which has been a major drama. I think it all depends what kind of mood the man at the desk is in when you get there!! Sorry, am rambling a bit!! Hope this makes sense.

Jan 15th, 2008, 11:43	#18
Darwish Member Join Date: Apr 2007 Location: India Posts: 89	Who sais that you cannot earn in India while on Business visa? I know of quite some foreign people with an Indian company, getting long term Business visa's for this purpose. Is there really a MUST for an employment visa if you have an Indian company registered. When they tell you that indians can do the job so no employment visa. Sounds to me like robbery. Better don't bother about employment visa crap and just take a business visa and keep extending that.

Jan 18th, 2008, 10:34	#19
Darwish Member Join Date: Apr 2007 Location: India Posts: 89	i asked the chartered accountant of my associates what is the exact rule about a business visa. you are perfectly allowed to earn from in India. The only difference between Business visa and employment visa is that a business visa is used when there is a foreign subject and an indian subject. In case people have set up their own company in India and they aren't granted an employment visa, they just keep on having business visa's (which are a less headacke to get).

Jan 18th, 2008, 11:44	#20
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 3,506	And I think you'll find the earnings in rupees will be in the Indian person's name, Darwish. My business Visa was only in my name and I was not allowed to earn rupees. I could export, spend rupees, but not earn them here.

Jan 18th, 2008, 12:14	#22
Darwish Member Join Date: Apr 2007 Location: India Posts: 89	Why is it that the accountant here explains me that i could earn without a problem. They will send to my account abroad having to pay income tax. Which is somehow my tax. Some of the money will be sent by havala system to avoid taxes. if it is really so strict as you say How could ANY foreign subject do Business in India???

Jan 18th, 2008, 17:32	#24
Darwish Member Join Date: Apr 2007 Location: India Posts: 89	Havala system is a quite reliable air system in which money could be transferred from India abroad or vice versa without Banks and Crappy impossible bureaucracy involved. If an Indian wants to send money abroad the tax rate is 40% or more. With this Havala system this tax could be avoided.

Jan 18th, 2008, 17:40	#25
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 3,506	Is this done via a company, in other words is Havala the name of the company that does it? This sounds very useful information - is it legal?

Jan 18th, 2008, 17:57	#27
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 3,506	Mmmm - all clear to me now, thank you, Captain!

Jan 18th, 2008, 21:24	#29
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 3,506	Sounds a bit like operations depicted in 'Shantaram' with Mumbai mafia money launderers. I can't imagine it as a 'reliable air system', sounds rather risky to me.

Jan 18th, 2008, 21:35	#30
capt_mahajan Reproof of life Join Date: Sep 2005 Location: India Posts: 7,691	Hawala was originally a Muslim/Middle Eastern system, and later was used (and probably still is/) by a lot of Indian and Pakistani migrant workers in the Gulf to send money home. It is reportedly very reliable. It has been used also for all kinds of tax evasion, criminal and terrorist activity... Mohammad Atta is supposed to have received money through this system from Dubai before the WTC attacks.

User Name		Remember Me?
Password