Employment v. Business Visa

Aishah

Interesting, Captain - this Forum daily expands my knowledge!!!

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machadinha

Very interesting, indeed. http://en.wikipedia.org/wiki/Hawala

A web search yields a lot more; note spelling variations. This one looks interesting: http://www.gdrc.org/icm/hawala.html

If it is advisable for an expat having trouble coping with business formalities there to begin with, I have some serious doubts about. I'd personally try to get to grips with the well-established and official routes before anything else.

Anyway, plenty of cautions already given above, I guess.

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Darwish

The main issue in this forum is if it is advisable to obtain a Business visa, relatively easy to obtain and extendible, or an employment visa which is very tricky as it requires the proof that no Indian can do the job. If the bureaucrat wants to turn your employment visa down he always can because he can always use the argument that there is an indian person available for the function.

I discover so much problems in the Indian law. The rules with getting comapnies setup with 100% FDI are easing up, but the visa rules are not at all following the easing up of the company rules. This sounds to me rather strange. Now we can see the fact that a foreigner is allowed to setup a company in his/her own name but not allowed to work in it. An Indian can do the job. Kiss the cash good bye then. .

My opinion in this case is that if the Indian laws are so rediculous and unclear, foreigners are allowed to break it a bit. My advice: Just do the things on a business visa and do the running. The authorities probably won't care too much in such case. Unless of course if it is in Goa where the police is willing to deport every foreigner on business.

machadinha

I'm starting to wonder why this is an ordeal (as described by you) you want to put yourself through? Surely there are other places where one can find more satisfaction in life?

Aishah

The authorities do care, Darwish. Breaking the law or rules pertinent to Visas is not in my book...I think you will find strict rules in regard to types of Visa, and what is or not permitted within their framework, in any country around the world. I have known of a few cases here where the stamp 'Not permitted to re-enter India' or words to that effect have been put on passports after rule infringements.

Darwish

Yeah sure. i know that if you break the law you will get punished and deported. that is if you break a law clearly.

But if you earn while on a business visa???? i guess that once police people see you have a business visa it will give them a signal like: Ah this person comes with legitimate reasons, so we should leave him alone. Most police officers don't even know the exact rules themselves.

Maybe i cannot earn on my name, but i can demand payment in cash if I provide the service. if they don't pay me, i leave, and in that case their business could get damaged quite alot. as there are commitments now.

shashank.aggarwal

Darwish, I still remember a thread last years and at yhat time you were professing something illegal..

Not sure why you need to think in that direction.

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Darwish

Yeah true. i don't need to think in that direction. i just do my stuff.

i just wanted to mention the stange things in the law. Being allowed to setup a company but a big hassle to be allowed to work in it. That doesn't sound good.

I rather keep on doing my things on Business visa in such a way that it is legal. instead of going ALL way back to get an employment visa and probably facing too much hassels.

Aishah

Previously mentioned, but with Business Visa as I understand it you are not actually setting up a Registered Company in India. You are acting for a company registered outside India, and setting up a 'branch' of it here. Employment Visa - you are clearly employed by an Indian Registered Company. Is your business in the Tourism Sector, Darwish? Like Shashank, I wonder why you propose illegal activities??

Darwish

I think there is some misunderstanding about what I do. Yes i am busy in the travel business. I was asking this visa consulting agency for advice about the travels. They can help me with arranging the packages from airport to mountains and from mountains back to Delhi airport.
My travel foundation is not limited for tourism in india though. This visa agency was asking if I wanted to expand my business field in the arrangement of travel and migration destinations for Indians. This is what I do next to the arrangement of tourism. Which means that My foreign foundation is working together with an Indian company. profits will be shared. Which kind of visa is required for these activities? Yes a BUSINESS VISA. as i conduct business and I'm not recieving a salary.

About my complaint about the ability of setting up a comapny in india and the visa rules which are not compatible with it. I was just expressing my opinion about it. Although I heard of many cases of people setting up their business and running the stuff on Business visa's and even getting extensions.

I think some people get me wrong. I write certain posts because i want to mention them. I want certain things to be discussed. The last time I refused working for the company on tourist visa because of the comments I got. But this time I'm sure I'm 100% safe as everything looks legal in this case.

pundabee

Foreign persons and foreign companies can, legally, set up Indian companies under the Foreign Direct Investment scheme (FDI). In some sectors, for instance tourism, it can be done as 100% FDI, i.e. no Indian person or company need to be involved.

Concerning the issue of business vs. employment visa, the solution could be this: since the foreigner is the owner of the company, and as such holds the shares, the income that the foreigner earns from the company are not wages, but profit or dividends from the company. Therefore, it is still possible to own an Indian company and make money from it without actually being employed.

Darwish

very good commend Pundabee!!! this explains why some people are running their Indian businesses on Business visa's.

After all it matters how we call things and not what tings are.

machadinha

Darwish, before this runs on for page after page, maybe you could specify whether you're just blowing off steam, which is your good right and might help you a little, or whether you're looking for some more concrete advice. I think you've been given some already above and on previous threads. Complaining about established formalities can serve a purpose to an extent, and very little beyond it. IndiaMike won't change existing Indian regulations for you.

Nick-H

I think he's doing both.

Only after all the stuff with my house have I come to understand how incredibly frustrating and stressful doing anything other than visiting/travelling here can be.

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Aishah

And I can add my voice to that comment too, Nick! So I guess with this topic it doesn't hurt to mention things are often more difficult than you think as displayed by the rules and fine print in association with whatever Visa you are getting.