Who to speak to about buying a business in Rajasthan??

Twinkle · Dec 29th, 2007, 19:42

Hi guys,

I am off to India in 2 weeks to scope out buying a haveli in Rajasthan (possibly Udaipur) to rennovate and eventually open as a guest house. I plan to live and work in India so need all the help I can get about what a New Zealander can legally do (business wise) in Rajasthan.
(I have been checking out the other threads which are really useful...)

I plan to visit these guys in Jaipur http://www.investrajasthan.com/ but so far they haven't responded to any of my emails!

Any advice or contacts regarding buying property and starting a business in Rajasthan will be gratefully received!

Much thanks guys :-)

Aishah · Dec 29th, 2007, 20:13

Twinkle - this is not as easy as it sounds. As a foreigner living in India, unless you are married to an Indian National and have PIO card ,or form a business partnership with an Indian whom you can trust implicitly and who will put his name to all business enterprises you go into, you are not permitted to earn rupees here. Check all these things out very carefully before anyone asks you to invest any money in guest house partnerships etc. I notice from another thread you are considering Udaipur. The only expats I know who are running businesses there are either married or are in long term relationships with their business partner. There have been some cases of cheating on the part of some Indian partners also. As for buying property - it is illegal for you unless you have PIO card or OCI card or have lived permanently here for the requisite no. of years ( I think it's 6)and have taken up Indian Citizenship.

capt_mahajan · Dec 29th, 2007, 20:22

It may also help to read these two huge threads; though they pertain to Goa, the same laws apply with usually minor additions Statewise throughout India.

Foreign owned property in Goa, (Part One)
Foreign owned property in Goa, (part Two)

SMARTGUY · Jan 3rd, 2008, 02:15

A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. A foreign national who is a person resident in India can purchase immovable property in India but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc. A foreign company which has established a Branch Office or other place of business in India, in accordance with FEMA regulations, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with Reserve Bank within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for other borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of Reserve Bank. A person resident in India' under FEMA, has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year) but has also to comply with the condition of the purpose / intention of stay.

As far as State policies are concerned it differs from State to State. I can provide you with referance of a Business Consultant in Jaipur Mr.Ramraj Singh (mailinfisol@gmail.com)who may be of professional help to you.

All the Best and If you really end up opening An Hotel there then do remember to offer fabulous discounts to India Mikers.

Bye........

Shaktipalooza · Jan 3rd, 2008, 02:26

Aside from the considerable legal hassles I'm guessing real estate prices are through the roof in Udaipur. All of our Desi friends here in the US have been talking about the prices all over India becoming unaffordable even for well paid NRIs.

I hope it's not case as we'd be interested in buying some property ourselves.

Twinkle · Jan 3rd, 2008, 22:23

Smartguy - thank you so much for your detailed reply.
I owe you! While it doesn't sound easy (infact, part sounds almost traumatic) - at least I have a glimmer of hope of making it happen! I appreciate there is much to organise and many hurdles, but it is a dream I want to explore and see if it has wings!
Thank you very much for your kind advice. And yes, if it all comes togather India Mike members will get mates rates :-)

p.s I will email your contact to meet in Jaipur if he has availability in 2 weeks...thanks for the reference.

Shaktipalooza - thanks for the tip about Udaipur...since I posted I have been looking into Jodphur as an alternative. I am checking out 5 different towns in Rajasthan in 2 weeks and hope to view some properties. I will make lots of notes and take photos and post my findings for anyone else interested in the state of the market up North :-)

Aishah · Jan 4th, 2008, 23:17

Have there been changes to the law since I was last informed by the CID, from Foreigner Registration Office, that I was not allowed to earn rupees here even as a Permanent Resident because I was a foreigner on an x category Visa? Rupees can be earned in the name of an Indian partner or if a foreigner has the PIO or OCI card or is an Indian Citizen - is this correct?
The only foreigners I have known to be involved in business partnerships had Indian partners as owners of the property used for a business. Two of these partnerships failed through huge cheating on the part of the Indian partners. As far as I know a foreigner cannot own land but can lease the building on the land as indicated by Smartguy. This is where these partnerships failed - the Indian partners were the land owners, and they made life untenable and unworkable for their foreign partners who had to leave, losing all investments in the property.
Whilst you have a wonderful dream, Twinkle, at the same time keep well down to earth and fully aware of all legalities involved with what you are doing. And I hope all goes well for you.

Twinkle · Jan 9th, 2008, 23:55

Aishah,
I truly appreciate your advice.

I am off to Rajasthan in 2 days to go and meet various people from invement organisations who can let me know if my dream is likely to be possible.

I know it won't be easy and there will be challenges. I definitely do not want to get ripped off and certainly wont be investing with anyone who I don't know!

I will be very happy if my plan is workable - but if not I might just move to India and relax by living off my UK savings!

The main reason I want to move to India is to work with and financially support an orphanage - the idea of buying and owning a haveli was so I would continue to have an income stream which lets me help the children as much as I can...
If the buying land doesn't work then I will still move to India :-)

will report back on the feasibility when I get back!

thanks again guys :-)

machadinha · Jan 10th, 2008, 00:00

Quote:

Originally Posted by Twinkle

if not I might just move to India and relax by living off my UK savings!

Not to stop your dreams, but you will be aware this is heavily restricted as well, right? Would need some studying of its own.

Aishah · Jan 10th, 2008, 10:36

I think, off the top of my head, that if she has the orphanage properly registered as an NGO then may be possible for her to get a Visa other than Tourist? They would probably give her a six months one to start with, then a 12 month one. She can live off her UK income here - would have to exit to renew Visas - and renting the Haveli to run as a guest house for the income for the orphanage? Maybe, but theoretically she can't earn the money in her name and this is where problems arise. I've heard about 3 horrendous stories, where money was coming from overseas to support, in one case the building of a resort to fund education and medicine for local village. The whole thing collapsed with the lady concerned losing a huge amount of her investment, half a crore almost.All these cases have been in Rajasthan. I don't know of elsewhere.

dzibead · Jan 10th, 2008, 12:01

Quote:

Originally Posted by Aishah

I think, off the top of my head, that if she has the orphanage properly registered as an NGO then may be possible for her to get a Visa other than Tourist?

Nope. Unless Twinkle is actually employed by the organization and can qualify for an employment visa, she won't be able to get anything other than a tourist visa. I know a U.S. citizen who has a very significant but unpaid executive position with a properly registered NGO in India yet she still qualifies for only a tourist visa. Fortunately for her, as a U.S. citizen she was able to get a 10-year tourist visa, but she still has to leave the country every six months. She uses the trips to do fund raising.

One of the main advantages of the 10-year visa (which Twinkle can't get if she's New Zealander) is that although the holder has to leave the country every 180 days, he or she doesn't have to reapply for a new visa and run the risk of being denied. This is an increasing risk, as India is apparently getting tougher about issuing repeated back to back tourist visas. Frankly, the Indian government doesn't really want people using successive tourist visas as a "back door" way of "immigrating" to India or living there long term.

I think Twinkle is in for a rude awakening from her dream of moving to India and living there long-term ... and I'd be cautious about taking the advice of any "investment adviser" who stands to gain anything (a commission, a percentage, whatever) from any investment by Twinkle or any other foreign national. We've seen similar disasters when foreigners have "bought" real property on the advice of similar "advisers."

Anyway, Twinkle doesn't say it's "her" orphanage, just that she'd like to help support it. Even if it were somehow "hers" and properly registered as an NGO or charitable trust, that wouldn't give her any sort of status that would qualify her for anything but a tourist visa. She may not think of herself as a "tourist" but from the Indian govt's point of view, she's just a "visitor" with no right of long-term stay in the country.

And I think one reason Twinkle hasn't heard anything from the contacts at "www.investrajasthan.com" is that this enterprise appears to be aimed at promoting large-scale commercial or industrial investment by companies or venture capitalists, not small-timers wanting to buy a property to run as a guest house.

machadinha · Jan 10th, 2008, 17:06

Quote:

Originally Posted by dzibead

And I think one reason Twinkle hasn't heard anything from the contacts at "www.investrajasthan.com" is that this enterprise appears to be aimed at promoting large-scale commercial or industrial investment by companies or venture capitalists, not small-timers wanting to buy a property to run as a guest house.

Should ring an alarm bell or two thousand, yes, I'm sorry to say.

Aishah · Jan 10th, 2008, 23:16

A very clear post for my information too, dzibead. I vaguely recollect that the woman concerned in my previous post was on a tourist visa and had tried to convert it into a business visa but was unable to.

Nick-H · Jan 11th, 2008, 00:56

Twinkle. Suggest that you check out some of the posts from our member Diana.

You may find quite a few of them interesting and some relevent.

crvlvr · Jan 11th, 2008, 02:40

Here is my advice. Find an Indian partner you can trust with business experince in India BEFORE you invest any money. Buying property, as difficult as it may seem, will seem easy compared to running a business successfully in India.

Dec 29th, 2007, 19:42	#1
Twinkle Member Join Date: Dec 2007 Location: London Posts: 19	Who to speak to about buying a business in Rajasthan?? Hi guys, I am off to India in 2 weeks to scope out buying a haveli in Rajasthan (possibly Udaipur) to rennovate and eventually open as a guest house. I plan to live and work in India so need all the help I can get about what a New Zealander can legally do (business wise) in Rajasthan. (I have been checking out the other threads which are really useful...) I plan to visit these guys in Jaipur http://www.investrajasthan.com/ but so far they haven't responded to any of my emails! Any advice or contacts regarding buying property and starting a business in Rajasthan will be gratefully received! Much thanks guys :-)

Dec 29th, 2007, 20:13	#2
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 7,616	Twinkle - this is not as easy as it sounds. As a foreigner living in India, unless you are married to an Indian National and have PIO card ,or form a business partnership with an Indian whom you can trust implicitly and who will put his name to all business enterprises you go into, you are not permitted to earn rupees here. Check all these things out very carefully before anyone asks you to invest any money in guest house partnerships etc. I notice from another thread you are considering Udaipur. The only expats I know who are running businesses there are either married or are in long term relationships with their business partner. There have been some cases of cheating on the part of some Indian partners also. As for buying property - it is illegal for you unless you have PIO card or OCI card or have lived permanently here for the requisite no. of years ( I think it's 6)and have taken up Indian Citizenship. __________________ "Life can only be understood backwards, but it must be lived forwards."

Dec 29th, 2007, 20:22	#3
capt_mahajan Infidel Sufi Join Date: Sep 2005 Location: styx Posts: 13,605	It may also help to read these two huge threads; though they pertain to Goa, the same laws apply with usually minor additions Statewise throughout India. Foreign owned property in Goa, (Part One) Foreign owned property in Goa, (part Two) __________________ . Outside the machine

Jan 3rd, 2008, 02:26	#5
Shaktipalooza Maha Guru Member Join Date: Aug 2004 Location: Portland Oregon USA Posts: 910	Aside from the considerable legal hassles I'm guessing real estate prices are through the roof in Udaipur. All of our Desi friends here in the US have been talking about the prices all over India becoming unaffordable even for well paid NRIs. I hope it's not case as we'd be interested in buying some property ourselves. __________________ Pics from India 2006 Traditional Indian Dance

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Jan 3rd, 2008, 02:15	#4
SMARTGUY Senior Member Join Date: Oct 2005 Location: INDIA Posts: 163	A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. A foreign national who is a person resident in India can purchase immovable property in India but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc. A foreign company which has established a Branch Office or other place of business in India, in accordance with FEMA regulations, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with Reserve Bank within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for other borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of Reserve Bank. A person resident in India' under FEMA, has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year) but has also to comply with the condition of the purpose / intention of stay. As far as State policies are concerned it differs from State to State. I can provide you with referance of a Business Consultant in Jaipur Mr.Ramraj Singh (mailinfisol@gmail.com)who may be of professional help to you. All the Best and If you really end up opening An Hotel there then do remember to offer fabulous discounts to India Mikers. Bye........

Jan 3rd, 2008, 22:23	#6
Twinkle Member Join Date: Dec 2007 Location: London Posts: 19	Smartguy - thank you so much for your detailed reply. I owe you! While it doesn't sound easy (infact, part sounds almost traumatic) - at least I have a glimmer of hope of making it happen! I appreciate there is much to organise and many hurdles, but it is a dream I want to explore and see if it has wings! Thank you very much for your kind advice. And yes, if it all comes togather India Mike members will get mates rates :-) p.s I will email your contact to meet in Jaipur if he has availability in 2 weeks...thanks for the reference. Shaktipalooza - thanks for the tip about Udaipur...since I posted I have been looking into Jodphur as an alternative. I am checking out 5 different towns in Rajasthan in 2 weeks and hope to view some properties. I will make lots of notes and take photos and post my findings for anyone else interested in the state of the market up North :-)

Jan 4th, 2008, 23:17	#7
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 7,616	Have there been changes to the law since I was last informed by the CID, from Foreigner Registration Office, that I was not allowed to earn rupees here even as a Permanent Resident because I was a foreigner on an x category Visa? Rupees can be earned in the name of an Indian partner or if a foreigner has the PIO or OCI card or is an Indian Citizen - is this correct? The only foreigners I have known to be involved in business partnerships had Indian partners as owners of the property used for a business. Two of these partnerships failed through huge cheating on the part of the Indian partners. As far as I know a foreigner cannot own land but can lease the building on the land as indicated by Smartguy. This is where these partnerships failed - the Indian partners were the land owners, and they made life untenable and unworkable for their foreign partners who had to leave, losing all investments in the property. Whilst you have a wonderful dream, Twinkle, at the same time keep well down to earth and fully aware of all legalities involved with what you are doing. And I hope all goes well for you.

Jan 9th, 2008, 23:55	#8
Twinkle Member Join Date: Dec 2007 Location: London Posts: 19	Aishah, I truly appreciate your advice. I am off to Rajasthan in 2 days to go and meet various people from invement organisations who can let me know if my dream is likely to be possible. I know it won't be easy and there will be challenges. I definitely do not want to get ripped off and certainly wont be investing with anyone who I don't know! I will be very happy if my plan is workable - but if not I might just move to India and relax by living off my UK savings! The main reason I want to move to India is to work with and financially support an orphanage - the idea of buying and owning a haveli was so I would continue to have an income stream which lets me help the children as much as I can... If the buying land doesn't work then I will still move to India :-) will report back on the feasibility when I get back! thanks again guys :-)

Jan 10th, 2008, 10:36	#10
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 7,616	I think, off the top of my head, that if she has the orphanage properly registered as an NGO then may be possible for her to get a Visa other than Tourist? They would probably give her a six months one to start with, then a 12 month one. She can live off her UK income here - would have to exit to renew Visas - and renting the Haveli to run as a guest house for the income for the orphanage? Maybe, but theoretically she can't earn the money in her name and this is where problems arise. I've heard about 3 horrendous stories, where money was coming from overseas to support, in one case the building of a resort to fund education and medicine for local village. The whole thing collapsed with the lady concerned losing a huge amount of her investment, half a crore almost.All these cases have been in Rajasthan. I don't know of elsewhere.

Jan 10th, 2008, 23:16	#13
Aishah She-who-must-be-obeyed! Join Date: Mar 2007 Location: Jaisalmer Posts: 7,616	A very clear post for my information too, dzibead. I vaguely recollect that the woman concerned in my previous post was on a tourist visa and had tried to convert it into a business visa but was unable to.

Jan 11th, 2008, 00:56	#14
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,189	Twinkle. Suggest that you check out some of the posts from our member Diana. You may find quite a few of them interesting and some relevent.

Jan 11th, 2008, 02:40	#15
crvlvr Guru Join Date: Sep 2004 Location: Hollywood Posts: 4,667	Here is my advice. Find an Indian partner you can trust with business experince in India BEFORE you invest any money. Buying property, as difficult as it may seem, will seem easy compared to running a business successfully in India.

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