Anand Dhelia
MNCs have always encouraged movement of their key personnel across the world for setting up new ventures and commercial establishments and growing their existing business. At the same time, increasingly, countries are making their immigration rules more stringent. It is therefore very important for MNCs to be fully aware about various immigration requirements while deciding to move some of their key personnel to locations that have business opportunity.
Immigration rules in India with respect to foreign nationals have undergone a series of changes over the past couple of years. India’s Ministry of Home Affairs (MHA) and Ministry of Labour (MoL) have been closely involved in structuring the foreign policy in this regard, with relevant inputs from the Ministry of Commerce and Ministry of Information Technology.
Immigration rules in India can be complex with extensive documentation requirements and procedures. This article provides an overview of some important considerations that foreign companies need to take note of before a move is planned to India.
Visas for foreigners
Foreign nationals coming to India need to have valid passports and visas. The type of visa to be obtained depends on the purpose and duration of the visit. In order to simplify the visa application process and provide greater flexibility in terms of the activities permitted to be performed in India, the MHA has recently liberalised India’s visa rules by consolidating several categories as well as subcategories of visas.
While the revised guidelines are not available in the public domain, changes are evident from the visa application processes being followed by Indian missions abroad for travel to India.
As a part of this consolidation and liberalisation exercise, the intern visa has been clubbed with the student visa; the sports visa, with the business visa; and the project visa, with the employment visa. Several sub-categories of visas issued earlier have also been grouped together.
Pursuant to this consolidation, foreign nationals can now travel to India by applying for any of the 16 categories of consular visas available, depending upon their purpose of travel to India (this is in addition to the possibility of applying for any of the five categories of electronic visa [e-Visa] issued for travel to India for carrying out specified activities).
Once a visa is issued, the foreign national is strictly required to adhere to the purpose of visit declared in the visa application, barring certain exceptions. For example, foreign nationals who are in India on valid visas and are suffering from a minor medical condition which needs OPD treatment or are required to undertake indoor medical treatment for less than 180 days are now permitted to do so without converting their existing visa to a medical visa. Foreign nationals are also generally permitted to carry out tourism activities (allowed under a tourist visa) on the visas held by them while in India.
The liberalisation of the visa regime is a welcome move and is yet another step that enhances the ease of doing business in India.
In-country process – FRRO
Once the relevant visa is obtained and upon arrival in India, the foreign national may be required to obtain a residence permit from the Foreigners Regional Registration Officer (FRRO) authorities within 14 days (or earlier) of arrival in India based on the stipulation endorsed in the visa stamp. The FRRO provides a series of services, including extending a residence permit/stay visa, applying for a change of location within India and obtaining an exit permit.
Most of these services can be availed electronically, which eliminates the need for the foreign national visiting the FRRO office. Online submission of documents and payments also makes it much more convenient for the foreign national.
It is also important for the foreign national to carry out related compliances, as may be applicable, under other related legislation such as tax and social security regulations.
While the current immigration process provides a user-friendly environment for foreign nationals, there can be several situations which require specific analysis and advice so that the individual as well as the sponsoring entity (employer/vendor/third party, etc.) is compliant from an India immigration perspective. For instance, is a foreign national necessarily required to apply for a residence permit for legitimately staying in India? What should the person do in a situation where the validity of the visa currently held has expired and the application for a visa extension has not been processed? Can the foreign national travel outside India in a situation where a residence permit was not obtained though it was mandated in the visa stamp? Is there any requirement to notify the immigration authorities on completion of employment/assignment in India?
Flouting any of these regulations can lead to penal consequences, including deportation in case of serious violations. In the case of an employee, missing out on these regulations could have ramifications for the employer too as the employing entity is, ultimately, the sponsor of the Indian visa under the Indian immigration laws.
Since the India immigration regime is constantly evolving, periodic reviews of the guidelines, FAQs and similar information available in the public domain will help in ironing out any creases in the immigration process.
(The writer is a Partner with PwC India’s Personal Tax and Global Mobility practice. Anjali Bhatia also contributed to this article.)
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