Hi, How Can We Help You?

Tag Archives: Business Immigration Visa

Ajmera Law   →  Business Immigration Visa
EB-5 Reform and Integrity Act
June 21, 2022
June 21, 2022

Old and New EB-5 Reforms and Integrity Act – Salient Differences

Author By Ajmera Law Group Categories Business Visa, EB-5 US Investor Visa, US Immigration attorney, US Immigration Lawyer

The EB-5 visa category is an easy and straight forward option to obtain a Green Card through investment in the United States. The program is designed for foreign nationals who desire to immigrate to the US and start a business or invest in an existing business that contributes to the US economy.

On 15th March, 2022, the US government launched the new EB-5 Reform and Integrity Act 2022.

As a one of the leading Immigration lawyer in India, we have highlighted some of the important new provisions in this new Act.

Reasons for updating the existing Act:

  1.  Preventing frauds
  2. Promoting and reforming foreign capital investment
  3. Creating jobs in American Communities

The Act lists new compliance requirements that have to be adhered to by the following entities:

  1. Regional centers
  2. New commercial enterprises
  3. Job creation entities
  4. Direct and third-party promoters
  5. Migration agents
  6. Companies and professionals involved with regional centers

Salient differences between the old and new Act and regulations:

Job creation

Earlier, each investor had to create 10 jobs irrespective of whether they were direct or indirect jobs. As per the new Act, each investor has to create at least 10 jobs of which 90% can be indirect jobs. If the construction work lasts for less than 2 years, only 75% of the jobs are accepted as indirect.

Regional Centre (RC) approval

As per the old Act, RC approval by the state government was mandatory but not by USCIS. However, the new Act stipulates that RCs will now require mandatory approval by the USCIS (United States Citizenship and Immigration Services). As an associate of US Immigration attorney in India, our law firm can assist in obtaining RC approval for our clients.

EB-5 business plan

In the old Act, it was left up to the discretion of regional centers whether they wanted to get approval of their business plan before filing an EB-5 petition. Now, investors can file for EB-5 petition only after receiving approval of their RC’s business plan. As an associate of US Immigration lawyer in India, our law firm can assist in obtaining business plan approval for our clients.

Failure to comply with the Act and regulations

Earlier, USCIS could not take any action in case any RC failed to comply with the Act and its regulations. Now, USCIS can suspend or terminate the RC in case of non-compliance.

Investment

Investors had to invest US$ 500,000 and $1,000,000 under the old Act that was effective before 15th March, 2022. Now, investors must invest US$ 800,000 and $1,050,000 to file an EB-5 petition.

 

Additionally, the US Government has come up with some new regulations in the EB-5 Reform and Integrity Act 2022. They are as listed below:

RC record keeping and audit

USCIS shall conduct an audit of the RC every five years. Hence, RCs have to maintain records for five years.

RC’s annual statement

All regional centers have to maintain and share the annual statement with the investors. If they do not follow the requirement, USCIS can demand a minimum penalty of 10% of the total amount invested.

Annual fees by RCs

If the number of investors is less than 20, RCs have to pay annual fees of US$ 10,000 to the USCIS. If the number of investors is more than 20, RCs must pay annual fees of US$ 20,000.

Petition fees by RCs

RCs must contribute US$ 1,000 per petition to create funds so that they can recover the costs of adjudication and naturalization.

Administration of investment amount by investors

The US government has added a specific provision for an escrow account. The RC must have a 3rd party fund administrator, such as a USA licensed lawyer, CPA or broker/dealer to administer the EB-5 investors’ funds.

Marketing and Migration agents:

All marketing and migration agents appointed by the RC must be registered with the USCIS.

Conclusion:

To stop frequent frauds and create jobs for American communities the US Government launched the EB-5 Reform and Integrity Act 2022 with more stringent and well-defined regulations. For more information, please contact our law firm.

June 18, 2021
June 18, 2021

Portugal Golden Visa – European Residency by Investment

Author By Ajmera Law Group Categories Headlines, Residency & Citizenship by Investment

New changes to the Portugal Golden Visa Program to be implemented as of 1st January 2022.

After 10 years of grand success, the Portuguese government is set to change the investment amount for its Golden Visa Program.

This change is being implemented to attract more investment in the fields of science & technology, business and real estate in the remote and less populated areas of Portugal.

Change in conditions for real estate investment in Portugal:

For Portugal’s golden visa there is no change in the investment amount for real estate investment in Portugal. The previous current investment amounts of € 350,000 (for properties more than 30 years old or located in areas of urban renovation) and €500,000 (acquisition of real estate property of any type) will remain unchanged after 1st January 2022, but investors will not be allowed to make investments in Lisbon, Porto, and the costal and resort regions of Portugal.

After 1st January, 2022, investors can make real estate investments only in Azores, Madeira and inland regions of the country. This may result in lower rental income, and also less liquidity for investors, especially when they decide to sell the real estate.

Apart from the above two real estate investment options, there are six other investment options available to investors under the old rules. The investment amount will be increasing for some options as of 1st January, 2022.

Six different types of investments in business and financial products for Portugal Golden Visa:  

  1. Transferring capital (bank deposit) will increase from € 1 million to €1.5 million for Portugal Golden Visa;
  2. Investment in VC and other funds will increase from € 350,000 to €500,000 for Portugal Golden Visa;
  3. Investment in scientific research will increase from € 350,000 to €500,000 for Portugal Golden Visa;
  4. Investment in a new and existing business with the creation of 5 jobs will increase from € 350,000 to €500,000 for Portugal Golden Visa;
  5. Investment in funds for preservation and restoration of heritage and cultural buildings will remain at €250,000;
  6. Investment in a business that will create 10 jobs will remain at 10 jobs. There is no minimum investment amount required for this option.

The investor has time until December 2021 to avail of the advantages offered by the old rules and makes an investment. However looking to the complexity of the rules, source of funds requirements and the systematic process to be followed, the time taken to process applications will be somewhat prolonged. Hence it is advisable to start the process for this visa as soon as possible.

During these COVID times, investment in funds has become a more popular option for Portugal Golden Visa than investing in real estate for obtaining the Portuguese Golden visa.

“The rules were implemented in 2017 but it was not until 2019 that the first funds became available to make an investment in compliance with immigration rules and obtain Portugal’s Golden visa,” says Prashant Ajmera, Founder and Immigration lawyer at Ajmera Law Group.

The investment funds are a safer option as these funds are regulated by the Portuguese Securities Market Commission, also known by its initials as “CMVM”. These funds are diversified into real estate located in Lisbon and Porto area.

“The investment is very safe and secure. It also beneficial to the investors as they do not have to concern themselves with the rental and maintenance of the purchased real estate” added Mr. Ajmera.

June 17, 2021
June 17, 2021

UAE’s Golden Visa : Golden Opportunity

Author By Ajmera Law Group Categories Dubai Golden Visa, Headlines, Investor Visa, Residency & Citizenship by Investment, Residency & Citizenship by Investment and Indian market

The Golden Visa Program of UAE is the latest program to join the Residency by Investment bandwagon. Launched in May 2021, it is welcome news for many wealthy expatriates living in the UAE and outside of it. These expatriates, with plans to secure permanent residency in the United Arab Emirates, have been eagerly waiting for such a program to be introduced by the UAE government.

This program will offer a lot of flexibility, freedom, and security to investors, especially those living in the UAE, who previously had to adhere to very stringent do’s and don’ts when it came to doing business in the UAE.

The Golden Visa Program essentially grants people who fall into the following categories long-term residency (5 to 10 years): Investors, Entrepreneurs, Individuals with exceptional talents such as researchers, Medical Professionals, and those in the scientific and knowledge fields, and exceptional students.

The greatest advantage would most likely be security; by issuing the Golden Visa, the UAE government has demonstrated its commitment to offering expatriates, investors, and virtually anyone wishing to make the UAE their home with an additional reason to feel comfortable about their future.

Eligibility for a 10-year visa:

The following categories are entitled to apply for a 10-year residence visa in the UAE.

1. Investors in public investments of at least AED 10 million

The investment may take many forms such as:

  • A deposit of at least AED 10 million in an investment fund inside the country
  • Establishing a company in the UAE with a capital of not less than AED 10 million
  • Partnering in an existing or a new company with a share value of not less than AED10 million
  • Having a total investment of not less than AED 10 million in all areas mentioned, on condition that the investment in sectors other than real estate is not less than 60 percent of the total investment.
Conditions:

Granting a visa is subject to the following conditions:

  • The amount invested must not be loaned.
  • The investment should be retained for at least three years.
  • There should be financial solvency up to AED 10 million.

Visa can be extended to include business partners, on the condition that each partner contributes AED 10 million.

The long-term visa can include the spouse and children, as well as one executive director and one advisor.

Investors from abroad may apply for a multiple-entry permit for a six-month period.

2. Persons with specialized talents

This includes specialized talents and researchers in the fields of science and knowledge such as doctors, specialists, scientists, inventors, as well as creative individuals in the field of culture and art. The visa advantage extends to the spouse and children. All categories are required to have a valid employment contract in a specialized field of priority in the UAE.

Conditions:

Granting a visa is subject to the following conditions:

  • Scientists must be accredited by Emirates Scientists Council or holders of the Mohammed Bin Rashid Medal for Scientific Excellence.
  • Creative individuals in culture and art must be accredited by the Ministry of Culture and Youth.
  • Inventors must obtain a patent of value, which adds to the UAE’s economy. Patents must be approved by Ministry of Economy.
  • Exceptional talents must be documented by patents or scientific research published in a world-class journal.
  • Executives must be owners of a leading and internationally recognized company or holders of high academic achievement and position.
  • Doctors and specialists must meet at least two of the following conditions:
  • A Ph. D. degree from one of the top 500 universities in the world (refer to the Federal Authority for Identity and Citizenship website for information)
  • An award or certificates of appreciation in the field of the applicant’s work
  • Contribution to major scientific research in the respective field of work
  • Published articles or scientific books in distinguished publications in the respective field of work
  • Membership in an organization related to the field
  • A Ph.D. degree, in addition to 10-year professional experience in his/her field
  • Specialization in areas of priority to the UAE

Eligibility for a 5-year visa

The following categories are entitled to apply for a 5-year residence visa in the UAE

1. Investors in a property in the UAE

Conditions:

Granting a visa is subject to the following conditions:

  • The investor must invest in a property of a gross value of not less than AED 5 million.
  • The amount invested in real estate must not be on a loan basis.
  • The property must be retained for at least three years.

2. Entrepreneurs

This category includes those having an existing project with a minimum capital of AED 500,000, or those who have the approval of an accredited business incubator in the country.

The entrepreneur is allowed a multi-entry visa for six months, renewable for another six months. The long-term visa includes the spouse and children, a partner, and three executives.

3. Outstanding Students

This includes:

  • Outstanding students with a minimum grade of 95 percent in public and private secondary schools
  • University students within and outside the country having a distinction GPA of at least 3.75 upon graduation.

The long-term visa includes families of outstanding students.

Program benefits

  • Foreign nationals can live, work, conduct business, and study in the UAE without the need for a national sponsor under the Golden Visa Program
  • Foreign entrepreneurs and investors are also permitted to own 100% of their businesses in the UAE
  • These visas will be issued for a time period of 5 or 10 years and will be renewed automatically
  • Investors can enjoy a very high quality of life in UAE
  • Due to its strategic location in the Middle East, UAE is extremely well connected to all major cities and business hubs in Asia, Europe and North America, making it very easy for investors to travel and conduct or expand their business

This article is contributed by Ms. Dishita Sheth, Intern at Ajmera Law Group

June 6, 2021
June 6, 2021

Understanding immigration and visa terminologies!

Author By Ajmera Law Group Categories Headlines, Residency & Citizenship by Investment
Visa Type Explanation
(1) Visitor visa, B1/B2 visa (USA), F1 visa (USA), Student visa, Study permit (1) This class of visa is known as a ‘Non-immigrant visa’ or Temporary visa. This is for purposes such as tourism, business meeting, attending conference/exhibition, meeting relatives, etc. This visa does not give the visa holder a right to stay in the visa issuing country on a permanent basis. This visa is issued to applicants who are unlikely to be future immigrants. The applicant travels on the passport of his/her country of citizenship with the temporary visa of the respective country stamped on it.
(2) Work permit (Canada), H1 visa (USA), Employment authorisation, Work authorisation, Work visa (2) A work permit is issued to a person who has a job offer from a foreign company or sponsor. This visa allows the applicant to live and work in the country that has issued this visa. This is again a temporary visa and applicant is expected to return back to his/her home country upon the expiration of the visa.

The applicant cannot apply for this type of visa on his/her own. In most western countries, when a company/employer wishes to hire a foreigner for a job, they need to demonstrate that there is a shortage of workers suitable for that particular job/work in the country or that they cannot find a suitable person who meets the skill ability/experience/ education that the particular job demands in their own country and hence they wish to hire a worker from abroad. However, in the Middle East this type of requirement is not mandatory and companies/employers can hire foreign workers. From labour jobs to white collar jobs, hiring from outside is country is permitted. This is because they have acute shortage of labour, especially skilled labour force. Most Indians living in Middle East have this visa stamped on their passport. Even people doing business in these countries are required to be sponsored by their own company. The applicant travels on the passport of his/her country of citizenship with the work visa of the respective country stamped on it.
(3) Green Card (USA), Permanent Migration (Oz), Permanent Residency (Canada), Indefinite Leave to Remain (ILR-UK), Golden Visa (Europe) (3) This visa gives the applicants the right to live in a foreign country on a permanent basis provided they meet the renewal requirements. The visa is issued to the following persons: (i) Skilled workers – If they have been sponsored by a company or person (as in case of Family Class in USA) on a permanent basis. In countries such as Canada, Australia and New Zealand, applicants can apply to reside permanently in these countries without sponsorship. They are selected as immigrants based on their age, education, language skills and work experience.

(ii) Businesspersons and investors – Applicants who wish to do business and /or invest in a foreign country can apply to become a permanent resident either by starting a business, investing in a business or making some sort of investment in the foreign country as stipulated by the said country’s government. This category is also popularly known as Residency and Citizenship by Investment or Second Passport. (iii) Spouse – Under the marriage class, spouses can obtain the right to live permanently in a foreign country if their spouse is a permanent resident or citizen of that country (iv) Refugees – Persons who have sought asylum in a particular foreign country can apply to stay in that country permanently under the asylum law. The applicant travels on the passport of his/her country of citizenship with the permanent resident visa of the respective country stamped on it.
(4) Citizenship (4) If an applicant has shown his/her commitment to stay permanently in a foreign country over a period of 3,5, 7 or 10 years (time period depends on the citizenship laws of the country), they can apply to become a citizen of that country. Indian citizens cannot hold dual citizenship under Article 9 of the Indian Constitution. In the event an Indian citizen receives citizenship of another country, he/she will lose the Citizenship of India. When an Indian citizen holds foreign citizenship and foreign passport, he/she will be required to apply for a visa to visit India unless he/she has been issued an Overseas Citizen of India (OCI) card.
(5) OCI card holder (5) In general, the OCI card is issued to individuals who are Indian citizens by birth and their children who are now citizens of another county either by naturalisation or by birth. Foreign spouses of Indian citizens may also qualify for an OCI card.

https://boi.gov.in/content/overseas-citizen-india-oci-cardholder
(6) Non Resident Indian (NRI) (6) In general terms, NRI means a person who is an Indian citizen and now living in a foreign country for an extended period of time. However, as per the Indian taxation law, ‘any Indian citizen who is staying out of India in any assessment year for more than 182 days is a Non-resident Indian for tax purposes. Click here
(7) Countries which offer direct citizenship to Indian citizens (7) The countries which offer direct citizenship to Indian citizens are – Turkey, Grenada, Saint Lucia, Dominica, Antigua & Barbuda, St. Kitts & Nevis, Malta, Montenegro, Vanuatu, Bulgaria
(8) Countries which do NOT offer citizenship to citizens of any country (8) UAE and most Middle East countries, Saudi Arabia, Vatican City, North Korea, Liechtenstein, Bhutan, China, Austria, San Marino, Japan, Germany, etc., are some of the countries that do not offer citizenship to citizens of foreign countries. These countries may allow foreign citizens to study and work in their countries but do not allow them to become citizens of their country.
9) Countries which offer citizenship after granting permanent residency (9) USA, Canada, UK, Australia, New Zealand, Ireland, Portugal, Malta, Spain, Greece, Bulgaria, Latvia, Cyprus and many European countries first grant permanent residency to foreign citizens and then citizenship if they fulfil the conditions stipulated in their citizenship laws.
   

 

June 1, 2021
June 1, 2021

New Zealand scrutinises to encourage investment immigration

Author By Ajmera Law Group Categories Headlines, New Zealand, Residency & Citizenship by Investment, Residency & Citizenship by Investment and Indian market

The New Zealand government has announced the formation of an inquiry commission to examine the country’s working-age immigration policy, including analysing the skilled migrant visa category and making recommendations on how to enhance investment immigration.

Deputy Prime Minister Grant Robertson said, “This inquiry will enable New Zealand to strategically optimise its immigration settings by taking a system-wide view, including the impact of immigration on the labour market, housing and associated infrastructure, and the natural environment.”

The commission’s mandate includes looking into the effects of rising net migration on housing markets, social cohesion, and the global ecosystems, as well as exchange rates and GDP growth. It will also analyse how the country can address potential labour and skill shortages, as well as whether migrants’ skills are aligned with job opportunities in New Zealand.

The inquiry body will emphasise on “how to attract and gain from investor migrants and entrepreneurial migrants whose expertise, experience, resources, and international ties will help New Zealand’s economic and social development, including through the creation of new businesses, and improving New Zealand’s reach into higher-value industries.”

Other questions the commission will address include whether the perceptions that domestic workers’ jobs are being taken over by migrant workers, especially in the low-skilled category, are accurate or not. Student visas as a pathway to permanent residence would also be scrutinised and closely watched.

Before the deadline of April 30, 2022, the Productivity Commission must present its findings.

In a statement, the Productivity Commission’s Ganesh Nana said, “The Commission looks forward to working alongside Maori and Pacific communities, migrant and ethnic communities, relevant government agencies, skills organisations, partners (the New Zealand Council of Trade Unions, Te Kauae Kaimahi and Business New Zealand), and many others.”

This article is contributed by Ms. Dishita Sheth, Intern at Ajmera Law Group

June 1, 2021
June 1, 2021

USA clears Path for Foreign Entrepreneurs and Start-ups

Author By Ajmera Law Group Categories EB-5 US Investor Visa, Green Card, Headlines, Investor Visa, Residency & Citizenship by Investment and Indian market, US start up visa program, USA

By removing the Trump administration proposal that aimed to kill the initiative, the Biden administration wants to resurrect an immigration program that allows foreign entrepreneurs to operate in the United States.

The International Entrepreneur law, which was then proposed by President Barack Obama’s administration three days before he left office in 2017, enables foreign entrepreneurs to work in the United States for up to five years if their start-ups can raise at least $250,000 from the venture capital in the United States, recruit ten employees, or meet other criteria.

As part of its attempts to revive the program, the Biden administration intends to market it. These actions are in response to demands from venture capital firms, which want the administration to support a program that would encourage thousands of foreign start-up founders to relocate to or stay in the United States to expand their ventures.

The Biden Administration is unlocking an enormous job growth opportunity by incorporating the International Entrepreneur Rule, which will help the United States remain the global leader in innovation,” said Bobby Franklin, the group’s president and chief executive.

“Immigrants in the United States have a long history of entrepreneurship, hard work, and creativity, and their contributions to this nation are incredibly valuable,” said Acting U.S. Citizenship and Immigration Services Director Tracy Renaud.

Currently, there is no visa available for start-up founders in the United States, despite the widespread bipartisan support for the concept. Other visa types must be used for foreign entrepreneurs, but none are ideal.

Between 2017 and 2019, USCIS received only 30 applications for the program, with only one being accepted, according to a USCIS official.

According to USCIS, if the program is properly implemented, about 3,000 international entrepreneurs would qualify per year, resulting in the creation of about 100,000 jobs over a ten-year period.

This article is contributed by Ms. Dishita Sheth, Intern at Ajmera Law Group 

May 30, 2021
May 30, 2021

Ajmera Law Group publishes first edition of Residency and Citizenship by Investment by asset classes!

Author By Ajmera Law Group Categories Headlines, Residency & Citizenship by Investment

As per some of the global organization world is passing through a time where we see the highest number of voluntary migration of human race.

For the last 50 years or we saw human migration for better education and a future for the family.

However, in the last 15-20 years we saw HNI and UNHI are also voluntarily moving from their home country to other parts of the world. In this respect, Residency and citizenship by investment is the most preferred way for HNI and UHNI to move from one country to another country for varsity of reasons.

 Before 2012, we saw only hand full of countries that were offering residency by investment such USA, Canada, the UK, Australia, and New Zealand.

 In 2012, we saw for the first time, Portugal golden visa with investment in real estate followed by several European countries such as Spain, Malta, Cyprus, Greece, Bulgaria, Moldova, Turkey, etc.  These countries mostly offering residency by investment but many attractive terms and conditions for the investors.

 At the same, we saw third group Carrabin countries offering citizenship by investment such as Grenada, St Kitts & Naïves, St. Lucia, Antigua & Barbuda, and Dominica.

 In 2013 we saw forth a group of business immigration to attract start-ups and its founder. Canada was the first country to start with and now followed by now more the 20 countries with a Start-Up visa program.

Not only this, many countries are now amending their program to give more options to investors for making an investment in not only one class but different asset classes.

 In view of the number of countries giving options for investment with residency and citizenship programs, it was the right time to give a comprehensive view of all countries based on asset classes. Said, Prahsnat Ajmera, lawyer, founder, and author of ALG.

 As a law firm, it is our professional duty to present and advise on all investment options to our investors rather than giving limited options of most expensive options.” Added Mr. Ajmera

The firm strongly believes that such publication and comparison will give investors to make well-informed investment decisions.

 The Ajmera Law Group wishes to publish on a yearly basis, residency, and citizenship by investment on asset class basis investment options for HNI and UHNI.

 Residency and Citizenship by Investment (RCI)

options by asset class

Select your residency and citizenship program by investing in an asset class of your choice.

Investment in >>>>>> Real Estate Financial Market / Funds / Bonds  Donation to government development project/fund or such other funds Enterprise / Business – New, Existing, JV Start-up Program Yearly Income
USA No No No Yes Yes No
Canada No No No Yes Yes No
Australia No Yes No Yes Yes No
New Zealand No Yes No Yes Yes No
UK No Yes No Yes Yes No
Ireland No Yes Yes Yes Yes No
EUROPE:            
Portugal Yes Yes Yes Yes Yes Yes
Spain Yes Yes No Yes Yes No
Greece Yes Yes No Yes Yes No
Bulgaria Yes Yes No Yes Yes No
Malta Yes Yes Yes Yes Yes No
Cyprus Yes Yes No Yes Yes No
             
Turkey Yes No Yes Yes Yes Yes
CARIBBEAN:            
St. Kitts & Nevis Yes No Yes No No No
Dominica Yes No Yes Yes No No
Grenada Yes No Yes No No No
St. Lucia Yes yes Yes Yes No No
Antigua & Barbuda Yes No Yes Yes No No

 

Disclaimer:

This is only a general indication of each RCI program. There are many more additional requirements for each program. The investor must seek legal advice from a licensed attorney who is specialized in RCI practice of the respective jurisdiction.

April 29, 2021
April 29, 2021

Are you looking for a second home in the world!

Author By Ajmera Law Group Categories Residency & Citizenship by Investment

A quick analysis of the Residency & Citizenship by investment program of the world!!

Ajmera Law Group’s analysis and comparison of RCI programs of several countries will surprise you.

To attract the right kind of global businesspersons and entrepreneurs to their countries, two G-7 countries have reduced the investment amount which is now the lowest in the world.

 

Name of the country Investment amount Name  of the visa program  
USA US$ 200,000 to 1,800,000 Non-Immigrant L1, E2 visa, and Green card under EB-5
Ireland € 500,000 Permanente residency
Australia A$ 500,000 Business innovation Stream (Provisional to PR)
New Zealand NZ$ 100,000 Permanente residency
Canada CD$ 100,000 PNP Business program ( temporary residency to PR)
UK £ 50,000 Innovator visa (ILR)
Malta € 250,000 Permanente residency
Cyprus € 300,000 Permanente residency
Portugal € 350,000-500,000 Golden Visa – Permanente residency
Spain € 500,000 Golden Visa – Permanente residency
Greece € 250,000 Golden Visa – Permanente residency
Bulgaria € 512,000 Permanente residency
Turkey US$ 250,000 Citizenship
Grenada US$ 150,000 Citizenship
Carrabin Countries US$ 100,000+ Citizenship

 

April 20, 2021
April 20, 2021

How many Indian HNIs have permanently left India for a new home? – The real story!

Author By Ajmera Law Group Categories Headlines, Residency & Citizenship by Investment and Indian market

How many Indian HNIs really left India?                        

In the last few years, we have time and again read articles in the Indian media with the following eyeball grabbing headlines:

Being in the immigration industry with more than 28 years of experience, I was intrigued by these headlines and the alleged figures. Yes, India’s rich and famous are leaving the country and opting for a second passport but the numbers cited in many of these articles seemed preposterous.

I decided to do some research to determine if this was true. I picked out the last article and tried to reach the author of the article.  He was nice enough to send me the report which was referred to in this article. He also sent me a note saying – ‘Our figures are estimates’. 

I also reached out to the bank which has been part of the same report and quoted in several pressnote. The bank, however, has not replied to my email.

Regulatory Bank of India

 

Here is the official data from the Reserve Bank of India (the regulatory bank in India) of the remittance/investment made by Indian citizens overseas in the last 4 years.

Outward remittances/investments made under the Liberalised Remittance Scheme (LRS) for Resident Individuals / Indian Citizens – Published by Reserve Bank of India (RBI)
(US$ Million)
Item 2016-17 2017-18 2018-19 2019-20 TOTAL of Four years
         
1 Outward Remittance under the LRS – TOTAL for the year 8,170.7 11,333.6 13,787.58 18,751.40 52,043.28
1.1 Deposit 283.8 414.9 455.94 623.37 1778.01 Investment
1.2 Purchase of immovable property 92.9 89.6 84.53 86.43 353.46 Investment
1.3 Investment in equity/debt 443.6 441.8 422.90 431.41 1739.71 Investment
1.4 Gift 749.5 1,169.7 1370.24 1904.53 5193.97 Expenses
1.5 Donations 8.8 8.5 8.67 22.32 48.29 Expenses
1.6 Travel 2,568.0 4,022.1 4803.81 6954.20 18348.11 Expenses
1.7 Maintenance of close relatives 2,169.5 2,937.4 2800.88 3437.46 11345.24 Expenses
1.8 Medical Treatment 17.3 27.5 28.59 33.88 107.27 Expenses
1.9 Studies Abroad 1,536.4 2,021.4 3569.87 4989.04 12116.71 Expenses
1.10 Others 300.8 200.6 242.15 268.74 1012.29 Expenses
Note: 1.10: Includes items such as a subscription to journals, maintenance of investment abroad, student loan repayments, and credit card payments.

 

We can plainly see from the above RBI data that the ‘estimates’ cited in most reports and their subsequent press notes are nowhere near the actual figures. It appears that these articles/press notes are nothing more than self-serving paid advertorials.

By creating a hype that a large number of Indians are leaving the country by opting for a second passport, they perhaps want to popularize the Residency & Citizenship by Investment programs offered by different countries in India. They hope that rich Indians will join the bandwagon and sign up for these programs.

April 19, 2021
April 19, 2021

“Invest in Turkey” – hoardings appear on Srinagar’s main cross road – Media and authorities at a loss regarding this advert

Author By Ajmera Law Group Categories Headlines, Residency & Citizenship by Investment and Indian market

An article by Mr.  Nasee Genani has been published on Outlook.com titled:

Mysterious ‘Invest In Turkey’ Hoardings Appear In Srinagar’s Lal Chowk  

After reading the article, it appears that the media and local authorities are perplexed regarding the origin of these hoardings. This story was followed by several other media. ( IBT, JKNS, VEN, etc.)

These hoardings were put up by an immigration consulting firm from Dubai with offices in Mumbai and Delhi. The likely aim of these hoardings was to attract Indian investors to invest in Turkish real estate so as to acquire Turkish Citizenship.

Investors, including Indian citizens, acquiring Turkish citizenship are eligible to apply for an E2 business visa of the USA and a business visa of the UK (under the Ankara Agreement between the UK and Turkey).

This is not an invitation from the Turkish government to apply for citizenship but an advertisement by an immigration agent who is licensed in the UAE but not in India.

But at the same time, it is interesting to note that this Dubai-based immigration consulting firm is operating illegally in India.

Invest in Turkey
Istanbul, culture and historical capital of Turkey. Aerial photo from above. City view and landscape photo by drone. The Galata Kulesi Tower

Why illegally you may ask?

When it comes to advising on Turkish immigration and visa law, the Indian law clearly states that only Indian advocates can practice law ( Indian or Foreign), including immigration law, under the Indian Advocates Act of 1961 and The Supreme Court of India’s judgment.

In view of the same, RBI has also issued a notification specifically directing Indian banks and other authorities to refrain from issuing or renewing permission to foreign law firms from establishing offices in India and opening bank accounts in India.

Note: After this blog was written, it has been brought to the attention of the author that the said hoardings have been duly removed.

1 2 3