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Tag Archives: Study abroad

January 24, 2022

Study Abroad – Ten common misconceptions that students and parents have about studying & settling abroad!!

Common mistakes made by parents and students while planning for study abroad!

Here are my 10 quick tips.   (Video version)

  1. Study abroad after grade 12 only if money is not a problem!
  1. Take IELTS coaching from an institute that does not provide student visa consultancy!
  1. STUDYING ABROAD does not translate to ‘Your life is set’!
  1. Study abroad only in recognized programs at university where immigration is possible!
  1. “Post-graduate Diploma” in colleges is not a Master’s degree!
  1. After studying abroad, immigration is not automatic!
  1. There is no guarantee that you will find a job that can finance your study. Always find employment related to your education!
  1. For licensed professionals, make sure you have the right to practice in India or the right to immigrate to the country of your choice!
  1. Do your own research, consult immigration lawyers and plan your career early and for the long term!
  1. Studying abroad is NOT the only option available to settle abroad. There are several other better options available!

Are you interested in planning for your child’s foreign education and settlement in a foreign country? 

Get this ebook for FREE or you can purchase the book from Amazon or ebook from google – Click Here

A must-read book for all students who wish to study and settle abroad!

Who is Prashant Ajmera? 

Prashant Ajmera is a reputed Indian lawyer, NRI, and Canadian citizen since 1997 with more than twenty–five years of experience in the field of cross-border personal law and global investment advisory. He has assisted numerous HNIs and UHNIs in planning their finances and advised them in planning their children’s foreign education in the most economical manner.

Over the years has authored two books and a number of articles for diverse publications and has been invited as a speaker by various organizations and institutes …Read more

Mr. Ajmera is a member of the International Bar Association (IBA) and has addressed the IBA Annual Conference as a speaker on two occasions (Cancun-2001 & Durban-2002).

He is also a member of many chambers of commerce and charitable organizations.

To consult Prashant Ajmera (Lawyer, Author & Founder)  for planning your child’s foreign education either in person or via Zoom video conference click here

Legal disclaimer:

  • (i) This blog/article does not give any legal advice and does not establish a client-lawyer relationship. Information provided is for the purpose of general information only.
  • (ii) Only Indian lawyers can practice and advise on legal matters in India, including immigration and visa law. Foreign immigration lawyers cannot open offices and advice Indian citizens on immigration and visa matters.
  • (iii) Always refer to official government websites or consult an immigration lawyer for the latest information as immigration and visa laws change quite frequently.
  • (iv) Ajmera Law Group assists their client base by associating with law firms in respective jurisdictions.
  • (v) Ajmera Law Group does not give franchise or agency of their legal services.
  • (vi) We do not assist in job placement and/or finding a job in a foreign country. Please consult only licensed recruitment agencies.
  • (vii) Any citizen or company, who is not an Indian lawyer, giving legal advice related to immigration and visa matters is in violation of the Indian Advocates Act 1961.
January 1, 2022

Indian parents wait till standard 12 or bachelor degree results to take action for a child’s foreign education. It could be too late and you may be running out of options.  

Pursuant to the economic liberalization in India, wealth creation has reached unprecedented heights. From the time of independence, the Indian economic era can be divided into three main periods:

The first period from 1947 to 1993 can be described as pre-liberalized – a time when pre-liberalisation of the economic policies were in place in India.

The second period from 1993 to 2007 can be regarded as the start of economic liberalization– a time when inbound investments began in earnest in India.

The third period from 2007 to present can be described as optimum economic liberalization – a time when inbound and outbound investments to and from India were allowed.

Before the 1993 pre-economic liberalisation era, most Indians aspired to just own a decent house, a vehicle (two wheelers were good enough), good education for their children in local schools and enjoying vacations within the country. However, in the post economic liberalisation era, most Indians not only want a house with four walls but yearn for a lavishly furnished, luxurious home. Owning at least two cars, a holiday home or farm house outside the city and vacationing abroad have become must-haves for well-to-do Indian families today.

The wave of economic liberalization seen the past few years has increased the number of HNIs in India and wealth generation is at its peak. Life styles, standard of living, travel, education, weddings, savings, retirement and many other important aspects of life have changed post 2007.

Have a look at the following figures:

2007 – HNIs in India 152 ,000

2015 – HNIs in India 236,000

2018 – HNIs in India 430,000

2023 – HNIs in India 860,000

Today, Indian HNIs own a second home outside India, their children are studying in foreign universities and they spend at least one vacation abroad per year, thanks to the booming economy and increased spending power.

According to the data received from RBI the Indian HNI remittance has increased from US$ 440 million in 2007-08 to US$ 13.5 billion in 2017-18 under the LRS. This exponential increase is due to outbound investment and remittance post 2007. Now Indian HNIs are travelling abroad more frequently, for work as well as pleasure. Destination weddings in exotic international locations and sending their children out of India for undergraduate and graduate studies is also making a sizeable contribution towards outbound investment.

According to RBI, the top spending for HNIs was on their children’s education – around US$ 4 billion, followed by foreign travel and gifts to family.

As the data shows, spending for children’s education abroad is on top of the list for Indian HNIs. Today not only HNIs but even middle class parents aspire to send their children abroad to study. Several surveys show that Asian parents give top priority to their children’s education and are particularly keen that they study abroad. This is probably due to the fact that the approach and attitude towards education in Western countries is very different compared to that in Asian countries.

The number of Indian students studying abroad has increased many-fold in the past decade. As per UNESCO data, by August 2018, over 400,000 Indian students were studying abroad. This makes India the second largest source of international students after China.

However, the past migration history of India and the affluence of the Indian diaspora in foreign countries prompts most Indians parents to presume that if their child gets a foreign education, he/she will be able to settle in that country permanently. They equate studying abroad with settling abroad. They feel that once their child goes abroad, they will be able to make a good life for themselves and settle comfortably.

In order to secure their child’s future in a foreign country, Indian parents spend obscene amounts of money or take loans that often take a lifetime to pay and somehow send their children abroad to study. Their hope is that their child will obtain residency, land up with a lucrative job and have a successful career.

We must not forget that just like India, there are many countries around the world who send their youth to study in countries such as USA, Canada, Australia, UK and New Zealand.

This has increased the number of foreign students applying for immigration in the aforementioned countries. Hence the queue and waiting period for obtaining immigration is getting longer and longer.

Let us take an example of an Indian student studying in USA. If this student started studying in the Master’s program in the year 2002, he is likely to have completed it by 2004. Like most students, he would have converted his status from F1 student visa to H1B work permit visa. He would have worked for six years on this visa assuming that the company he worked for continued to hire his services. Hence until 2010 he would be working on a H1B visa.

Let us assume that this student applied for a Green Card in 2010 under one for the following categories – EB1, EB2 and EB3 and received approval for his I-140 petition. As each of the categories has a quota of 40,000 Green Cards per year, and as the number of foreign students applying for a Green Card in these categories is very high, it takes several years to receive this much coveted card.

As per USA Government official website, petitions received/ approved until January 2015 are being issued a Green Card under the EB1 category. Petitions approved/received until July 2009 are being issued a Green Card under the EB2 and EB3 categories. Hence our student has to wait for at least another 4 years for a Green Card under the EB1 category and another 10 years under the EB2 and EB3 categories, assuming that rules do not change and processing time remains more or less the same.

There are many Indian students in USA who were trying to obtain a Green Card since the last 12-15 years after completing their studies. When their wealthy Indian parents realized that their children cannot obtain residency after the study program, they tried to intervene by investing money on behalf of the children in programs such as EB-5 Investor visa of USA to secure a Green Card for their child.

Other popular destinations for study abroad are Canada, Australia, New Zealand and the UK. Thanks to thousands of student visa consultants and agents, Canada has the highest number of Indian international students. Unfortunately due to bad advice given by local agents, who are motivated by the hefty commissions they receive from foreign education institutes, a good number of students receive a shock of their life when they realize that the course they have been enrolled into is not a Master’s program but a college diploma or certificate course. Also, the institution they are going to study in is not a recognized university but a community college. There are innumerable horror stories faced by parents and their children because of their desperation to go abroad.

Most Indian parents, whose children are ready to study abroad, fail to realize that circumstances that existed a few years ago to settle abroad are not applicable in 2020. Immigration laws and regulations change from time to time and from country to country. Unless parents plan early, sending their children abroad to study will only result in spending exorbitant amounts of money without any net gain, which is permanent settlement in that country.

There are also good number of Indian students who had gone abroad to study but were forced to return back to India because they could not get employment related to their education nor could obtain residency/permanent immigration of the country where they studied. This has led to frustration, disappointment and careers of many bright students being destroyed due to short-sightedness and lack of knowledge.

When our law firm is approached by such parents, we cannot find a viable solution for them in many cases as the child who has gone abroad for study is way past the legal age to be included in an immigration application with his/her parents under the investor class. Parents and children undertake thorough research and seek legal advice from an experienced immigration lawyer to explore the possibility of immigration after study before going abroad.

Though a new concept for Indian HNIs, their counterparts in other countries such as China, Taiwan and Korea have resorted to obtaining residency and citizenship by the investment of various countries round the world to secure their children’s education in foreign jurisdictions, giving their children a jump start in their career when they finish their education.

The most important advantage of obtaining residency and citizenship by investment is that the investor’s children can enjoy reduced tuition fees at the majority of top universities. Tuition fees for permanent residents and citizens are significantly lower, reduced by almost 60%-80%, in most foreign universities as compared to those paid by international students.

In many cases, the amount to be invested by an investor in a particular country is just a little higher than the tuition fees he/she would pay in international student fees, especially if the investor has two or more children.

Making investments in risk-free but unconventional products in many countries of the world can help wealthy Indians to secure the foreign education and career of their children. There are excellent opportunities available for investing in countries such as USA, Canada, UK, some European countries and the Caribbean islands which guarantee subsidized education for children of investors.

In keeping with the changing trends, Indian parents can invest for a second passport or residency of a foreign country to ensure theirs and their children’s future before it’s too late.

Countries that offer Residency and/or Citizenship by Investment:

Residency to Citizenship:

USA, Canada, UK, Australia, New Zealand

Direct Citizenship:

Caribbean Islands –> St. Kitts & Nevis, St. Lucia, Antigua & Barbuda, Grenada, Dominica

Residency: Europe

Portugal, Spain, Malta, Cyprus, Greece, Bulgaria, Latvia, Turkey

Citizenship: Europe

Cyprus, Malta, Bulgaria, Moldova

To know more about the subject and planning for your child’s foreign education get our e-book 

January 1, 2022

Common mistakes made by parents and students while planning for study abroad!

Here are my 10 quick tips.   (Video version)

  1. Study abroad after grade 12 only if money is not a problem!
  1. Take IELTS coaching from an institute that does not provide student visa consultancy!
  1. STUDYING ABROAD does not translate to ‘Your life is set’!
  1. Study abroad only in recognized programs at university where immigration is possible!
  1. “Post-graduate Diploma” in colleges is not a Master’s degree!
  1. After studying abroad, immigration is not automatic!
  1. There is no guarantee that you will find a job that can finance your study. Always find employment related to your education!
  1. For licensed professionals, make sure you have the right to practice in India or the right to immigrate to the country of your choice!
  1. Do your own research, consult immigration lawyers and plan your career early and for the long term!
  1. Studying abroad is NOT the only option available to settle abroad. There are several other better options available!

Are you interested in planning for your child’s foreign education and settlement in a foreign country? 

Get this ebook for FREE or you can purchase the book from Amazon or ebook from google – Click Here

 

 

How to Plan for your Child's Foreign Education in 2020
A must-read book for all students who wish to study and settle abroad!

Who is Prashant Ajmera? 

Prashant Ajmera is a reputed Indian lawyer, NRI, and Canadian citizen since 1997 with more than twenty–five years of experience in the field of cross-border personal law and global investment advisory. He has assisted numerous HNIs and UHNIs in planning their finances and advised them in planning their children’s foreign education in the most economical manner.

Over the years has authored two books and a number of articles for diverse publications and has been invited as a speaker by various organizations and institutes …Read more

Mr. Ajmera is a member of the International Bar Association (IBA) and has addressed the IBA Annual Conference as a speaker on two occasions (Cancun-2001 & Durban-2002).

He is also a member of many chambers of commerce and charitable organizations.

To consult Prashant Ajmera (Lawyer, Author & Founder)  for planning your child’s foreign education either in person or via Zoom video conference click here

April 15, 2021

Common mistakes made by parents and students while planning for study abroad!

Here are my 10 quick tips.   (Video version)

  1. Study abroad after grade 12 only if money is not a problem!
  1. Take IELTS coaching from an institute that does not provide student visa consultancy!
  1. STUDYING ABROAD does not translate to ‘Your life is set’!
  1. Study abroad only in recognized programs at university where immigration is possible!
  1. “Post-graduate Diploma” in colleges is not a Master’s degree!
  1. After studying abroad, immigration is not automatic!
  1. There is no guarantee that you will find a job that can finance your study. Always find employment related to your education!
  1. For licensed professionals, make sure you have the right to practice in India or the right to immigrate to the country of your choice!
  1. Do your own research, consult immigration lawyers and plan your career early and for the long term!
  1. Studying abroad is NOT the only option available to settle abroad. There are several other better options available!

Are you interested in planning for your child’s foreign education and settlement in a foreign country? 

Get this ebook for FREE or you can purchase the book from Amazon or ebook from google – Click Here

 

 

How to Plan for your Child's Foreign Education in 2020
A must-read book for all students who wish to study and settle abroad!

Who is Prashant Ajmera? 

Prashant Ajmera is a reputed Indian lawyer, NRI, and Canadian citizen since 1997 with more than twenty–five years of experience in the field of cross-border personal law and global investment advisory. He has assisted numerous HNIs and UHNIs in planning their finances and advised them in planning their children’s foreign education in the most economical manner.

Over the years has authored two books and a number of articles for diverse publications and has been invited as a speaker by various organizations and institutes …Read more

Mr. Ajmera is a member of the International Bar Association (IBA) and has addressed the IBA Annual Conference as a speaker on two occasions (Cancun-2001 & Durban-2002).

He is also a member of many chambers of commerce and charitable organizations.

To consult Prashant Ajmera (Lawyer, Author & Founder)  for planning your child’s foreign education either in person or via Zoom video conference click here

April 12, 2021

Indian parents wait till standard 12 or bachelor degree results to take action for a child’s foreign education. It could be too late and you may be running out of options.  

Pursuant to the economic liberalization in India, wealth creation has reached unprecedented heights. From the time of independence, the Indian economic era can be divided into three main periods:

The first period from 1947 to 1993 can be described as pre-liberalized – a time when pre-liberalisation of the economic policies were in place in India.

The second period from 1993 to 2007 can be regarded as the start of economic liberalization– a time when inbound investments began in earnest in India.

The third period from 2007 to present can be described as optimum economic liberalization – a time when inbound and outbound investments to and from India were allowed.

Before the 1993 pre-economic liberalisation era, most Indians aspired to just own a decent house, a vehicle (two wheelers were good enough), good education for their children in local schools and enjoying vacations within the country. However, in the post economic liberalisation era, most Indians not only want a house with four walls but yearn for a lavishly furnished, luxurious home. Owning at least two cars, a holiday home or farm house outside the city and vacationing abroad have become must-haves for well-to-do Indian families today.

The wave of economic liberalization seen the past few years has increased the number of HNIs in India and wealth generation is at its peak. Life styles, standard of living, travel, education, weddings, savings, retirement and many other important aspects of life have changed post 2007.

Have a look at the following figures:

2007 – HNIs in India 152 ,000

2015 – HNIs in India 236,000

2018 – HNIs in India 430,000

2023 – HNIs in India 860,000

Today, Indian HNIs own a second home outside India, their children are studying in foreign universities and they spend at least one vacation abroad per year, thanks to the booming economy and increased spending power.

According to the data received from RBI the Indian HNI remittance has increased from US$ 440 million in 2007-08 to US$ 13.5 billion in 2017-18 under the LRS. This exponential increase is due to outbound investment and remittance post 2007. Now Indian HNIs are travelling abroad more frequently, for work as well as pleasure. Destination weddings in exotic international locations and sending their children out of India for undergraduate and graduate studies is also making a sizeable contribution towards outbound investment.

According to RBI, the top spending for HNIs was on their children’s education – around US$ 4 billion, followed by foreign travel and gifts to family.

As the data shows, spending for children’s education abroad is on top of the list for Indian HNIs. Today not only HNIs but even middle class parents aspire to send their children abroad to study. Several surveys show that Asian parents give top priority to their children’s education and are particularly keen that they study abroad. This is probably due to the fact that the approach and attitude towards education in Western countries is very different compared to that in Asian countries.

The number of Indian students studying abroad has increased many-fold in the past decade. As per UNESCO data, by August 2018, over 400,000 Indian students were studying abroad. This makes India the second largest source of international students after China.

However, the past migration history of India and the affluence of the Indian diaspora in foreign countries prompts most Indians parents to presume that if their child gets a foreign education, he/she will be able to settle in that country permanently. They equate studying abroad with settling abroad. They feel that once their child goes abroad, they will be able to make a good life for themselves and settle comfortably.

In order to secure their child’s future in a foreign country, Indian parents spend obscene amounts of money or take loans that often take a lifetime to pay and somehow send their children abroad to study. Their hope is that their child will obtain residency, land up with a lucrative job and have a successful career.

We must not forget that just like India, there are many countries around the world who send their youth to study in countries such as USA, Canada, Australia, UK and New Zealand.

This has increased the number of foreign students applying for immigration in the aforementioned countries. Hence the queue and waiting period for obtaining immigration is getting longer and longer.

Let us take an example of an Indian student studying in USA. If this student started studying in the Master’s program in the year 2002, he is likely to have completed it by 2004. Like most students, he would have converted his status from F1 student visa to H1B work permit visa. He would have worked for six years on this visa assuming that the company he worked for continued to hire his services. Hence until 2010 he would be working on a H1B visa.

Let us assume that this student applied for a Green Card in 2010 under one for the following categories – EB1, EB2 and EB3 and received approval for his I-140 petition. As each of the categories has a quota of 40,000 Green Cards per year, and as the number of foreign students applying for a Green Card in these categories is very high, it takes several years to receive this much coveted card.

As per USA Government official website, petitions received/ approved until January 2015 are being issued a Green Card under the EB1 category. Petitions approved/received until July 2009 are being issued a Green Card under the EB2 and EB3 categories. Hence our student has to wait for at least another 4 years for a Green Card under the EB1 category and another 10 years under the EB2 and EB3 categories, assuming that rules do not change and processing time remains more or less the same.

There are many Indian students in USA who were trying to obtain a Green Card since the last 12-15 years after completing their studies. When their wealthy Indian parents realized that their children cannot obtain residency after the study program, they tried to intervene by investing money on behalf of the children in programs such as EB-5 Investor visa of USA to secure a Green Card for their child.

Other popular destinations for study abroad are Canada, Australia, New Zealand and the UK. Thanks to thousands of student visa consultants and agents, Canada has the highest number of Indian international students. Unfortunately due to bad advice given by local agents, who are motivated by the hefty commissions they receive from foreign education institutes, a good number of students receive a shock of their life when they realize that the course they have been enrolled into is not a Master’s program but a college diploma or certificate course. Also, the institution they are going to study in is not a recognized university but a community college. There are innumerable horror stories faced by parents and their children because of their desperation to go abroad.

Most Indian parents, whose children are ready to study abroad, fail to realize that circumstances that existed a few years ago to settle abroad are not applicable in 2020. Immigration laws and regulations change from time to time and from country to country. Unless parents plan early, sending their children abroad to study will only result in spending exorbitant amounts of money without any net gain, which is permanent settlement in that country.

There are also good number of Indian students who had gone abroad to study but were forced to return back to India because they could not get employment related to their education nor could obtain residency/permanent immigration of the country where they studied. This has led to frustration, disappointment and careers of many bright students being destroyed due to short-sightedness and lack of knowledge.

When our law firm is approached by such parents, we cannot find a viable solution for them in many cases as the child who has gone abroad for study is way past the legal age to be included in an immigration application with his/her parents under the investor class. Parents and children undertake thorough research and seek legal advice from an experienced immigration lawyer to explore the possibility of immigration after study before going abroad.

Though a new concept for Indian HNIs, their counterparts in other countries such as China, Taiwan and Korea have resorted to obtaining residency and citizenship by the investment of various countries round the world to secure their children’s education in foreign jurisdictions, giving their children a jump start in their career when they finish their education.

The most important advantage of obtaining residency and citizenship by investment is that the investor’s children can enjoy reduced tuition fees at the majority of top universities. Tuition fees for permanent residents and citizens are significantly lower, reduced by almost 60%-80%, in most foreign universities as compared to those paid by international students.

In many cases, the amount to be invested by an investor in a particular country is just a little higher than the tuition fees he/she would pay in international student fees, especially if the investor has two or more children.

Making investments in risk-free but unconventional products in many countries of the world can help wealthy Indians to secure the foreign education and career of their children. There are excellent opportunities available for investing in countries such as USA, Canada, UK, some European countries and the Caribbean islands which guarantee subsidized education for children of investors.

In keeping with the changing trends, Indian parents can invest for a second passport or residency of a foreign country to ensure theirs and their children’s future before it’s too late.

Countries that offer Residency and/or Citizenship by Investment:

Residency to Citizenship:

USA, Canada, UK, Australia, New Zealand

Direct Citizenship:

Caribbean Islands –> St. Kitts & Nevis, St. Lucia, Antigua & Barbuda, Grenada, Dominica

Residency: Europe

Portugal, Spain, Malta, Cyprus, Greece, Bulgaria, Latvia, Turkey

Citizenship: Europe

Cyprus, Malta, Bulgaria, Moldova

To know more about the subject and planning for your child’s foreign education get our e-book 

April 15, 2019

On the surface, India’s market for investment migration has the same fundamental conditions as China; a population of some 1.3 billion, a passport with limited mobility, a large number of HNWIs, and plenty of push factors like pollution, restrictions on individual liberty, and lack of educational opportunities. But look closer, and you’ll find that India has many more obstacles – mainly cultural – that have prevented the investment migration market from flourishing to the same degree that it has in China.

We’ll look at each of these limiting factors in turn but, first, some background.

Read also: Basic Dos and Don’ts for Entering the Indian Investment Migration Market – By Prashant Ajmera

A brief history of Indian emigration

Migration from India to other countries around the world started in earnest more than 100 years ago. Back then, the migrants were mostly laborers recruited to work on sugar plantations in the Caribbean islands and Mauritius, railroads in Canada, and as industrial and domestic workers in South Africa, Malaysia, and Indonesia. During this period, only people with meager means thought of migrating abroad in order to sustain their families.

After India’s independence from British rule in 1947, however, this labor migration decreased dramatically. The post-independence period saw Indians leaving the country for a very different reason; that of obtaining higher education and, thereafter, settling abroad. During this period, foreign migration became a symbol of social status, and obtaining a foreign education and living abroad become aspirations that most Indians nurtured but which very few of them could afford.

The most favored destinations were the USA and the UK. Qualified Indians pursued higher studies in these countries and then settled into lucrative jobs. Doctors, engineers, and architects from India settled in these countries during this time.

In the mid-seventies, the Gulf countries – notably the UAE, Oman, and Kuwait – were growing exponentially thanks to petrodollars. Need for advanced infrastructure development, high-tech facilities and world-class standards of living generated demand for a huge labor force; qualified professionals as well as labourers.

This unprecedented growth prompted a second wave of workforce migration from India to the Middle Eastern countries. Presently the Indian diaspora is the most populous expat community in the Middle East.

This era was fraught with recruitment scams and fraudsters cheating ignorant workers with false promises of a highly paid job and a better life in exchange for huge amounts of money. Because of this, in the year 1983, the Indian government passed the Emigration Act to regulate agents recruiting manpower from India mainly to Middle Eastern countries.

In 1993, Canada introduced skilled migration. It was a highly streamlined process, paving the way for systematic skilled worker migration from India to Canada. Eventually, Australia, New Zealand, and some European countries also joined the fray.

During the late 80s and all throughout the 90s, the growing IT industries and start-ups in Western countries and the Y2K problem attracted a large pool of IT professionals from India.

These professionals, who received mediocre salaries in India, were highly paid by foreign companies. Good money, cushy jobs and a high standard of living eventually prompted them to settle down with their families in these countries. This was a period of ‘brain-drain’ for India.

All this migration created a very deep stigma in the upper echelons of Indian society who began to regard migration as something undertaken by economically deprived people only. According to them, migration was for people with lesser means so that they could earn more abroad.

Interestingly, many of these wealthy people who looked down on migration had themselves migrated from villages to cities within India in search of wealth and a better life during their youth.

This gives us a brief background as to how migration evolved in India. Though we are at the threshold of the year 2020, Indian HNWIs are quite slow in making a decision to immigrate abroad. Residency and citizenship by investment is a concept that still hasn’t struck a chord with many Indians.

The 10 main reasons Indian HNWIs have been slow to embrace residence and citizenship by investment

1.The mind-set that immigration is only for the economically deprived

As mentioned, not only HNWIs but a majority of Indians harbor a deeply rooted belief that immigration is only for the economically deprived. In my 27 years of practice, I have come across a great number of people who come to consult me and start the conversation with these lines: “We are very well-to-do and not interested in moving abroad. But I am doing this (immigrating) for the sake of my children’s education and future”.

Most of these people are senior executives of multinationals, owners of SMEs, or wealthy businesspersons. They enjoy a high standard of living and their net worth is in the millions of dollars.

2. Stable democracy and good standard of living

India became independent in 1947, but today it is the world’s largest democracy. Though home to several religions, languages, and classes of people, it is a relatively safe country in which to live. The law and order situation is reasonably good and, though there may be unrest in a few pockets across the nation from time to time, there is peace and safety most of the time.

Additionally, the Indian economy is getting stronger by the day. These factors discourage many Indian HNWIs from moving abroad unlike their counterparts in countries such as China and Russia.

3. Lack of Knowledge among HNWI advisors

In the past three or four years, we have seen a growing interest among HNWIs in various residency and citizenship programs. Unfortunately, their usual financial advisors like chartered accountants, wealth managers, and lawyers have little-to-no knowledge about any of these programs.

Many HNWIs are even skeptical about the existence and authenticity of these programs and wonder if it’s an international scam. I recently met the senior partner of large and reputed client advisory firm who had no clue about investment migration and was surprised that it can be a highly beneficial investment opportunity for HNWIs.

4. Lack of familiarity with investing abroad

Until recently, Indian banks and concerned government agencies had very strict and conservative rules in place that deterred Indian professionals and businesspersons from remitting money outside of India. Hence, the entire concept of investing abroad is quite novel for most Indian HNWIs. Now, with more favorable regulations, HNWIs are showing a willingness to venture into the unknown RCBI territory.

5. Lack of knowledge about residence and citizenship by investment programs

Lack of basic knowledge about RCBI and its benefits makes HNWIs less trusting of such programs. With no one to assist them and clear their doubts, they are confused regarding the value of investment migration programs as a safe and rewarding investment.

6. Multiple obstacles related to cash transactions and liquidity

With the exception of large metros, most real estate and large financial transactions in India are carried out in a split manner to avoid taxation – around 30-35% of the real estate price is paid through bank transfer whereas 65-70% of the transaction is by cash. This creates a perennial liquidity issue for Indians who often have to struggle to show that they have the necessary financial capacity to invest abroad through official banking channels.

7. Difficulty with documents and other legalities

India does not have a nationwide social security system. Additionally, there is no credit rating system for individuals and corporates. Business is commonly conducted based on personal references. Drawing up detailed agreements and legal documents and hiring professionals to guide through the entire process is still not a common practice.

In contrast, RCBI programs involve a plethora of legal documents and other formalities that can be completed only with the help of qualified and knowledgeable professionals. Many Indian HNWIs are flummoxed when they realize how many supporting documents they need to submit with their application and the other legalities they need to complete. Gathering and compiling relevant documents is an uphill task for most of them.

8. Negative perceptions of investment migration

Indians often assume that if a wealthy person has applied for immigration, he/she must be doing so for all the wrong reasons. In recent times, several UHNWIs have fled the country in order to escape prosecution and possible jail time and taken refuge in foreign jurisdictions through investment migration programs.

The Indian media has exploited these stories extensively to generate negativity about RCBI programs, highlighting how HNWIs are taking undue advantage of these programs to avoid persecution at home and live a comfortable life elsewhere. All this undue attention has made many high profile HNWIs very cautious and secretive when they seek immigration through such schemes.

9. Lack of trust

Non-payment of invoices and private investment is widespread in India. HNWIs, as consequence, generally don’t trust foreign developers and their projects. This lack of trust – combined with the Indian mentality of investing in a foreign project where other Indians, preferably friends or relatives, are involved – has proved to be a great disadvantage for foreign developers and their projects.

There are several examples wherein many Indian-origin investors from the USA have been successful in raising millions of dollars for their debut EB-5 projects whereas some highly reputed EB-5 regional centres are still struggling to establish their presence in India.

10. The Foreign Exchange Management Act (FEMA):

FEMA and the regulations therein make it difficult for Indians to transfer or remit payment outside of India. Violating the law was a criminal offense in bygone years but is now just a civil offense that can result in up to 300% penalty if money is remitted without duly following the law.

The need of the hour is to work hard collectively to educate Indian HNWIs and the professionals serving them about how RCBI programs are not only about immigrating to a foreign country but much more.

Though the Indian market is slow to pick up, it is my firm belief that in the next few years, India will be a significant player in the global investment migration market.

April 27, 2018

Studying Abroad – How to plan and avoid mistakes?

Young students or parents of these students who are hell-bent on going abroad or sending their children abroad to study without proper research and deliberation should not attempt to read what follows because their decision is already made and no amount to logical reasoning can make them change their minds.

But parents and students who are willing to make an effort to understand what going abroad to study entails – the pros as well as the cons, can reflect upon the points given below and then make an informed decision regarding studying abroad.

  1. Studying abroad does not guarantee success in your career or profession of choice. Unless you seek the right advice, do in-depth research and plan things to the last detail, things are likely to backfire.
  2. If you are interested in studying abroad, apply for admission between the months of November and February of the previous academic year and preferably seek admission during the September intake period.
  3. Do not enroll in an IELTS class associated with a student visa agency/consultancy.
  4. If your child is in 12th grade and money is not an issue, send your child for an undergraduate program in a credited university only. Sending your child to do a POSTGRADUATE DIPLOMA ( PGDBM) with a duration of one or two years has no future and no recognition either in India or any foreign country for that matter.
  5. If you wish to study in Canada – If you have 3 years Bachelor’s degree and/or two-year Master’s degree and are fluent in the English language, enroll for a full-time Master’s degree program at a credited university only. If you are not fluent in English, enroll in a 2 or 3-year Diploma program. This will help you to obtain a work permit on the basis of the study you have done in Canada.
  6. If you have 4 years Bachelor’s degree, do not study in a ‘college’ abroad. If the course you have been advised to enroll in is going to give you a POSTGRADUATE DIPLOMA at the end of your study period, it is not going to lead you anywhere because this Diploma program is NOT A MASTER’S PROGRAM and will not add any value to your existing education credentials.
  7. If you are desperate to go abroad after completing your Master’s program, go after obtaining one year of work experience in your field of study.
  8. To obtain admission in a good/reputed university, it is preferable that you obtain at least 2 years of full-time work experience in your home country.
  9. Always try to enroll in a university that is recognized by the government of that country for immigration purposes. Many countries have options for students to apply for immigration/work permit upon completing the Master’s program or by starting a business after completing the Master’s program.
  10. In order to apply for immigration directly, you must have at least 3 years of full-time work experience and a very high score in IELTS ( 8.0 and above), and a Master’s degree.

Other tips that might be useful:

To apply directly for immigration under Canada’s PNP programs, applicants have three options:

  1. Need to have a relative in Canada to sponsor in some province OR
  2. Need to have a job offer from a company. The job offer has to be related to the applicant’s educational qualification and work experience in Canada OR
  3. Applicant’s occupation in the home country is on the Occupation Demand List of the particular province in Canada.

If you do not have this, you do not qualify for PNP program.

Remembers most agents and consultants have no interest in giving you right career advice and options as they may lose you as a client.

We as a leading immigration law firm dare not to take you as a client by giving you the right advice.