India immigration: Important changes in Indian immigration - Changes to the business visa regime

Changes to the business visa regime

The Ministry of Commerce and Industry in India recently announced clarification to the regulations for issuance of business visas.

Essentially, foreign nationals entering India to undertake project work or execute contracts will not qualify for a business visa, requiring rather that an employment visa be obtained.

An initial deadline of 30th September was originally given for foreign nationals currently in India on a business visa undertaking project/contract work to leave the country (or on expiry of their visa if earlier). However, this deadline has now been extended to 31st October, with the possibility of an in-country extension being obtained up to that date for individuals whose visas expire earlier.

Business visas will now only be issued to foreign nationals for bona fide business purposes which include establishing business/industrial ventures or exploring the possibility of setting up business ventures in India or to purchase or sell industrial products in India.

Detailed clarification on the additional security clearance to be undertaken when issuing employment visas to Chinese nationals has also been published with an undertaking that companies engaging Chinese nationals in India for project/contract work on a business visa will be closely scrutinized.

Please note that obtaining an extension of a business visa in these circumstances from countries neighboring India will also become difficult in future.


Changes to issuance of employment visas by Indian diplomatic posts

VFS, the Indian visa outsourcing agency, has recently posted an announcement on their website which states that in the future, employment visas will only be issued from the applicant's country of origin. Although the message does not appear on the Indian High Commission's website at present, the High Commission in London is not currently accepting employment visa applications for non-British applicants, regardless of their immigration status in the UK (including those with permanent residence or a work permit, for example).

Deloitte has approached the High Commission for further clarification on the position for foreign nationals holding permanent residence in the UK in particular. VFS have advised that this has been brought to the Embassy's notice and the Embassy is liaising with the Ministry of Home Affairs (the highest immigration authority in India) on the matter. VFS is unable to confirm when a further announcement will be made. Until then cases are being considered on a case by case basis.


Deloitte's view

We advise clients who are aware that they have individuals currently in India undertaking project or contract work on a business visa to arrange for them to leave India and to return to their country of origin as soon as possible to obtain an employment visa as appropriate. The bottom line is that a foreigner should obtain the appropriate visa before coming to India. In our experience, many companies opt for the business visa when sending their employees in to India to work on short term projects to avoid immigration registration processes, visa extension process in India and also to avoid delays involved in the employment visa application process abroad. However, this is no longer going to be possible. In terms of the activities that are permissible on a business visa we are seeking further clarification as to the position in respect of in house training (internship), business conferences and consultant visits.

On the issue of Indian diplomatic posts no longer issuing employment visas to non-residents, this policy is still unclear and is not being implemented across the board. We will pursue the matter with the High Commission in London and issue a further up-date in due course. The implications for employers, should the policy be adhered to, is wide reaching considering that it may essentially mean that non-British nationals in the UK requiring an Indian employment visa will have to return to their country of origin to obtain it.