India Issues Clarifications on Visas
India clarification on VisasI
India’s Ministry of Home Affairs (“MHA”) has issued further clarifications on work-related visas for India in the form of revised Frequently Asked Questions (FAQs).
The MHA had earlier issued clarifications on work-related visas in the form of FAQs in October 2009.
We highlight the recent, new clarifications below.
Employment Visa
Sector Specific Clarifications
IT Software/IT-Enabled Service Sector
• The number of employment visas that may be granted to skilled/highly-skilled foreign nationals will not be subject to any limit, unlike as proposed earlier.
• The salary of the foreign national should be in excess of USD 25,000 per annum.
Other Sectors
• The number of employment visas that may be granted to highly-skilled and professional foreign nationals shall be subject to the limits prescribed by the Ministry of Labour and Employment (“MLE”) as follows:
§ 1 percent of total workers, subject to a maximum of 20.
§ If 1 percent of total workers are less than 5, then up to 5.
Specific approval of the MLE would be required in case the number of employment visas desired were to exceed the above limits.
• No specific salary limit has been prescribed for the grant of employment visas.
Other Key Clarifications
• The employment visa may be granted for a period ranging from two to five years or a shorter duration.
• Foreign nationals who intend to work with non-governmental organizations in India may be granted an employment visa subject to the fulfilment of certain conditions.
The employment visa will not be ordinarily converted into any other visa except in certain specified situations, subject to the approval of MHA.
Business Visa
• Business visas with a multiple-entry facility can be granted up to a maximum period of five years, and in the case of U.S. nationals, up to 10 years.
• MHA, state governments, Union territories, the Foreigners Registration Office, etc., can grant extension of a business visa on a year-to-year basis up to a total period of five years from the date of issuance of the initial visa. However, the first extension of a business visa will only be granted by MHA.
• The business visa will not be ordinarily converted into any other visa except in certain specified situations, subject to the approval of MHA.
KPMG Note
There has been an increase in the number of foreign nationals visiting India for business and employment purposes. Although we do not have a crystal ball, it seems probable that this trend will continue for the next several years. Therefore, it is necessary that comprehensive and clear guidelines be laid out on this matter. The recent clarifications are a step in this direction, with several more steps to come as India’s visa guidelines evolve and develop further.
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