Hi, How Can We Help You?

Yearly Archives: 2021

Ajmera Law   →  2021
November 7, 2021
November 7, 2021

Unemployment, Hunger, Mental stress and Suicide – Some of the problems faced by Indian International students in Canada!!

Author By Ajmera Law Group Categories Canada, Express Entry of Canada, Headlines, Immigration Visa, Study Abroad & Planning

International Student Crisis: Funeral home sending an alarming number of bodies back to India!

October 21, 2021 (Yahoo News) 

The lotus is a symbol that looms large in India’s mythology.

The soft pink petals of the flower join knowledge, prosperity and compassion together in spiritual harmony. In life, and beyond, the lotus represents the attainment of bliss.

The Lotus Funeral Home and Cremation Centre is an unassuming building, located incongruously in an industrial area near the border between Toronto and Peel.

A small peaked porch at the front of a squarish concrete structure marks the entrance grieving families walk through. The rest of the building stretches back to a parking lot at the rear and it shares its street with a shipping company, furniture warehouse and an industrial equipment supplier.

For family members in India who receive the bodies of their loved ones from the Lotus Funeral Home half-way round the world, the symbolism is a tragic reminder of a promising life cut short.

Lotus is where more and more young people from the world’s largest democracy are laid to rest. Their bodies are prepared there for a journey back home, from where they left on their adventure to study abroad, carrying the weight of so many expectations.

The funeral home is tasked with arranging the transportation of deceased Indian nationals, students who came to Canada among the waves of like minded seekers searching for a better life.

As Brampton grapples with an international student crisis, where too many youngsters fall through the cracks—some into a life of crime, lured by prostitution or the drug trade, others simply crushed by isolation and lonliness—increasing numbers of flights are carrying the bodies of young Indian men and women as part of their cargo.

“We’re finding that the number of student deaths has increased, not only in Brampton but across Canada. We see it across Canada,” Kamal Bhardwaj, the owner of Lotus Funeral Home and Cremation Centre, told The Pointer. “We have relationships with the Indian consulate, so when an international student passes away, then we’re notified, then we have to [help] out the families, usually bring their bodies back to India.”

In the past two weeks alone, Bhardwaj and his staff have sent the bodies of five students home. He says he sends them home at least on a monthly basis.

International students, many of whom live in Brampton, face a daunting task settling in Canada. A large number come from South Asia, where some families have liquidated assets and saved for decades to send one child to North America for an education, and eventual immigration… they hope. In the 2016-2017 academic year, there were 35,403 international students from India studying at colleges and universities in the country, according to Statistics Canada.

“In order to afford that, when you do the financial transaction, you’re looking at mortgaging the farm at home,” Gurpreet Malhotra, the CEO of Indus – Community Services, previously told The Pointer. “Family puts everything they’ve got into borrowing money to get you into Canada.”

The amount of money spent by international students in Canada has exploded over the last decade. According to the federal government, they spent $6.5 billion in 2008, and by 2018, the number had reached $21.6 billion, more than tripling in a decade as many of these unsuspecting students became the focus of a post-secondary system that now views them as a cash cow.

Governments have been all too happy to relieve their financial pressures by expanding international student admissions to significantly increase revenues.

The pressure on students is immense, as are the costs. They are often unable to return home for a host of reasons, including the crippling family shame that would accompany failure, and are limited to just 20 hours per week of work to support themselves here. Many are still developing a full grasp of the language and others come from places like rural Punjab, with no experience of life in big Canadian cities.

Some are lured into the world of organized crime and drug trafficking.

While international students, often not even out of their teens, struggle to navigate a new system, private and public colleges benefit handsomely. For Canada’s post-secondary education institutions, these young people and their desperate families represent a critical source of revenue.

The sector began to shift toward attracting more international students in 2008. Young adults coming to Canada from abroad can pay as much as four times the tuition fees their domestic classmates pay.

Over the past ten years, revenue from student fees has increased by 218 percent in Canada, with a $3.25 billion increase in the Canadian international education market over roughly the same period. The average tuition fee for domestic students is $6,822 compared to $27,613 for international students.

This outsized reliance on income from international students is shown in Sheridan College’s most recent annual report. According to the institution, 62 percent of its revenue comes from tuition fees and 56 percent of tuition fees are paid by international students.

International students accept the cost, at least in part, because graduation is portrayed by education agents in India as a path to permanent residency. An industry of private and relatively unregulated colleges has developed in Canada, selling degrees and diplomas as a path toward a permanent home in Canada.

“I can give you a painful example of a student who was acting out at the corner of Steeles and McLaughlin,” Baldev Mutta, the CEO of Punjabi Community Health Services, told Brampton councillors in September. “Somebody called us. We rushed over to find out. And, when we calmed this young man down, he said, ‘I need to get arrested because I have not eaten for a while and I have no place to sleep. At least if the police arrest me, I know they are going to feed me’.”

In a foreign land without a support system, the consequences can be fatal. Greedy landlords cram people into houses without suitable fire protections, while human traffickers circle the students most desperately in need of money.

Go Fund Me, a crowdfunding website, acts as a tragic obituary.

“His family wishes to see him one last time, but they cannot bear the costs of coming to Canada or of the funeral,” one appeal, to send the body of a 21-year-old student back to India, says. Another 23-year-old passed away in a truck fire after three years in Canada away from his family, and another died after drowning.

“They wanted their daughter to have a very good education and lead a better life and contribute to the betterment of others’ lives, and she came to Canada as an international student on an education loan,” one page explains. “They also expected her to support her younger sister for her education and career in the upcoming years. Now the family has lost their light in life, in a tragic accident.”

There are multiple factors that can lead to the death of an international student. From exorbitant rents and inadequate housing to a lack of emergency food support. Poor connections between the international student community and mental health services also leave many isolated without anyplace to turn. Colleges and private “career” schools have been criticized for not providing proper support to the students they gladly take money from, to fund operations designed primarily for the success of domestic students.

Community leaders monitoring the plight of international students say suicide is a growing problem.

“I can’t tell you the cause of death because I am not privy to that,” Bhardwaj said. “Usually, when there is a young person involved in a death, it is investigated by the coroner’s office, now the coroner’s office doesn’t share the results with us … but I can tell you on visual observations you can see certain indications of a suicide, for example.”

The Peel Regional Police says it does not have a way to record missing persons or death by suicide under any category that identifies the individual as an international student.

“I think the magnitude of the problems are so enormous that until we can all sit down in one room and say, ‘What are some baby steps we can take to address this?’ I think it is going to keep on spiralling and we will see the aftermath of it later on,” Mutta said.

He mentioned students who had been arrested as drug mules and nine pregnant international students his organization is working to help.

Mutta and Malhotra are leading community efforts to address the international student crisis. Bhardwaj also runs a charity that specializes in mentoring and peer-supporting international students before and after they arrive in Canada.

The solutions — which lie in the hands of all three levels of government — can’t come soon enough.

The difficulty faced by international students in Brampton echoes around the world. It is felt by friends locally, community leaders and, most painfully, by parents and other loved ones thousands of miles away.

“We’re dealing with these families and this tragedy, parents don’t believe this has happened, they don’t believe it is their child, they go through a hunger strike,” Bhardwaj says. “They said, ‘No, no, no, until I see my son, I’m not going to eat anything’. And literally, these are the kind of things we see… it’s just difficult all around, it impacts everyone, even our staff.”

Their end-of-life care is supposed to comfort families that look to the lotus as a symbol of hope, that even after death their loved ones will find their bliss. For families in India, who have to receive the bodies sent by Bhardwaj, his lotus is a reminder of everything they lost.

Source: Yahoo News:

August 26, 2021
August 26, 2021

How to remit / send money abroad from India? FAQ from Reserved Bank of India (RBI)

Author By Ajmera Law Group Categories Global Financial Markets, RBI on FEMA , LRS and ODI

The legal framework for the administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. Under the Foreign Exchange Management Act, 1999 (FEMA), which came into force with effect from June 1, 2000, all transactions involving foreign exchange have been classified either as capital or current account transactions. All transactions undertaken by a resident that do not alter his / her assets or liabilities, including contingent liabilities, outside India are current account transactions.

 

In terms of Section 5 of the FEMA, persons resident in India 1 are free to buy or sell foreign exchange for any current account transaction except for those transactions for which witdrawal of foreign exchange has been prohibited by the Central Government, such as remittance out of lottery winnings; remittance of income from racing/riding, etc., or any other hobby; remittance for purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes, etc.; remittance of dividend by any company to which the requirement of dividend balancing is applicable; payment of commission on exports under Rupee State Credit Route except commission up to 10% of the invoice value of exports of tea and tobacco; payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies; remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme and payment related to “call back services” of telephones.

 

Foreign Exchange Management (Current Account Transactions) Rules, 2000 – Notification [GSR No. 381(E)] dated May 3, 2000 and the revised Schedule III to the Rules as given in the Notification G.S.R. 426(E) dated May 26, 2015 is available in the Official Gazette as well as, as an Annex to our Master Direction on ‘Other Remittance Facilities’ available on our website www.rbi.org.in.

 

These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the Regulations/Rules made or directions issued thereunder may be referred to.

 

Q 1. What is the Liberalised Remittance Scheme (LRS) of USD 2,50,000 ?

Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both. Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, dated May 26, 2015, within the limit of USD 2,50,000 only.

The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.

In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc.

 

Q 2. What are the prohibited items under the Scheme?

Ans. The remittance facility under the Scheme is not available for the following:

Remittance for any purpose specifically prohibited under Schedule-I (like the purchase of lottery tickets/sweepstakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty.
Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
Remittance for trading in foreign exchange abroad.
Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non-cooperative countries and territories”, from time to time.
Remittances directly or indirectly to those individuals and entities identified as posing a significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.

 

Q 3. What are the purposes under FEM (CAT) Amendment Rules, 2015, under which a resident individual can avail of a foreign exchange facility?

Ans. Individuals can avail of foreign exchange facility for the following purposes within the LRS limit of USD 2,50,000 on a financial year basis:

Private visits to any country (except Nepal and Bhutan)
Gift or donation
Going abroad for employment
Emigration
Maintenance of close relatives abroad
Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up
Expenses in connection with medical treatment abroad
Studies abroad
Any other current account transaction which is not covered under the definition of current account in FEMA 1999.
The AD bank may undertake the remittance transaction without RBI’s permission for all residual current account transactions which are not prohibited/ restricted transactions under Schedule I, II or III of FEM (CAT) Rules, 2000, as amended or are defined in FEMA 1999. It is for the AD to satisfy themselves about the genuineness of the transaction, as hitherto.

 

Q 4. Under LRS are resident individuals required to repatriate the accrued interest/dividend on deposits/investments abroad, over and above the principal amount?

Ans. No, the investor can retain and reinvest the income earned from portfolio investments made under the Scheme.

However, a resident individual who has made overseas direct investment in the equity shares and compulsorily convertible preference shares of a Joint Venture or Wholly Owned Subsidiary outside India, within the LRS limit, then he/she shall have to comply with the terms and conditions as prescribed under [Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations 2004 as amended from time to time] Notification No. 263/ RB-2013 dated August 5, 2013.

 

Q 5. Can remittances under the LRS facility be consolidated in respect of family members?

Ans. Remittances under the facility can be consolidated in respect of close family members subject to the individual family members complying with the terms and conditions of the Scheme. However, clubbing is not permitted by other family members for capital account transactions such as opening a bank account/investment/purchase of property, if they are not the co-owners/co-partners of the investment/property/overseas bank account. Further, a resident cannot gift to another resident, in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS.

 

Q 6. Is the AD required to check the permissibility of remittances based on nature of the transaction or allow the same based on remitters declaration?

Ans. AD will be guided by the nature of the transaction as declared by the remitter in Form A2 and will thereafter certify that the remittance is in conformity with the instructions issued by the Reserve Bank in this regard from time to time. However, the ultimate responsibility is of the remitter to ensure compliance to the extant FEMA rules/regulations.

 

Q 7. Is it mandatory for resident individuals to have Permanent Account Number (PAN) for sending outward remittances under the Scheme?

Ans. Yes It is mandatory for the resident individual to provide his/her Permanent Account Number (PAN) for all transactions under LRS made through Authorized Persons.

 

Q 8. Are there any restrictions on the frequency of the remittance?

Ans. There are no restrictions on the frequency of remittances under LRS. However, the total amount of foreign exchange purchased from or remitted through, all sources in India during a financial year should be within the cumulative limit of USD 2,50,000.

Once a remittance is made for an amount up to USD 2,50,000 during the financial year, a resident individual would not be eligible to make any further remittances under this scheme, even if the proceeds of the investments have been brought back into the country.

 

Q 9. Resident individuals (but not permanently resident in India) can remit up to net salary after deduction of taxes. However, if he has exhausted the limit of USD 2,50,000 as net salary remittance and desires to remit any other income under LRS is it permissible as the limit will be over and above USD 2,50,000?

Ans. Resident individuals (but not permanently resident in India) who have remitted their entire earnings and salary and wish to further remit ‘other income’ may approach RBI with documents through their AD bank for consideration.

 

Q 10. Para 5.4 of AP DIR Circular 106 dated June 01, 2015, states that the applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance for capital account transactions. Whether this restriction applies to current account transactions?

Ans. No. The rationale is that the remittance facility is up to the LRS limit of USD 250, 000 for current account transactions under Schedule III of FEM (CAT) Amendment Rules, 2015, such as for private and business visits which can also be provided by FFMCs. As FFMCs cannot maintain accounts of remitters the proviso (as mentioned in para 5.4 of the circular ibid) has been confined to capital account transactions. However, FFMCs, are required to ensure that the “Know Your Customer” guidelines and the Anti-Money Laundering Rules in force have been complied with while allowing the current account transactions.

 

Q 11. Are there any restrictions towards remittances to Mauritius and Pakistan for permissible current account transactions?

Ans. No, there are no restrictions towards remittances for current account transactions to Mauritius and Pakistan.

Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non-cooperative countries and territories”, from time to time; and remittances directly or indirectly to those individuals and entities identified as posing a significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks are not permissible.

 

Q 12. What are the requirements to be complied with by the remitter?

Ans. The individual will have to designate a branch of an AD through which all the capital account remittances under the Scheme will be made. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance.

For remittances pertaining to permissible current account transactions, if the applicant seeking to make the remittance is a new customer of the bank, Authorised Dealers should carry out due diligence on the opening, operation and maintenance of the account. Further, the AD should obtain bank statement for the previous year from the applicant to satisfy themselves regarding the source of funds. If such a bank statement is not available, copies of the latest Income Tax Assessment Order or Return filed by the applicant may be obtained. He has to furnish Form A-2 regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme.

 

Q 13. Can remittances be made only in US Dollars?

Ans. The remittances can be made in any freely convertible foreign currency.

 

Q 14. Are intermediaries expected to seek specific approval for making overseas investments available to clients?

Ans. Banks including those not having an operational presence in India are required to obtain prior approval from Reserve Bank for soliciting deposits for their foreign/overseas branches or for acting as agents for overseas mutual funds or any other foreign financial services company.

 

Q 15. Are there any restrictions on the kind/quality of the debt or equity instruments an individual can invest in?

Ans. No ratings or guidelines have been prescribed under LRS of USD 2,50,000 on the quality of the investment an individual can make. However, the individual investor is expected to exercise due diligence while taking a decision regarding the investments which he or she proposes to make.

 

Q 16. Whether credit facilities (fund or non-fund based) in Indian Rupees or foreign currency can be extended by AD banks to resident individuals?

Ans. LRS does not envisage the extension of fund and non-fund-based facilities by the AD banks to their resident individual customers to facilitate remittances for capital account transactions under LRS.

However, AD banks may extend fund and non-fund-based facilities to resident individuals to facilitate current account remittances under the Scheme.

 

Q 17. Can bankers open foreign currency accounts in India for residents under LRS?

Ans. No.

Q 18. Can an Offshore Banking Unit (OBU) in India be treated on par with a branch of the bank outside India for the purpose of opening of foreign currency accounts by residents under the Scheme?

Ans. No.

 

Q 19. What are the documents required for withdrawal/remittance of foreign exchange for purposes mentioned in para 1 of Schedule III to FEM (CAT) Amendment Rules, 2015?

Ans. Permanent Account Number (PAN) is mandatory for all transactions under LRS.

 

Q 20. Whether documents viz 15 CA, 15 CB have to be taken in all outward remittance cases including remittances for maintenance etc.?

Ans. In terms of A. P. (DIR Series) circular No. 151 dated June 30, 2014, Reserve Bank of India will not issue any instructions under the FEMA, regarding the procedure to be followed in respect of deduction of tax at source while allowing remittances to the non-residents. It shall be mandatory on the part of ADs to comply with the requirement of the tax laws, as applicable.

 

Q 21. Will the expenses incurred by an LLP to sponsor the education expense of its partners who are pursuing higher studies for the benefit of the LLP will be outside the LRS limit of such individuals (partners)?

Ans. LLP is a body corporate and has a legal entity separate from its partners. Therefore, if the LLP incurs/sponsors the education expense of its partners who are pursuing higher studies for the benefit of the LLP, then the same shall be outside the LRS limit of the individual partners and would instead be deemed as residual current account transaction undertaken by the LLP without any limits.

 

Q 22. Clarification on remittance by sole proprietor under LRS.

Ans. In a sole proprietorship business, there is no legal distinction between the individual/owner and as such the owner of the business can remit USD up to the permissible limit under LRS. If a sole proprietorship firm intends to remit the money under LRS by debiting its current account then the eligibility of the proprietor in his individual capacity has to be reckoned. Hence, if an individual in his own capacity remits USD 250,000 in a financial year under LRS, he cannot remit another USD 250,000 in the capacity of owner of the sole proprietorship business as there is no legal distinction.

 

Q 23. Whether prior approval is required to open, maintain and hold a foreign currency account with a bank outside India for making remittances under the LRS?

Ans: No.

 

Q 24. What are the facilities under Schedule III of FEM (CAT) Amendment Rules, 2015 available for persons other than individuals?

Ans. The following facilities are available to persons other than individuals:

Donations up to one percent of their foreign exchange earnings during the previous three financial years or USD 5,000,000, whichever is less, for- (a) creation of Chairs in reputed educational institutes, (b) contribution to funds (not being an investment fund) promoted by educational institutes; and (c) contribution to a technical institution or body or association in the field of activity of the donor Company.
The commission, per transaction, to agents abroad for the sale of residential flats or commercial plots in India up to USD 25,000 or five percent of the inward remittance whichever is less.

Remittances up to USD 10,000,000 per project for any consultancy services in respect of infrastructure projects and USD 1,000,000 per project, for other consultancy services procured from outside India.
Remittances up to five percent of investment brought into India or USD 100,000 whichever is less, by an entity in India by way of reimbursement of pre-incorporation expenses.

Remittances up to USD 250,000 per financial year for purposes stipulated under Para 1 of Schedule III to FEM (CAT) Amendment Rules, 2015. However, all residual current account transactions undertaken by such entities are otherwise permissible without any specified limit and are to be disposed off at the level of AD, as hitherto. It is for the AD to satisfy themselves about the genuineness of the transaction.
Anything in excess of above limits requires prior approval of the Reserve Bank of India.

 

Q 25. Can a resident individual make a rupee loan to a NRI/PIO who is a close relative of resident individual, by of crossed cheque/ electronic transfer?

Ans. A resident individual is permitted to make a rupee loan to a NRI/PIO who is a close relative of the resident individual (‘relative’ as defined in Section 2(77) of the Companies Act, 2013) by way of crossed cheque/ electronic transfer subject to the following conditions:

(i) The loan is free of interest and the minimum maturity of the loan is one year.

(ii) The loan amount should be within the overall LRS limit of USD 2,50,000, per financial year, available to the resident individual. It would be the responsibility of the lender to ensure that the amount of the loan is within the LRS limit of USD 2,50,000 during the financial year.

(iii) The loan shall be utilised for meeting the borrower’s personal requirements or for his own business purposes in India.

(iv) The loan shall not be utilised, either singly or in association with another person, for any of the activities in which investment by persons resident outside India is prohibited, namely; the business of chit fund, or Nidhi Company, or
agricultural or plantation activities or in real estate business, or construction of farmhouses, or trading in Transferable Development Rights (TDRs). Explanation: For the purpose of item (c) above, real estate business shall not include development of townships, construction of residential/commercial premises, roads, or bridges.

(v) The loan amount should be credited to the NRO a/c of the NRI /PIO. Credit of such loan amount may be treated as an eligible credit to NRO a/c.

(vi) The loan amount shall not be remitted outside India.

(vii) Repayment of loan shall be made by way of inward remittances through normal banking channels or by debit to the Non-resident Ordinary (NRO)/ Non-resident External (NRE) / Foreign Currency Non-resident (FCNR) account of the borrower or out of the sale proceeds of the shares or securities or immovable property against which such loan was granted.

 

Q 26. Can a resident individual make a rupee gift to an NRI/PIO who is a close relative of the resident individual, by of crossed cheque/ electronic transfer?

Ans. A resident individual can make a rupee gift to an NRI/PIO who is a close relative of the resident individual [relative’ as defined in Section 2(77) of the Companies Act, 2013] by way of crossed cheque /electronic transfer. The amount should be credited to the Non-Resident (Ordinary) Rupee Account (NRO) a/c of the NRI / PIO and credit of such gift amount may be treated as an eligible credit to NRO a/c. The gift amount would be within the overall limit of USD 250,000 per financial year as permitted under the LRS for a resident individual. It would be the responsibility of the resident donor to ensure that the gift amount being remitted is under the LRS and all the remittances made by the donor during the financial year including the gift amount have not exceeded the limit prescribed under the LRS.

1 A ‘person resident in India’ is defined in Section 2(v) of FEMA, 1999 as :
(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include-
(A) a person who has gone out of India or who stays outside India, in either case-
(a) for or on taking up employment outside India, or
(b) for carrying on outside India a business or vocation outside India, or
(c) for any other purpose, in such circumstances, as would indicate his intention to stay outside
India for an uncertain period;

(B) a person who has come to or stays in India, in either case, otherwise than-
(a) for or on taking up employment in India, or
(b) for carrying on in India a business or vocation in India, or
(c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;
(ii) any person or body corporate registered or incorporated in India,
(iii) an office, branch or agency in India owned or controlled by a person resident outside India,
(iv) an office, branch or agency outside India owned or controlled by a person resident in IndiSource

 

Source: RBI website updated as on 13th February 2019

 

August 4, 2021
August 4, 2021

Advocate Prashant Ajmera’s views quoted in EB-5 Investors Magazine of USA and how it can affect EB-5 and RCI practice in India!

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

In its 2018 judgment, the Supreme Court of India made several observations regarding the rights of foreign lawyers or law firms to practice/operate in India.

Here are some observations from the said judgment:

1. Thus, we uphold the view that the practice of law includes litigation as well as non-litigation (Para 39).

2. The prohibition (to practice law in India) applicable to any person in India, other than the advocate enrolled under the Advocates Act, certainly applies to any foreigner also (Para 40).

3. The plea that a foreign lawyer is entitled to practice foreign law in India without subjecting himself to the regulatory mechanism of the Bar Council of India Rules can also be not accepted (Para-41).

4. We uphold the view of the Bombay High Court and Madras High Court in para 63 (i) of the judgment to the effect that foreign law firms/companies or foreign lawyers cannot practice the profession of law in India either in the litigation or in non-litigation side (Para-41).

5. Visit of any foreign lawyer on a fly-in and fly-out basis may amount to practice of law if it is on regular basis (Para-44).

6. If in pith and substance the services amount to practice of law, the provisions of the Advocates Act will apply and foreign law firms or foreign lawyers will not be allowed to do so (Para-46).

In view of the above observations made by the Supreme Court of India in its judgment, Advocate Prashant Ajmera was interviewed by EB-5 Investors Magazine regarding the impact of this judgment on the EB-5 industry and residency and citizenship practice in India.

To read this complete article on EB5 Investor magazine click here

July 12, 2021
July 12, 2021

Should I hire a Canada, Australia or New Zealand licensed immigration consultant?

Author By Ajmera Law Group Categories Consult Immigration Lawyer, Immigration Consultants, Indian Regulatory Updates

Until 2003, immigration consultants and agents were not regulated in Canada. The Canadian immigration department invited a group of immigration agents and consultants to form a self-regulated organization. Most of the leading agents and consultants in this group were former immigration officers. Only a few of them were lawyers.

To judge their English language proficiency, aspiring immigration consultants were required to take the IELTS examination. A six-month training course, followed by a short examination, was also introduced for these consultants. With this process in place, new immigration consultants were granted a license all over Canada.

However, within a couple of years, the initially formed immigration consultants’ association was dissolved and a new association was formed. https://iccrc-crcic.ca/

As per several Canadian media outlets, the presently operational immigration consultants’ association has failed to rein in widespread immigration fraud in Canada, which was the main objective of forming this regulatory organization. There is a possibility that a new licensing body may be launched by the Government of Canada to regulate immigration consultants practicing Canadian immigration and visa law.

If we look closely at the membership list of licensed Canadian agents and consultants, very few of them are former immigration officers. There are also very few members with a legal background having a sound understanding of Canadian immigration law.

After undertaking to take a short six-month study program and examination, anyone can become a licensed Canadian immigration consultant. This is likely to make most immigration consultants average advisors and not experts in every area of immigration law. Hence one needs to be very careful while choosing the right immigration consultant.

Similar is the case in Australia (https://www.mara.gov.au/) and New Zealand (https://www.iaa.govt.nz/) for licensed immigration consultants and agents.

These licensed consultants who have obtained licenses from Canada, Australia or New Zealand operate offices in India or appoint unregulated agents and practice immigration law in India.

This is in violation of the Indian Advocate Act 1961.

As per this Act and the Supreme Court of India’s judgment, only licensed Indian lawyers and advocates can practice law, including foreign law and immigration and visa law, in India.

Presumably, not being aware of this law, the Australia and New Zealand Immigration Consultants’ Associations have issued licenses to Indian citizens (who are not Indian lawyers) to practice their respective country’s immigration and visa law in India, thereby violating the Indian Advocate Act 1961. They are also in contempt of the Supreme Court of India.

This Indian Advocates Act 1961 and the Supreme Court of India’s 2018 judgment, makes one point very clear – that all Indian immigration consultants, who have not licensed lawyers or advocates in India, and who dispense legal advice on immigration and visa matters (visitor visa, student visa, work permit, permanent or business immigration) of any country to the Indian citizens in India are violating the Indian law.

In the event one is defrauded or cheated by an immigration agent or consultant, the person can file a complaint to their respective regulatory authority against the said consultant/agent. One important aspect to consider is whether the fraud was committed in India or in a foreign country and whether any legal action can be taken against the said immigration consultant/agent.

In such a scenario, the only option available to Indian citizens is filing a police complaint, which may not be very effective and may not give desired results.

So before you hire a licensed immigration consultant/agent, be extremely careful. Check their backgrounds thoroughly and obtain references from them before entrusting your hard-earned money and hopes to them.

Read the Supreme Court of India’s judgment here  | Read RBI Notification here

June 25, 2021
June 25, 2021

EB-5 US Green Card by Investment Updates June 2021 | Investment Reduced to US$ 500,000

Author By Ajmera Law Group Categories EB-5 US Investor Visa, Green Card, Headlines, Residency & Citizenship by Investment

EB-5 Updates 20th August 2021 at 12.00 PM (IST) 

Ajmera Law Group has several direct investment options for the EB-5 program of the USA with a reduced investment of US$ 500,000.  Act fast as the rule may change at any time. 

  1. Mexican Franchise – Start in any state in the USA which meets the definition of TEA area
  2. Co-working space and daycare center based in LA, USA
  3. Burger and Hotdog restaurent in Huston, Taxas.   Please contact us for more information

EB-5 Update 10th July 2021 at 12.00 PM (IST)

EB-5 with investment on regional center is not available but direct EB-5 with investment under US$ 500,000 active and an investor can make an investment in the USA and apply for USA green card under direct EB-5.

EB-5 Updates: 25th June, 2021 at 8.00 AM (IST)

EB-5 program reauthorization just fails to pass in US Senate

A bill to establish EB-5 rules on a permanent basis has failed in the US senate and therefore the current change in EB-5 rules will expire on 30th June, 2021.

Now the US government and senate are on vacation to celebrate the 4th July holiday.

As the current EB-5 change (where the investment amount has been once again reduced to 500K) is on a temporary basis, the US Senate MAY grant an extension in July 2021 when senators are back from vacation.

This could be a great opportunity for investors to file for EB-5 with a reduced amount of investment. Serious investors must be ready with documents and investment amounts to file the EB-5 petition with a US$ 500,000 investment amount.

IT IS ALSO POSSIBLE TO MAKE THE REQUIRED INVESTMENT IN TWO PARTS.

The investor can also borrow money to invest in EB-5.

EB-5 Update: Dated 22 June, 2021:

EB-5 Investment for US$ 500,000

Read complete the US court judgment here 

June 18, 2021
June 18, 2021

US$ 19 billion dollars global professional opportunities for Indian professionals!

Author By Ajmera Law Group Categories Global Financial Markets, Global Investing How & why?, Global Mutual Funds, Global Professional Opportunities, Global Stocks

Are you a financial professional, real estate broker, chartered accountant, lawyer, estate planner or such other professional providing services to HNIs and Ultra HNIs?

Do you wish to avail of a new earning opportunity?

It would be interesting for you to know that Indian HNIS remitted more than $4 billion US for their children’s education US last year, the overall remittance by HNIs being $14 billion US.

Most of your clients may be asking you –

  • How can they save on foreign education fees?
  • How can they invest in international property and create a global real estate portfolio?
  • How can they expand their business globally?
  • How can they procure a second passport and travel visa-free or obtain a visa on arrival to a maximum number of countries?
  • How can they enjoy a good quality of life by retiring abroad?
  • How can they obtain NRI status?
  • How can they structure their investment globally to make it tax efficient?

Does this sound familiar?

Do you wish to have answers to all these questions?

Then join Ajmera Law Group (ALG) – Global Investment Advisors, as an Associate and let us help you serve your clients in the best possible manner.

June 18, 2021
June 18, 2021

Bulgaria – Changing the global investment advisory and residency by investment paradigm

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

Investors traditionally invest in global financial markets primarily for – diversification of their portfolio, better returns on investment and tax planning. On the other hand, the investment made to obtain residency and/or citizenship of another country is primarily in sectors such as business/enterprise, real estate and government funds/bonds.

The most recent changes introduced in the Bulgarian Residency and Citizenship Program have changed the global investment advisory and residency by investment paradigm by offering almost all types of known financial products, real estate and enterprise as an investment vehicle for non-EU citizens who wish to obtain European residency and eventual citizenship.

The new investment routes leading to permanent residence (and eventually citizenship) of Bulgaria are as follows.

Investment asset class New investment amount in Euro
1Equity and Stocks traded in Bulgaria~EUR 1,024,000
2UCITs (EU regulated fund vehicles) including exchange-traded funds (ETFs) with a focus on Bulgaria~EUR 512,000
3Investing in any way in Alternative investment funds (AIFs) (including private equity, venture and hedge funds), a part of whose focus is on Bulgaria~EUR 512,000
4Participation in a Bulgarian company carrying on a Certified Priority Investment Project (CPIP) – this is similar to EB-5 Regional Centers of USA~EUR 1,024,000
5Participation in a Bulgarian company employing 10 Bulgarian persons or more~ EUR 257,000
6Participation in a Bulgarian private company, invested in any sector or geography~ EUR 3,075,000
7Investment in a Certified Investment Project (CIP) (this is different from CPIP above)The exact amount and conditions are project-dependent.

 

For option numbers 1-4, the process for citizenship can be fast-tracked by doubling the investment amount. For option number 5, the citizenship process can be fast-tracked by employing 20 people in a company in Bulgaria.

Furthermore, residency by investing in real estate options is also available. The investment amount is EUR 307,000. This is more suitable for investors who wish to move to Bulgaria and live in Europe on a long-term basis.

By investing in real estate in Bulgaria, permanent residency of Bulgaria can be obtained in 5 years’ time and citizenship in 10 years’ time

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 18, 2021
June 18, 2021

Tips for ensuring success in visitor visa applications of any country!!

Author By Ajmera Law Group Categories Headlines, Visitor - Non-immigrant visa - B1/B2 visa

For most of us who travel abroad, applying for a visitor visa of the destination country is a time-consuming and cumbersome process. Additionally, there is always the apprehension that the application may be denied.

So how can one ensure that the visitor visa application is prepared well?

A visa officer has very limited time to review an application. Hence it is the applicant’s duty to duly complete the application form (providing all relevant details) and furnish all supporting documents (as requested) in such a manner that the visa officer’s job is made easy.

Many visitor visa applications are rejected as necessary, relevant and truthful information is not provided by the applicant in the application form and the supporting documents are not well organized.

Remember, the visa officer will first look at the visitor visa FORM and then look at the supporting documents to corroborate the information provided in the form.
The basic law and principle for all visitor visa applications remain the same irrespective of the country.

Here are a few tips for a successful visa application:

1. Visitor visa is also known as a non-immigrant visa. This visa is issued to a person so that he/she can travel to the county that issues the visa. For every visitor visa application, it is presumed that the applicant is a likely immigrant and may settle in the country that issues the visa. The onus is on the applicant to negate the presumption.

2. It is important to use (fill) only the official form available on the official website of the country or its official visa facility center such as VFS.

3. Make sure to read the instructions before filling the forms. Each question on the form must be answered truthfully. If any question is not applicable, please write ‘Not applicable’ (NA). Always give true and correct information. Do not write NA to avoid answering a question.

4. Keep your passport, birth certificate, and other personal documents ready and complete the forms by filling in the information as it appears in your passport/travel document and personal documents.

5. Always be careful regarding dates such as start time and finish time for education, job, and business. Do not fill in information without referring to the documents. If the information given in the application form is different from what is in the official documents, it can create a problem.

6. Always ensure that you have a definite purpose for traveling to or visiting a foreign country and that you possess the supporting documents for the same. For example, if you are traveling for pleasure/tourism, ensure that you have the air tickets and hotel booking. If attending a trade show, you must have the trade show registration, and if traveling for business, an invitation letter for business meetings, etc., is necessary.

7. You must have an itinerary, especially a definite date to return back to your home country. This can be shown by producing return flight tickets, holiday sanction letters from employers, etc.

8. The basic documents required to be produced include – a copy of the passport, a photograph, education and job, and/or business-related documents. It is also important to show that you are well established in your home country and are not likely to be an immigrant. This can be shown by including salary documents, job letters, bank balance, property documents, and all other types of assets. A CA’s certificate certifying your net assets is always a good document to produce. This is no perfect list of documents and it varies from application to application.

9. Always place documents in chronological order, the date by date from older ones to newer ones. If there are numerous documents, try to make an index and include a short covering letter.

10. Always keep a copy of the final application form and supporting documents submitted with you.

11. If applying for B1 / B2 (visitor visa) visa of the USA, ensure that you provide all the vital and correct information in the DS160 form. The visa officer will be making his decision based on the information provided in this DS 160 form in most cases. If you are running a big business, indicate this in the form. Do not wait for an interview to put forth the facts. The visa officer may have already made up his/her mind before the interview.

12. Correct and precise information pertaining to your education, job or business experience, assets, and reason for travel should all be mentioned in your visitor visa form. This is the key to a successful visitor visa application.

USA Non-Immigrant Visa 

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

1 2 3 4