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Tag Archives: EB-1 ( C ) Executive of Multi National company

May 30, 2021

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

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

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

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

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

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

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

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

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

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

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

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

 Residency and Citizenship by Investment (RCI)

options by asset class

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

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

 

Disclaimer:

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

December 24, 2020

Insightful tips for parents wanting to send their children to study in the U.S. | obtain USA green card and eventual citizenship 

Introduction:

The economic policy of India has been progressive since 1993 for inbound investment, and from 2007 onwards for outbound investment and remittance. As for outbound investment, the first wave of investment was by Indian multinationals who had the financial means and resources to invest outside of India.

The introduction of the Liberalized Remittance Scheme (LRS) generated opportunity and facilitated the entry of Indian SMEs into the outbound investment arena. This was the second wave of investors.

What we are witnessing in recent times is the third wave of investors comprising of Indian HNIs and UNHIs who are investing outside of India. As per the Reserve Bank of India (RBI), this investment/remittance amount was $19 billion US last year alone.

It is obvious that Indian multinationals are well served by top Indian and global professionals due to the size of the deal and investment made.

However, when it comes to Indian SMEs, Start-Ups and HNIs, professional help may not always be forthcoming and if available, may not be erudite. Investing outside of one’s country requires in-depth knowledge not only of the laws, rules and regulations governing such investments, but also the economic and financial climate of the destination of the investment and the various investment opportunities this destination has to offer.

It is with this objective that we are starting this monthly “How and Why to invest in ….” series, wherein we will be taking a closer look at the different investment destinations around the world.

We start this month with one of the most favored investment destinations for Indians – The United States of America.

  1. Why do Indian HNIs regard the USA as a favoured investment destination?

ANS:  USA is unquestionably the largest economy in the world. The U.S. has retained its position of being the world’s largest economy since 1871. The size of the U.S. economy was at $20.58 trillion in 2018 in nominal terms and is expected to reach $22.32 trillion in 2020.

The U.S. is often dubbed as an economic superpower and that’s because the economy constitutes almost a quarter of the global economy, backed by advanced infrastructure, technology, and an abundance of natural resources.

The second reason why the U.S. is an economic powerhouse is because a majority of consumer brands created in the USA are household names globally. This makes people to look at the USA more favourably than other countries. The notion of the “American Dream’ and “Rags to Riches” stories of many of its wealthy citizens is also a great crowd puller.

The third most important aspect is the American education system. American universities and colleges attract the largest number of students from all over the world. As an after-effect, many parents of these students and business persons follow their children to make investments in the USA.

I believe this is what makes the USA a very desirable and favourable destination for Indian HNI parents and businesspersons for investment purposes as compared to other countries.

  1. In what type of asset classes can one invest in the USA?

ANS: USA is a free economy and one can make investment in all types of asset classes and businesses as long as it does not constitute an illegal activity. One question I am often asked is if Indians can purchase agricultural land in the USA. The simple answer is, “YES”. Foreigners can certainly purchase agricultural land in the USA.

 

One important note: When investing in the USA, one needs to consider the Indian legal perspective too; the types of assets Indian citizens are allowed to invest in, as well as the U.S. laws governing these investments.

 

For example, if an Indian citizen decides to invest in a U.S. Green Card under the EB-5 category, he/she needs to follow Indian laws regarding remittance of money and the U.S. immigration laws which govern this type of investment.

 For ease of understanding, we can broadly divide investments in the USA in four different categories:

  • Financial markets and related products
  • Real estate – All types
  • Business and Start-up
  • Second passport
  1. What are the applicable laws for Indian citizens who wish to invest in U.S. financial markets?

ANS: The RBI is responsible for regulating the outbound investment/remittance of funds by Indian citizens. The provision is made in the Foreign Exchange Management Act (FEMA) and regulations are made therein. There are two available options:

  • Indian businesses having a company or partnership firm can invest up to 400% of the net assets of the Indian company for making an investment outside of India in a Joint Venture company (JV) or a Wholly Owned Subsidiary (WOS) without RBI permission under the automatic route. However, there are many terms and conditions attached and one must look closely at this provision, or better still, seek appropriate legal counsel.
  • An Indian citizen can remit/invest up to $250,000 US in a variety of assets outside of India under the LRS scheme. The permissible capital account transactions by an individual under the LRS are:
  1. Opening of foreign currency account abroad with a bank
  2. Purchase of property abroad
  3. Making investments abroad – acquisition and holding shares of both listed and unlisted overseas company or debt instruments
  4. Acquisition of qualification shares of an overseas company for holding the post of Director
  5. Acquisition of shares of a foreign company towards professional services rendered or in lieu of Director’s remuneration
  6. Investment in units of Mutual Funds
  7. Venture Capital Funds
  8. Unrated debt securities
  9. Promissory notes
  10. Setting up Wholly Owned Subsidiaries and Joint Ventures
  11. How can one invest in U.S. financial markets?

ANS: There are a number of ways by which Indian citizens can make an investment in U.S. financial markets. Let me explain in brief:

  • An Indian financial institute is providing some products to make an investment in the USA. Preferred for investments of $200,000 US and above.
  • One may approach a U.S. licensed broker or financial advisor or portfolio manager and make an investment. Preferred for investments of $100,000 US and above.
  • There are now online platforms (FinTech start-up) and American sub-brokers who have started arriving in the Indian market. They can assist in making investments in the USA with several facilities. Preferred for investors with smaller ticket size of $1000 US and above.
  • There are platforms available where one can make Systematic Investment Plan (SIP) investment in global products with ticket size of only $200 US (similar to the Indian mutual fund market).
  • There are also multi–stock market platforms available which can offer access to 50+ stock markets around the world from a single account. Suitable for ticket size of $500 US and above. However, the investor needs to perform his/her own transaction. A demo version is available to get acquainted with the platform. This is suitable for savvy investors who wish to save on brokerage. It is also recommended for Indian stock exchange brokers who can have a white label of this platform and offer their clients access to more than 50 stock markets globally right here in India.
  1. How is the U.S. financial market likely to fare post COVID-19?

ANS: As the COVID-19 outbreak gripped the entire world in March 2020, stock market prices plunged globally. Then, in a move that seemed irrational to some observers, the markets bounced back.

As per a leading economist, “Markets decline when there’s unexpectedly bad news and rise when there’s unexpectedly good news”.

Nevertheless, when we analyze the market sector wise, we see that certain sectors such as hospitality and travel are not doing very well and their stock prices are going down. On the other hand, tech companies are doing very well.

The dominance of major U.S. Tech Stocks in recent years has pushed the sector past another milestone as it is now valued at more than $9.1 trillion US, which is more than the entire European stock market, according to Bank of America global research.

In today’s complex economy, this once again confirms the view that stock markets are not the best indicators of a country’s economy. Therefore when it comes to investing in stock markets, one should look closely at individual sectors, individual companies and the factors that affect stock prices, rather than just looking at the overall market performance and indices.

  1. What is FATCA and how is it applicable to investments made in the USA?

ANS:  The Foreign Account Tax Compliance Act (FATCA) is part of a broad initiative by the United States to combat offshore tax evasion by U.S. taxpayers. The goal of the law is not to increase revenues for the U.S. Treasury, but rather to collect information on U.S. taxpayers that invest in foreign financial institutions and foreign entities.

FATCA requires a U.S. withholding agent (generally defined as any U.S. party that is making a payment of interest, dividends, certain capital gains, etc.) to withhold 30% of a payment made to certain foreign entities.

Thus FATCA is more of a reporting requirement of the U.S. government. Thus if you invest in the USA, you will be required to file tax returns. When you sell your assets, there may be a withholding tax which may be claimed back by declaring a U.S. non-resident tax status or adjust against tax liability in India.

 What are the opportunities for Indian stockbrokers in the USA?

ANS: There is a tremendous opportunity for Indian stock brokers in the USA and other financial markets of the world. Unfortunately, the Indian financial industry focuses on only one aspect of the economy, which is inbound investment.

Due to advances in technology, it is now possible to access not one but several stock markets of the world right from the comfort of your home or office with just a click. With some effort and will, it is easy to enter into these markets.

Just imagine – more than $19 billion US were remitted/invested by Indians outside of India with negligible advisory services from the Indian financial market and professionals.

If professionals associated with or working for the Indian financial markets take due interest and understand the importance of overriding the political and currency risk by investing in more than one country and in more than one currency, I have no doubt that this market can grow many folds.

I am more than confident that in a few years Indian investors will consider foreign investment as a mandatory part of their investment portfolio.

Indian stock brokers will benefit greatly by expanding their worldview and urging their clients to invest in markets outside of India. Proper understanding and knowledge of how this can be done is the need of the hour.

  1. How is the U.S. real estate market at present?

ANS: Just like the financial market, the U.S. real estate market is the backbone of the U.S. economy.

After six years of strong house price growth, the U.S. housing market is cooling. The S&P/Case-Shiller seasonally-adjusted national home price index rose by just 3.13% during the year to Q2 2019 (1.46% inflation-adjusted) – the lowest growth since Q3 2012. House prices increased 2.29% during the latest quarter (1.52% inflation-adjusted), according to S&P/Case-Shiller.

Despite this, 19 of the 20 major U.S. cities continued to experience moderate to minimal house price hikes, according to Standard and Poor’s.

The post COVID period has created some very good opportunities for repossessed properties.

At the same time, one must note that the USA is a country that attracts one of the largest foreign investment into real estate in the world. Foreign investment in U.S. real estate was almost $74 billion US in 2019. The three most popular states for foreign real estate investment in the USA are – New York and Florida on the east coast and California on the west coast.

 How can one invest in U.S. real estate?

ANS: The RBI allows Indian citizens to make investments in foreign real estate. One can directly contact a real estate agent or developer in the USA and make an investment. There are many real estate agents and developers who come to India regularly to solicit investment in their projects.

The U.S. real estate market is highly regulated when it comes to selling and buying real estate but one still needs to be careful and seek professional help. One more important point that investors must note is that in the residential sector, only licensed real estate agents can assist in buying and selling real estate in the USA.

Abundant data is available on the internet pertaining to the U.S. real estate market. It is therefore very easy to obtain a lot of information online regarding the property under consideration.

  1. How can one decide which real estate to invest in?

ANS: USA is a very big market. Hence investors need to do their homework well. Deciding which state and city to invest in, how much to invest and personal preferences (house, condo, row house, downtown, suburbs) is generally influenced by the presence of family and friends in the USA.

A budget of $300,000 US can allow an investor to buy real estate in many states of the USA and it is a good starting point.

  1. Is it possible to obtain a mortgage for investing in real estate in the USA?

ANS: Yes, it is possible to obtain a mortgage for purchasing real estate in the USA from selected brokers who specialize in mortgages for foreign investors.

  1. How can one establish a business in the USA?

ANS: When it comes to establishing a business in the USA, there are two aspects to consider:

  • Do you want your company to have a presence in the U.S. and hire local workforce?

In this case, a company, with only one director, can be registered in any state in the USA within four weeks. One can also obtain all types of tax ids and numbers.

Opening a bank account may require physical presence in the USA. This can allow you to perform business transactions and conduct business with U.S. companies. Understandably, one needs to follow annual company compliance and income tax filing.

  • Do you want your company to have a presence in the U.S. and send workforce from India?

In this case, one needs to consider the U.S. immigration and visa rules. There are five types of visa categories can be covered under such a scenario –

  1. L-1A Visa – The L-1A nonimmigrant classification enables a U.S. employer to transfer an executive or manager from one of its affiliated foreign offices to one of its offices in the United States.
  2. L-1B Visa – The L-1B nonimmigrant classification enables a U.S. employer to transfer a professional employee with specialized knowledge relating to the organization’s interests from one of its affiliated foreign offices to one of its offices in the United States.
  3. EB-1 (c) – Certain managers or executives of multinational companies, who have been employed outside the United States for at least 1 year in the past 3 years preceding the petition can apply under this category. This category is known as ‘Transfer under the Mergers & Acquisitions’.
  4. E-2 Visa – The E-2 nonimmigrant classification allows a national of ‘Treaty Countries’ (Canada, Grenada, Turkey, and such other 60+ countries) to be admitted to the United States when investing a substantial amount of capital in a U.S. business.
  5. EB-5 Visa – The standard minimum investment amount has increased to $1.8 million US (from $1 million US) and, for the Targeted Employment Area (TEA), it has increased to $900,000 US (from $500,000 US) to account for inflation. The business also needs to create 10 jobs for Americans.

Each of these categories is very complex and needs extensive documentation, business plan and, in many cases, an elaborate explanation of the source of funds. Professional help and guidance is highly recommended and desirable when applying under any of these categories to ensure best results.

  1. One last question. Many of our members want their children to study in the USA. How can they plan for their children’s education the USA?

ANS: In general, when Indian students go to the U.S. for studies, they apply for a U.S. Green Card under one of the three following visa classes – EB1, EB2 and EB3.

There is a quota of 40,000 Green Cards per year in each category, with a total of 120,000 Green Cards to be issued.

When this quota was introduced, there were a limited number of foreign students applying for a U.S. Green Card. However, in recent times more and more foreign students are coming to study in the USA from all over the world and are applying for a U.S. Green Card after completing their studies. Thus the number of petitions have increased but the quota has remained the same since the last thirty years.

Due to an unprecedented increase in this number, the waiting time for a Green Card in October 2020 is almost 12 years. If one counts the period of study and H1 work visa period, the total period is almost 20 years to obtain a U.S. Green Card.

Indian students, and parents who wish that their children settle in the USA, need new strategies and proper planning if this dream has to come to fruition.

They must bear in mind the following points:

  1. Plan early and look in to the possibility of Residency by Investment. If that is not possible or feasible, look into the possibility of saving money for your child’s foreign education by investing outside India in financial markets or real estate to avoid currency fluctuation risk and the rising cost of foreign study.
  2. Parents and students must also realize that doing a Post Graduate Diploma (PGD..) in the U.S. is not equivalent to obtaining a Master’s degree.
  3. It is always preferable to study in a recognized university and not a college or private institute.
  4. In 2020, parents and students must not assume that studying abroad will guarantee job placement and future immigration.
September 13, 2020
  1. What is a global investment?

Global or international investing means investing in different global investment instruments so that one’s financial portfolio becomes geographically diversified. This international investment not only diversifies the portfolio but also helps to spread the investment risk among various foreign markets and companies thereby ensuring the security and long term safety of the investment.

  1. What is Indian government’s policy on investing globally?

As per the Reserve Bank of India (RBI), Indian government has opened up doors for investing and remitting abroad as it believes that joint ventures abroad promote economic co-operation between India and the host countries. Since globalization of trade is a two-way process, integration of the Indian economy with the rest of the world with all its attendant benefits is achieved through overseas investment. It is the reverse of Foreign Direct Investment (FDI) and can be termed as Indian Direct Investment abroad.

Thanks to a liberalized economic policy from 1992 onwards and huge foreign investments by Foreign Institutional Investors (FIIs) and Non Resident Indians (NRIs), India’s foreign exchange reserve now stands at several billion dollars.

This huge fund has permitted the Reserve Bank of India to implement a much liberalized foreign exchange policy. In 2004, RBI allowed an Indian citizen to invest $25,000 US abroad. Over the years, this amount has been increasing steadily and as of today, $250,000 US per year per individual can be remitted/invested outside of India. This scheme is popularly known as Liberalized Remittance Scheme or LRS.

Indian HNIs can certainly benefit from this policy changes. Unfortunately, due to lack of knowledge and awareness regarding investing globally, a negligible number of Indian investors have taken advantage of the LRS.

  1. What are the types of assets that Indian HNIs can invest in outside of India?

In general, Indian citizenscan invest in equity shares, debt instruments, foreign portfolio, real estate, life insurance premium (except term insurance) including opening of foreign account abroad for investment. The payment can also be remitted to close relative(s) as a gift or for purpose of family maintenance. Detailed information is available on official RBI website.

  1. Since the start of LRS, how much fund has been remitted/invested by Indian HNIs abroad?

According to the RBI, the Indian remittance has increased from $72 million US in 2007-08 to $19 billion US in 2019-20. In just over a decade, we are witnessing a huge change in the spending power and spending pattern of Indian HNIs.

  1. If Indian investors have remitted/invested $19 billion US in the last year, do you think Indian HNIs are savvy enough when it comes to foreign investments?

Economic liberalization, economic boom and the aforementioned LRS has resulted in the remittance of more than $19 billion US outside of India last year alone.

However, when we examine this data more closely, we find that a major portion of this remittance by Indian HNIs is expenditure and a very small portion of the money has been actually invested. Here is the RBI data for Indian outbound remittance in 2019-20 (in million US$)

  • (i) Deposits – 623.37
  • (ii) Purchase of immovable property – 86.43
  • (iii) Debt/equity – 431.41
  • (iv) Gift – 1904.53
  • (v) Donations – 22.32
  • (vi) Travel – 6954.20
  • (vii) Maintenance of close relatives – 3437.46
  • Medical expenses –33.88
  • (ix) Studies abroad – 4989.04
  • (x) Others –268.74

We can easily infer from the above data that the spending habits of Indian HNIs have seen a significant shift from domestic to international.

However, though Indian HNIs spend a substantial amount of their wealth abroad, their investing and saving habits have not changed and are still largely concentrated in the domestic domain. If this trend does not change, it can eventually result in financial distress for Indian HNIs who continue to spend abroad but do not invest abroad.

  1. Why do you say there could be financial distress for Indian HNIs?

Let’s take a simple example. 5 crore INR was equivalent to 1 million US$ in 2008. However, at the present time, this 5 crore INR is equivalent to 635,000 US$. This is due to the fact that the US dollar has been growing stronger year after year. Its exchange value increased from Rs. 49 in 2008 to Rs. 76 in 2020.

So when Indian HNIs continue to invest in India but spend a substantial amount of their money abroad, they are not getting the full value for their domestic investment, eventually decreasing their net worth and spending power. If the same amount is invested abroad, then the spending is balanced out because currency is not devalued as you are spending in the same currency.

Let’s take another example of an Indian HNI who invests in stocks and shares in India. He may be earning really well in India but Dollex 30 Chart of the Indian stock market shows that in the last 12 years, investing in shares has not given any substantial return to the Indian investors in terms of the US dollar. So if this HNI wants to go abroad for a vacation, send his children abroad for higher studies or spend on foreign luxury items, the investments he has made in India must give higher returns to balance out the currency risk/fluctuation.

  1. What is the top foreign spend for Indian HNIs?

Careful analysis of the remittance data gives us an insight as to how Indian HNIs are spending their wealth abroad. As can be clearly seen, spending for children’s foreign education is on top of the list for Indian HNIs.

  1. In what type of asset classes can one invest outside of India?

There are primarily four options available. They are:

  1. The first option is investing in foreign stock markets and diversifying your portfolio globally. Due to recent advancements in technology, there are several platforms available whereby Indian investors can invest in stocks, debts and other instruments of more than 50 different stock markets of the world from a single account on any device. However, the lack of knowledge of foreign stock markets makes it difficult for Indian brokers and investors to venture into it.
  2. The second option is an investment in global real estate. Even though Indian investors prefer investing in real estate as compared to other asset classes, this investment in international real estate is limited to countries in the Middle East and Far East such as Thailand. However, there are excellent opportunities available for real estate investment in countries such as USA, Canada, UK, Australia, New Zealand and many European countries.

    In many of these countries, the real estate market is booming so much that the government has restricted foreign investors from making investments in real estate or implemented additional welcome tax for foreign investors. In some countries, it is the buyer who has to pay all the transaction expenses and brokerage.

3. The third option is expansion of business. Not only big corporations and multi-nationals, now even Indian SMEs and exporters can invest out of India and expand their business by establishing their presence in international markets.

4. The fourth option is to invest in a second passport by way of Residency & Citizenship by Investment (RCI) programs. These RCI programs are being offered by more than 30 countries in the world. Investing in a second passport should not be perceived as abandoning your country but be seen as an opportunity to achieve many financial as well as non-financial benefits such as NRI status, visa-free travel, quality of life, expansion of business, portfolio diversification and retirement abroad.

The most important benefit that Indian parents can reap by investing in a second passport is the reduction in their child’s foreign university education fees by almost 80%.

  1. How can investing outside of India be beneficial to Indians, Indian companies and the Indian economy?

The liberalization of the Indian economy began in 1993-94. At that time the object was on attracting foreign investments to India and that policy continues till date. Over the years the strength of the Indian economy grew and the Indian government started focusing on creating bilateral trade between India and the rest of the world. The government wanted to create a bigger customer base for Indian companies and to that end, the Government of India has implemented certain regulations and policies from 2007 onwards to encourage greater outbound investments by Indian companies and individual Indian citizens.

These policies were created by the Indian government with a long term vision to not only encourage Indian multinational companies to make investments outside of India but also strengthen the Indian economy by assisting individuals and Indian SMEs to venture outside their comfort zone and promote India’s interests overseas.

One may ask how Indian HNIs and businesspersons can benefit from all this? The answer is simple. The world is increasingly becoming a global village and investing outside of India is a powerful tool that can be used by Indian HNIs and businesspersons not only for their personal advantage but also to contribute positively to the Indian economy by promoting bilateral trade. More NRI businesspersons mean more bilateral trade and increased remittance of foreign currency and business back into India.

Foreign investment can also be a highly effective and dependable strategy for Indian HNIs to assert their presence in the global business market. India is perhaps one of the last developing economies in the world where venturing outside of the country to conduct business has yet to become a way of doing business. Yes, there are businesspersons who have taken that risk but their percentage is very low as compared to our population and potential.

In 2020, investing abroad can be equated to creating a second option for your family and expanding your business interests. If we look at countries such as China, Taiwan, Vietnam and Korea, the businesspersons and HNIs of these countries have made personal as well as business investments in other countries, thus providing their families and future generations with a second option along with economic growth. It’s high time that Indian businesspersons and HNIs also start thinking in a similar manner.

  1. The Indian real estate and the stock market are booming right now and very soon India is likely to be a favorite destination for foreign companies. In such a scenario, why should Indian HNIs consider investing outside of India?

‘Do not put all eggs in one basket’.This old saying has been proven true time and again especially with reference to national and international economic markets. In most cases, investors have failed to understand this old saying and have lost money heavily by investing it in just one type of market.

Every investor must consider four types of risk to their investments. These are – political risk, interest rate risk, currency exchange rate risk and most importantly, in the case of Indian HNIs, new spending habits.

There is no exact mix one can work out for investing abroad but traditionally, one can take ratio of 70% local market and 30 % foreign market.

 Do not be tempted to put too many eggs in one basket, no matter how attractive and convincing it may seem. As the Indian government now allows investments abroad, it is time that Indian businesspersons look closely at new avenues of investing outside of India and diversifying their portfolios.

A few years back, investing in mutual funds was frowned upon but now we say, ‘Mutual Funds SahiHai!’

Similarly, in the next few years, Indian investors will say,

‘Foreign Investment Zaroori Hai!’

August 21, 2018

Canada immigration for H1B visa holder, L1 visa holder and other visa class having temporary status in USA

Is your child, relative or friend facing a problem with H1B visa, L1 visa or any other visa in USA?

No worries. They can now breathe easy knowing that there are several options available to them to acquire legal status in USA. If they wish to move out of USA, they can also choose from more than 20 other countries around the world. This short video will give them all possible options:

  1. USA EB-5 investor program:
  • Make an investment of 1,000,000 US$ in a new business and create 10 jobs or
  • Make an investment of 500,000 US$ in a new business and create 10 jobs provided this business is in a TEA area or high unemployment area.
  • Investment can be in form of Debt /Loan, Equity or fund.

Good projects can secure:

-your principal amount

-a good return and

– processing time is as short as 3 months to 13 months for the first I-526 petition approval.

  1. Canada skilled worker immigration:

You can qualify under this program if you have –

  • A Master’s degree
  • Minimum of 3 years of work experience
  • Are preferably under the age of 35 years or better still, under 29 years of ageand
  • Have an IELTS score of 8 in listening and 7 in each of the other three categories
  1. Start Up immigrant visa of Canada:

You can qualify for this visa if you have started a company that can be –

  • Incubated by Canada Government approved incubators or
  • If angel investors make an investment of 75,000 CD$ in your company or
  • If a VC makes an investment of 200,000 CD$ in your company
  • And if you have the required IELTS score and post-secondary education
  1. There are 10 different business immigration programs of Canada:

In general, you need to fulfil the following basic criteria for all of them –

  • Possess net assets of 500,000 CD$ and above
  • Have 2 to 3 years of business experience or senior executive experience
  • Have a viable business plan to start a new business, purchase an existing business or enter into a joint venture with another company
  • Have an IELTS score of at least 5 band in each category
  1. UK Tire 1 immigration:

To qualify under this program you need to have –

  • Net assets of 200,000 pounds or more
  • IELTS band of 4 to 5 in each category
  • A viable business plan which will create 2 jobs
  1. Citizenship of Malta (EU member country):

If you wish to obtain the citizenship (passport) of Malta, a European Union member, you will need to –

  • Make a donation of €650,000
  • Purchase bonds of €150,000
  • Purchase a residenceworth€350,000 or rent a residence worth€16,000 per year

Children under 26 years and parents can be included under this program

  1. Residency of Malta:

If you wish to obtain the residency of Malta, you will need to –

  • Make a contribution of €30,000
  • Purchase bonds of €250,000
  • Purchase a residence worth€270,000 or rent a residence worth€10,000 per year

Children under 26 years of age and parents can be included under this program

  1. Citizenship of Cyprus (EU member country):

If you wish to obtain citizenship of Cyrpus, an EU member country, you will need to-

  • Purchase real estate/property worth€0 to 2.5 million
  • Permanently maintain a residential property of €500,000 (you can sell other assets after 3 years)

Children under 25 years and parents can be included under this program. There are no language, minimum age and education requirements

  1. Residency of Cyprus:

If you wish to obtain the residency of Cyprus, you will need to –

  • Purchase real estate/property worth €300,000
  • Make a bank deposit of €30,000
  • The applicant must provide proof of secured annual income of at least €30,000 outside of Cyprus. This income must increase by €5,000 for every additional child and €8,000 for each dependent parent.

Children under 25 years of age and parents can be included under this program. There are no language, minimum age and education requirements

  1. Residency of Greece (EU member country):

If you wish to obtain residency of Greece, you will need to –

  • Purchase real estate worth €250,000 or more

Children under 21of age and parents included can be included under this program. There are no language, minimum age and education requirements. Under this program, applicants cannot work for someone but can operate their own business.Applicants can apply for Greek citizenship after 7 years

  1. Residency of Portugal(EU member country):

If you wish to obtain residency of Portugal, you will need to –

  • Purchase real estate worth €500,000 or more (lesser amount investment possible)

Children under 18years of age and parents can be included under this program. There are no language, minimum age and education requirements. Applicant can work as well as operate their own business

  1. Residency of Spain ((EU member country):

If you wish to obtain residency of Spain, you will need to –

  • Purchase real estate worth €500,000 or more

Children under 18 years of age and parents can be included under this program. There are no language, minimum age and education requirements. Applicant can work as well as operate their own business. Medical insurance is required.

  1. Second passport of Europe – Bulgarian Citizenship (EU member country):

If you wish to obtain a second passport and easy access to European markets, you can opt for Bulgarian citizenship. To qualify, you will need to –

  • Invest €500,000 for Permanent Residence in government bonds
  • Invest €1 million for Citizenship in government bonds

Loans are available for making the required investment. Upon approval, applicants can live, work, operate a business and study for free/with reduced fee in any member EU country.

  1. Citizenship of Dominica in 3 months:

If you wish to obtain citizenship of another country in a short period of time in a hassle-free manner, you can apply under Dominica’s Citizenship & residency Program. To qualify, you will need to –

  • Make a donation of $100,000 US or more OR
  • Make aninvestment in real estate of $200,000 US or more for 3 years

Children under the age of 30 years, parents above 55 years of age &grandparents can be included under this program. There is no taxation on income earned abroad and one can obtain NRI Status plus visa free travel to more than 120 countries around the world. Easy access to medical schools in USA for children

  1. Citizenship of Grenada in 3 months:

If you wish to obtain citizenship of another country in a short period of time, you can apply under Grenada’s Citizenship & residency Program. To qualify, you will need to –

  • Make a donation of $200,000 US or more OR
  • Make an investment in real estate of $350,000 or more for at least 5 years

Children under the age of 29 years and parents above 55 years of age can be included in the application. There is no taxation on income earned outside of Grenada and one can obtain NRI Status plus visa free travel to more than 120 countries around the world. Easy access to medical schools in USA for children and E2 Business visa of USA.

  1. Citizenship of St Kitts and Nevis in 2 months:

If you wish to obtain citizenship of another country in a short period of time, you can apply under for citizenship of St Kitts & Nevis. To qualify, you will need to –

  • Make an investment of at least $400,000 US in one of the approved real-estate developments OR
  • Make a donation of $250,000 US to the Sugar Industry Diversification Foundation (SIDF, a public charity)

Children under the age of 30 years and parents above 55 years of age can be included in the application. There is no taxation on income earned outside of the island country and one can obtain NRI Status plus visa free travel to more than 150 countries around the world. As a Commonwealth citizen, applicant receives certain preferential treatment in the United Kingdom. Two or more applicants may apply for citizenship together by purchasing one piece of real estate.

  1. Citizenship of Antigua & Barbuda in 3 months:

You can obtain second citizenship or a second passport of this beautiful island nation within a short period of time. To qualify, you will need to –

  • Make a contribution to the National Development Fund of at least $100,000 US OR
  • Make an investment in designated, officially approved real estate with a value of at least $400,000 US OR
  • Make an investment in an approved business of at least $1,500,000 US

Dependent children and dependent parents over 65 years of age can be included under this program. There is no minimum net worth requirements or previous business experience needed. Visa free travel to more than 135 countries around the world.  No taxation on income earned outside of St Kitts & Nevis

  1. Citizenship of St Lucia in 3 months:

You can obtain second citizenship or a second passport of this beautiful island within three months. To qualify, applicant will have to –

  • Choose from four options which range from an investment amount of $100,000 US to $3,500,000 US. These four options are –
  • Saint Lucia National Economic Fund
  • Real Estate Projects
  • Enterprise Projects
  • Government Bonds

Dependent children under 25 years of age, dependent parents above 65 years and mentally or physically challenged dependent children and/or parents can be included under this program. Visa-free travel to over 120 countries around the world. No taxation on income earned outside of StLucia. Under the Enterprise Project option, two or more applicant can make a minimum investment of $6,000,000 US, with each applicant contributing no less than US$1,000,000.

  1. Business Immigration to New Zealand:

You can apply for conditional business residency of New Zealand. To qualify you need to –

  • Invest $100, 000 NZ in capital investment and run a business for 2 years OR
  • Invest $500,000 NZ in capital investment and run a business for 6 months
  • Have a business plan that will help NZ economy
  • Be fluent in English and serious businessmen only

After obtaining a business permit, applicant can apply for Permanent Residence of New Zealand after 3 years.

  1. Investment immigration to New Zealand – $3 million:

You can apply for direct PR of New Zealand through investment. To qualify, you will need to

  • Have $3million NZ in available assets
  • Invest $2.5million NZ in real estate
  • Have 3 years of business/management experience
  • Have basic English skills (IELTS 3 band or equivalent)
  • Be under 65 years of age 
  1. Investment immigration to New Zealand – $10 million

You can apply for direct PR of New Zealand through investment. The highlights of this program are –

  • Must have $10million in available assets
  • There is no age requirement
  • Can invest in a variety of assets class
  • No minimum residency requirements
  1. Business Immigration to Australia – Business Visa Class (188A):

You can apply for temporary PR of Australia. To qualify, you will need to –

  • Have a business turnover of $500,000 AU and 30% (private company) or 10% (private limited company) ownership
  • Have net assets of $800,000 AU
  • Have a business turnover of $300,000 AU in Australia
  • Manage a business in Australia for 2 years
  1. Business Immigration to Australia – Investor Visa Class (188B):

You can apply for temporary PR of Australia. To qualify, you will need to –

  • Have net assets of $2.25 million AU
  • Own and manage a business of $1.5 million AU
  • Invest 1.5 million AU in governmentbonds

If you keep your investment for 4 years and have minimum residency for 2 years, you can be eligible for permanent PR and citizenship after 5 years.

  1. Business Immigration to Australia – Significant Investor Class (188C):

You can apply for temporary PR of Australia. To qualify, you will need to –

  • Invest $5million AU in Australia (various options available)
  • Stay 160 days in 4 years in Australia to get permanent PR
  • No age limit
  1. Business Immigration to Australia – Business Talent – Significant Business History (132A):

You can apply for direct PR of Australia. To qualify, you will need to –

  • Own & manage a business with a turnover of $3 million AU
  • Have ownership of 30% (private) or 10% (public) in the company
  • Have net assets of $1.5 million AU that can be transferred to Australia
  • Invest$400,000 AU in Australia
July 10, 2018

 

Doing business or Investing in USA: Nine different options for Indian businessman

This is a very simple way to explain, how one can make an investment in the USA or do business in and with the USA.

  1. Simple export of goods and services to USA consumer or business.
  2. Making an investment into an existing business, land building, or farming land and become partner/investment. You do not any visa of the USA and you don’t get any visa by just making a simple investment.
  3. Purchase of Real estate in the USA – any type of visa not possible but can take benefit of rental income and capital gain.
  4. Register a company in the USA, open an office in the USA, a bank account in the USA in person, hire local people to run the business. No Person is transferred from India to the USA.
  5. Register a new company in the USA, open a subsidiary office in the USA, a bank account in the USA, hire local people to run the business with a definite business plan and KEY PERSON(S) IS TRANSFERRED from India to the USA. This is an L1 visa. A person is a senior executive and Technical Person to be transferred from the USA. The American company will be a  subsidiary of the Indian company.
  6. Indian company taking over 51% of the USA company and by join venture, Indian CEO or Key technical person transferred to the USA under EB-1-C Visa class.
  7. Starting a NEW business in the USA, hire 10 people and make an investment of 1 million US$ and investor, his spouse and children under 21 can get a green card of USA. – This is an EB-5 direct investment.
  8. Starting a NEW business in the USA, hire 10 people and make an investment of 1/2 million US$ and investor, his spouse and children under 21 can get a green card of USA. This business must be in an area where there is high unemployment or a population is less than 20,000. This is EB-5 under the Regional center class.
  9. You make an investment in Real Estate and become a citizen of another country like Grenada, Turkey, Canada and then apply for an E2 business visa of the USA to do business in the USA.

 

December 5, 2017

USA green card by investment – EB-5 Visa:

Investment can be made as Debt or Equity or Fund

The EB-5 Visa provides the most flexible path to a Green card and is based on investment in the US. The EB-5 Visa does not require the applicant to manage the day-to-day affairs of a business. One may invest in an existing business or a new business. More than one person may invest in the same business. The EB-5 investor may be a minority owner of the business.

One may qualify for an EB-5 Visa by:

  1. Investing One million dollars and hiring ten employees anywhere in the USA.
  2. Investing $500,000 US and hiring ten employees in an area where the unemployment rate exceeds the national average unemployment rate by 150%.
  3. Investing in a regional center.

The INS has designated specific areas, called Regional Centres, as eligible to receive immigrant investor capital. The INS has approved over 520 Regional Centres. Regional Centre investors may rely on indirect job creation rather than directly hiring ten employees. A competent professional, such as an economist, must quantify the indirect employment. If the regional center is in a high unemployment area, the required capital is reduced to $500,000 US. Presently there are projects underway in many regional centers whereby making an investment of $500,000 in a limited partnership can qualify an individual for applying for a Green card through the EB-5 Visa program.

Out of the 10,000 Investor visas (EB-5 Visas) available annually, 5,000 have been set aside for those who apply under a pilot program involving an INS-designated “Regional Centre” To date, this quota has not been exceeded.

EB-5 investors include people from all walks of life – professionals, business people, persons wanting to facilitate a child’s education, and retirees. Because the EB-5 Visa permits employment in the US, many EB-5 investors become involved in charity or part-time work. Simply put, the EB-5 visa gives you the flexibility to do what you want in the USA.

Our firm has identified several regional centers that offer investment as Debt which is a loan to a business, Equity in which investor is a partner in the business, or Fund investment in which fund is created to loan several businesses and risk is minimized.

Make an investment in the EB-5 project with confidence.

Do not do an analysis of the EB-5 project but find the right immigration lawyer in India and the USA who can assist you to navigate the whole process of EB-5. 

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