Comparison between Liaison Office & Branch Office

It a comparison between Liaison office and Branch office in India on various aspect. Click on the picture for large view.

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New Class of Visa: "E" category

The Government has decided to issue a special class of visa “E” category only for the power or Steel projects. It is to be remembered that visa norms for employing foreign personnel were tightened last year citing security concerns over the presence of large number of Chinese personnel in various projects.

Later, it was observed that power and steel projects using equipment from China had not been able to achieve their targets as visa restrictions forced Companies to hire local unskilled or semi-skilled workers to fill gaps.

The ministry of home affairs has now decided that under the sector-specific dispensation, new power and steel projects may have foreign skilled manpower up to 10% of the workforce employed per million tone or megawatt capacity, or 300 persons, whichever is lower. For expansion projects of existing plants, this number will be 5%, or 150 persons.

Power and cement projects will now also be allowed to employ two foreign chefs and translators/interpreters under the `E' category. Foreign experts or skilled workers will now also get business visa if they are coming for commissioning of a project. However, a person coming on project visa will not be allowed to take up employment in the same Indian company within two years of the commissioning of a plant.

India Briefing (October 2010): An Expatriate Manager’s Introduction to India

In this issue of India Briefing, we provide an expatriate manager’s introduction to India. From key country facts and figures to the country to cultural etiquette and communication issues, we take a look at one of the fasting growing destinations for foreign investment. India today represents a great investment opportunity. Knowledge of India business practices and an understanding of Indian culture are priorities to success in this market. We analyze the top reasons to invest in India, cover basic business etiquette and cultural issues such as making appointments and negotiating a deal, and discuss some of the communication challenges that expatriates experience when working in India.

In This Issue:
(i) An Introduction to India, Key Facts and Figures;
(ii) Top Reasons to Invest in India Now;
(iii) Indian Business Etiquette and Culture; and
(iv) Communication Challenges when Working in India

You may purchase the October 2010 issue of India Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may contact any Dezan Shira & Associates' five national offices at india@dezshira.com for advice or visit www.dezshira.com.

REVISED CONSOLIDATED POLICY ON FDI

The Government of India has issued consolidated FDI Policy vide circular 2 of 2010 effective from October 1, 2010. The Consolidated FDI Policy makes all information on FDI policy available at one place and subsumes Government’s policy on FDI announced through earlier Press Notes/ Press Releases/ Clarifications issued by the DIPP, which were in force and effective as on date.

Earlier the Government of India has issued released the Circular 1 of 2010- Consolidated FDI Policy on March 31, 2010, effective from April 01,2010 and It was decided that the consolidated FDI Policy would be issued every six (6) months to update the FDI policy.

The Circular has been issued with the sunset clause of six months. A new Circular consolidating all amendments to the FDI Policy shall be issued on March 31, 2011 superseding the present Circular.

GIST OF NEW CONSOLIDATED POLICY:

(i) Wholesale cash-and-carry trading: It has been decided to remove the restriction on internal use.

(ii) Non-banking finance companies (NBFCs): NBFCs with 100 per cent foreign investment and a minimum capitalization of $50 million (around Rs 225 crore), can set up subsidiaries for specific NBFC activities, without bringing additional capital towards minimum capitalization.

(iii) Construction development projects: It has been clarified that the lock-in period of three (3) years will be applied from the date of receipt of each tranche of FDI or from the date of completion of minimum capitalization, whichever is later.

(iv) Downstream investments: Downstream investments through internal accruals are now permissible.

(v) Tobacco product manufacturers: Manufacturing of tobacco products has been formally included in the list of activities in which FDI is prohibited.

Please click here to read the revised consolidated Policy.