What kind of Visa will the Director/Shareholder in an Indian Subsidiary get? Norms related to Business Visa for a Foreign National who will be a Director/Shareholder in a Private Limited Company in India.

In recent times, India has emerged as a favorite destination for foreigners to start a business in India. A foreigner can start his business in India by registering an Indian Subsidiary. Even an Indian company can employ foreign citizen as Director, shareholder or as a normal employee in India as well as outside India. No permission is needed for this. When a foreigner starts a business in India or an Indian appoints a foreigner as a director or shareholder, it is not necessary for him / her to be present in India. Similarly, the entire process of business registration can be done online and there is no requirement to travel to India or be present physically at any stage. Yet he can visit India for setting up the business on Employment / Business Visa.

If a foreign citizen intends to visit India on being appointed as a director or shareholder, he / she needs an employment visa to reside in India. There are specific conditions that need to be followed by the director or shareholder or even by any employee to get the employment visa. In this article we will discuss norms for business / employment visa (Visa Policy) for a foreign national who will be a director / shareholder in a Private Limited Company in India.

Eligibility / Purpose of Business Visa to a foreign national

A Business visa may be granted to a foreigner for the following purposes (relevant to this Guide):

• Foreign nationals who wish to visit India to establish industrial/business venture or to explore possibilities to set up industrial/business venture in India.
• Foreign nationals coming to India to purchase/sell industrial products or commercial products or consumer durable.
• Foreign nationals coming to India for technical meetings/discussions, attending Board meetings or general meetings for providing business services support
• Foreign nationals coming to India for recruitment of manpower.
• Foreign nationals who are partners in the business and/or functioning as Directors of the company.
• Foreign nationals coming to India for consultations regarding exhibitions or for participation in exhibitions, trade fairs, business fairs etc.
• Foreign buyers who come to transact business with suppliers/ potential suppliers at locations in India, to evaluate or monitor quality, give specifications, place orders, negotiate further supplies etc., relating to goods or services procured from India.
• Foreign experts/specialists on a visit of short duration concerning an ongoing project with the objective of monitoring the progress of the work, conducting meetings with Indian customers and/or to provide technical guidance.
• Foreign nationals coming to India for pre-sales or post-sales activity not amounting to actual execution of any contract or project.
• Foreign trainees of multinational companies/corporate houses coming in India for in-house training in the regional hubs of the concerned company located in India.
• Foreign nationals coming as tour conductors and travel agents and / or conducting business tours of foreigners or business relating to it, etc.

Suggested Read: Why will starting a business in India prove to be of Infinite benefits to foreigners?

Documents required for grant of business visa

• A valid travel document and a re-entry permit, if required under the law of the country concerned.
• Proof of financial standing and expertise in the field of intended business.
• Documents/ papers pertaining to proposed business activity such as registration of the company under the Companies Act, proof of registration of the firm with the State Industries Department or the Export Promotion Council concerned or any recognized promotional body in the relevant field of industry or trade etc.

The conditions to be fulfilled for the grant of a Business visa

• The foreign national should be a person of assured financial standing (sufficient proof of his/ her financial standing and expertise in intended business will be checked thoroughly while granting the visa).
• The foreign national should not be visiting India for the business of money lending or for running a petty business or petty trade or for full time employment in India, etc.
• The foreign national shall comply with all other requirements like payment of tax liabilities etc.

Table showing Types of Visas relevant for business issued by India

Duration of Business Visa & other conditions

• Business Visa may be granted with 10 years validity with multiple entry facility to the citizens of the United States of America or Canada or Japan or Untied Kingdom or South Africa. This visa shall be issued with the stipulation that “continuous stay during each visit shall not exceed 180 days and registration not required.”
• In respect of nationals of other countries (except for nationals of 33 countries mentioned below), Multiple entry Business Visa may be granted for a period of 5 years as a default option. Grant of 5-year Tourist Visa will be with the stipulation “Continuous stay during each visit shall not exceed 180 days and registration not required”.
• In respect of nationals of 30 countries i.e. (1) Iran, (2) Egypt, (3) Libya, (4) Qatar, (5) Iraq, (6) Syria, (7) Sudan, (8) Tunisia, (9) Kuwait, (10)Yemen, (11) Algeria, (12)Bahrain, (13) Turkey, (14) Morocco, (15) Kyrgyzstan, (16) Turkmenistan, (17) Democratic People’s Republic of Korea (North Korea), (18) Lebanon, (19) Afghanistan, (20) Saudi Arabia, (21) Uganda, (22) Congo, (23) Ethiopia, (24) Nigeria, (25) Belarus, (26) Somalia, (27) South Sudan, (28) Kazakhstan, (29) Uzbekistan and (30) Srilanka, duration of visa will be decided by the concerned Indian Missions/ Posts subject to a maximum of 5 years with the stipulation “continuous stay during each visit shall not exceed 180 days and registration not required”.
• In respect of the nationals of Bangladesh, China and Pakistan, provisions as available in the bilateral agreements/ policy guidelines, as issued from time to time, will be applicable.

Note: In the case of urgent request, the Indian Missions/ Posts may provide visa for business travel within 48 hours of application.