India or 'Bharat' is the seventh largest country in the world, with an area approximately one-third the size of the U.S. The world's second most populous country, India had more than a billion inhabitants at the turn of the 21st century. If current population growth trends continue, India's population is likely to surpass China's before mid-century.

HR consultants in India are receiving more and more inquiries from American and European managers, software professionals and others who want to work in India. According to Kris Lakshmilanth, who was quoted by Sify news agency online, foreign nationals are looking for mid-level and senior positions in India. He said, "Every week we get at least one well-qualified foreigner looking for a job here."

The EU Trade Commissioner, Pascal Lamy, was quoted in January 2004 as saying, "As of today, there is no obstacle on outsourcing of back office jobs and there is no EU policy putting obstacles on the same. But we could face pressure in the European Parliament and from trade unions if India does not open domains in legal services, distribution, telecom and accountancy."

• Tourist visas are usually given for six months. Tourists travelling in groups of not less than four members under the auspices of a recognized travel agency may be considered for grant of collective tourist visa. A tourist visa for up to five years may be granted if the foreigner is connected with the tourist trade.

• Business visas are valid for up to one or more years with multiple entries, particularly for technicians/experts going to India as part of bilateral agreements or joint venture projects. A letter from the sponsoring organization, indicating nature of business, probable duration of stay, places and organizations to be visited, along with a guarantee to meet costs such as maintenance expenses, should accompany the application.

• Student visas are issued for the duration of the academic course of study or for a period of five years, whichever is less, on the basis of firm letters of admission from Universities/recognized colleges or educational institutions in India. Change of purpose and institutions are not permissible.

• The Persons of Indian Origin (PIO) card exempts one from registration with the Foreigners Registration Office if continuous stay in India does not exceed 180 days. There is no visa requirement to travel to India for a period of twenty years.

• Foreigners of nationalities other than the country where they are applying for an Indian visa should submit proof of long-term (at least three years’) permanent residence in the country where they are applying.

• Transit Visas are issued for a maximum period of 15 days with single/double entry facilities to bona fide transit passengers only.

• Missionary visas are valid for single entry with guarantee for the applicant’s maintenance while in India.

• Journalist visas are issued to professional journalists and photographers for visiting India. The applicants are required to contact the External Publicity Division of the Ministry of External Affairs on arrival in New Delhi or, in other places, the Office of the Government of India's Press Information Bureaus.

• Conference visas are issued for attending conferences/seminars/meetings in India. A letter of invitation from the organizer of the conference must be submitted. Delegates may combine tourism with attending conferences

• Persons holding the PIO card (see above) hold parity with Non-Resident Indians in respect to residence, education, property, except in matters relating to acquisition of agricultural and plantation properties.

• Employment visas are issued to skilled and qualified professionals or to people who are engaged or appointed by companies, organizations, and economic undertakings to work in positions such as technician, technical expert, and senior executive. Applicants are required to submit proof of contract/employment/engagement of foreign nationals by the company or organization. They are generally good for six months.

• In December 2003, the Indian Parliament granted dual citizenship to the people of Indian origin. The Bill provides for grant of overseas citizenship of India to persons of Indian origin belonging to 16 specified countries and Indian citizens who choose to acquire citizenship of any of these countries at a later date.

• Persons of Indian origin holding multiple entry visas, visiting India to meet relatives or for social purposes are required to register with the FRO/FRRO (foreign office) within 14 days of arrival only if they intend to stay continuously for more than six months. This registration is required during the first visit after the visa is issued. Subsequent travels using the same visa do not require registration. Children below the age of 16 are exempt from this requirement. All other visitors to India, including those of Indian origin, holding any other category of visa valid for more than six months should register with the FRO/FRRO within 14 days of arrival in India.

Income tax is charged under the Indian Income Tax Act, 1961. It is an annual tax on income levied by the Central Government. Tax is charged in respect of the income of the financial year (known as previous year) in the next financial year (known as assessment year) at the rates fixed for such assessment year in the Finance Act passed each year by the Parliament. Women under sixty-five and senior citizens receive generous tax rebates, as do musicians, actors and professional sportspeople.

There is a convention between the Kingdom of the Netherlands and the Republic of India that avoids double taxation on income and capital for citizens of the two countries. India has such conventions with a number of other countries, including Belgium and some other EU countries.

A new programme of social security for Indian workers is in the introductory stages in 25 state capitals around India. The pilot project centres on unorganised sector workers and aims to cover 10,00,000 workers in the first year (2004) and an additional 15,00,000 in the next.

Under the new Unorganised Sector Workers Bill, pension and medical insurance to unorganised sector workers is provided. Workers will be given a flat rate registered pension of INR 500 each month on retirement or permanent and total disablement. The scheme is to be financed by contributions from employees, employers and the government.

For additional information, go to

http://www.mercerhr.com/knowledgecenter/reportsummary.jhtml/dynamic/idContent/1124950

It’s much easier to set up a company if you are an Indian citizen. However, foreign companies or individuals may do so in three ways:

• As a foreign company through a Liaison Office / Representative Office, Project Office or a Branch Office.
• As an Indian company through a Joint Venture or a Wholly Owned Subsidiary.
• As a foreign Company that has been incorporated outside India and conducts business in India. (These companies are required to comply with the provisions of Companies Act, 1956.)

• As an Individual / Proprietor
• As a Partnership / Firm / Trust
• As a Company registered under the Companies Act, 1956

• Domestic Tariff Area Special Economic Zones (SEZs)
• Export Processing Zones (EPZ)
• 100 Percent Export Oriented Unit (EOU)
• Software Technology Park (STP)

Links for information on Indian immigration and business issues:

http://www.indianembassy.org/site_map/index.htm

http://indianpassport.nic.in/visrules.htm

http://www.callcentersindia.com/call_center_india.php?id=3

Updated August 2005

This guide was compiled by Sharri Whiting from sources that include the Indian Ministry of Foreign Affairs, the US Department of States, the European Union and diverse news sources.