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cadeau... A GUIDE TO NRIs IN UAE
cadeau...
A GUIDE TO NRIs IN UAE
K. V. PRAKASH
VOTE OF THANKS
Latin maxim “Ignorantia legis neminem excusat" means “ignorance of the
law excuses no one". This reminds us that everyone should know law when
it comes to him or her for reciprocation.
This book written by Advocate K.V.Prakash is a real guide to all non resident
Indians. I am grateful to God Almighty for giving me the opportunity to
present this book before the fellow NRIs.
Theodore Roosevelt once said :
“Do what you can, with what you have, where you are”.
That’s what I did.
Johny Kuruvilla
PART I
LAWS & REGULATIONS IN INDIA
13
A GUIDE to NRIs in UAE / K.V. Prakash
CHAPTER
1
WHAT IS NRI, OCI, OCB AND PIO?
NRI
The word NRI is very much familiar to everybody. But
very less know who is a NRI in its strict legal sense. An
Indian abroad is popularly known as a NRI – but the
same has two important definitions – one coined under
the Foreign Exchange Management Act, 1999 – [FEMA]
and the other as per the Income Tax Act, 1961. Section 2
of FEMA deals with various definitions. It defines a person resident in India and a person resident outside India.
However, it does not define the term non-resident nor it
does define the term Non Resident Indian (NRI).
But, notification No. 5/2000-RB (dealing with various
kinds of Bank Accounts) defines the term Non Resident Indian (NRI) to mean a
person resident outside India who is either a citizen of India or is a person of Indian
origin. In short, the definition of the term NRI is contextual and can have slightly different connotations for FEMA/Income Tax/Acquisition of Immovable Property etc.
“A person Residing Outside India’’ is the term used for an NRI, being a person who
has gone out of India or who stays outside India for the purpose of employment or
carrying on business or vocation outside India or any other circumstances which
indicate his intention to stay outside India for an uncertain period.
The phrase ‘Non Resident Indian’ is defined for the first time in the regulations as
“a person resident outside India who is either a citizen of India or a person of Indian
Origin”. And the definition of “a person resident outside India” is simply put as “a
person who is not Resident in India.”
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Recently RBI has clarified that students studying abroad also be treated as
NRIs under FEMA and accordingly be eligible for foreign investments and
NRE/FCNR accounts in the banks.
Now, reading both the definitions together, it can be summarized as:
Indian Citizen residing outside India and also a Foreign Citizen of Indian
origin residing outside India are defined as Non-Resident Indians.
Residential Status for Tax Purposes
In India, as in many other countries, the charge of income-tax and the scope
of taxable income vary with the factor of residence. There are two categories
of taxable entities viz. (1) Residents and (2) Non-Residents. Residents are
further classified into two sub-categories (i) Resident and ordinarily Resident
and (ii) Resident but not Ordinarily Resident.
The law prescribes two alternative technical tests of residence for individual
taxpayers. Each of the two tests relate to the physical presence of the taxpayer in India in the course of the “previous year” which would be the twelve
months from April 1 to March 31.
A person is said to be “Resident” in India in any previous year if he a) is in India in that year for an aggregate period of 182 days or more; or
b) having within the four years preceding that year been in India for a period
of 365 days or more, and is in India in that year for an aggregate period of 60
days or more.
The above provisions are applicable to all individuals irrespective of their
nationality. However, as a special concession for Indian citizens and foreign
citizens of Indian origin, the period of 60 days referred to in Clause (b) above,
will be extended to 182 days in two cases: (i) where an Indian citizen leaves
India in any year for employment outside India; and (ii) where an Indian citizen or a foreign citizen of Indian origin (NRI), who is outside India, comes
on a visit to India. In the above context, an individual visiting India several
times during the relevant “previous year” should note that judicial authorities in India have held that both the days of entry and exit are counted while
calculating the number of days stay in India, irrespective of however short the
time spent in India on those two days may be.
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A “Non-Resident” is merely defined as a person who is not a “Resident” i.e. one who
does not satisfy either of the two prescribed tests of residence. An individual, who is
defined as Resident in a given financial year is said to be “Not Ordinarily Resident”
in any previous year if he has been a Non-Resident in India nine out of the 10 preceding previous years or he has during the seven preceding previous years been in
India for a period of, or periods amounting in all to, 729 days or less. Till 31st March,
2003, “Not Ordinarily Resident” was defined as a person who has not been resident
in India in nine out of 10 preceding previous years or he has not during the seven
preceding previous years been in India for a period of, or periods amounting in all
to, 730 days or more.
OCI
The abbreviation OCI is not as common as NRI. OCI is Overseas Citizen of India. A
foreign national, who was eligible to become a citizen of India on 26th January 1950
or was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that became part of India after 15th August 1947 and his/her children and grand
children, is eligible for registration as an Overseas Citizen of India (OCI). Minor
children of such person are also eligible for OCI. However, if the applicant had ever
been a citizen of Pakistan or Bangladesh he/she will not be eligible for OCI.
Any person who or either of whose parents or any of whose grand-parents was born
in India as defined in the Government of India Act, 1935 (as originally enacted), and
who was ordinarily residing in any country outside India was eligible to become
citizen of India on 26.01.1950. If the spouse of an eligible overseas citizen of India
is eligible in his/her own capacity, he/she can apply for OCI. Children of parents,
wherein one of the parents is eligible for OCI, can also apply for OCI. A family of
spouses and up to 2 minor children can apply in Form No. XIX.
If the applicant is not in the country of citizenship, they are to be submitted to the
Indian Mission/Post of the country where he is ordinarily residing by hand/mail.
For the present, applications cannot be submitted on line. But the applicant need not
submit it in person. Either he can send it through somebody or by mail. Remember,
application has to be submitted in duplicate. On the other hand, if the applicant is
in India, it should be sent to the FRRO Delhi, Mumbai, Kolkota or Amritsar or to
CHIO, Chennai or to the Under Secretary, Citizenship section, Foreigners Division,
Ministry of Home Affairs (MHA), Jaisalmer House, 26, Mansingh Road, New Delhi110011.
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The following documents are to be enclosed with each application:
1) Three additional stamp size photographs
2) Proof of citizenship of applicant(s)
3) Evidence of self or parents or grandparents
a) being eligible to become a citizen of India at the time of commencement of the
Constitution; or
b) belonging to a territory that became part of India after 15th August, 1947; or
c) being citizen of India on or after 26th January, 1950, these are :–
i) Copy of the passport (or)
ii) Copy of the domicile certificate issued by the Competent authority (or)
iii)Any other proof (or)
iv)Affidavit
4) Evidence of relationship as parent/grand parent, if their Indian origin is claimed
as basis for grant of OCI.
5) Proof of fee payment US$ 275/- for each applicant or equivalent in local currency
(US$ 25/- or equivalent in local currency for each PIO card holder)
6) PIO card holders must also submit a copy of their PIO card.
All the applications will be subject to pre or post enquiry depending on whether any
adverse information is available or not. If the Government comes to the knowledge
that any false information was furnished or material information was suppressed, the
registration as OCI already granted shall be cancelled by an order under section 7D
of the Citizenship Act, 1955. The persons will also be blacklisted banning his/her
entry into India.
If no adverse information is available against the applicant, registration will be made
within 15 days of the application. In case of any adverse information, it may take 3
months for arriving at a decision whether to grant or not.
An OCI is not entitled to voting rights, nor can he hold a constitutional position in
India. An OCI will be eligible for the following benefits:
(a) Multi-purpose, multiple entry, lifelong visa for visiting India.
(b) Exemption from registration with local police authority for any length of stay in India.
(c) Parity with NRIs in respect of economic, financial and education fields, except in
matters relating to the acquisition of agricultural/plantation properties.
17
PIO
The Indian Citizenship Act, 1955, provides that a person of Indian origin is an individual who was born in India or either of whose parents or any one of the individual’s grandparent was born in India.
For the purposes of availing of the facilities of opening and maintenance of bank
accounts and investments in shares / securities in India:
A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of
Indian Origin, if,
(a) he, at any time, held an Indian passport, or
(b) he or either of his parents or any of his grandparents was Citizen of India by
virtue of Constitution of India or Citizenship Act, 1955.
A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian Citizen or of
a person of Indian Origin is also treated as a person of Indian Origin for the above
purposes provided the bank accounts are opened or investments in shares/ securities
in India are made by such persons only jointly with their NRI spouses.
For investment in immovable properties:
A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan,
Sri Lanka, or Nepal), is deemed to be of Indian origin if:
he held an Indian passport at any time, or
he or his father or paternal grand-father was a Citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.
Registration of PIOs in India
Guided by the Registration of Foreigners Act, 1939 and Registration of Foreigners
Rules, 1992, persons of Indian origin visiting India on a visa valid for 180 days must
register at the nearest Foreigners Regional Registration Office.
The registration form must be submitted along with 4 photographs, proof of residential address in India, and a photocopy of the main pages of the passport and Indian
visa. The registration comes at no cost, though an extension of stay would invite a
fee of US$ 30. The FRRO endorses the passport and issues a registration booklet
carrying the PIO’s residence details and a photograph.
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The foreign national is duty bound to inform the FRRO of any change in his permanent and registered address.
Additional documents have to be submitted for student, business, journalist and employment visa, which authenticate the purpose of the visit.
PIO card
A foreign national who can prove his/her Indian origin up to three previous generations or the spouse of an Indian citizen or the spouse of a PIO may register as a PIO
and obtain a PIO Card. Citizens of Pakistan, Bangladesh and other countries as may
be specified by the central government are not eligible to receive these cards. PIO
card holders can own immovable properties in India (except agricultural/ plantation
properties), open Indian rupee bank accounts, and lend in India.
Persons of Indian origin can apply for a PIO Card at the Indian Mission in the country they reside in, or at the FRRO during their stay in India for a fee of Rs.15, 000
only. Nationals of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Bhutan, Nepal and
China do not qualify for a PIO card.
Privileges of the PIO card holder
Valid for a period of 15 years, the PIO card bestows certain privileges to the holder.
These include:
• Freedom to enter or leave India without a visa
• Registration, only if he stays in India for more than six months at a stretch
• PIO card holders are extended the privilege of separate counters for immigration
at international airports in India.
• Treated at par with NRIs with respect to economic, financial and educational facilities, and purchase of property, except agricultural property.
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DIFFERENCE BETWEEN NRI, PIO AND OCI
NRI
PIO
PIO Card Holder
Definition A citizen of India,
A foreign national A PIO holding a PIO
holding an Indian
who has Indian
Card, as per the
passport, but
origins or Indian Scheme of The
residing abroad
ancestors
Ministry of Home
Affairs, 2002
Apply to
OCI
Overseas Indian
who migrated from
India after 26th
January, 1950,
execpt those from
Pakistan and
Bangaladesh
i) Any Indian Mission abroad or,
ii) Any of the Foreigners Regional
Registration Officers in India or
iii) The Joint Secretary (Foreigners),
Ministry of Home Affairs
Charges
Rs.15,000 or
equivalent for adults
Rs.7,500 for minors
USD 275 or
equivalent in
applicant’s local currency.
PIO card holders
pay only USD 25 or
equivalent.
Privileges At par with
resident Indians
a) Exempt from
Visa to India for 15
years
a) Lifelong multiple
entry visa to India
b) Require visa
for any trip to
India
b) Registration at
FRRO if stay in
India is within
180 days.
b) No registration at
FRRO for any
length of stay
c) Required to
register at
local FRRO in
India upon arraival
c) At par with NRIs
c) If Stay exeeds
in all spheres of
180 days, registraion
activity, except
at FRRO within
purchase of
30 days
agricultual
property.
d) At par with NRIs
in all spheres of
activity except
purchase of
agricultural
property
20
a) No extra
ordinary
benefits
OCB
OCB is Overseas Corporate Body. Prior to deletion of OCB as a class of investors
with effect from 16th September, 2003, the term “Overseas Corporate Body “was
defined as a company, partnership firm, society and other corporate body wholly
owned, directly or indirectly, to the extent of at least sixty percent by Non-Resident
Indians and included overseas trusts in which not less than sixty percent beneficial
interest is held by Non-Resident Indians, directly or indirectly but irrevocably.
However, OCBs which had prior to September, 16, 2003 availed of investment
facilities under various schemes have general permission to continue to hold/transfer/gift (to Non Resident Indians/Residents in India) their existing investments in
shares/convertible debentures/securities of Indian companies. Indian companies
can allot bonus shares accruing to the OCBs. Those which are incorporated in the
host country and are not under adverse notice of RBI may be considered, for undertaking fresh investments, as incorporated non-resident entities by RBI/Government
on case by case basis.
HHH
21
CHAPTER
2
PERMANENT ACCOUNT NUMBER (PAN)
For all Indian citizens who are liable to pay tax under the Income Tax Act, 1961, or
are required to enter into financial transactions in India, it is mandatory to have a
Permanent Account Number or PAN.
The Permanent Account Number (PAN) is a combination of 10 alphanumeric numbers issued by the Income Tax Department. The Department has entrusted UTI Investor Services Ltd. (UTIISL) with the task of managing IT PAN Service Centres
wherever the IT department has an office in the country. The National Securities
Depository Limited (NSDL) has also been engaged to allot PAN cards from TIN
Facilitation Centres.
Apart from income returns which must carry the PAN, it is mandatory to submit
the PAN in all financial transactions, like the purchase and sale of property in India,
payments for purchase of vehicles, foreign visits, securing a telephone connection
or making time deposits in a bank worth over Rs.50,000.
For NRI’s, PAN is necessary to conduct monetary transactions in India, invest in
stocks, and pay tax on their Indian income.
Form 49A, which is the application form for a PAN, can be downloaded from the
Income Tax, UTIISL and NDSL websites given below:
www.incometaxindia.gov.in
www.utiisl.co.in
tin.nsdl.com
The forms are also available at the IT PAN Service Centres and TIN Facilitation
Centres. A “tatkal” or priority service has been provided for, to enable speedy allotment of the PAN card through the Internet. The PAN is allotted through e-mail on
priority in 5 days as against the normal 15 days to the applicant upon online payment
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through a credit card. The PAN has lifetime validity.
The application for a PAN must be accompanied by:
• a recent colored photograph of size 3.5 cms x 2.5 cms on the application form
• a proof of residence and identity (attested school leaving/matriculation certificate/
degree/credit card/voter identity/ration/passport/driving license/telephone/electricity bill/employer certificate
• code of the concerned Assessing Officer of the IT Department obtainable from the
IT office where form is submitted
UTIISL and NDSL centres collect Rs.60 plus service charges in cash on every application.
HHH
CHAPTER
3
DIRECTOR IDENTIFICATION NUMBER (DIN)
DIN is an unique Identification Number allotted to an individual who is an existing
director of a company or intends to be appointed as director of a company pursuant
to section 266A & 266B of the Companies Act, 1956 (as amended vide Act No 23 of
2006). Central Government (Office of Regional Director (Northern Region), Ministry of Corporate Affairs, NOIDA) is allotting this number.
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The process of obtaining DIN consists of seven steps:
Step I. Obtain provisional DIN
The applicant is required to fill-up and submit form DIN-1 online for obtaining provisional DIN. Form DIN-1 is available under ‘Apply for DIN’ tab on the left hand
side panel under DIN’ link on the homepage of MCA portal.
Step II. Pay Din application fee
The applicant is required to login to the MCA portal and click on ‘Pay Miscellaneous fee’ link available under the ‘Services’ tab. Select ‘DIN application fee’ option
and enter the provisional DIN. Applicant can make the payment of fee by using any
of three modes of payment available on MCA portal. Form DIN-1 will be processed
only after the DIN application fee is paid.
Step III. Dispatch of DIN application
The applicant is required to take a print-out of Form DIN-1 (containing provisional
DIN generated online). Fill the service Request Number (SRN) of the fee paid.
Sign the DIN application form manually and paste a good resolution photograph
in the space earmarked. Attach the photocopies of the ‘Proof of Identity’ (Attach
additional proof, if ‘Father’s name and ‘Date of Birth’ is not indicated in the ‘Proof
of Identity’) and the ‘Proof of Residence’ with DIN application form and tick the
relevant checkbox against the document name. Get the photograph and the attached
supporting documents attested from an approved authority as specified in form
DIN-1. The certifying authority must mention its particulars such as Name, COP
No. etc, and affix its seal/ stamp.
Complete set of documents is required to be sent to MCA DIN Cell at Noida, by
post, courier or hand delivery, as per convenience, within 60 days from the date of
generation of provisional DIN online.
IV. Processing of DIN application
DIN application is received by MCA DIN Cell. DIN application form and attached
supporting documents are scrutinized and if found in order, the provisional DIN is
approved and activated in the system. If there is any defect in the DIN application,
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the provisional DIN is rejected. It takes about a week’s time to complete this process. DIN approval/ rejection letter is generated and sent by post to the applicant.
The status of application can also be tracked from the ‘DIN Approval status’ tab in
the DIN corner.
V. Intimate approved DIN to your Companies
On approval of DIN, intimate your DIN to all the company(ies) (within a period
of 30 days from the date of approval) in which you are a Director, in form DIN-2.
Form DIN-2 can be downloaded and printed from the <DIN> link on the homepage
of MCA portal.
VI. Company to intimate your DIN to ROC
After the Director has intimated the DIN allotted to the company(ies), the
Company(ies) is/are then required to intimate the DINs of its directors to the ROC
in Form DIN-3 within a period of seven days of receiving form DIN-2.
VII. Post-approval changes in particulars of DIN-1
If there is any change in the particulars submitted in form DIN-1, File form DIN-4
for intimating the changes in the particulars within 30 days. For instance in the
event of change of address of a director, he/ she is required to intimate this change
by submitting Form DIN-4 along with the required attested documents with MCA
DIN Cell.
Few points to be remembered
While filling up the forms the applicants should remember a few points. That, no
prefixes like Mr. / Ms. / Kumari / Shri etc should be used in filling the applicant’s
name.
Enter the applicant’s name and father’s name in full and do not use abbreviations,
even if the ID proof contains the name in abbreviated form. Abbreviations in the
middle name may be accepted, if such abbreviated middle name is appearing in the
enclosed identity proof.
The particulars filled in form DIN-1 should match with the details given in the supporting documents to be submitted along with DIN application. Any mis-match will
25
lead to rejection of DIN application. Minor spelling deviations in the father’s name
may be accepted, if such deviations do not materially impact the name.
With effect from 1st July, 2007 a fee of Rs. 100/- is payable along with application
for allotment of DIN. In order to make the payment, log in to MCA portal and click
on ‘Pay Miscellaneous fee’ link under the Services tab. Select ‘DIN application fee’
option and enter the provisional DIN. Click submit button to make payment using
any of the three modes of payment.
Status of the payment made for Form DIN-1 can be enquired from ‘Track Payment
Status’ link on the homepage of www.mca.gov.in.
Documents required
• DIN Form-I (with provisional DIN generated) along with a high resolution photograph of the applicant and his signatures appended at the appropriate place;
•
Proof of identity;
•
Proof of residence;
• Certification of the photograph and the photocopies of proofs by an approved
authority;
• The particulars of the certifying authority along with his seal must be clearly
indicated.
ID proof
Your ID proof must be currently valid and issued by the Central/ State Government
or Instrumentalities of state like PSUs, Public Sector Banks, Universities recognized
under the UGC Act. It should contain following information:
•
Applicant>s name with photograph
•
Father>s Name
•
Date of Birth
HHH
26
CHAPTER
4
DEMAT ACCOUNT
‘Demat’ refers to a dematerialised account. Just as you have to open an account with
a bank if you want to save your money, make cheque payments etc, you need to open
a demat account if you want to buy or sell stocks. So it is just like a bank account
where actual money is replaced by shares.
A Demat Account facilitates buying and selling shares, precluding cumbersome paperwork and meaningless delays.
Advantages of a Demat Account:
• It is a safe, secure and convenient mode of transacting in shares.
• Minimizes brokerage charges
• Ensures immediate liquidity
• Removes uncertainty on ownership title of securities
• Allows quick allotment of public issues
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• Enables smooth process in pledging shares
• Avoids delays due to wrong/incorrect signatures, post, and misplacement of certificates
• Prevents risks like forgery and counterfeit, theft or damage to documents
• Saves on stamp duty, paperwork on transfer deeds
• Gives immediate benefits from bonus shares and stock splits
Who offers Demat Facility?
Depository Participants or DPs offer Demat account services, which would include
banks. Holding a Demat account with a bank enables quick on-line dealings, ensuring credit of a transaction to the account holder’s savings account by the third
day. Banks have an added advantage over other DPs with their large network of
branches.
How to Open a Demat Account in India
• Fill up the Demat account opening form at the nearest Depository Participant
• For the list of DPs in India, you may refer to either:
CDSL at http://www.cdslindia.com/Demat_acct/open_Demat.jsp
tps://nsdl.co.in
or NSDL at ht-
• Joint Demat accounts can be opened, retaining the same order of names
• Separate Demat accounts have to be opened for different combinations of names
in the case of three or more joint holders.
• Any number of Demat accounts and DPs are permitted
• A multiple-sign Demat is feasible, operated by several holders
• DPs charge a fee for switching shares from electronic to physical form and viceversa, which varies from a flat fee to a variable fee. Remat and Demat charges may
also show a discrepancy between DPs
• Some DPs offer a discount to frequent traders
• It is advisable to maintain all Demat accounts with the same DP to keep track of
capital gains liabilities. Different DPs follow dissimilar methods of computing the
capital gains, which is determined by the period of holding.
28
• The charges on a Demat account vary between DPs. Broadly, they are: account
opening fee, an annual folio maintenance charge paid in advance, a monthly custodian fee, and a charge on transactions, which may either be charged every month or
as a flat fee per transaction, and its nature. Some DPs may skip the account opening
fee but charge a re-opening fee for the account. Account holders are also subject to
a service tax.
• No opening balance is required for a Demat account
Supporting documents required to open a Demat account are:
• Passport-size photograph
• Proof of identity, address and date of birth
• DP-client agreement on non-judicial stamp paper
• PAN Card
• The applicant receives an account number and a DP ID number which are required
for all future communication with the DP.
NRI Demat Accounts
NRIs need to fill in “NRI” in the type and “repatriable or “non-repatriable” in the
sub-type on the form. No special permission from the RBI is required by NRIs to
open a Demat account, though specific cases may require authorization from the
designated authorised dealers.
NRIs require separate Demat accounts for securities under the foreign direct investment (FDI) scheme, which is repatriable; and the Portfolio Investment Scheme and
Scheme for Investment which can be either repatriable or non-repatriable. Repatriable and non-repatriable securities cannot be held in a single Demat account.
Resident Indians can continue to hold non-repatriable Demat accounts they hold
even after they acquire non-resident Indian status. However, when a NRI returns
to India permanently, he must inform his designated authorised dealer of his new
status, and a fresh account would have to be opened. The securities held in the NRI
Demat account would have to be transferred to the new resident Demat account, and
the NRI Demat account closed.
The Demat account would have to be linked with the NRI’s NRO account for nonrepatriable accounts and NRE accounts for repatriable accounts to credit dividends
and interest.
HHH
29
CHAPTER
5
OVERSEAS INDIANS FACILITATION CENTRE
(OIFC)
The Overseas Indian Community is today the most diverse, eminently successful
and best educated communities where ever it resides seeking avenues to contribute
to and benefit from India’s progress.
The Overseas Indian Facilitation Centre (OIFC) has been established to facilitate
and expand the engagement of overseas Indians with India. For the vast population of Indians across our borders, the Ministry of Overseas Indian Affairs offers a
platform of social, employment and financial services. Apart from these services,
tapping the enormous wealth of the 25 million strong overseas Indian community
has been one of the Ministry’s broad objectives.
Pursuing this objective, the MOIA launched the Overseas Indian Facilitation Centre
in May, 2007 in New Delhi. Roping in the Confederation of Indian Industry to create a neutral and professionally managed institution, the MOIA offers a bouquet of
advisory and investment services on a not-for-profit basis through the OIFC.
The Facilitation Centre promises to be a single window service for potential investors, and geared to augment the current flow of investment from NRIs to India. NRIs
are already the largest source of foreign capital in India, and recent reports confirm
that overseas Indians view India as an investment destination.
In the recent past, foreign exchange reserves in NRI deposits have grown, and remittances from the USA have shot past money transfers to India from the Gulf,
comprising 44% of the total.
30
Objectives of the OIFC
The MOIA-CII endeavor will support non-resident Indians to invest in India by
providing bona fide and concurrent information.
Sustaining the OIFC’s efforts will be a Diaspora Knowledge Network, a database
of knowledge resources amongst NRIs which could be employed in the investment
initiatives.
As a pool of knowledge, it would dispense real time information through the ICT
platform. The OIFC will highlight investment avenues within the States of India, and
bring these, the Indian businessmen and interested investors to a common platform.
Going a step further, the Centre will provide hand-holding services to NRIs who
decide to invest in India, and guidance in the spheres of FDI, taxation, investment in
shares and real estate.
Organisation Structure of the OIFC
The Centre has a two-tiered structure comprising the Governing Council and the
Executive Directorate. The Governing Council is chaired by the Secretary of the
MOIA, assisted by the Director General of the CII. Of the 9 trustees, three each
would be represented by NRIs, Indian entrepreneurs, and nominees of the Government and the CII
While the Governing Council will lay down the policy within which the OIFC will
function, the Executive Directorate will implement the projects to realize the objectives of the Governing Council.
Contact Information : CEO, Overseas Indian Facilitation Centre (OIFC) &
Director, Confederation of Indian Industry (CII)
Plot No.249- F, Sector 18,
Udyog Vihar, Phase IV
Gurgaon -122015,
Haryana, INDIA.
Tel: + 91-124-4014060-67 / 4014071(D)
Fax: + 91-124-4014070
Email: [email protected] 31
Joint Secretary Ministry of Overseas Indian Affairs (MOIA)
9th Floor, Akbar Bhawan,
Chanakya Puri
New Delhi - 110021,
INDIA.
Tel: + 91-11-24767210 / 24197916
Email: [email protected]
HHH
32
CHAPTER
6
NRI INSURANCE
All Indians have an underlying need to feel secure, to care for the loved ones and to
provide for old age. The need is felt more when you are away from your Homeland.
But being away from India doesn’t mean you have to compromise on the safety and
security of your loved ones.
In fact, you can now easily steer your savings from overseas to conveniently meet
your family’s needs - now and in the future. Non-resident Indians (NRIs) on shortterm or long-term assignments abroad can safeguard the interests of their families
and assets in India through purchase of customised insurance products offered by
a host of insurance companies in the country. NRIs are treated at par with resident
Indians in all terms, and also entitled to avail loans against their policies.
There is no ceiling on the sum insured, except in the case of persons of Indian origin
who can be covered up to a maximum of Rs.20 lakh. PIOs are also not eligible for
some joint life plans and plans having a term insurance element.
Since life insurance policies are classified as securities by the foreign exchange regulations act, insurance policy documents cannot be taken out of the country without
the formal approval of the Reserve Bank of India.
Consent from the RBI is also required to assign rupee policies held in India by a
resident Indian in favour of an NRI, or by a NRI in favour of another NRI living
abroad. Prior approval is not required where the assignment is without consideration
in favour of the policy-holder’s non-resident wife or other dependent relatives.
Payment
While on-line payment of insurance premium is the most preferred option, NRIs
can choose to remit directly from abroad through approved banking channels, foreign money orders, debits from their NRE or FCNR account in India, or in cash.
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Employers in India can also make payments on behalf of their employees deputed
abroad by them.
Payment of claims
While settlement of claims is generally made in Indian currency, insurance companies do settle claims in foreign currency as an exception, subject to approval from
the Reserve Bank of India. The policy holder needs to be a permanent overseas resident who has paid his entire premium in foreign currency to avail this benefit.
However, Persons of Indian Origin can neither make payments nor receive settlements in foreign currency. Their settlements cannot be repatriated outside India either.
The range of products offered by insurance firms includes: life insurance, health
insurance, overseas travel insurance, student medical insurance, home insurance, car
insurance and two wheeler insurance.
NRI Life Insurance
Life insurance policies can be obtained by NRIs from several insurance companies
operating in India. The range of products offered by these companies cover almost
every requirement, promising security as well as returns.
Term plans are insurance schemes which cover risks but do not carry any maturity
benefits. They however enable the policy holder to avail of loans to purchase property.
Unit Linked Insurance Plans invest funds from the insurance premium in equity and
debt instruments and ensure returns to policy holders, along with the security. NRIs
have a good opportunity to earn on their investments in unit linked plans. Endowment ULIPs, child plan ULIPs and retirement ULIPs are common unit linked insurance products.
In cases where NRIs have their children studying in India, a child insurance policy
either through money-back, endowment or unit linked plans can come in handy.
Unit linked child plans offer good yields over a long term of 10-15 years.
Similarly, NRIs can also plan their retirement through regular and unit linked pension plans which offer support in the retirement years.
Tax benefits:
Through life insurance, policy holders enjoy a host of tax benefits. Apart from death
claim proceeds being exempt from tax, the premiums paid on the policy confer tax
rebates under Section 80C of the Income Tax Act, 1961.
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Claims:
Claims are settled at the time of maturity into the policy holder’s NRE Account proportionate to the premium received through foreign exchange. If the payment was
made entirely in Indian rupees, claims are credited to the NRI’s NRO Account.
In case of the policy holder’s demise, claims are paid to the nominee’s savings account in India which is not repatriable.
Product Range:
The products offered by HDFC Standard Life include: Single Premium Whole of
Life Plan, Personal Pension Plan, Unit Linked Pension Plan, Unit Linked Pension
Plus and Saving Assurance Plan.
LIC’s comprehensive range of endowment, money-back and whole life plans are
extended to NRIs but the maximum sum under the pure term insurance plans and the
term rider benefits are restricted to Rs. 25 lakh.
ABN Amro, in a tie-up with Aviva Life Insurance offers a choice between SaveGuard, an investment-cum-protection plan, and Treasure Plus
YES Bank, in collaboration with Max New York Life Insurance, offers Whole Life
Participating Policy – Protection, Life Protector Plus, Life Invest TM Unit Linked
Investment Plan, and Easy Life Retirement plan (Participating) Policy.
Citibank also has a range of rupee and non-rupee insurance products for NRIs staying in the Middle East. Non-rupee insurance products include InvestPlus Children’s
Education Plan, InvestPlus Wealth Builder Plan and the InvestPlus Lifelong Whole
of Life and Critical Illness Protection Plan
Citibank’s Whole Life Plan, the Flexi Life Line, a rupee insurance plan, combines
high returns with security, and comes in three customised packages, the Protector,
Builder and Enhancer Plans which carry different combinations of investments in
government securities and equities. The Classic Life Premier is a long term plan
optimising investment with insurance.
Standard Chartered’s life insurance portfolio also has an array of unit linked and term
insurance products: SecureFirst, Unit Gain Plus, Mortgage Reducing Term Interest
Plan, UnitGain pensions, ChildGain, InvestGain and TermCare. Standard Chartered
offers these products in partnership with Bajaj Allianz and Royal Sundaram.
SBI Life, the State Bank’s venture into insurance with Cardif, offers a choice of saving
and protection plans for NRIs- Sudarshan, Money Back, Sanjeevan Supreme, Shield,
Swadhan, Child Plan Scholar II, Lifelong Pensions and Setubandhan retirement plans.
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ICICI Prudential has a mix of protection and wealth creation plans. To meet educational needs, it offers the SmartKid range of products, while it has unit linked
LifeTime and InvestShield plans for wealth generation, and the purely protection
oriented plans like LifeGuard, Save’n’Protect, CashBak and Home Assure.
Procedure:
The procedure for purchase of an insurance policy involves filling up the proposal
form and the moral hazard report, undergoing a medical examination and paying
the initial premium. These formalities can be completed by NRIs during their visit
to India or from their country of residence through mail order. Most forms can be
downloaded from the website of insurance companies.
If the policy is being proposed from overseas, an endorsement by the local Indian
embassy is required after verification of the applicant’s passport, though in the case
of students, the Dean or Principal’s signature would suffice. The applicant needs to
have a copy of the first page of his passport also certified by the official attesting his
policy. These documents have to be submitted to the insurance firm.
NRI Home Insurance and Policies
Properties owned by non-resident Indians have grown in numbers in the last decade, as investment in realty for investment and personal use has risen sharply. NRIs
wishing to secure their homes or investments in India are eligible to avail of home
insurance schemes offered by insurance companies.
Home Insurance Schemes protect the structure and contents of a home and a proponent can choose between insurance for the building or structure or its contents, or
both.
Policy:
The policy covers the losses to the structure and contents of a home due to any natural and manmade calamities. Generally, the risk covers:
• Fire
• Riot, strike & malicious damage
• Explosion & implosion
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• Earthquake
• Lightning
• Storm, cyclone, tempest, tornado, hurricane, flood & inundation
• Damage due to impact by vehicles
• Missile testing operation
• Subsidence, landslides and rockslides
• Leakage from automatic Sprinkler installations
• Aircraft damage
• Bursting and/or overflowing of water tanks, apparatus and pipes
Burglary cover:
The assets within the home are also covered against loss due to theft or an attempted
housebreak. It also covers loss of jewellery, silver articles and precious stones kept
under lock and key.
Optional covers:
Some insurers offer optional cover for:
Terrorism - any damage and loss to the structure and / or contents of the home due
to acts of terrorism.
Additional expenses of rent for alternative accommodation - If the policy holder is
forced to shift into an alternative accommodation because the home is destroyed or
damaged by any insured peril, the policy will cover the additional rent incurred.
Sum insured:
The home insurance policy insures the structure of the home for its reconstruction
value and not for market value. Reconstruction value is defined as the cost incurred
to reconstruct the home if it is damaged. On the other hand market value is a combination of cost of land, demand & supply scenario, etc.
Sum insured is calculated by multiplying the built up area of the home with the
construction rate per sq. feet, e.g. if the built up area of a house is 1500 sq. feet and
the construction rate is Rs.1000 per sq. feet, the sum insured for the home structure
is Rs. 15,00,000.
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The rate of construction is usually recommended by insurance companies for the
location, and takes into account the material used in the home.
The contents of the home - furniture, durables, clothes, utensils, jewellery, etc are
valued on market value basis i.e. the current market value of similar items after depreciation. Depreciation does not apply for jewellery.
Insuring a home is imperative for an NRI, and a thorough study of services and options available with a host of insurance companies must be made before a decision
is made.
Other General Insurance Schemes for NRIs/ PIOs:
NRI Health Insurance
NRIs can avail of medical cover for their dependents residing in India through health
insurance schemes offered by insurance companies like ICICI Lombard, HDFC
Standard Life, YES Bank, Standard Chartered and State Bank of Travancore NRI
Care
While finer details vary from company to company, most health insurance companies broadly cover hospitalization expenses, medical costs incurred on sudden
illnesses and accidents, nursing expenses, and expenditure on specialized treatment
which does not require hospitalization. Certain ailments and surgeries are secured by
pre-determined limits, while others are covered by the sum insured in the policy.
The health policy can be gifted by NRIs to immediate family members like parents,
grandparents, spouse and children subject to terms laid down by the individual insurance companies.
Most of the insurance firms in India offer an on-line premium payment facility for
NRIs and a cashless claims facility at an exhaustive network of hospitals and nursing
homes in Indian cities and towns. Health Insurance policies also endow tax benefits
to NRIs on their Indian income, and in some specific cases, a reimbursement of
return airfare to the NRI in case he is required to visit his dependent in India.
A good number of insurance companies also undertake to keep NRIs informed of
claims filed by their dependents, and educate the insured on the policy coverage.
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NRI Accident Insurance
Offered by Standard Chartered, HDFC and National Insurance, it covers NRIs up to
70 years. Accident insurance policies insure expenses incurred due to an accident,
permanent disability and medical costs incurred abroad and education of dependent
children.
Policy holders can opt between monthly, quarterly, half-yearly or annual premium
plans for three different schemes of the National Insurance Company for a term of
5 years.
Overseas Travel Insurance
Offered by insurance firms like Tata AIG, ICICI Lombard and YES Bank (the latter
through a partnership with Bajaj Allianz General Insurance), overseas travel insurance is open to all ages of travelers covering foreign trips between 7 to 180 days
which can be extended online if the stay is prolonged. The premium on this policy
is paid on a per-day basis and covers baggage losses, passport loss, cancelled trips
and delays, hijacks, repatriation, medical evacuation etc Ailments the policy holder
is already having or chronically suffering from are not covered by the policy.
Overseas travel cover can be availed from USD 50,000 to USD 250,000. Tata AIG
and ICICI Lombard offer a range of products like the Platinum, Gold and Silver
plans. The premium platinum plan also covers a daily allowance for hospitalization.
NRI Shield
The Indian Overseas Bank in partnership with the United India Insurance offers a
combination of travel and health insurance products for NRIs visiting India.
From a sum of Rs.1 lakh to Rs. 50 lakh, the policy covers disability resulting from
an accident, medical benefits, and baggage and passport losses during their stay in
India.
While Plan A insures loss of effects and personal risks, Plan B offers health cover for
medical expenses incurred at a network of hospitals in India. The travel and health
insurance can stretch up to the maximum of 180 days a year during the NRI’s stay in
India, but policies taken to cover his effects in India, such as property, are available
for a year.
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Student Medical Insurance
Offered by ICICI Lombard, this product meets the requirements of mandatory insurance demanded by foreign universities in Australia, Canada, USA and New Zealand.
It covers the expenses of NRI students on sports induced injuries, cancer screening
tests, nervous breakdowns, alcoholism and drug abuse, pregnancy, and childcare
benefits.
The student medical insurance, if purchased in India offers a one-third price advantage over the scheme purchased overseas. Available to students between 18 and 35
years, it can be bought for a term of 2 years.
A choice of 4 plans (the Gold, Silver, Bronze and Plus) covering a combination of
various risks can be purchased online and claims can be settled by applying to the
Third Party Administrator who reimburses the amount in Indian rupees.
HHH
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CHAPTER
7
BANK ACCOUNTS
NRIs/PIOs are permitted to open bank accounts in India out of funds remitted from
abroad, foreign exchange brought in from abroad or out of funds legitimately due to
them in India. Such accounts can be opened with banks specially authorised by the
Reserve Bank in this behalf.
There are three types of Non-Resident accounts namely NRE Accounts, NRO Accounts and FCNR Accounts. First two among the above are Rupee Accounts and the
third one is foreign currency account.
RUPEE ACCOUNTS
1) Non- Resident (External) Rupee Accounts (NRE Accounts)
NRIs and PIOs are eligible to open NRE Accounts. These are rupee denominated accounts. Accounts can be in the form of savings, current, recurring or fixed deposit accounts. Accounts can be opened by remittance of funds in free foreign exchange. Foreign exchange brought in legally, repatriable incomes of the account holder, etc. can be
credited to the account. Joint operation with other NRIs/PIOs is also permitted.
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Power of attorney can be granted to residents for operation of accounts for limited
purposes. The deposits under this account can be used for all legitimate purposes.
The balance in the account is freely repatriable. Interest lying to the credit of NRE
accounts is exempted from tax in the hands of the NRI.
Funds held in NRE accounts may be freely transferred to Foreign Currency Non
Resident (FCNR) accounts of the same account holder. Likewise, funds held in
FCNR accounts may be transferred to NRE accounts of the same account holder.
2) Ordinary Non-Resident Account (NRO Accounts )
These are Rupee dominated non-repatriable accounts and can be in the form of savings, current, recurring or fixed deposits. These accounts can be opened jointly with
residents in India. When an Indian National /PIO resident in India leaves for taking
up employment etc. outside the country, other than Nepal or Bhutan, his bank account in India gets designated as NRO account. The deposits can be used to make all
legitimate payments in rupees. Interest income from NRO accounts is taxable. Interest income, net of taxes is repatriable. Authorised dealers may allow remittances up
to US $ 1 million, per calendar year, out of balances held in NRO account for any
bonafide purpose.
FOREIGN CURRENCY ACCOUNTS
3) Foreign Currency Non Resident (Bank) Accounts (FCNR (B) Accounts)
NRIs/PIOs are permitted to open such accounts in US dollars, Sterling Pounds,
Japanese Yen, Euro, Canadian Dollars and Australian Dollars. The accounts may be
opened in the form of term deposit for any of the three maturity periods viz; (a) one
year and above but less than two years (b) two years and above but less than three
years and (c) three years only. Now RBI has allowed banks to accept FCNR (B)
deposits up to maximum maturity period of five years. Interest income is tax free in
the hands of the NRI until he maintains a non-resident status or a resident but not
ordinarily resident status under the Indian tax laws.
FCNR (B) accounts can also be utilised for local disbursement including payment
for exports from India, repatriation of funds abroad and for making investments in
India, as per foreign investment guidelines.
HHH
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CHAPTER
8
POWER OF ATTORNEY
A Power of Attorney is a legal instrument that is used to delegate legal authority to
another. A NRI being a person living in a foreign country, definitely for so many
purposes, has to give power of attorney to somebody in India. The person who signs
(executes) a Power of Attorney is called the Principal or Grantor. The power of Attorney gives legal authority to another person (called an Agent or Attorney-in-Fact)
to make property, financial and other legal decisions for the Principal.
A Principal can give an Agent broad legal authority, or very limited authority. The
Power of Attorney is frequently used to help in the event of a Principal being outside
the territory of India or due to his illness or disability, or for any reason, in legal transactions where the principal cannot be present to sign necessary legal documents.
A Power of Attorney can be used to grant any, or all, of the following legal powers
to an Agent:
• Buy or sell your real estate
• Manage your property
• Conduct your banking transactions
• Invest, or de- invest, your money
• Make legal claims and conduct litigation
• Attend to tax and retirement matters
• Make gifts on your behalf
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Selection of an Agent for a Power of Attorney
While executing a Power of Attorney, you should choose a trusted family member,
a proven friend, or a professional with an outstanding reputation for honesty as your
agent. Remember, signing a Power of Attorney that grants broad authority to an
Agent is very much like signing a blank cheque. Certainly, you should never give
a Power of Attorney to someone you do not trust fully. And do not allow anyone to
force you into signing a Power of Attorney.
Multiple agents for a Power of Attorney
You may appoint more than one Agent for power of attorney. If you appoint two or
more Agents, you must decide whether they must act together in making decisions
involving your affairs, or whether each can act separately.
There are advantages and disadvantages to both forms of appointment. Requiring
your Agents to act jointly can safeguard the soundness of their decisions. On the
other hand, requiring agreement of all your Agents can result in delay or inaction in
the event of a disagreement among them, or the unavailability of one of them to sign
legal documents.
Allowing your Agents to act separately may ensure that an Agent is always available
to act for you. But it may also result in confusion and disagreements if the Agents
do not communicate with one another, or if one of them believes that the other is
not acting in your best interests. As of January 1997, the statutory short-form Power
of Attorney provides space to appoint an alternate or substitute Agent. A substitute
Agent can act if the first Agent is unable or unwilling to act for you. So it is generally
a good idea to appoint a substitute Agent.
Powers of Attorney are only as good as the Agents who are appointed. Appointing a
trustworthy person as an Agent is critical. Without a trustworthy Agent, a Power of
Attorney becomes a dangerous legal instrument, and a threat to the Principal’s best
interests.
Agent’s obligations to a Principal
The Agent is obligated to act in the best interests of the Principal, and to avoid
any “self-dealing.” Self-dealing is acting to further the selfish interests of the Agent,
rather than the best interest of the Principal.
An Agent appointed in a Power of Attorney is a fiduciary, with strict standards
of honesty and, loyalty to the Principal. An Agent must safeguard the Principal’s
property, and keep it separate from the Agent’s personal property. Money should
be kept in a separate bank account for the benefit of the Principal. Agents must also
keep accurate financial records of their activities and provide complete and periodic
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accountings for all money and property coming into their possession. While executing
a Power of attorney, make clear to your Agent that you want accurate records of all
transactions completed for you, and to give you periodic accountings. You can also
direct your Agent to provide an accounting to a third party-a member of your family or
trusted friend-in the event you are unable to review the accounting yourself.
Requirements:
When power of attorney is executed in India by non-resident Indian
i) The Power of Attorney is to be executed on a non-judicial stamp paper of the
requisite value as per the stamp duty prevalent in the respective state.
ii) Each page of the Power of Attorney is to be signed and wherever the blanks are
filled in initialed by the Grantor. The Power of Attorney should be signed by the Attorney on the last page.
iii)It is mandatory that the Power of Attorney should be notarised by a Notary Public.
When power of attorney is executed outside India by non-resident Indians
1)
The Power of Attorney should be first typed on a plain sheet of paper. Each
page of the Power of Attorney is to be signed and wherever the blanks are filled in
initialed by the Grantor.
2)
The signature of the Grantor should be attested by any authorised official
of the Indian Embassy / Indian Consulate / Trade Commissioner of India / Notary
Public in the country where the Grantor resides.
3)
The Power of Attorney is then sent to India and if the requirement demands, the Attorney signs the Power of Attorney on the last page. The Power of
Attorney then needs to be stamped and notarised by the Notary Public.
If your Agent does not follow your instructions
If your Agent does not follow your instructions, you may revoke your Power of
Attorney at any time. In that case, you should inform your Agent, in writing, that
you are revoking the Power of Attorney. Request him to return of all copies of your
Power of Attorney.
You should notify your bank or other institutions where your Agent has used the
Power of Attorney that it has been revoked.
HHH
45
CHAPTER
9
TAX EXEMPTIONS FOR
NON-RESIDENTS
Incomes of NRIs are exempt from income tax interest on various specified securities or bonds. NRIs enjoy tax exemptions from property investment and other assets
including dividend income, interest income, and even gifts.
Exemptions from Income Tax
Income from the following investments made by NRIs/PIOs out of convertible foreign exchange is totally exempted from tax:
a) Deposits in under mentioned bank accounts
i) Non Resident External Rupee Account (NRE)
ii)Foreign Currency Non Resident Account (FCNR)
b) Units of Unit Trust of India and specified mutual funds, other specific securities,
bonds and savings certificates (subject to conditions prescribed under the Income-tax
laws and regulations).
c)Dividend declared by Indian company.
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d) Long term capital gains arising from transfer of equity shares in a company and/
or equity oriented schemes of Mutual Funds, which are subject to Securities Transaction Tax.
It should be noted that the tax exemptions relating to NRE bank deposits will cease
immediately upon the NRI/PIO becoming a resident in India whereas the interest
on FCNR bank deposits will continue to be tax free as long as the NRI maintains
the status of Resident but Not Ordinarily Resident or until maturity, whichever is
earlier.
Exemptions from Wealth Tax
Where an NRI/PIO returns to India for permanent residence, the money and the
value of assets brought by him into India and the value of assets acquired by him
out of such money within one year immediately preceding the date of his return and
at any time thereafter are totally exempt from wealth tax for a period of seven years
after return to India.
The above exemption may not have much relevance now since the Finance Act 1992
has considerably reduced the scope of wealth tax. With effect from 1st April, 1993,
wealth tax is being levied only on non-productive assets like urban land, buildings
(except one house property), jewellery, bullion, vehicles, cash over Rs.50,000/- etc.
The current rate of wealth-tax is 1% on the aggregate market value of chargeable
assets as on 31st March every year in excess of Rs.1.5 million. However, it may be
noted that NRls are also liable to pay wealth tax if the market value of taxable assets
as on 31st March exceeds Rs l.5 million.
Exemptions from Gift Tax
Gift Tax Act, 1958 has been repealed with effect from 1st October, 1998 and as such,
Gift Tax is not chargeable on any gifts made on or after that date. With regard to gifts
of foreign exchange or specified assets made by NRls to their relatives in India, it
should be noted that,
Gifts made by an NRI/PIO to his or her spouse, minor children or son’s wife will
involve clubbing of income and wealth in the hands of the donor-NRI/ PIO.
In the case of gifts to minor children the clubbing of income, as above, will cease
upon such children attaining the age of 18 years.
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The clubbing provisions will apply, in case of gift to spouse or son’s wife in India,
only to the first-stage of income from the original gift. Second-stage income arising
from investment of the income from the original gift is not clubbed and this will
constitute the separate wealth/income of the donee- spouse. Generally, the income
of minor children, from any source (including income from gifts from parents) is
clubbed with the income of the parent whose total chargeable income is greater.
Other matters to be noted regarding gifts are:
1.All gifts received by residents from NRls/PlOs may be subject to the tax authorities enquiring the recipient to provide evidence as regards the identity and financial
capacity of the donor and genuineness of the gift.
2.Under the Foreign Exchange Management Act, 1999 no approval from Reserve
Bank of India (RBI) is necessary for the resident donee to hold gifted immovable
property outside India provided the said property is gifted by a person resident outside India. General permission, subject to certain conditions, is granted by RBI for
the resident donees to hold foreign moveable properties such as shares and securities
gifted by NRI/PIO donors.
The Income Tax Act has now provided that any sum of money exceeding Rs.25, 000
received without consideration (i.e., gift) by an individual from any person on or
after 1st September, 2004, the whole of such sum will be chargeable to income-tax in
the assessment of recipient (i.e., donee) under that head “Income from other sources”
for and from assessment year 2005-06 and onwards.
However, the above provisions will not apply to any sum of money (gift) received
(a) from any relative; or (b) on the occasion of the marriage of the individual; or (c)
under a will or by way of inheritance; or (d) in contemplation of death of the payer.
In this connection, the term “Relative” is defined as:
1) spouse of the individual;
2) brother or sister of the individual;
3) brother or sister of the spouse of the individual;
4) brother or sister of either of the parents of the individual;
5) any lineal ascendant or descendant of the individual;
6) any lineal ascendant or descendant of the spouse of the individual; and
7) spouse of the person referred to in (2) to (6).
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Scope of Receipts
• As per plain reading of the provision, any receipt without consideration, save exclusions, whether capital or otherwise, may be considered as income.
• Similar receipts by any person (such as a partnership firm, a company, and Association of Persons AOP etc.), other than an individual or a Hindu Undivided Family,
would not constitute income in its hands.
• The provision would apply to an individual irrespective of his residential status.
Accordingly, any receipt in India by a non-resident of the nature discussed above
would be considered as income in his hands.
• Gifts on occasion other than marriage, for example, birthday, marriage anniversary
and other social occasions, religious ceremonies etc., would be taxable as income.
Gifts received on the occasion of the marriage of the individual, irrespective of any
limit, (but within reasonable limits) would not constitute income.
• The receipts should be in the form of money. Accordingly, any gift in kind would
not be taxable.
The receipts must be without consideration, implying in the nature of gift.
HHH
49
CHAPTER
10
BAGGAGE RULES
Baggage Rules is an aspect of customs network which the common man going
abroad or returning from abroad has to deal with at customs counter.
Under the General Baggage Rules,
Used personal effects, and (b) new articles up to a value of Rs. 12,000/- per adult
passenger (Rs. 25,000/- if the person returns to India after more than three days) are
exempted.
A lower Free Allowance of Rs. 6,000/- is allowed to passengers coming (after 3
days) from Nepal, Bhutan, Burma or China provided they do not come across land
borders with these countries.
Passengers returning from Pakistan by road are allowed duty free baggage up to Rs.
12,000/-.
For child passengers (below 10 years of age), free allowance is 50% of the allowance
admissible to an adult passenger of that category.
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The General Free Allowance of passenger is not clubbable with similar allowance of
another passenger ( for example, husband or wife or any other relative traveling with
the passenger ) to permit clearance of a costly article of baggage.
Laptop computer ( computer notebook ) brought by a passenger of the age of 18
years and above has been exempted w.e.f from 9-1-2004.
Alcoholic liquor or wines up to two litres, 200 cigarettes and jewellery up to Rs.
20,000/- for a lady and Rs.10,000/- for a gentleman can be brought as part of the free
baggage allowance.
Import of cinematography films, exposed but not developed, brought as part of baggage has also been made duty free.
In case a single article exceeding the limit of Rs. 12,000 ( or Rs. 25,000 in value) is
brought, 35% flat rate of duty with no SAD or CVD is payable on excess value. 40%
without SAD & CVD is also the effective rate of duty for any article of bona fide
baggage brought in excess of free allowance except for fire arms, cartridges of fire
arms exceeding 50 and excess cigarettes, cigars or tobacco.
But in terms of exemption Notification No. 49/96-Cus., dated 23-7-1996, specified
goods covered under listed Headings and Notifications therein attract merit rate ( as
applicable to cargo) even if imported as baggage. Conditions, if any, prescribed in
the listed Notification will apply to imports under baggage also.
Free allowance is restricted in case of visit to contiguous countries like Maldives, Sri
Lanka, Nepal and Bhutan.
‘Baggage’ does not include motor vehicle, fire arms and goods of commercial nature
or in commercial quantities.
There are value/ quantity restrictions on bringing jewellery, cigarettes and liquor.
However, primary gold up to 10 kgs. per passenger and silver up to one hundred kgs.
per passenger can be imported on payment of normal duties in convertible foreign
exchange provided the concerned passenger is coming to India after at least six
months’ stay abroad. For crew members of a vessel or aircraft, free allowance for
petty gifts is Rs 600/-.
Transfer of Residence
In the case of passengers transferring their residence to India after stay abroad of
two years or more, personal and household effects in use abroad and six new specified household gadgets are exempt from duty but 15 % flat duty without SAD has to
be paid on 17 listed articles of consumer durables within value ceiling of 5 lakhs.
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In the case of transfer of residence after stay abroad of at least one year, other personal and household effects in use abroad and not exceeding Rs. 75,000/- in aggregate value can be brought in free. In addition, there are free allowances of varying
value for professional artisans coming to India after 3 months/6 months (duty free
household article worth Rs. 12,000/- and professional equipment worth Rs. 20,000//40,000/).
Allowance for gifts as well as for travel souvenirs in the case of foreign tourists
is Rs. 8,000/- (Rs.6,000/ - in the case of tourists from Pakistan origin), apart from
personal effects in use of the tourist. Peak rate of duty for baggage goods of Heading
98.03 is 150% non-bona fide baggage is in addition to fine and penalty.
Foreign Travel Tax and Inland Air Travel Tax have been exempted for all passengers
with effect from 9-1-2004. Passengers not carrying any dutiable goods can walk
through the Green Channel. Others are required to come to the Red Channel and report at customs counter. There are now no restrictions on resale of baggage goods.
Passengers importing / exporting commercial samples as accompanied baggage
should follow the procedure laid down in this behalf. If an importer is desirous of
paying duty on an article at the cargo rate but by mistake he has brought the said article as baggage, he can rectify the error by filling an application before the authorities
along with submission of a bill of entry.
Please visit the website www.cbec.gov.in for the complete Baggage Rules 1998.
HHH
52
CHAPTER
11
VISA RULES
Foreign Nationals desirous of coming into India are required to possess a valid passport of their country and a valid Indian Visa. It can be obtained from the Indian Mission in the country of their residence. They should possess a valid National Passport
- except in the case of nationals of Bhutan and Nepal, who may carry only suitable
means of identification.
There is no provision of ‘Visa on Arrival’ in India and no fee is charged for immigration facilities at the airports. Foreign passengers should ensure that they are in possession of valid Indian Visa before they start their journey to India except nationals
of Nepal and Bhutan who do not require visa to enter India and nationals of Maldives
who do not require visa for entry in India for a period up to 90 days (a separate Visa
regime exists for diplomatic/official passport holders).
The Consular Passport and Visa (CPV) Division of the Ministry of External Affairs
is responsible for issuance of Indian visas to the foreign nationals for their visit for
various purposes. This facility is granted through various Indian missions abroad.
Visa fees are non-refundable and subject to change without notice. The High Commission reserves the right on granting and deciding type/duration of visa irrespective
of the fees tendered at the time of making application. Granting of Visa does not
confer the right of entry to India and is subject to the discretion of the Immigration
Authorities.
Specific Visas are granted for a variety of purposes. Listed below in a tabular form
are the types of visa; categorised on the basis of purpose of staying in India.
Tourist Visa
Period : 6 months
Documents required : Docs supporting the applicant’s financial standing
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Conference Visa
Period : For the duration of the conference or seminar
Documents required : Letter of invitation from the organiser of the conference
Business Visa Period : One or more years Documents required : Letter from the sponsoring organisation
Student Visa
Period : For the duration of the academic course of study or for a period of five years
whichever is less Documents required : Proof of admission to recognized Universities/Institutions in
India
Transit Visa Duration : Maximum For 15 Days
Documents required : Evidence of onward travel to a destination outside India. For
the duration of the conference or seminar letter of invitation from the organiser of
the conference is required.
Visa Application Form
Visa application form is available at the office of Indian Embassy in the country
where the NRI/PIO resides. Visa form for nationals of Pakistan and Bangladesh are
generally different. All NRIs/PIOs, including children (who don’t possess OCI or
PIO card) need to apply for Visa in separate visa forms.
Procedure for obtaining Visa
Visas can be applied for in person or by post at the High Commission of India based
in the country from where the candidate intends to depart for India. Specific visas
are granted for a variety of purposes that are aforementioned.
Requirements for Visa
Generally the following documents are required for obtaining Indian Visa. However, the requirement may vary from country to country.
• Original passport valid for at least 6 months
• Visa fee
• Two passport size photographs
• Supporting documents, where necessary
• Duly completed application form
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Visa for NRIs and PIOs
Persons of Indian Origins and Non-Resident Indians who possess either OCI (Overseas Indian Citizenship) or PIO card don’t need Indian Visa. OCI and PIO give them
the freedom to visit India without visa. OCI and PIO cards are multi-purpose life
long visa for visiting India.
However, those NRIs and PIOs who don’t have OCI or PIO card can apply for and
get Indian visa through the procedure mentioned above.
HHH
55
CHAPTER
12
FOREIGN INVESTMENTS IN INDIA
Foreign companies can make investments or operate their business in India in a
number of ways such as Liaison/ Representative Office, Project Office, Branch Office, 100% Wholly owned subsidiary and Joint venture company. The requisite approval can be granted by Reserve Bank of India (RBI) or Foreign Investment promotion Board (FIPB). Any company set up with FDI has to be incorporated under the
Indian Companies Act with the Registrar of Companies, Department of Company
Affairs and all Indian operations would be conducted through this company.
Investments by NRIs
The Government attaches importance to investments by NRIs. Government has provided a liberalised policy framework for approval of NRI investments through both
the Automatic and the Government route. NRIs are permitted to invest up to 100%
equity in the Real Estate and Civil Aviation Sectors. Automatic Approval is given by
the RBI to all NRI proposals with their investment up to 100% for all items / activities except a few exceptions mentioned in Press Note 2 (2000 series) read with sector
specific guidelines. Government approval is given for all proposals not qualifying
for Automatic Approval.
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Repatriation of profits & dividends
All profits, dividends, royalty, know how payments that have been approved by the
Government/RBI can be repatriated. Some sectors like investment in development
of integrated township, NRI Investment in real estates, etc. may attract a lock-in
period.
Joint venture companies
The following formalities are required for the joint ventures that want to increase in
their foreign equity holding by acquisition of shares or by any other means:
a)If only the quantum of foreign equity increased without change in percentage then
Press Note no. 7 (1999 series) may be followed.
b) For increase in percentage of foreign equity by way of expansion of capital base,
automatic route or FIPB / Government route would apply depending upon the nature
of proposal in terms of Press Note No. 2 (2000 series)
c) Cases involving increase in percentage in foreign equity by way of acquiring
existing shares in an Indian company would necessarily require prior approval of
FIPB/Government.
d) In cases involving inclusion of an additional foreign collaborator, guidelines laid
down in Press Note No. 18 (1998 series) would have to be satisfied.
Conversion of non-repatriable shares
For conversion of non-repatriable shares into repatriable shares, FIPB approval is
required. Where original investment was made in foreign exchange, the change is
allowed without any conditions; if not, the sale proceed will have to be repatriated to
India by opening an NRO account.
Acquisition and Transfer of Immovable Property
A person resident outside India who is a citizen of India (NRI) can acquire by way of
purchase any immovable property in India other than agricultural/ plantation /farm
house. He may transfer any immovable property other than agricultural or plantation
property or farm house to a person resident outside India who is a citizen of India
or to a person of Indian origin resident outside India or a person resident in India.
He may transfer, agricultural land/ plantation property/ farm house only to Indian
citizens permanently residing in India.
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A person resident outside India who is a person of Indian Origin ( PIO) can acquire
any immovable property in India other than agricultural land/ farm house/ plantation
property :a) By way of purchase out of funds received by way of inward remittance through
normal banking channels or by debit to his NRE/FCNR(B)/NRO account.
b) By way of gift from a person resident in India or a NRI or a PIO.
c) By way of inheritance from a person resident in India or a person resident outside India who had acquired such property in accordance with the provisions of the
foreign exchange law in force or FEMA regulations at the time of acquisition of the
property.
A PIO may transfer any immoveable property other than agricultural land/Plantation
property/farmhouse in India:
a)By way of sale to a person resident in India.
b)By way of gift to a person resident in India or a Non Resident Indian or a PIO..
A PIO may transfer agricultural Land/ Plantation property /farmhouse in India by
way of sale or gift to person resident in India who is a citizen of India
Acquisition or transfer of agricultural land / plantation
All requests for acquisition or transfer of agricultural land /plantation property/farm
house by any person resident outside India or a foreign national may be made to the
Chief General Manager, Reserve Bank of India, Central Office, Exchange Control
Department, Foreign Investment Division (III), Mumbai-400 001 (India). No application form has been prescribed.
Purchase/ Sale by Foreign Embassies/ Diplomats
Foreign Embassy/Consulate as well as Diplomatic personnel in India are allowed to
purchase/ sell immovable property in India other than agricultural land/ plantation
property / farm house provided (i) clearance from Government of India, Ministry
of External Affairs is obtained for such purchase/ sale, and (ii) the consideration for
acquisition of immovable property in India is paid out of funds remitted from abroad
through banking channel.
Acquisition of Immovable Property for a permitted activity
A person resident outside India who has a branch, office or other place of business,
(excluding a liaison office) for carrying on his business activity with requisite approvals, in India may acquire an immovable property in India which is necessary
58
for or incidental to carrying on such activity provided that all applicable laws, rules,
regulations or directions for the time being in force are duly complied with. The
entity/concerned person is required to file a declaration in the form IPI with the Reserve Bank, within ninety days from the date of such acquisition. The non-resident is
eligible to transfer by way of mortgage the said immovable property to an authorised
dealer as a security for any borrowing.
Repatriation of sale proceeds
In the event of sale of immovable property other than agricultural land/ farm house/
plantation property in India by NRI/PIO, the authorised dealer will allow repatriation
of sale proceeds outside India provided;
i)The immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the
provisions of FEMA Regulations;
ii) The amount to be repatriated does not exceed (a) the amount paid for acquisition
of the immovable property in foreign exchange received through normal banking
channels or out of funds held in Foreign Currency Non-Resident Account or (b) the
foreign currency equivalent as on the date of payment, of the amount paid where
such payment was made from the funds held in Non-Resident External account for
acquisition of the property.
iii) In the case of residential property, the repatriation of sale proceeds is restricted to
not more than two such properties.
iv) In the case of sale of immovable property purchased out of Rupee funds, authorised dealers may allow the facility of repatriation of funds out of balances held
by NRIs/PIO in their Non-resident Rupee( NRO) accounts up to US$ 1 million per
calendar year subject to production of undertaking by the remitter and a certificate
from the Chartered Accountant in the formats prescribed by the CBDT.
Prohibition on acquisition or transfer by citizens of certain countries
No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China,
Iran, Nepal or Bhutan shall acquire or transfer immovable property in India, other
than lease, not exceeding five years without prior permission of Reserve Bank.
Foreign national of non-Indian origin resident outside India are not permitted to
acquire any immovable property in India unless such property is acquired by way of
inheritance from a person who was resident in India.
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Foreign Nationals of non Indian origin who have acquired immovable property in
India with the specific approval of the Reserve Bank cannot transfer such property
without prior permission of the Reserve Bank.
Residential properties
There are no restrictions on number of residential properties that may be bought by
an NRI. However, repatriation is allowed only in respect of two such properties and
that, too, after three years from date of acquisition of such property or from date of
payment of final installment, whichever is later.
Repatriation of Sale Consideration
India is fully convertible on current account and partial on capital account. Remittance of sale proceed is limited to the cost of property only and the amount of gain
on sale of property, cannot be repatriated.
HHH
60
CHAPTER
13
REMITTANCE FACILITIES FOR
NRIS/PIO AND FOREIGN NATIONALS
The guidelines for transfer of assets outside India by a person whether resident
in India or not are given in the Notifications No. FEMA 13/2000-RB and FEMA
21/2000-RB both dated May 3, 2000 and the amendments issued thereto from time
to time.
According to the above Notifications, remittance of capital assets in India held by a
person whether resident in or outside India would require approval of the Reserve
Bank except to the extent provided in the Act or Rules or Regulations made under
the Act.
Remittance of assets by a foreign national of non-Indian origin
A foreign national of non-Indian origin who has retired from an employment in
India or who has inherited assets from a person resident in India or who is a widow
of an Indian citizen resident in India may remit an amount not exceeding USD one
million, per calendar year, on production of documentary evidence in support of
acquisition/ inheritance of assets, an undertaking by the remitter and certificate by
a Chartered Accountant in the formats prescribed by the Central Board of Direct
Taxes vide their Circular No.10/2002 dated 9th October 2002.
These remittance facilities are not available to a citizen of Nepal and Bhutan.
The remittance facility in respect of sale proceeds of immovable property is not
available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran,
Nepal and Bhutan.
Remittance of assets by NRI/PIO
A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) may remit an
amount up to USD one million, per calendar year, out of the balances held in his
Non-Resident (Ordinary) Rupee (NRO) account/ sale proceeds of assets (inclusive
of assets acquired by way of inheritance or settlement), for all bonafide purposes,
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to the satisfaction of the authorized dealer, on production of an undertaking by the
remitter and certificate by a Chartered Accountant in the formats prescribed by the
Central Board of Direct Taxes vide their Circular No.10/2002 dated October 9, 2002.
NRI/PIO may remit sale proceeds of immovable property purchased by him out of
Rupee funds or as a person resident in India.
In respect of remittance of sale proceeds of assets acquired by way of inheritance
or legacy or settlement for which there is no lock-in period, NRI/PIO may submit
documentary evidence in support of inheritance or legacy of assets, an undertaking
by the remitter and certificate by a Chartered Accountant in the formats prescribed
by the Central Board of Direct Taxes vide their Circular No.10/2002 dated October
9, 2002.
It is clarified that settlement is also a mode of inheritance from the parent, the only
difference being that the property under the settlement passes to the beneficiary on
the death of the owner/parent without any legal procedures/hassles and helps in
avoiding delay and inconvenience in applying for probate, etc.
The remittance facility in respect of sale proceeds of immovable property is not
available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran,
Nepal and Bhutan.
Repatriation of sale proceeds of residential property out of foreign exchange
There is no lock-in period for sale of residential property purchased by NRI/PIO out
of foreign exchange. However, repatriation of sale proceeds of residential property
purchased by NRI/PIO out of foreign exchange is restricted to not more than two
such properties.
Authorized dealers may permit repatriation of amounts representing the refund of
application/earnest money/purchase consideration made by the house building agencies/seller on account of non-allotment of flat/plot/cancellation of bookings/deals for
purchase of residential/ commercial property, together with interest, if any (net of
income tax payable thereon), provided the original payment was made out of NRE/
FCNR account of the account holder, or remittance from outside India through normal banking channels and the authorized dealer is satisfied about the genuineness of
the transaction. Such funds may also be credited to the NRE/FCNR account of the
NRIs/PIOs, if they so desire.
Authorized dealers may allow repatriation of sale proceeds of residential accommodation purchased by NRIs/PIOs out of funds raised by them by way of loans from
the authorized dealers/housing finance institutions to the extent of such loan/s repaid
by them out of foreign inward remittances received through normal banking channel
or by debit to their NRE/FCNR accounts.
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Remittance of current income
Remittance of current income like rent, dividend, pension, interest etc. of NRIs/PIOs
who do not maintain NRO Account is freely allowed, on the basis of appropriate certification by a Chartered Accountant certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.
NRIs/PIOs have the option to credit the current income to their Non-Resident (External) Rupee account, provided the authorized dealer is satisfied that the credit represents current income of the non-resident account holder and income tax thereon
has been deducted/provided for.
Facilities for students
Students going abroad for studies are treated as Non-Resident Indians (NRIs) and
are eligible for all the facilities available to NRIs under FEMA.
As Non-Residents, they will be eligible to receive remittances from India (i) up to
USD 100,000 from close relatives in India on self declaration towards maintenance,
which could include remittances towards their studies also and (ii) up to USD 1 million out of sale proceeds of assets/balances in their account maintained with an AD
in India.
All other facilities available to NRIs under FEMA are equally applicable to the students.
Educational and other loans availed of by them as residents in India will continue to
be available as per FEMA regulations.
Income- tax clearance
The remittances will be allowed to be made by the authorized dealers on production
of an undertaking by the remitter and a Certificate from a Chartered Accountant in
the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance,
Government of India in their Circular No.10/2002 dated October 9, 2002. [cf. our
AP(DIR Series) Circular No.56 dated November 26, 2002].
International Credit Cards
Authorized dealers have been permitted to issue International Credit Cards to NRIs/
PIOs, without prior approval of RBI. Such transactions may be settled by inward
remittance or out of balances held in the cardholder’s FCNR/NRE/Non-Resident
(Ordinary) Rupee accounts.
HHH
63
CHAPTER
14
WILL
A will is a very important and ‘must have document’ for every NRI. This is a legal
document, which consists of the rights of an individual after his death. It enables the
individual to rightfully leave his wealth to whoever he chooses to.
In the law, a Will or Testament is a documentary instrument by which a person (the
testator) regulates the rights of others over the testator’s property or family after his
death. Executing a valid Will is the only legal way to ensure that your chosen beneficiaries receive all, or a share of your estate, that you bequeath to them.
After the death of a person, his property devolves in two ways:
• According to the respective law of succession, when no will is made- ie.intestate
• By way of will ie. testamentary
The Indian Succession Act
India has a well developed system of succession laws that governs a person’s property after his death. The Indian Succession Act 1925 applies expressly to wills and
codicils made by Hindus, Buddhists, Sikhs, Jains, Parsis and Christians but not to
Mohammedans as they are largely covered by Muslim Personal Law. A will has
been defined as follows in the Indian Succession Act:
“A Will is the legal declaration of the intention of the testator, with respect to his
property which he desires to be carried into effect after his death.”
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Important postulates of a will are as follows:
• Legal declaration: A Will is a legal declaration. The documents purporting to be
a Will or a testament must be legal, i.e. in conformity with the law and must be executed by a person legally competent to make it.. It must be signed and attested, as
required by law.
• Disposition of property: The declaration should relate to disposition of the property of the person making the Will.
• Death of the Testator: A will becomes enforceable only after the death of the testator. It gives absolutely no rights to the legatee (the person who inherits) until the
death of the testator. It has no effect during the lifetime of the testator. The testator
can change his will, at any time prior to his death, in any manner he deems fit.
• Revocability: The essence of every Will is that it is revocable during the lifetime
of the testator.
According to Section 59 of the Indian Succession Act, any person of sound mind
Who has reached the age of majority can execute a will. Persons who are deaf or
dumb or blind are not, thereby, incapacitated in making a will, if they are able to
know what they do by it. A person, who is ordinarily insane, may make a will during
an interval while he is of sound mind. No person can make a will whilst he is in such
a state of mind, whether arising from intoxication or from illness or from any other
cause, so that he does not know what he is doing.
Executor of a Will
An executor is the person appointed ordinarily by the testator’s by his will or codicil
to administer testator’s property and to carry into effect the provision of the will
Codicil
A Codicil is an instrument made in relation to a Will, explaining, altering or adding to its dispositions, which shall be deemed to form part of the Will. The Testator
wants to change the names of the Executors by adding some other names, in that
case this could be done by making a Codicil in addition to the Will, as there may not
be other changes required to be made in the main text of the Will. It may be that the
Testator wants to change certain bequests by adding to the names of the legatees or
subtracting some of them. It may be some Beneficiaries or Executor may be dead
and the names are required to be removed. All these can be done by making a Codicil. The Codicil must be reduced to writing. It must be signed by the Testator and
attested by two Witnesses.
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Attestation of Will
The testator shall sign or shall affix his mark to the will, or some other person shall
sign it in his presence and by his direction. The signature or mark of the testator,
or the signature of the person signing shall appear clearly and should be legible. It
should appear in the manner that is appropriate and makes the will legal. The will
shall be attested by two or more witnesses, each of whom has seen the testator sign
or affix his mark to the will or has seen other person sign the will, in the presence and
by the direction of the testator, or has received from the testator. Personal acknowledgement of his signature or mark, or of the signature of such other person. Each of
the witnesses shall sign the will in the presence of the testator. Each of the witnesses
shall sign the will in the presence of the testator, but it should not be necessary that
more than one witness be present at the same time, and no particular form of attestation shall be necessary.
Registration
A will written in a plain paper is a valid document. It need not be written in a stamp
paper, nor needs it to be registered. If the testator intends to register it, it can be
done in the office of the Registrar/sub-registrar with a nominal registration fee. The
testator must be personally present at the registrar’s office along with witnesses. The
endorsement of the register is sufficient to prove the execution of the will, if at all
the testators of the will are dead and if the testator affirms the contents of the will and
put his thumb impression on the endorsement in the presence of the sub-registrar, the
sub-registrar could also be considered to be an attesting witness.
There is no prescribed form of a Will. In order for it to be effective, It needs to be
properly signed and attested. The Will must be initialed by the testator at the end of
every page and next to any correction and alteration.
A Will can be written in any language. No technical words need to be used in a Will.
The words used should be clear and unambiguous so that the intention of the testator
is reflected in his Will.
HHH
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CHAPTER
15
CONSUMER PROTECTION LAW
The year 1986 is a ‘Magna Carta’ in the history of Consumerism. It was this year that
witnessed the enactment of the Consumer Protection Act. The first ever legislation in
India of its kind which solely aimed at the grief taken consumers who the victims of
the unfair trade practices and sub standard services rendered to them. The preamble
to this Act reads as follows: An Act to provide for better protection of the interests
of the consumers and to make provisions for the establishment of consumer councils
and other authorities for the settlement of consumers’ disputes and for matter connected therewith.
Defining Consumer:
The definition of the term ‘consumer’ given in clause (d) of section 2(1) of the Act
is comprehensive one so as to cover not only consumer of goods but also consumer
of services. The definition is wide enough to include in ‘consumer’ that only the
person who buys any goods for consideration but also any uses of such goods with
the approval of the buyer. Similarly, it covers any person who hires or avails of any
services for consideration and also includes any beneficiary of such services, when
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availed with the approval of the hirer. Thus, any user of goods or any beneficiary of
services, other than the actual buyer or hirer, is a consumer for the purpose of the Act
and he is competent to make a complaint before the Consumer Disputes Redressal
Forums under the Act.
User of Goods
The definition of ‘consumer’ given in the Act makes it clear that it includes not only
the person who buys any goods for consideration but also any user of such goods
when such use is made with the approval of the buyer. This was necessary because
the goods purchased by a buyer are most likely to be used by his family members,
relatives, and friends. Under the general principles of the law of contract, such user
of goods are not entitled to sue the supplier or trader of such goods on the ground of
‘privity of contract’.
Consumer of Goods
Under sub-clause (i) of section 2 (i)(d) a consumer for the purpose of goods means
any person, who(a) buys any goods for consideration which has been paid or promised or partly paid
and partly promised , or under any system of deferred payment, and (b) includes any
user of such goods other than the person who buys them, when such use is made with
the approval of the buyer, but (c) does not include a person who obtains such goods
for resale or for any commercial purpose.
Commercial purpose does not include use by a person of goods bought and used by
him exclusively for the purpose of earning his livelihood by means of self employment.
The above provision reveals that a person claiming himself as ‘consumer’ should
satisfy that:
1) There must be a sale transaction between the seller and the buyer
2) The sale must be of goods
3) The buying of goods must be for consideration
4) The consideration has been paid or promised or partly paid and partly promised or
under any system of deferred payment.
5) The user of the goods may also be a consumer when such use is made with the approval of the buyer.
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However, the term ‘consumer’ does not include a person who obtains any goods
for resale or for any commercial purpose. It is obvious that the parliament intended
to restrict the benefits of the Act to ordinary consumers purchasing goods either
for their own consumption or even for use in some small venture which may have
embarked upon in order to make a living as distinct from large scale manufacturing
or processing activity carried on for profit. Persons buying goods either for resale or
for use in a large-scale profit making activity will not be ‘consumers’ entitled under
the Act.
Consumer of Services
The second category of consumer laid down under the Act is that of hirer or user
of services. Under sub-clause (ii) of section 2 (1)(d) of the Act, a consumer for the
purpose of services means any person, whoa)Hires or avails of any services for consideration which has been paid or promised
or partly paid and partly promised or under any system of deferred payment.
b) Includes any beneficiary of such services other than the person who hire or avails
of them, when such services are availed of with the approval of the hirer, but
c)Does not include a person who avails of such services for any commercial purpose.
Commercial purpose does not include a person of services availed by him exclusively for the purpose of earning his livelihood by means of self-employment.
The Consumer Protection (Amendment) Act, 2002 has excluded from the definition
of ‘consumer’ any person who avails of services for commercial purpose. The commercial undertakings which are already excluded from approaching the redressal
agencies in respect of defective goods will thus be excluded from seeking relief from
such agencies in respect of deficient services as well.
Redressal of Grievances:
Section 9 of the Consumer Protection Act, 1986 deals with the establishment of
three –tier Consumer Disputes Redressal Redressal Agencies, namely: a)The District Forum
b) The State Commission; and
c)The National Consumer Disputes Redressal Commission
Section 10, 16 and 20 of the Consumer Protection Act, 1986 deal with composition
of the District Forum, the State Commission and the National Commission respectively; while sections 11, 17 and 21 of the Act lay down the jurisdiction of the Consumer Disputes Redressal Agencies as under: -
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(a) The District Forum – to ascertain complaints where the value of the goods or
services and the compensation, if any, claimed does not exceed rupees twenty lakh.
(b) The State Commission – (i) to entertain complaints where the value of the goods
or services and compensation, if any, claimed exceeds rupees twenty lakh but does
not exceed rupees one crore. (ii) to entertain appeals against the orders of any District Forum within the State; and (iii) to call for the records and pass appropriate
orders in any consumer dispute which is pending before or has been decided by any
District Forum within the State, where it appears to the State Commission that such
District Forum has exercised a jurisdiction not vested in it by law, or has failed to
exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally
or with material irregularity.
(c) The National Commission – (i) to entertain complaints where the value of the
Goods or services and compensation, if any, claimed exceeds rupees one crores.(ii)
to entertain appeals against the orders of any State Commission; and (iii) to call for
the records and pass appropriate orders in any consumer dispute which is pending
before or has been decided by any State Commission where it appears to the National
Commission that such State Commission has exercised a jurisdiction not vested in it
by law, or has failed to exercise a jurisdiction so vested in it by law ,or has failed to
exercise a jurisdiction so vested ,or has acted in exercise of its jurisdiction illegally
or with material irregularity.
The manner in which complaint is to be made, the procedure on receipt of complaint
and the reliefs that can be granted by the District Forum and the State Commission
are incorporated in sections 12 to 14 and 18 of the Act, while the procedure to be
adopted by the National Commission is given in section 22 of the Consumer Protection Act, 1986 read with the rules 14 and 15 of the Consumer Protection Rules,
1987.
The following reliefs can be granted by the Consumer Disputes Redressal Agencies: a)To remove the defect pointed out by the appropriate laboratory from the goods in
question;
b) To replace the goods with new goods of similar description which shall be free
from any defect;
c)To return to the complainant the price , or , as the case may be , the charges paid
by the complainant;
d) To pay such amount as may be awarded by its as compensation to the consumer for
any loss or injury suffered by the consumer due to the negligence of the opposite party;
e) To remove the defects or deficiencies in the services in question ;
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f)To discontinue the unfair trade practice or the restrictive trade practice or not to
repeat them;
g) No to offer the hazardous goods from being offered for sale;
h) To withdraw the hazardous goods from being offered for sale;
i)To provide for adequate costs to parties
Appointing Authority
The District Forums and the State Commissions are to be appointed by the State
Governments and in every State they have been appointed. The National Commission is to be established by the Central Government by notification in the Gazette
of India and consequently the National Commission has been established by the
Central Government vide notification dated 17th August 1988.
Time for Appeals
Any person aggrieved by an order made by the District Forum may prefer an appeal
to the State Commission within thirty days of the order under section 15 of the Act;
and any person aggrieved by an order made by the State Commission in exercise
of its power may prefer an appeal against such order to the National Commission
within a period of thirty days from the date of order as per provision of section 19
of the Act; while any person aggrieved by an order made by the National Commission may prefer an appeal against such order to the Supreme Court within a period
of thirty days from the date of order as per provision of section 23 of the Consumer
Protection Act, 1986.
Under section 24 of the Act every order of a District Forum, State Commission or
the National Commission shall, if no appeal has been preferred against such order
under the above provisions of this Act, be final. Therefore no civil court can entertain or try any suit against any order passed by these consumer disputes redressal
agencies.
Section 25 of the Act provides that every order made by the District Forum, the State
Commission or the National Commission may be preferred by the District Forum,
the State Commission or the National Commission, as the case may be, in the same
manner as if it were a decree or order by a Court in a suit pending therein and it shall
be lawful for the District Forum, the State Commission or the National Commission
to send, in the event of its inability to execute it, such order to the Court within the
local limits of whose jurisdiction:
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(a) in the case of an order against a company , the registered office of the company is
situated, or (b) in the case of an order against any other person, the place where the
person concerned voluntarily resides or carries on business or personally works for
gain is situated, and thereupon, the Court to which the order is sent, shall execute the
order as if it were a decree or order sent to it for execution. The object of the Consumer Protection Act, 1986 to provide speedy, simple and inexpensive redressal of
consumer disputes has, therefore, been accomplished by the established of three-tier
system for the redressal of grievances under the Act.
Penalties
Section 27 of the Consumer Protection Act provides that where a trader or a person
against whom a complaint is made or the complainant fails or omits to comply with
any order made by the District Forum, the State Commission or the National Commission , as the case may be, such trader or person or complainant shall be punishable with imprisonment for a term which shall not be less than one month but which
may extend to three years , or with fine which shall not be less than two thousand
rupees but which may extend to ten thousand rupees, or with both:
Provided that the District Forum, the State Commission or the National Commission, as the case may be, may, if it is satisfied that the circumstances of any case so
require, impose a sentence of imprisonment or fine, or both, for a term lesser than
the minimum term and the amount lesser than the minimum amount, specified in this
section.
By virtue of section 23 of the Consumer Protection Act, 1986 an appeal against the
order of the National Commission lies to the Supreme Court of India. To conclude,
the Consumer Protection Act, 1986 is intended to protect the legitimate interests of
consumers against traders, suppliers, etc.
HHH
72
CHAPTER
16
COMMERCIAL COMPANIES IN INDIA
Incorporation of Business Entity
A foreign company planning to set up business operations in India has the following
options to set up a business entity:1)As an incorporated entity under the Companies Act 1956 through Joint
Ventures or wholly owned subsidiaries
2)As an unincorporated entity through liaison office/representative office or
project office or branch office of a foreign company. Such offices can undertake activities permitted under the Foreign Exchange Management (establishment in India
of branch office of other place of business) Regulations 2000.
Incorporation of a Company
Incorporation of a company in India is governed by the Companies Act 1956. A
company could be a private limited company or a public limited company. Companies Act, 1956 is an ever changing Legislation regulating the formation and functioning of Indian Corporate World with complex provisions spread over XIII Parts,
658 Sections and XV Schedules, also various Rules and Regulations framed and
Guidelines/Notifications, issued under the Act by the Government of India and other
regulatory bodies such as RBI, SEBI, Stock Exchanges.
Private Limited Company
A Private Limited Company is a Company limited by shares in which there can be
maximum 50 shareholders, no invitation can be made to the public for subscription
of shares or debentures, cannot make or accept deposits from Public and there are
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restriction on the transfer of shares. The liability of each shareholder is limited to
the extent of the unpaid amount of the shares face value and the premium thereon in
respect of the shares held by him. However, the liability of a Director / Manager of
such a Company can at times be unlimited. The minimum number of shareholders
is two.
Public Limited Company
A Public Limited Company is a Company limited by shares in which there is no
restriction on the maximum number of shareholders, transfer of shares and acceptance of public deposits. The liability of each shareholder is limited to the extent of
the unpaid amount of the shares face value and the premium thereon in respect of the
shares held by him. However, the liability of a Director / Manager of such a Company can at times be unlimited. The minimum number of shareholders is seven.
Advantages & Disadvantages of a Limited Company
A limited company has following advantages:
• Members’ (the directors and shareholders) financial liability is limited to the
amount of money they have paid for shares.
• The management structure is clearly defined, which makes it easy to appoint, retire
or remove directors.
• If extra capital is needed, it can be raised by selling more shares privately.
It is simple to admit more members.
• The death, bankruptcy or withdrawal of capital by one member does not affect the
company’s ability to trade.
• The disposal of the whole or part of the business is easily arranged.
• High status.
A limited company has following disadvantages:
• Requirement to register the company with the registrar of companies and provide
annual returns and audited statement of accounts. All details of the company are
available for public inspection so there can be no secrecy. There are penalties for
failing to make returns.
• Can be more expensive to set up.
• May need professional help to form.
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• As a director, you are treated as an employee and must pay tax.
• The advantages of limited liability status are increasingly being undermined by
banks, finance house, landlords and suppliers who require personal guarantees from
the directors before they will do business.
Best Suited Entity
The choice of entity depends on circumstance of each case. Private Limited Company has lesser number of compliances requirements. Therefore, generally where
there is no requirement of raising of finances through a public issue and the ownership is intended to be closely held by limited number of persons, Private Limited
Company is the best choice.
Minimum paid-up capital of a Private Limited Company
The minimum paid up capital at the time of incorporation of a private limited company has to be Indian Rupees 1,00,000. There is no upper limit on having the authorized capital and the paid up capital. It can be increased any time, by payment of
additional stamp duty and registration fee.
Difference between authorized capital and paid up capital
The authorized capital is the capital limit authorized by the Registrar of Companies
up to which the shares can be issued to the members / public, as the case may be.
The paid up share capital is the paid portion of the capital subscribed by the shareholders.
Procedure in obtaining a name approval for the proposed Company
An application in Form No. 1A needs to be filed with the Registrar of Companies
(ROC) of the state in which the Registered Office of the proposed Company is to
be situated. The application is required to be signed by one of the promoters. The
details to be state in the said application are as follows:1. Four alternative names for
the proposed company. (The name can be coined names from the objects of the proposed company or the names of the directors, etc. but should definitely be indicative
of the main object of the company. Justification for the name needs to be specified
along with the application)2. Names and addresses of the promoters (Minimum 7
for a public company while 2 for private company).3. Authorized Capital of the proposed company.4. Main objects of the proposed company.5. Names of other group
companies. On submitting the application, the ROC scrutinizes the same and sends
the approval / objections in about 10 days to the applicant. On fulfilling of the objections a formal letter of name approval is issued.
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Memorandum of Association and the Articles of Association
On receipt of the name approval letter from the ROC the Memorandum of Association (MOA) and the Articles of Association (AOA) are required to be drafted.
The MOA states the main, ancillary / subsidiary and other objects of the proposed
company. The AOA contains the rules and procedures for the routine conduct of the
proposed company. It also states the authorized share capital of the proposed company and the names of its first / permanent directors. Once the MOA and AOA are
prepared, they are required to be stamped.
A stamp duty is required to be paid on the MOA and on the AOA. The stamp duty
depends on the authorized share capital.
Documents required to be executed for incorporation
The following documents are required to be executed (signed) before they are submitted to the ROC:
1) MOA and AOA - These are required to be executed by the promoters in their own
hand in the presence of a witness in quadruplicate stating their full name, father’s
name, residential address, occupation, number of shares subscribed for, etc.
2) Form No. 1 - This is a declaration to be executed on a non-judicial stamp paper of
INR 20 by one of the directors of the proposed company or other specified persons
such as Attorneys or Advocates, etc. stating that all the requirements of the incorporation have been complied with.
3) Form No. 18 - This is a form to be filed by one of the directors of the company
informing the ROC the registered office of the proposed company.
4) Form No. 29 - This is a consent obtained from all the proposed directors of the
proposed company to act as directors of the proposed company. (Not required in case
of private company).
5) Form No. 32 - This is a form stating the fact of appointment of the proposed
directors on the board of directors from the date of incorporation of the proposed
company and is signed by one of the proposed directors.
6) Name approval letter in original.
7) Power of Attorney signed by all the subscribers of MOA authorizing one of the
subscribers or any other person to act on their behalf for the purpose of incorporation
and accepting the certificate of incorporation.
8) Power of Attorney in case of a subscriber who has appointed another person to
sign the MOA on his behalf.9. Filing fees as may be applicable.
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Certificate of incorporation
After the documents in FAQ 5 are filed, the ROC calls the attorney on a specific date
for scrutiny and making the corrections in the MOA and AOA filed. On complying
with the same, the certificate of incorporation is granted to the attorney.
Newly formed company and business operations
On receipt of the certificate of incorporation, the public company has to complete
certain other legal formalities such as a statutory meeting (within 6 months), statutory report, etc. On completion of the said formalities and on filing of the statutory
report with the ROC the ROC issues the certification of commencement of business
to the company. Thereafter, the Public Company can start the business operations.
The Private Company can start its business immediately on incorporation.
Legal formalities when not stationed in India
You can give Power of Attorney to a person to sign the documents on your behalf.
After the Company is incorporated, you can appoint Alternate Directors, to function
on your behalf while you are not in India. But at least once, you should be in India
within one month of the incorporation of the Company. There can be one meeting of
Board of Directors during your stay in India and all other formalities including those
of appointment of Alternate Directors can be complied with.
Approvals required for foreign investor in India
Generally, prior approval is required from the RBI before investing in India. Some
categories of businesses are covered under automatic approval process. However,
one has to apply for the same. There are some post-incorporation filing formalities
after the remittance of capital from overseas to India and on issue of shares.
OTHER FORMALITIES BEFORE OR AFTER INCORPORATION
Obtaining Permanent Account Number (PAN) from Income Tax Department
• Obeying Shop and Establishments Act
• Registration for Import Export code from Director General of Foreign Trade
• Software Technologies Parks of India registration (STPI) if required
• RBI approvals, if required.
Compliance requirements for Companies in India
All the companies who are related cyber business are required to comply with the
requirements of the law.
In addition, all the Multinational Companies Doing Business in India and having
cyber involvement are required to comply with the corporate and other laws of India
including cyber law compliance.
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The cyber law mandates all companies to have an information technology security policy.
This documents the architecture of the network, the roles and responsibility of employees, security parameters and authorization required for data access, among other
things. Other compliances that are required include relate to retention and authentication of electronic records and security of data.
Moreover, Indian Information Technology Act of 2000 provides for further personal
liabilities. For example, Section 85(1) of the IT Act provides that where a person
committing a contravention of any of the provisions of this Act or of any rule, direction or order made there under is a Company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for
the conduct of business of the company as well as the company, shall be guilty of the
contravention and shall be liable to be proceeded against and punished accordingly.
All the Indian companies and all foreign companies doing business in India, either
directly or indirectly, should comply with this law.
Requirements for a Private Limited Company
A Registered Business Name: This must be followed by the word ‘Limited’ or
‘Ltd’. The Companies Registration Office exercises some control over the choice of
name, it cannot be identical (or very similar to) the name of an existing company. It
won’t be considered if it is offensive or illegal and the use of certain words in a company (for example, `Institute’, `National’) can only be used in certain circumstances.
The company name must be displayed in a conspicuous place at every office, or
other premises where the company carries out business.
A Registered Office: This need not necessarily be the same address as the business
is conducted from. Quite frequently the address used for the registered office is that
of the firm’s solicitor or accountant. This is the address, through, where all official
correspondence will go.
Shareholders: There must be a minimum of two shareholders (also described as
`members’ or `subscribers’). A private company can have up to fifty shareholders.
Share Capital : The company must be formed with a stated, nominal share capital
divided into shares of fixed amounts. Small companies are frequently formed with
a nominal share capital of Rs.100. Memorandum of Association: The memorandum
is the company’s charter. It states the company’s name; the situation of its registered
office; its share capital; the fact that liability is limited and, most importantly, the object for which the company has been formed. In theory, the company can only operate in the areas mentioned in the objects clause but in practice the clause is drawn to
cover as wide an area as possible, and anyway a 75 per cent majority of the members
of the company can change the objects whenever they like. Nevertheless, it is worth
bearing in mind that directors of the company will incur personal liability if the
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company engages in a type of business which is not authorised by the objects clause.
The memorandum must be signed by at least three shareholders.Articles of Association: The document contains the internal regulations of the company, the relationship of the company to its shareholders and the relationship between the individual
shareholders. Many companies don’t bother to draw up their own articles but adopt
(sometimes with some modifications) articles set out in the Companies Act.
Certificate of Incorporation: This is the document, which the registrar of companies issues to you once he has approved your choice of name and your memorandum. When you receive this document your company legally exists and is ready to
trade.
Auditors: Every company must appoint a qualified auditor. The auditor’s duty is to
report to the treasurer whether or not the books of the company have been properly
kept, and that the balance sheet and profit and loss account presents (or doesn’t
present) a true and fair view of the company’s affairs and complies with the Companies Act. Auditors are appointed or re-appointed at general meetings at which annual
accounts are presented, and they hold office from the conclusion of the meeting until
the next general meeting.
Accounts: The Companies Act lays down strict rules on accounting. Every company must maintain a set of records, which show the financial position at any one
time with reasonable accuracy. The accounts comprise a profit and loss account and
balance sheet with the auditors’ and directors’ reports appended. A new company’s
accounting reference period begins on its incorporation and runs until the following 31st March - unless the company notifies the registrar of companies otherwise.
Within ten months of the end of an accounting reference period, an audited set of accounts must be laid before the shareholders at a general meeting and a set delivered
to the registrar of companies.
Registers etc.: In addition to the accounts books, companies are required to have: a
register of members and share ledger; a register of directors and secretaries; a register of share transfers; a register of charges; a register of debenture holders; a book
can be purchased to hold all of the above. This will be provided automatically if you
buy a running concern.
Company Seal: All companies must have an engraved seal. This must be impressed
on share certificates and must be used whenever the company has to execute a deed.
Again, this is included in the ready-made company package.
HHH
79
CHAPTER
17
FOREIGN DIRECT INVESTMENT
Indian real estate has huge potential demand in almost every sector especially commercial, residential, retail, industrial, hospitality, healthcare etc.
Commercial office space requirement is led by the burgeoning outsourcing and Information Technology Industry. The leaders of the IT/ITES world have set up or are
setting up their centers in India. Estimated demand from IT/ITES sector alone is
expected to be 150mn sq.ft. of space across the major cities by 2010.
In residential sector there is housing shortage of 19.4 million units out of which 6.7
million are in urban India.
The increase in purchasing power and exposure to organized retail formats has redefined the consumption pattern. As a result the country has experienced mushrooming
of retail projects across the cities.
The main growth thrust is coming due to favorable demographics, increasing purchasing power, existence of customer friendly banks & housing finance companies,
professionalism in real estate and favorable reforms initiated by the government to
attract global investors.
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Foreign Investment (FDI) in Real Estate Sectors in India
Previously, only NRI’s and PIO’s were allowed to invest in the housing and the real
estate sectors. Foreign investors other than NRIs were allowed to invest only in development of integrated townships and settlements either through a wholly-owned
subsidiary or through a joint venture (JV) company along with a local partner.
India fully opened FDI in real estate in 2005. However, norms issued later made a
minimum capitalization of $10 million for wholly-owned subsidiaries and $5 million for joint ventures mandatory. The government also imposed a minimum area
requirement.
The department of industrial policy and promotion had in March 2005 allowed FDI
in real estate in projects in a minimum area of 25 acres.
The finance ministry has allowed external commercial borrowing (ECB) in realty
projects involving integrated townships of 25 acres or 50,000 sq m. However, the
Reserve Bank of India has not yet notified it.
At present, the government allows FDI in real estate, but does not permit foreign
institutional investment. It is, however, considering a proposal not to view FDI and
FII as distinct investment flows while specifying an overall limit.
It is yet to permit foreign venture capital investors (FVCI) in the realty sector. To
ensure that the concept of special economic zones (SEZs) did not distort the realty
market, the RBI has classified lending to SEZs on par with commercial real estate,
according it higher risk weight and provisioning.
The RBI allows ECB in real estate projects involving integrated townships of 100
acres or more. In real estate projects, a large portion of money is required for land
acquisition, which is classified as working capital. But end-use restrictions like not
allowing ECB money to be used for working capital take away its attractiveness.
Foreign Direct Investment is encouraged and permitted, subject to certain conditions, in the following real estate sectors in India:
• Hotel Development
• Tourism
• Hospitality
• Township development
• Developing Commercial Real Estate
• Built-up infrastructure
• Housing and construction projects
• Building Resorts
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• Building Hospitals
• Building Educational institutions
• Building Recreational facilities
• Infrastructure projects: regional and local level
• Special Economic Zones (SEZ’s)
Conditions for Foreign Investment in Real Estate Sector in India
Foreign Direct Investment in some of the aforesaid areas (not all) is subject to some
conditions, some of which are as follows:
• Develop a minimum land area of 10 hectares for serviced housing plots, and a
minimum built-up area of 50,000 sq m in case of construction projects. The policy
does not clearly define ‘built-up’, though FSI (Floor Space Index)/FAR (Floor Area
Ratio) could be used as a basis for the same.
• Fulfill the minimum capitalization norm of $10 million for a wholly-owned subsidiary and $5 million for JVs. The funds would have to be brought in within six
months of commencement of business (which needs to be defined) of the subsidiary
or JV.
• Complete at least 50% of the integrated project within five years from the date of
obtaining all clearances.
• Do not sell undeveloped plots (with no infrastructural backup). Provide infrastructure and obtain the completion certificate from the concerned local body before disposal. This clause needs amendment because certificates are sometimes not issued
for months on end, even years, an uncertainty which tends to raise project cost, often
beyond viability.
• Do not repatriate original investment before three years from completion of minimum capitalization. Early exits require prior approval of the Foreign Investment and
Promotion Board.
Conform with all applicable local and state laws, and abide by all regulations and
norms.
HHH
82
CHAPTER
18
TAXATION POLICY IN INDIA
Foreign nationals working in India are generally taxed only on their Indian income.
Income received from sources outside India is not taxable unless it is received in
India. The Indian tax laws provide for exemption of tax on certain kinds of income
earned for services rendered in India. Further, foreign nationals have the option of
being taxed under the tax treaties that India may have signed with their country of
residence.
A person who is non-resident is liable to tax on that income only which is earned by
him in India. Income is earned in India if i.It is directly or indirectly received in India; or
ii. It accrues in India or the law construes it as having accrued in India.
The following are some of the instances when the law construes and income to have
accrued in India:-
i.income from business arising through any business connection in India (refer
Chapter X);
ii. income from property if such property is situated in India;
iii. income from any asset or source if such asset or source is in India;
iv. income from salaries if the services are rendered in India. In such cases salary
for rest period or leave period will be regarded as earned in India if it forms part of
service contract,.
v.income from salaries payable by the Government to a citizen of India even though
the services are rendered outside India;
vi. income from dividend paid by an Indian company even if the same is paid outside
India;
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vii. income by way of interest payable by Government or by any other person in
certain circumstances ;
viii. income by way of Royalty if payable by the Govern¬ment or by any other person in certain circumstances;
ix. income by way of fees for technical services if such fees is payable by the Government or by any other person in certain circumstances.
The following income even though appearing to be arising in India are construed as
not arising in India:i.If a non-resident running a news agency or publishing newspapers, magazines
etc. earns income from activities confined to the collection of news and views in
India for transmission outside India, such income is not considered to have arisen in
India.
ii. In the case of a non-resident, no income shall be considered to have arisen in India
if it arises from operations which are confined to the shooting of any cinematography film. This applies to the following types of non-residents:a.individual who is not a citizen of India; or
b.firm which does not have any partner who is a citizen of India or who is resident
in India; or
c.company which does not have any shareholder who is resident in India.
Certain income of non-residents which are mentioned in Chapters VII to X of the
Income Tax Act are totally exempt from income tax. To avoid difficulties in working out the net income of a non¬ resident from his gross receipts in India, the law
provides for taxation or most of the income of non-resident on ‘Gross income basis’, which means that the tax liability is determined on the basis of gross receipts
without going into the question of expenses incurred in earning those receipts. Such
‘Gross receipt basis’ taxation operates in two ways.
a) By laying down the rate of tax to be applied on gross receipts. The rates are determined at a figure lower than the general rate of tax applicable to total income as it
takes account of the possible expenses in earning the income. Such provisions are:i.Tax on dividend (other than dividend from do¬mestic companies), interest, royalty, fee for technical services and income from Units (Sec. 115A).
ii.Tax on income and capital gain in respect thereto from units purchased in
foreign currency by off shore funds (Sec. 11 SAB).
84
iii. Income and capital gain in respect thereto from Bonds and shares purchased in
foreign currency or acquired in resulting or amalgamated com¬pany as a result of
demerger or amalgamation (Sec 115 AC.).
iv. Tax on income other than dividend of Foreign Institutional Investors from Securities & Capital gains arising from their transfer (Sec. 115 AD).
v.Income of sportsman or Sports association (Sec. 115BBA).
b) By laying down a percentage to be applied on gross receipts to determine the net
income. The tax is then calculated at the normal rate of tax on such presumptive
income. Such provisions are:i.Profits of shipping business (Sec. 44B)
ii. Profits of business of providing services etc. to be used in the business of prospecting, explora¬tion or production of mineral oils (Sec. 44BB)
iii. Profits from operation of aircraft (Sec. 44BBA)
iv. Profit from business of civil construction etc. in certain turnkey power projects
(Sec. 44BBB)
HHH
85
CHAPTER
19
RIGHT TO INFORMATION
The dictum “Knowledge is Power” is truly applicable to the modern world and information is the most important means to acquire knowledge.
The information in the possession of the Public Authorities, by itself does not give
any added value to the public. This information belongs to the public and held for
the benefit of the public. UN General Assembly realized this fact and has resolved
that the Freedom of information is a fundamental human right and touchstone for
all freedoms to which the UN is consecrated. The Commonwealth Human Rights
Initiative propounds that the right to information underpins all other human rights.
It is under this background, the Government of India has enacted the law namely
Right to Information Act 2005 which came into effect from 12th October 2005 for
setting out the practical regime of right to information for citizens to secure access to
information under the control of public authorities, in order to promote transparency
and accountability in the working of every public authority.
In fact the ‘right to Information Bill, 2004’ was introduced in the Lok-Sabha on 23rd
December, 2004. The Bill was subsequently passed by the House on 11th May, 2005
after adopting certain amendments. The new act came into effect 120 days from the
date of enactment. According to the act all citizens shall have the right to information, subject to the provisions of the Act.
Right to information
Right to information means the right to information accessible under the Act which
is held by or under the control of any Public Authority and includes the right to inspect the work, document, records, taking notes, extracts or certified copies of documents/records, certified samples of the materials and obtaining information which is
also stored in electronic form.
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Under the law, any citizen can request for information by making an application in
writing or through electronic means in English/Hindi/Official language of the areas,
in which the application is being made together with the prescribed fees.
An applicant making request for information shall not be required to give any reason
for requesting the information or any other personal details except those that may be
necessary for contacting him.
“information” is defined in the Act as any material in any form, including records,
documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a
public authority under any other law for the time being in force.
Who will give information?
Every public Authority will designate Central Assistant Public Information Officer
(CAPIO) at various levels, and necessary number of Central Public Information Officers (CPIO) in all the offices who will arrange for providing necessary information
to the public as permitted under the Act. The public authority is also required to
designate such officer who is senior in rank to the CPIO as Appellate Authority, who
will hear the appeal against the decisions/orders passed by a CPIO.
Fee
A request for obtaining information under section 6(1) of the RTI Act shall be accompanied by application fee of Rs. 10/- by way of cash or DD or banker’s cheque
payable to Accounts Officer of the public authority.
But for providing information under section 7(1) of the Act, the fee shall be charged
under the following rates:
a) Rs. 2/- for each page (in A4 or A3 size paper) created or copied.
b) Actual charge or cost price of a copy in larger size paper
c) Actual cost or price for samples or models and
d) For inspection of records no fee for first hour, thereafter Rs. 5/- each for each 15
minutes or fraction thereof.
For providing information under section 7(5) of the Act, if it is in a diskette or floppy,
Rs.50/- per diskette or floppy.
For information provided in printed form, at the price fixed at such publication or
Rs.2/- per page of photocopy for extracts from the publication.
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Exemptions
As per sections 8 & 9 of the Act, 2005 following categories of information are
exempted from disclosure to the citizens.
• information, disclosure of which would prejudicially affect the sovereignty and
integrity of India, the security, strategic, scientific or economic interests of the State,
relation with foreign State or lead to incitement of an offence;
• information which has been expressly forbidden to be published by any court of
law or tribunal or the disclosure of which may constitute contempt of court;
• information, the disclosure of which would cause a breach of privilege of Parliament or the State Legislature;
• information including commercial confidence, trade secrets or intellectual property,
the disclosure of which would harm the competitive position of a third party, unless
the competent authority is satisfied that larger public interest warrants the disclosure
of such information;
• information available to a person in his fiduciary relationship, unless the competent
authority is satisfied that the larger public interest warrants the disclosure of such
information;
• information received in confidence from foreign Government;
• information, the disclosure of which would endanger the life or physical safety of
any person or identify the source of information or assistance given in confidence for
law enforcement or security purposes;
• information which would impede the process of investigation or apprehension or
prosecution of offenders;
• cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers;
• information which relates to personal information the disclosure of which has no
relationship to any public activity or interest, or which would cause unwarranted
invasion of the privacy of the individual (but it is also provided that the information
which cannot be denied to the Parliament or a State Legislature shall not be denied
by this exemption);
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• Notwithstanding any of the exemptions listed above, a public authority may allow
access to information, if public interest in disclosure outweighs the harm to the protected interests. (NB: This provision is qualified by the proviso to sub-section 11(1)
of the Act which exempts disclosure of «trade or commercial secrets protected by
law» under this clause when read along with 8(1)(d)))
Role of Authorities
Central Assistant Public Information Officer (CAPIO)
The CAPIO will receive the application or the appeal under the Act and forward the
same immediately to the CPIO or the Appellate Authority as the case may be along
with the relevant information/documents.
Central Public Information Officer
The CPIO will deal/process the request for providing the information and dispose of
the same, either by providing the information or rejecting the request within a period
of 30 days from the date of receipt of request. The Central Public Information Officer
may seek the assistance of any other officer as he or she considers it necessary for the
proper discharge of his or her duties.
Any officer, whose assistance has been sought, shall render all assistance to the Central Public Information Officer or State Public Information Officer, as the case may
be, seeking his or her assistance and for the purposes of any contravention of the
provisions of this Act, such other officer shall be treated as a Central Public Information Officer.
Appellate Authority
The Appellate Authority will entertain and dispose of appeals against the decision of
Public Information Officers as required under the Act. Any person, who does not receive a decision within the time specified under the Act, may within 30 days from the
expiry of such time or from the receipt of such decision can prefer an appeal before
the Appellate Authority.
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CHAPTER
20
LABOUR RULES/ REGULATIONS IN INDIA
Under the Constitution of India, Labour is a subject in the Concurrent List where
both the Central & State Governments are competent to enact legislation subject to
certain matters being reserved for the Centre. Some of the important Labour Acts,
which are applicable for carrying out business in India, are:
• Employees- Provident Fund and Miscellaneous Provisions Act, 1952
• Employees- State Insurance Act 1948
• Workmen’s Compensation Act, 1923
• Maternity Benefit Act, 1961
• Payment of Gratuity Act, 1972
• Factories Act, 1948
• Dock Workers (Safety, Health & Welfare) Act, 1986
• Mines Act, 1972
• Minimum Wages Act
• Payment of Bonus Act 1965
• Contract Labour [Regulation & Abolition] Act 1970
• Payment of Wages Act, 1936
HHH
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CHAPTER
21
INTELLECTUAL PROPERTY RIGHTS
India is a signatory to the agreement concluding the Uruguay Round of GATT negotiations and establishing the World Trade Organisation (WTO). This Agreement,
inter-alia, contains an Agreement on Trade Related Aspects of Intellectual Property
Rights (TRIPS), which came into force from 1st January 1995. It lays down minimum standards for protection and enforcement of Intellectual Property Rights in
member countries, which are required to promote effective and adequate protection
of Intellectual Property Rights with a view to reducing distortions and impediments
to international trade. The obligations under the TRIPS Agreement relate to provision of minimum standards of protection within the member country’s legal systems
and practices.
There is a well-established statutory, administrative and judicial framework to safeguard intellectual property rights in India, whether they relate to patents, trademarks,
copyright or industrial designs. Well-known international trademarks have been protected in India even when they were not registered in India. The Indian Trademarks
Law has been extended through court decisions to service marks in addition to trade
marks for goods. Computer software companies have successfully curtailed piracy
through court orders. Computer databases have been protected. The courts, under
the doctrine of breach of confidentiality, accorded an extensive protection of trade
secrets. Right to privacy, which is not protected even in some developed countries,
has been recognized in India.
Protection of intellectual property rights in India continues to be strengthened
further. The year 1999 witnessed the consideration and passage of major legislation with regard to protection of intellectual property rights in harmony with international practices and in compliance with India's obligations under TRIPS.
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These include:
1) The Patents (Amendment) Act, 1999 passed by the Indian Parliament on March
10, 1999 to amend the Patents Act of 1970 that provides for establishment of a mail
box system to file patents and accords exclusive marketing rights for 5 years.
2) The Trade Marks Bill, 1999 which repeals and replaces the Trade and Merchandise Marks Act, 1958 passed by the Indian Parliament in the Winter Session that
concluded on December 23, 1999.
3) The Copyright (Amendment) Act, 1999 passed by both houses of the Indian Parliament, and signed by the President of India on December 30, 1999.
4) A sui generis legislation for the protection of geographical indications called the
Geographical Indications of Goods (Registration & Protection) Bill, 1999 approved
by both houses of the Indian Parliament on December 23, 1999.
5) The Industrial Designs Bill, 1999 which replaces the Designs Act, 1911 was
passed in the Upper House of the Indian Parliament in the Winter Session which
concluded on December 23, 1999 and is presently before the Lower House for its
consideration. )
6) The Patents (Second Amendment) Bill, 1999 to further amend the Patents Act,
1970 and make it TRIPS compliant was introduced in the Upper House of Indian
Parliament on December 20, 1999.
In addition to the above legislative changes, the Government of India has taken several measures to streamline and strengthen the intellectual property administration
system in the country. Projects relating to the modernization of patent information
services and trademarks registry have been implemented with help from WIPO/
UNDP. The Government of India is implementing a project for modernization of
patent offices at a cost of Rs.756 million incorporating several components such as
human resource development, recruiting additional examiners, infrastructure support and strengthening by way of computerization and re-engineering work practices, and elimination of backlog of patent applications. An amendment to the Patent
Rules was notified on June 2, 1999 to simplify the procedural aspects.
The Trade Marks Registry is also proposed to be further strengthened and modernized. A project for modernization was earlier implemented during 1993-96. Further
strengthening of the Registry is being taken up at a cost of Rs.86 million. The main
thrust now is to strengthen the infrastructure of the Trade Marks Registry and the
early removal of backlog of pending applications, transfer of records to CD-ROM’s,
re-engineering of work processes, appointment of additional examiners, etc.
As regards the aspect enforcement, Indian enforcement agencies are now working
very effectively and there has been a notable decline in the levels of piracy in India.
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In addition to intensifying raids against copyright infringers, the Government has
taken a number of measures to strengthen the enforcement of copyright law. Special
cells for copyright enforcement have been set up in 23 States and Union Territories.
In addition, for collective administration of copyright, copyright societies have been
set up for different classes of works.
Concerns expressed over IPR protection & India’s response
It has been alleged that there is absence of effective patent protection in the pharmaceutical sector. India does provide for patents in the pharmaceutical sector. However, in terms of Section 5 of the Patents Act, the patents are presently restricted to
the methods or process of manufacture and not extended to the substances/products
themselves. In terms of the TRIPS Agreement, India has time till January 1, 2005
to extend patent protection to this area. The ten year transition period available for
providing product patents to pharmaceutical products is within WTO rules.
It has been further alleged that India has failed to meet its current obligations required under Articles 70.8 and 70.9 of the TRIPS Agreement by implementing appropriate, conforming mailbox and exclusive marketing rights procedures. However,
the Government of India has taken the following steps to meet its obligations under
Articles 70.8 and 70.9:
1) On December 31, 1994, Government of India promulgated an Ordinance to provide a means to receive product patent applications in the fields of pharmaceutical
and agricultural chemical products and also for grant of exclusive marketing rights.
Pursuant to this measure the Indian Patent Office has been receiving product patent
applications in those fields.
2) India has established a mail box system through administrative instructions. Numerous applications have already been filed in this mail box system, and many of
them have been filed by US companies;
3) India has also made changes to its Patents Act to put in place a machinery for
implementation of Articles 70.8 and 70.9 by providing for establishment of a mail
box system to file patents and according exclusive marketing rights for 5 years. This
provision was made in the Patents (Amendment) Act of 1999.
Concern has also been expressed over the compulsory licensing provision in the Patents (Amendment) Act, 1999. It may be noted that as per the provisions of Section
84 of Patents Act, 1970 and Clause 35 of Patents (Second Amendment) Bill, 1999,
a compulsory license may be granted in case the patented invention has not met the
reasonable requirement of the public at a reasonable price. This provision is intended
to provide for necessary and adequate safeguard for the protection of public interest
taking in to account the specific needs of a developing country like India.
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This fact is supported by the US Health GAP Coalition. In their submission to the
USTR, they have drawn attention to the announcement by President Clinton on December 1, 1999, that the US would henceforth take health concerns into account
when formulating trade policies. They state that overly restrictive intellectual property regimes can - and have - lead to situations in which patent holders price commodities above levels at which they can feasibly be purchased in the developing
world. When this happens with pharmaceuticals, a public health crisis ensues. Health
GAP Coalition, therefore, requests USTR to view IPR decisions made by foreign
governments in the context of their health concerns, especially those countries that
are simply trying to ensure that their citizens have adequate access to medicines.
Furthermore, the compulsory licensing system has been in place since the inception of the Patents Act, 1970 in India. It is noteworthy that not a single case of
misuse of this provision has been observed during the last 30 years. An application
for compulsory license may be granted only after the applicant has approached the
patentee prior to the application with an offer to grant license on reasonable terms
and conditions (as per Clause 36 of Patents (Second Amendment) Bill, 1999). In
determining whether or not to grant a compulsory license, the Controller of Patents
is required to take in to account, the nature of the invention, the time that has elapsed
since the sealing of the patent and the measures already taken by the patentee or any
licensee to make full use of the invention (Section 85 of Patents Act, 1970). In settling terms of a compulsory license, the Controller of Patents is required to secure
that the articles manufactured under the patent shall be available to the public at the
lowest prices consistent with the patentees deriving a reasonable advantage from
their patent rights (Section 97(1)(ii)). These provisions substantiate the extant of a
non-discriminatory administration of compulsory licenses.
In addition, the Patents (Second Amendment) Bill, 1999 has provided for an appeals
process, before an Appellate Board, on any decisions by the Controller of Patents
including a grant of compulsory license (Clause 54) before approaching the Indian
Courts. The Patents Law provides for compulsory license to avoid misuse of an
Exclusive Marketing Right by the right holder. This provision meets a larger public
interest, keeping in mind the specific Indian conditions and are in compliance with
Article 31 of TRIPS.
The Indian Patent laws are neutral in their application to domestic or foreign inventions. Any disqualification, compulsory licensing, and exclusion from patentability,
are provided for only in the larger interest to provide therein necessary and adequate
safeguards for the protection of public interest, national security, bio-diversity, traditional knowledge, etc. These provisions are within the sphere allowed under Article
27, 30 and 31 of TRIPS.
It is to be noted that 1999 has been a year of great coherence of political will, resulting in the passage of major IPR laws and work toward the establishment of an effective administration mechanism.
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Copyright protection in India
India has one of the most modern copyright protection laws in the world. Major development in the area of copyright during 1999 was the amendment to the Copyright
Act of 1957 to make it fully compatible with the provisions of the TRIPS Agreement.
Called the Copyright (Amendment) Act, 1999, this amendment was signed by the
President of India on December 30, 1999 and came into force on January 15, 2000.
The earlier 1994 amendment to the Copyright Act of 1957 had provided protection to
all original literary, dramatic, musical and artistic works, cinematography, films and
sound recordings. It also brought sectors such as satellite broadcasting, computer
software and digital technology under Indian copyright protection.
The Copyright Act is now in full conformity with the TRIPS obligations.
The other important development during 1999 was the issuance of the International
Copyright Order, 1999 extending the provisions of the Copyright Act to nationals of
all World Trade Organization (WTO) Member countries.
Concern has been expressed about the allegedly slow judicial system in India and the
procedural issues involved in trial and conviction. The Indian judiciary is handling
cases as expeditiously as possible. The year that has gone by has again witnessed
the versatility of the impartial and independent Indian judiciary when it comes to
the issue of protection of intellectual property rights, amplified by the encouraging
trends with Indian courts plugging in gaps in the statute with the common sense of
the common law.
The Copyright Act, 1957 prescribes mandatory punishment for piracy of copyrighted
matter commensurate with the gravity of the offense with an effect to deter infringement, in compliance with the TRIPS Agreement. Section 63 of the Copyright Act,
1957 provides that an offense of infringement of copyright or other rights conferred
by the Act shall be punishable with imprisonment for a term which shall not be less
than six months but which may extend to three years with fine which shall not be less
than fifty thousand rupees but which may extend to two lakh rupees (Rs. 200,000).
Section 63A provides for enhanced penalty on second or subsequent convictions,
i.e. imprisonment for a term which shall not be less than one year but which may
extend to three years and with fine which shall not be less than one lakh rupees (Rs.
100,000) and which may extend up to two lakh rupees (Rs. 200,000). Section 63B
provides that any person who knowingly makes use on a computer an infringing
copy of a computer program shall be punishable with imprisonment for a term which
shall not be less than seven days but which may extend to three years and with fine
which shall not be less than fifty thousand rupees but which may extend to two lakh
rupees (Rs. 200,000).
For India where the per capita income at current prices is Rs.14,682/- or US $349,
the quantum of the fines, which works out to be 14 times the per capita income, is
quite a burden on an individual and would act as a strong deterrent.
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As regards the reported requirement that actual knowledge be proved in criminal
cases, the expressions “knowingly infringes or abets infringement” in Section 63
and “knowingly makes use” in Section 63B are included to protect bona fide users.
It may be noted that the expression “knowingly” was there even in the analogous
Section 7 of the Indian Copyright Act, 1914. Bringing the principle of “ignoratia
juris reminem excusat” may not be appropriate in the case of copyright as there are
quite a large number of works which are in the public domain that a person can use
freely, and it is natural for many to presume that such works are outside the copyright
regime. Copyright is a special right created by law to protect certain rights of authors
while keeping a balance of the interest of the society. It will be too much to expect
an ordinary user to sit in judgment like a court of law as to every single aspect of the
right which may or may not be applicable to a work before using the same.
So far as Article 41 and 61 of the TRIPS Agreement are concerned, India has a modern and efficient judicial system that fits in with the general obligations provided in
Article 41. Article 61 of the TRIP Agreement provides that remedies available shall
include imprisonment or monetary fines sufficient to provide a deterrent consistent
with the level of penalties applied for a crime of corresponding gravity. The Indian
Copyright Act, provides for both imprisonment and fine which in the Indian context
would be a sufficient deterrent.
Civil proceedings against piracy have been quite effective - a result unique in the
global enforcement against copyright piracy. For instance, in 1999, the Motion Pictures Association (MPA), filed 3 civil actions against 3 Indian cable networks and
obtained injunctive relief covering 45 cities and 8 million cable homes. MPA has
estimated that by these injunctions alone, cable piracy has been brought down by
50%.
Further, provisional measures, such as injunctions and ‘Anton Piller’ orders, are
available through the Indian courts to stop infringement and to contain any damages.
Both foreign and domestic IPR holders are treated equally under Indian law.
Indian enforcement agencies are working effectively and there is a decline in the
levels of piracy in India. In addition to intensifying raids against copyright infringers, the Government has taken a number of measures to strengthen the enforcement
of copyright law. A summary of these measures is given below:
1) During the year the government continued to stress the need for strict enforcement of the Copyright Act and Rules. State governments and other Ministries were
regularly requested to lay special attention to ensuring copyright protection in their
functioning. Instructions were issued to officers in the government requesting them
to ensure copyright protection, particularly of software, in their work situation.
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2) The Government also brought out A Handbook of Copyright Law to create awareness
about copyright amongst the stakeholders, enforcement agencies, professional users
like the scientific and academic communities and members of the public. Copies of
the Handbook were circulated free of cost to the state and central government officials and police personnel and also provided to participants in various seminars and
workshops on IPR matters held during the year.
3) National Police Academy, Hyderabad and National Academy of Customs, Excise
and Narcotics conducted several training programs on copyright for the police and
customs officers. Modules on copyright have been included in their regular training
programs.
4) The Department of Education, Ministry of Human Resource Development, Government of India has initiated several measures in the past for strengthening the
enforcement of copyrights that include constitution of a Copyright Enforcement
Advisory Council (CEAC), creation of separate cells in state police headquarters,
encouraging setting up of collective administration societies and organization of
seminars and workshops to create greater awareness about copyright law among the
enforcement personnel and the general public.
5) The CEAC is reconstituted from time to time to review periodically the progress
of enforcement of the Copyright Act and to advise the government on measures for
improving the enforcement. Additional Secretary, Department of Education is the
chairman of the CEAC. The CEAC members include representatives of copyright
industry organizations and chiefs of state police forces. The CEAC meets at least
twice every year. It discusses in detail issues of enforcement, piracy, etc.
6) Special cells for copyright enforcement have so far been set up in 23 States and
Union Territories, i.e. Andhra Pradesh, Assam, Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Delhi, Goa, Gujarat, Haryana, Himachal
Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Orissa,
Pondicherry, Punjab, Sikkim, Tamil Nadu, Tripura and West Bengal. States have also
been advised to designate a nodal officer for copyright enforcement to facilitate easy
interaction by copyright industry organizations and copyright owners.
7) For collective administration of copyright, copyright societies have been set up
for different classes of works. At present there are three registered copyright societies. These are the Society for Copyright Regulations of Indian Producers of Films
& Television (SCRIPT) for cinematography films, Indian Performing Rights Society
Limited (IPRS) for musical works and Phonographic Performance Limited (PPL)
for sound recordings. These societies, particularly the PPL and the IPRS, have been
quite active in anti-piracy work. The PPL has even set up a special anti-piracy cell
under a retired Director General of Police, and this cell has been working in tandem
with the police.
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8) The Government also initiates a number of seminars/workshops on copyright
issues. The participants in these seminars include enforcement personnel like the
police as well as representatives of industry organizations.
9) Several other measures to create general awareness about copyright and for encouraging study of intellectual property rights in the educational system, besides
modernizing the Copyright Office, are on the anvil.
Consequent to the number of measures initiated by the government, there has been
more activity in the enforcement of copyright laws in the country during the last year
compared to previous years. As per the data relating to copyright offenses available
with the National Crime Records Bureau, the number of copyright cases registered
has gone up from 479 in 1997 to 802 in 1998. The number of persons arrested has
increased from 794 in 1997 to 980 in 1998. The value of seizures has gone up from
Rs.2.88 crore (28.8 million) in 1997 to Rs.7.48 crore (74.8 million) in 1998. These
figures reflect the general improvement in the enforcement of the copyright law.
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CHAPTER
22
INDUSTRIAL LICENCE
In the New Industrial Policy, all industrial undertakings are exempted from licensing
except for those industries given in Annexure I and II of the law and those reserved
for the Small Scale Sector. The project should not be located within 25 kilometers
of a city with a population of more than one million as per 1991 Population Census.
The Government has substantially liberalised the procedures for obtaining an Industrial License. The application in form IL-FC should be filed with the SIA. Approvals
are normally granted within 6-8 weeks.
The system of obtaining government approvals has been progressively liberalised
over the 1990s, commencing with the watershed changes in the industrial policy
announced on 24 July, 1991. This abolished industrial licensing substantially, announced measures for facilitating foreign investment and technology transfers and
opened most areas which were earlier reserved for the public sector. The Industrial
Policy Resolution of 1956 and the Statement on the Industrial Policy of 1991 provide the basic framework for the overall industrial policy of the government.
99
The requirement of obtaining an industrial license for manufacturing activities is
now limited only to the following:
Industries reserved for the public sector:
Five industries of strategic, social or environmental concern. These are:
oDistillation and brewing of alcoholic drinks
oCigars and cigarettes of tobacco
oElectronics aerospace and defence equipment
oIndustrial explosives
oHazardous chemicals
Manufacture of items reserved for the small scale-sector (SSI Units) by non-small
scale industrial units or by units in which foreign equity is more than 24%. A list of
items reserved for the small scale sector is available at www.smallindustryindi.com
All other industries are exempt from licensing subject to certain local restrictions
in metropolitan areas. In the event, local restrictions are not adhered to, the unit is
required to obtain an industrial license.
De-licensed sector
An Industrial undertaking exempted from licensing needs only to file information in
the Industrial Entrepreneurs Memorandum (IEM) with the SIA, which will issue an
acknowledgement. No further approvals are required.
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CHAPTER
23
CHANGES IN THE FDI POLICIES
India has among the most liberal and transparent policies on FDI among the emerging economies. FDI up to 100% is allowed under the automatic route in all activities/
sectors except the following, which require prior approval of the Government:1. Sectors prohibited for FDI
2. Activities/items that require an industrial license
3. Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field
4. Proposals for acquisitions of shares in an existing Indian company in financial
service sector and where Securities and Exchange Board of India (substantial acquisition of shares and takeovers) regulations, 1997 is attracted
5. All proposals falling outside notified sectoral policy/CAPS under sectors in which
FDI is not permitted
Most of the sectors fall under the automatic route for FDI. In these sectors, investment could be made without approval of the central government. The sectors that are
not in the automatic route, investment requires prior approval of the Central Government. The approval is granted by Foreign Investment Promotion Board (FIPB). In
few sectors, FDI is not allowed.
After the grant of approval for FDI by FIPB or for the sectors falling under automatic
route, FDI could take place after taking necessary regulatory approvals from the
state governments and local authorities for construction of building, water, environmental clearance, etc.
101
Manual for FDI brought out by the Department of Industrial Policy and Promotion
provides details about FDI Policy and Procedures and is available at http://www.
dipp.nic.in/manual/fdi_manual_11_2006.pdf
Sectoral policy/equity caps in certain sectors could be seen in the Manual for FDI in
Annexure II at http://www.dipp.nic.in/manual/fdi_manual_11_2006.pdf
All Press Notes of Department of Industrial Policy and Promotion that provides
details about FDI policy are available at their website http://siadipp.nic.in/policy/
changes.htm .
FDI policy is also notified by Reserve Bank of India (RBI) under Foreign Exchange
Management Act (FEMA) and could be seen at www.rbi.org.in.
Changes in FDI policies are brought out in the form of Press Notes by Department
of Industrial Policy & Promotion (DIPP). Soon after releasing the Press Notes to the
media, it is also loaded on the Departmental website (http://dipp.nic.in).
The detailed guidelines regarding the Indian investment abroad can be seen at the
website (www.iic.nic.in) of India Investment Centre, Department of Economic Affairs, Ministry of Finance.
HHH
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CHAPTER
24
INTERNATIONAL CENTRE FOR
ALTERNATIVE DISPUTE RESOLUTION
(ICADR)
The justice dispensing system in India has come under great stress for several reasons,
chief of them being the huge pendency of cases in courts underlining the need for
Alternative Dispute Resolution (ADR) methods. The Government of India thought
it necessary to provide a new forum and procedure for resolving international and
domestic disputes quickly.
The ICADR is an autonomous organization working under the aegis of the Ministry
of Law & Justice, Govt. of India with its headquarters at New Delhi and Regional
Centres at Hyderabad and Bangalore. The Regional Centres of ICADR are fully
funded and supported by the respective State Governments.
The Chief Justice of India is the Patron of ICADR. At the regional level, the Chief
Justice of the concerned High Court is the Patron of the Regional Centre of ICADR.
Dr. H.R.Bhardwaj, Union Minister for Law & Justice, Government of India is the
Chairman of ICADR. The Governing Council of ICADR comprises of several eminent personalities drawn from various fields.
103
Areas in Which ADR Works
Almost all disputes- commercial, civil, labour and family in respect of which parties
are entitled to conclude a settlement, can be settled by ADR procedures.
How to Refer Disputes to ICADR
Disputes can be referred to ICADR in two ways:
• By a clause in agreement providing for the reference of all future disputes under
that contract for resolution through ICADR, or
• Even where the parties have not included the arbitration clause in their original
agreement for referring their dispute to ICADR, the parties can enter into a separate
arbitration agreement for settling their disputes through arbitration and referring the
same to ICADR.
The remedy of ADR is also available to the foreign investors, companies etc. in India
in terms of the provisions of the new Arbitration and Conciliation Act, 1996, provided there is an agreement between the parties to refer their disputes to arbitration,
conciliation or mediation.
Dispute Resolution Procedures and services Offered
The seven dispute resolution procedures administered by the ICADR are:
Negotiation: A non-binding procedure in which discussions between the parties are
initiated without the intervention of any third party with the object of arriving at a
negotiated settlement of the dispute
Conciliation/Mediation: A non-binding procedure in which a third party, the conciliator/mediator, assists the parties to a dispute in reaching a mutually satisfactory,
agreed settlement of the dispute.
Conciliation/Mediation- Arbitration: A procedure which combines, sequential, conciliation, and, where the dispute is not settled through conciliation/mediation within
a period of time agreed in advance by the parties, arbitration
Mini Trial: A non-binding procedure in which the disputant parties are presented
with summaries of their cases to enable them to assess the strength, weakness, and
prospects of the case and then an opportunity to negotiate a settlement with the assistance of a neutral advisor.
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Arbitration: A procedure in which the dispute is referred to an arbitral tribunal which
makes a decision (an «award») on the dispute that is binding on the parties.
Fast Track Arbitration: A form of arbitration in which the arbitration award is rendered in a particularly short time and at reduced cost.
ICADR has a panel of Arbitrators and Conciliators, consisting of retired Supreme
Court and High Court judges, Law officers, Advocates, Engineers, Charted Accountants, etc. Besides the appointment of arbitrator/ conciliators, ICADR can also
provide facilities like conference hall for conducting arbitration proceedings, stenographic assistance, etc. ICADR also keeps track of the proceedings held by these
arbitrators with a view to early conclusion of the proceedings. Fee for the arbitrator,
both in case of domestic arbitration/conciliation and international arbitration/conciliation, are specified in the Arbitration and Conciliation Rules, 1996, framed by the
Government of India. The parties and the arbitrator are, however, free to settle their
fees in particular cases involving intricate legal or technical questions.
More information on ICADR or ADR mechanism can be obtained from :
The International Centre for Alternate Dispute Resolution
Trikut-II, 3rd Floor
Bhikaji Cama Place
R. K. Puram
New Delhi 110 066
India
Tel: 91(11) 610 2805
Fax: 91(11) 610 2803
Website: www.ICADR.org
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CHAPTER
25
EXPORT AND IMPORT COMPANIES
Exports:
Reserve Bank has made the Foreign Exchange Management (Export of Goods and
Services) Regulations, 2000 relating to export of goods and services from India, notified vide Notification No. FEMA 23/2000- RB, dated 3rd May, 2000; as amended
from time to time.
The basic requirements under the exchange control regulations are that the exports
are to be declared in :
• GR (for all export transactions other than through the postal channel),
• PP (for transactions through the postal channel) and
• Softex forms (for software exports).
Exemptions from Declarations
The requirement of declaration of export of goods and software in prescribed form
will not apply in certain cases such as:
• Goods sent for testing abroad, subject to re-import.
• Gift of goods exceeding rupees one lakh in value require approval of the Reserve Bank.
• For export promotion subject to a specific ceiling (Rs. 5 lakhs).
Imports:
Import trade is regulated by the Directorate General of Foreign Trade (DGFT) under Ministry of Commerce & Industry, Department of Commerce, Government of
India. Authorised dealers, while undertaking import transactions, should ensure that
the imports into India are in conformity with the Export Import Policy in force and
relevant provisions of FEMA.
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Import Licenses
Authorised dealers are allowed to open letters of credit and allow remittances for
import of goods unless they are included in the negative list requiring license under
the EXIM Policy in force. Detailed FAQs on Export / Import are available on the
DIPP web site http://dipp.nic.in
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CHAPTER
26
CHANGE OF RESIDENTIAL STATUS
If you have changed your residential status, intimation should be given to the bankers about the change of Residential Status, so that the existing NRE, NRO or FCNR
account is designated as a Resident Account, with tenure and interest rates remaining
unchanged. In the same way when a person resident in India becomes a Non- Resident, intimation should be given to the bankers so that the existing account can be
designated as a Non-Resident Ordinary Account (NRO).
All those individuals who leave India for good are required to complete certain formality in relation to their financial affairs in India. This is explained as under:
Banking Accounts
NRI should communicate to the banker that the local bank accounts now be treated
as of NRI Accounts. The Bank shall re-designate the accounts as NRO account. The
TDS shall be deducted by the bank at 31.5% from interest paid/credited. 107
Shares and Debentures
• NRI shall Inform the companies concerned about the change in Status as NRI
under FEMA.
Business in India
• RBI has given general permission to NRIs to invest on Non-Repatriation basis by
way of Capital Contribution in any Proprietory or Partnership concerns engaged in
any industrial, commercial or trading activity in India .
Income-tax Authorities
• NRI shall Inform the Income-tax Authorities about change in his/her residential
status within the meaning of the Income-tax Act,1961.
Repatriation
NRIs are eligible to repatriate Income earned in India from rupee assets held in
India.
Other Points
• Any payment or receipt of funds from Residents should be in accordance with the
provisions of FEMA i.e.
i. Providing guarantee to any person.
ii. Taking loans from any person
iii. Acquisition of shares and securities
iv. Granting loans and advances
v. If NRI receives any Income from any person, the tax is required to be deducted at
source at a rate applicable to NRI>s. He should inform the payer that his residential
status under the Income Tax Act is that of Non-Resident.
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CHAPTER
27
ACCEPTING FOREIGN CONTRIBUTION
The following categories of persons are prohibited from accepting any foreign contribution either, directly or indirectly or through any other person (which includes
Non Resident Indian citizen for the benefits of such categories of person:
a)candidate for election
b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper,
c)Judge, Government Servant or employee of any government corporation / undertaking,
d) Member of any Legislature,
e)Political party or office bearer thereof.
However, certain exemption from general prohibition has been granted in Sec 8 of
FCRA.
Foreign contribution signifies donation, delivery or transfer made by any foreign
source of any article or currency or foreign securities as defined under FERA.
Foreign sources include the following: • The Government of any foreign country or its agency ,
• Any international agency other than the agency specified by the Central Govt.
• A foreign company as specified in section 591 of the Companies Act including a
subsidiary of a foreign company.
109
• A corporation incorporated in a foreign country or territory,
• A multi-national corporation within the meaning of this Act,
• An Indian company controlled by a foreign government, citizens of a foreign
country, corporation incorporated in foreign country, Trusts, society body of individuals incorporated in a foreign country.
• A trade union in any foreign country or territory, whether or not registered
• A foreign trust or foundation
• A society, club or other association of individuals formed or registered outside India,
• A citizen of a foreign country,
Restrictions:
There are certain restrictions on acceptance of foreign contributions:
Any political party whether on its own or through its officers or representatives cannot accept any foreign contribution. Similarly, any citizen or resident of India shall
neither accept nor deliver any currency which is accepted from any foreign source,
to any political party directly or indirectly.
Organisations of political nature cannot accept any foreign contribution without
prior permission of the government. Similarly, a resident or citizen of India shall
neither accept nor deliver any currency for a political organisation.
Any person receiving any currency from a foreign source on behalf of any association shall deliver such currency only to the organisation or its representative for
which it was received.
Any candidate for election, who had received any foreign contribution within 182
days preceding the date on which he is duly nominated as candidate should give an
intimation to the Central Government stating the amount of foreign contribution
received the source from which and the manner in which such foreign contribution
was received and the purposes for which, and the manner in which, such foreign
contribution was utilised by him.
110
Exceptions
However, the persons receiving foreign contributions in the following form need not
taken prior permission from the central govt.:Salary, wages or other remuneration either to individual or payment for business
purposes.
Payment for international trade or for business transacted by him outside India
By way of a gift or presentation received as member of any Indian delegation.
Gift not exceeding Rs.8000 per annum
HHH
CHAPTER
28
REGISTRATION OF ASSOCIATION /TRUST/
SOCIETY
UNDER THE F.C.R. ACT
An association /trust/ society having definite culture, economic, educational, religious, or social programme cannot accept foreign contribution unless it registers
itself with the Central Government by applying in Form No FC- 8 or gets prior permission by applying in Form FC-1A. The Form has to be submitted to Ministry of
Home Affairs, Lok Ayut Bhavan , Khan Market, New Delhi. The registration process
takes at least 5/6 months to complete, while permission process takes 90 days.
HHH
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CHAPTER
29
WEBSITE ADDRESSES
OF STATES/UNION TERRITORIES
Andaman & Nicobar (UT)
http://andaman.nic.in
Assam
http://assamgovt.nic.in
Andhra Pradesh
Bihar
Chandigarh(UT)
Chhattisgarh Dadra & Nagar Haveli
Daman & Diu
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
112
http://www.aponline.gov.in
http://bihar.nic.in
http://chandigarh.nic.in
http://chattisgarh.nic.in
http://odic.nic.in
http://daman.nic.in
http://delhigovt.nic.in
http://goagovt.nic.in
http://www.gujratindia.com
http://haryana.nic.in
http://himachal.nic.in
http://jammukashmir.nic.in
Jharkhand
http://jharkhand.nic.in
Kerala
http://www.kerala.gov.in
Karnataka
http://www.karnataka.nic.in
Lakshdweep(UT) http://lakshadweep.nic.in
Madhya Prdesh http://www.mp.nic.in
Maharashtra http://maharashtra.gov.in
Manipur
http://manipur.nic.in
Meghalaya
http:// meghalaya.nic.in
Mizoram
http://mizoram.nic.in
Nagaland
http://nagaland.nic.in
Orissa
http://orissagov.nic.in
Pondicherry(UT)
http://pondicherry.nic.in
Punjab
http://punjabgovt.nic.in
Rajasthan
http://www.rajasthan.gov.in
Tripura
http://tripura.nic.in
Uttar Pradesh
http://upgov.nic.in
Uttranchal
http://gov.ua.nic.in
West Bengal
http://www.wbgov.com
Sikkim
http://sikkimgov.nic.in
Tamil Nadu
http://www.tn.gov.in
HHH
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PART II
INDIAN CONSULAR REGULATIONS
CHAPTER
30
INDIAN CONSULAR REGULATIONS
All consular services viz. Passport, visa & attestation services by the Indian Embassy, Abu Dhabi and Indian Consulate in Dubai will be extended only to the Indian
nationals residing in the respective regions as seen from their residence visa in their
passport.
However persons having residence visa of the other emirates of UAE and residing in
the above regions will have to produce proof of residence viz. Tenancy agreement in
their name or a letter from the employer stating that they are working and or residing
in these regions.
The application forms for various consular services may be downloaded by logging
on to the relevant sections of the websites of Embassy of India and Consulate of
India or collected from the Reception Counter of the Embassy/Consulate.
PASSPORT
New Passport (General)
(Renewal after expiry of validity or exhausting of Passport pages)
Requirements:
1) Application in EAP I Form
2) Old passport in original - Additional Booklet if any, with photocopy of pages 1, 2,
33, 35 and visa page of the passport.
3) A passport which expired more than six month back should be supported by a
Sworn Affidavit explaining the circumstances and spelling out the reasons for late
submission.
4) Submit in person to establish physical identity.
5) For change of address in the new booklet, if any, please attach documentary evidence
of change like Nativity Certificate in original issued by District Collector /Tahsildar /
Commissioner/Panchayat or copies of ration card, voter’s ID card, Income tax receipt,
water, electricity or telephone bill attested by the state government authorities.
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6) Application for renewal of passport can be submitted if the final validity of the
passport is less than one year or if the passport pages of the current passport has
expired whichever is earlier.
7) The applicant should submit the application in person for identification; however
minors up to the age of 5 are exempted from this requirement. Minors are issued
passports for 5 years or up to attaining 18 years, whichever is earlier
8) Four recent (not more than six months old) photographs showing frontal view
of full face against light background in civilian clothes taken in a studio (Polaroid
photographs and photographs with dark glasses or uniforms are not accepted) should
be submitted along with the application.
9) Applicants are advised to ensure that their application in the prescribed format is
complete in all respects; that all columns are correctly and legibly filled up and no
column is left blank or unfilled/unresponded or vaguely filled with a dash, tick, etc.
All signatures in the application should be with ballpoint pen of black or blue ink.
Those who cannot affix their signatures like infants, minors or illiterate should put
their thumb impression in the place of signature.
10)Emergency service for issue of passport can be availed by payment of an additional fee of Dhs. 550/- under the Tatkal Scheme. Normal fee for adult – Dhs.150/and minor up to 18 years of age – Dhs.100/11)For other than Abu Dhabi/ Dubai issued passports –personal particulars form is
also to be filled.
12)An Empost sticker for sending the serviced passport by post.
Time Taken :
Five working days if existing passport was issued in Abu Dhabi/ Dubai; Maximum
of 40 days in all other cases. Tatkal (Emergency passports) will be issued, generally
for 1 year and later extended without any fee.
Fee: (In UAE Dirhams)
Adults
Adults
Minors
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Pages
60
36
36
Validity
10 Years
10 Years
5 Years
AED
190.00
150.00
100.00
Passport for a new born child
Registration of a child born in UAE, issue of Birth Certificate and Passport
Requirements:
1)Application in EAP I form - duly filled in and signed by both the parents and
complete in all respects.
2)Personal presence of either parent.
3)Present valid passport of both parents (in original) and photocopy of all pages of
the passports.
4)Birth Certificate of the child in original, duly authenticated and attested by the
Ministry of Foreign Affairs of the Government of UAE, along with its photocopy.
5)Authentic English translation of the Birth Certificate if the original birth certificate is in Arabic.
6)Application for registration of birth and issue of birth certificate to the new born
child.
7)A declaration in the form of a Sworn Affidavit from both parents requesting the issue of/conveying their ‘no objection’ to the issue of a separate passport to the child.
8)If a spouse’s name is not endorsed in the other spouse’s passport, copy of marriage certificate (duly attested by the Home department of the State if married in
India or attested by the Ministry of Foreign Affairs, UAE if they are married under
Sharia in UAE, and its English translation) is required.
9)If the marriage certificate is not duly attested by the concerned State Home Department, a Joint Marriage Sworn Affidavit should be signed by both parents of the
new born child. Dhs. 40/- will be charged for this Sworn Affidavit.
10) If one of the parents is a non Indian, then the NOC from the Embassy of the
country to which the parent belongs indicating that they have no objection to the issue of passport to the child of their citizen is required to be enclosed.
Time Taken: Five working days
Fee (In UAE Dirhams): i) Dhs. 80/- for registration of birth; and ii) Dhs. 100/- passport Fee
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Deletion certificate
For a child not resident in UAE, but whose name has been endorsed in a parent’s
passport :
[For deletion of a child’s name from the passport of a parent who is an Indian, you
have to approach nearest Passport Office in India]
Requirements:
1) Application in form EAP-II.
2) Passport (original plus a photocopy - all pages) of the parent from which deletion
is sought.
Time Taken : Five working days.
Fee (In UAE Dirhams): Dhs. 40/-
New passport - change of photograph
(Due to significant change in the appearance of the passport holder)
Requirements:
1) Application in EAP-I form
2) Four latest passport size photographs [full frontal view of face against light background]
3) Present passport in original with a photocopy of all pages
4) A Sworn Affidavit (for change of appearance from pagdi/turban to without pagdi/
turban and vice versa)
5) Submit in person to establish identity
Time Taken:
For passport issued in Abu Dhabi - Five working days
For passport issued outside Abu Dhabi - Max. 40 days
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Fee (In UAE Dirhams) :
Adults
Children (up to 18 Years)
New Passport
150+40
100+40 for sworn affidavit
New passport - change of name
(By ladies after marriage, divorce or remarriage)
Requirements:
2) Four latest passport size photographs [full frontal view of face against light background]
3) Present passport of both husband and wife in original with a photocopy of all
pages
4) Marriage Certificate duly attested by the Home Department of the concerned
State in India
[If for any reason, Marriage Certificate is not available, a Sworn Affidavit from both
the husband and wife]
5) Deed Poll/Sworn Affidavit
6) Submit in person to establish physical identity
7) For change of name to maiden name also, the above procedure is to be followed.
8) Divorcees/widows should furnish Divorce Deed authenticated by Court/Death
Certificate duly attested by the State Govt., as the case may be.
Time Taken: Ten working days
Fee (In UAE Dihrams):
Fee 150
Attestation of Sworn Affidavit/deed poll by the applicant 40
Attestation of the Joint Sworn Affidavit (if required) 40
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Duplicate passport
[Where passport shows legal entry & residence in UAE]
[in lieu of LOST / DAMAGED passport, issued in Abu Dhabi, where passport shows
legal entry & residence in Abu Dhabi/Al Ain]
Requirements:
2) Ten latest passport size photographs (full frontal view of face against light background)
3) Photocopy of the lost passport
4) Copy of the Police Report (FIR) and its authentic English translation
5) Letter from the Sponsor conveying no objection and confirming sponsorship &
employment.
6) Personal particulars form duly filled in - in quadruplicate
7) Copy and original of one or more of the following to establish identity and nationality (The original will be returned after verification):a)Identity Card;
b)Labour Card;
c)Health Card;
d)Driving License
e)Election commission card
f)Clippings of newspaper advertisement in a leading local daily (one each in English and Arabic)
8) A Sworn Affidavit explaining
a) The circumstances under which the passport was lost;
b) Details of travel on the lost passport;
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c) Details of travel concessions including TR benefits, FT availed of and gold/
silver imports made by the applicant on the lost passport; and
d)
Places of stay and work in UAE since arrival
Submit in person to establish physical identity
Time Taken:15 working days
For Duplicate Passport- Dh. 465/For attestation of Sworn Affidavit by the applicant- Dh. 40/[In lieu of LOST passport issued outside Abu Dhabi, but where the passport
shows legal entry & residence in Abu Dhabi/Al Ain]
2) Ten latest passport size photographs (full frontal view of face against light background)
3) Photocopy of the lost passport
4) Copy of the Police Report (FIR) and its authentic English translation
5) Letter from the Sponsor conveying no objection and confirming sponsorship &
employment.
6) Personal particulars form duly filled - in quadruplicate
7) Copy and original of one or more of the following to establish identity and nationality (The original will be returned after verification): a. Identity Card;
a)Labour Card;
b)Health Card;
c)Driving License
d)Election commission card
8) Clippings of newspaper advertisement in a leading local daily (one each in English and Arabic)
9) A Sworn Affidavit explaining
a. The circumstances under which the passport was lost;
b.Details of travel on the lost passport;
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c. Details of travel concessions including TR benefits, FT availed of and gold/
silver imports made by the applicant on the lost passport; and
d. Places of stay and work in UAE since arrival
In case of emergency, a limited validity passport for one year will be issued on
furnishing a Sworn Affidavit in the prescribed format from two Indian nationals
resident in Abu Dhabi, UAE, vouching for the veracity of the statements made in
the application for duplicate passport to establish the nationality and identity of the
applicant
Submit in person to establish physical identity
Time Taken: 40 days
For Duplicate Passport
465
For attestation of Sworn Affidavits by the applicant 40
Additional sworn affidavit, if necessary
40
Renewal of passport /extension of validity
In certain urgent/ emergency cases like Tatkal passports are issued for shorter duration of six months or more. In such cases the remaining validity of the passport could
be restored without payment of additional fee as the fee for 10 years is collected at
the time of issue of short validity passport. In such cases, passports issued from Embassy of India, Abu Dhabi are serviced in 7 working days. Passports issued by the
other Passport Issuing Authorities are serviced in maximum 40 days or on receipt of
clearance from the concerned Passport Issuing Authority, whichever is earlier.
Requirements for restoration of normal validity
• Application in EAP-II form
• Passport in original and a photocopy thereof
• Two passport size photographs
• An Empost sticker for sending the serviced passport by post.
• Fee: Nil
HHH
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CHAPTER
31
POLICE CLEARANCE CERTIFICATE
Requirements:
Application in form EAP II
Two latest passport size photographs (full frontal view of face against light background)
Passport in original with a photocopy - cover pages, page 1,2,35 and visa page.
For other than Abu Dhabi passports personal particulars form also to be filled.
Time Taken:
For passport issued in Abu Dhabi - Five working days
For passport issued outside Abu Dhabi - After 40 days
Fee (In UAE Dihrams): Dhs. 40/-
HHH
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CHAPTER
32
CHANGE OF ADDRESS
Requirements:
1) Application in EAP-II form
2) Two recent photographs (frontal view against light background)
3) Present passport (in original) with photocopy of all pages
4) Please attach documentary evidence of address change like Nativity Certificate in
original issued by District Collector /Tehsildar /Commissioner/Panchayat or copies
of ration card, voter ID card, Income tax receipt, water, electricity or telephone bill
in your name and attested by the state government authorities.
5) Personal particulars form is also to be filled for the passport issued outside Abu
Dhabi.
Time Taken: Five working days for passport issued at Abu Dhabi and 40 working
days for passports issued by other PIAs
Fee (In UAE Dihrams): Dhs. 40/- (for observation, where address is indicated in the
non-laminated page).
HHH
125
CHAPTER
33
NEW BOOKLET
Requirements:
2) Four recent passport size photographs (full frontal view of face against light
background)
3) Please attach documentary evidence of address change like Nativity Certificate
in original issued by District Collector /Tehsildar /Commissioner/ Panchayat or copies of ration card, voter ID card, Income tax receipt, water, electricity or telephone
bill in your name and attested by the state government authorities.
4) Present passport (in original) and a photocopy of all its pages.
5) Personal particulars form is also to be filled for the passport issued outside Abu Dhabi.
Time Taken: Five working days for passport issued at Abu Dhabi; 40 working days
for passports issued by other PIAs.
Fee (In UAE Dihrams): Dhs. 150/- for Adult and Dhs. 100/- for Minors (up to 18yrs)
HHH
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CHAPTER
34
ECNR ENDORSEMENT
Requirements:
1) Application in format prescribed
2) Present passport (in original along with a photocopy of all pages of the passport).
3) Who are eligible:a)The applicant should have stayed abroad for more than 3 years excluding the
period(s) of visit to India
b) The dependents who are below 18 years and whose parents have ECNR status
in their passports.
c)A person (he/she) whose spouse has ECNR status in his or her passport.
d)A person who is above 50 years of age
e)A person who has 10 + 2 Educational qualification or have done 2 years diploma after 10th standard.
4) For obtaining ECNR for dependents, (children/spouse) please enclose the original and a photocopy of the pages with ECNR endorsement on the spouse's/parent's
passport
5) An Empost sticker for sending the serviced passport by post.
Time Taken: One day
Fee: Dhs. 40/-
HHH
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CHAPTER
35
NRI CERTIFICATE
Requirements:
1) Application on plain paper along with the passport and a photocopy of all pages
of the passport.
2) An Empost sticker for sending the serviced passport by post.
3) A person should have stayed in UAE for at least 6 months.
4) The applicant should submit the application in person.
Time Taken: Will be delivered by Empost the following day.
Fee: Dhs. 80/-
HHH
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CHAPTER
36
CERTIFICATION OF BIRTH AS PER
PASSPORT ENTRY &
EXTRACT FROM BIRTH REGISTER
CERTIFICATION OF BIRTH AS PER PASSPORT ENTRY
Requirements:
1.Application on plain paper, along with the passport and a photocopy of all the pages
of the passport
Time Taken: One Day
Fee: Dhs. 40/EXTRACT FROM BIRTH REGISTER
Registration of Birth/issue of Birth Certificate/Extract from Birth Registration Register
Requirements:
1) Application in prescribed form
2) Parents passports and a photocopy each of all the pages of the passports
3) Birth Certificate issued by UAE Government authority duly attested by the Ministry of Foreign Affairs along with legal translation.
Time Taken: Three Days
Fee (In UAE Dihrams): Dhs. 80/-
HHH
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CHAPTER
37
SERVICE DELIVERY/WAITING TIME
I. PASSPORT
i) Reissue of passport in lieu of old passport issued at Abu Dhabi having Abu
Dhabi/Al Ain residence visa or and residing there.
Time taken: 5 working days (inclusive of dates of submission and delivery)
ii) Reissue of passport in lieu of old passport issued outside Abu Dhabi
Time taken: Maximum 40 days
iii) Duplicate passport in lieu of lost/damaged passport issued at Abu Dhabi
Time taken: 15 working days
iv) Duplicate passport in lieu of lost/damaged passport issued by other PIAs
Time taken: Forty days or receipt of clearance, whichever is earlier (Short validity
passport is issued in emergency cases on production of evidence of identity/ guarantor etc.)
v) Extension of validity in r/o restricted validity passport issued at Abu Dhabi
vi) Restricted validity passport issued by other PIAs (without any restrictive endorsement) in continuation of passport issued at Abu Dhabi
vii)Restricted passport issued by other PIAs with restrictive endorsement
Time taken: On receipt of clearance from the concerned PIA or 40 days, whichever
is earlier.
Replacement passport booklet on account of change of photograph, change of name,
address, etc.
For Abu Dhabi issued Passports : 10 working days
For Passport issued by other PIAs: 40 days
130
II. Police Clearance Certificates (PCC)
i) Passport issued at Abu Dhabi
Time taken: working days
ii)Passport issued by other PIAs
Time taken: 40 days
III.ECNR endorsement/NRI certificate/ Birth certificate
Time taken: One day
IV.Change of address
i) Observation in old passport booklet.
ii)In the MRP booklet, address is included in the laminated pages. Hence a new
passport is to be issued for change of address.
Time taken: 5 working days for passport issued at Abu Dhabi and 40 days in r/o
ppt. Issued by other PIAs.
V.Attestation
Time taken: Same day
Note:
Under the ‘Tatkal Scheme’, passport would be issued on the payment of additional
fee of Dhs.315/-. If the old passport was issued from Embassy of India, Abu Dhabi,
passport for normal validity of 10 years would be issued. If the passport was issued
by other Embassy/Consulate/Passport Office, a short validity passport for one year
would be issued. In case of emergency where the applicant cannot wait till the delivery period, he/she may contact the Consular Officer on duty.
All Passport and Visa services rendered are dispatched by Empost; hence please
enclose an Empost sticker.
Reissue of Passport - General guidelines
1) Application to be made in form EAP I - External.
2) Application for renewal of passport can be submitted if the final validity of the
passport is less than one year.
3) Old Passport in original with photocopy of page 1, 2, 33, 35 and visa page and
additional booklets, if any, should be submitted.
4) The applicant should submit the application in person for identification; however
minors up to the age of 5 are exempted from this requirement.
5) Four recent (not more than six months old) photographs showing frontal view
of full face against light background in civilian clothes taken in a studio (Polaroid
131
photographs and photographs with dark glasses or uniforms are not accepted) should
be submitted along with the application.
6) Minors are issued passports for 5 years or up to attaining 18 years, whichever is
earlier.
7) Applicants are advised to ensure that their application in the prescribed format is
complete in all respects; that all columns are correctly and legibly filled up and no
column is left blank or unfilled/unresponded or vaguely filled with a dash, tick, etc.
All signatures in the application should be with ballpoint pen of black or blue ink.
Those who cannot affix their signatures like infants, minors or illiterate should put
their thumb impression in the place of signature.
8) It is an offence under the Passport Act 1967 to furnish false information in the
application. Passport facilities could be denied on grounds of suppression of material
information, submission of incorrect particulars, willful damage/loss of passport or
for unauthorized change/tampering. The Passport can be impounded or revoked for
violation of one or more of the provisions of the Passport Act.
9) It is an offence to hold more than one valid passport at a time.
10) A passport expired more than six months back should be supported by a Sworn
Affidavit explaining the circumstances and the reasons for late renewal. An extra fee
of Dhs. 40/- will be charged for the Sworn Affidavit in such cases.
11) Those Indian citizens acquiring citizenship/passport of another country should
immediately surrender their Indian passport to the Indian Embassy/Consulate by
signing the citizenship renunciation form.
12) Emergency service for issue of passport can be availed by payment of an additional fee of Dhs.315/- under the Tatkal Scheme. Normal fee for adult – Dhs.150/and minor up to 18 years of age – Dhs.100/-. The validity of Tatkal passport is generally for one year, which can be extended later without any fee.
For other than Abu Dhabi issued passports –personal particulars form is also to be
filled.
Time Taken:
Abu Dhabi issued Passport - 5 working days
Passport issued by other PIAs – Maximum 40 days
Passport under Tatkal scheme - Next working day
The applicant is required to buy EMPOST sticker for delivery of his/her passport
HHH
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CHAPTER
38
VISA
General Guidelines
All foreign nationals entering India are required to possess a valid international travel document in the form of a national passport or UN Laissez Faire with a valid visa
obtained from an Indian Mission or Post abroad. Nationals of Nepal, Bhutan and
Maldives are however, exempted from this requirement.
UAE nationals, as also nationals of other countries with residence visa of Abu Dhabi
or Alain and residing in Abu Dhabi or Alain, are required to apply in the prescribed
form for visa. The application, complete in all respects, with two passport-size photographs and a photocopy of the passport, should be submitted in person with the
prescribed fee at the designated counter in the Embassy from 0900 to 1200 hrs on all
working days. The visa is processed and the passport returned the next working day
by Empost. The prescribed application form may be obtained from the Reception
Counter or downloaded from the Embassy of India’s website.
Please ensure the following, while submitting your application:• Passport should be valid for a minimum period of six months beyond the date of
intended de parture from India.
• Paste one photo and staple the other one on the form at a specified place.
• Applicants other than UAE nationals should submit proof of permanent residence
in the country
• In its absence, a reference will be made to their country of residence at an additional fee of Dhs.50/- with an additional processing time of 7 days.
• The application forms should be filled in English only.
• Each Visa application must be accompanied by an Empost sticker for delivery of
the Passport after processing the Visa.
• Each visa application is considered on its merits and the Embassy may ask
for additional information at any stage during the processing of the application.
133
Submission of application along with prescribed fee does not guarantee issuance of
visa. The following types of visas are issued by the Embassy of India, Abu Dhabi:
• Tourist Visa
• Business Visa
• Student Visa
• Transit Visa
• Journalist Visa
• Conference Visa
• Employment Visa
• Medical Visa
• Pakistani National
Tourist Visa
Application in the prescribed form (which may be downloaded from the Embassy’s
website) along with (i) two recent passport size photographs, (ii) passport in original
with photocopies of its first five pages, (iii) confirmed return air ticket in original
with a photocopy, should be presented in person. Tourist visa is valid for 6 months
with multiple entries.
Business Visa
Application in the prescribed from (which may be downloaded from the Embassy’s
website) supported by a letter from the Abu Dhabi Chamber of Commerce and Industry, or from the sponsor company authenticating the purpose of the visit and a
letter of invitation received from the business firm or company in India, along with
two passport sized photographs, passport in original and a photocopy of the first five
pages should be submitted at the Embassy. The passport and resident visa should
have at least six months validity.
Student Visa
Foreign Students are allowed to study in recognized graduate and post graduate level
medical, para-medical, Engineering and Technical institutes in India. Foreign students intending to pursue regular academic courses in India should apply for STUDENT VISA.
Foreign Students seeking Student visa should apply in normal visa application form
and produce following documents:1) Firm proof of admission to a recognized University/educational institution;
2) A letter of approval or No Objection Certificate from Ministry of Health Government of India (GOI) in case of admission to medical or para-medical courses and
134
from Ministry of Human Resources Development (Department of Education) (GOI)
in case of Engineering and Technical courses. This letter of approval can be obtained
from the college/institute where admission has been confirmed.
3) Satisfactory evidence of financial support.
4) Travellers cheques for AED 4000/Provisional Student Visa:
There might be some cases where the applicants do not have firm letters of admission from the college/institute because of the procedure which requires admission
tests etc. Such students may apply for Provisional Student Visa on the basis of Provisional Admission Certificate issued by the University/institute.
Transit Visa
Transit Visa is issued for a maximum period of 15-days with single/double entry
facilities to bonafide transit passengers only.
Journalist Visa
Journalist Visa is issued to professional journalists and photographers. The applicants are required to contact on arrival in New Delhi, the External Publicity Division
of the Ministry of External Affairs and in other places, the Office of the Government
of India’s Press Information Bureau.
Conference Visa
Conference Visa is issued for attending conferences/seminars/meetings in India. A
letter of invitation from the organizers of the conference is to be submitted along
with the visa application. Delegates coming to attend conferences may combine
tourism with attending conferences.
Employment Visa
Employment Visa is issued to skilled and qualified professionals or persons who
are engaged or appointed by companies, organizations and economic undertakings
as technicians, technical experts, senior executives etc. Applicants are required to
submit proof of contract / employment/ engagement of foreign nationals by the company or organization and a copy of the agreement of the company approved by the
Government of India.
Medical Visa
The medical visa would be admissible to all foreigners seeking Medicare in recognized specialty hospitals or treatment centers in India. Although non exhaustive,
following illustrative list of serious ailments would be of primary consideration;
neuro-surgery; ophthalmic disorders; heart related problems; renal disorders; organ
transplantations; plastic surgery; joint replacement etc. The initial period of such
a visa will be one year or for the period of treatment whichever is less. Unlike the
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tourist visa, this can be extended in India, with supporting Medical documents. Such
visa will be valid for maximum three entries during one year. The applicant should
seek preliminary medical advice from the Abu Dhabi or Alain and should have been
advised to go for specialized medical treatment. Foreigners visiting on ‘M visa’ will
be required to get themselves registered mandatorily well within the period of 14
days of arrival with the concerned FRROs/ FROs. Attendant/family members of the
patient coming to India for medical treatment shall be granted miscellaneous visa
co-terminus with the ‘M Visa’ of the patient. Such visa may be granted to the spouse/
children or to those who have blood relations with the patient. .
Pakistani Nationals
Pakistan nationals with resident visa of Abu Dhabi and Alain and residing there may
apply in quadruplicate (two originals and two photocopies in the prescribed application form), with four recent passport size photographs, the current and all previous
passports, a photocopy of the first five pages of the current passport and documentary
evidence as may be required. Visitor visa is granted to Pakistan nationals, who have
blood relatives in India or other legitimate purpose, and should furnish documentary
proof in support thereof. They should give a complete verifiable address of their relative in India. Application should be complete in all respects and should in particular,
indicate port of arrival as well as details of previous visits to India, if any. The visa
fee is Dhs. 3/-. Applications for business visas should be supported by a letter from
the Chamber of Commerce & Industry/sponsor and invitations from companies in
India.
General Information about issue of Visa
• The duration of stay in India, for each visit on a tourist visa or business visa
is only for a period of 6 months even though a valid visa may be for more than 6
months.
• Visa is given for a period for which passport is valid. For example, if a passport is
valid until April 30, 2010 and an applicant is applying for 5 years visa on December
31, 2007, the applicant will not be issued a 5 years visa as the passport expires before
the 5 year visa.
• Validity of all visas is counted from the date of their issue.
• If visa is for more than 180 days, registration with Foreigners Regional Registration Office in the nearest city is compulsory within 14 days of first arrival in India.
• For extension of visa in Delhi, Please contact Ministry of Home Affairs- Director
(Foreigners), Lok Nayak Bhawan, Ist Floor, Khan Market, New Delhi-110003.
HHH
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CHAPTER
39
NRIS / PIOS DESK
The Government of India has launched a comprehensive scheme for Persons of Indian Origin called the PIO Card Scheme. The PIO card scheme enables a person
of Indian origin up to the 4th Generation down, as also spouses of such persons to
apply for and obtain a PIO card. The scheme however, does not cover nationals of
Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, China, Afghanistan, Iran and such
other countries as may be specified.
Facilities to be extended to a PIO Card Holder:
1) A PIO Card holder shall not require a separate visa to visit India.
2) A PIO Card holder will be exempted from the requirement of registration if his
stay on any single visit in India does not exceed 180 days.
3) In the event of continuous stay in India of the PIO Card holder exceeding 180
days, he/she shall have to get himself/herself registered within 30 days of the expiry
of 180 days with the concerned Foreigners Regional Registration Officer/Foreigners
Registration Officer.
4) All PIOs including PIO Card holders, shall enjoy parity with NRIs in respect of
all facilities available to the latter in the economic, financial and educational fields
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except in matters relating to the acquisition of agricultural/plantation properties. No
parity shall be allowed in the sphere of political rights.
Requirements:
1) Application in the prescribed format
2) 6 latest passport-size photographs (Frontal view against light background).
3) Present passport (in original) [and a copy thereof], held by the applicant .
4) Copy of the Indian passport, if any, held in the past.
5) Copy of the deed renouncing Indian citizenship (if any).
6) Copy of Birth Certificate (if born in India) or driving license /ration card or such
other documentary proof as may be available, if the applicant ever resided in India.
7) Copy of the Indian passport, if any, held by either or both parents/grandparents/
great grandparents.
8) Copy of UAE passport held by the husband in case of ladies of Indian origin
married to UAE nationals and copies of the Marriage Certificate (Nikahnama).
9) Proof of either or both parents or any or all of grandparents or great grandparents
having born or permanently resident in India, as defined in the Government of India
Act, 1935.
10)Proof of bank accounts, property, shares etc. held in India by the applicant or his
spouse, or any of his parents, grandparents/great grandparents.
11)Submit in person to establish identity.
Fee: AED 1150/- for PIOs above 18 years and AED 575/- for PIOs below 18 years.
This has to be deposited with the application, duly supported by all necessary documents, as detailed above.
Validity: 15 years
Note: Acceptance of application form does not confer any right on the applicant to
the PIO Card.
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CHAPTER
40
OVERSEAS CITIZEN OF INDIA SCHEME
(OCI)
The Overseas Citizenship of India Scheme has become operational with effect from
2nd December, 2005. The salient features of the scheme are given below:
Eligibility criteria:
A foreign national, who was eligible to become citizen of India on 26.01.1950 or
was a citizen of India on or at any time after 26.01.1950 or belonged to a territory
that became part of India after 15.08.1947 and his/her children and grand children,
provided his/her country of citizenship allows dual citizenship in some form or other
under the local laws, is eligible for registration as Overseas Citizen of India (OCI).
Minor children of such person’s up to the age of 18 are not eligible for OCI. Moreover, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will
not be eligible for OCI.
Application form and procedure:
Each applicant is required to fill Form XIX Part A and Part B which can be downloaded from the websites of Embassy / Consulate of India.
The following documents shall be enclosed in respect of each applicant:
1) Proof of present citizenship - a copy of passport / citizenship certificate.
2) Evidence of self or parents or grandparents,
a) Being eligible to become a citizen of India on 26.01.1950; or
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b) Being citizen of India on or after 26.01.1950; or
c) Belonging to a territory that became part of India after 15.08.1947
These could be:
(i)Copy of the Indian passport; or
(ii)
Copy of the domicile certificate issued by the Competent authority; or
(iii) Any other proof.
Evidence of relationship as parent/grandparent, of their Indian origin, if
claimed as basis for grant of OCI.
1) Four copies of applicant’s latest passport size photograph
2) If you are a PIO Card holder, should submit a copy of your PIO card.
3) All the documents enclosed with the application should be self attested.
4) This form when completed should be submitted in duplicate (both sets must have
original photograph and signature along with enclosures). The applicant will have to
submit his/her application at the Indian Embassy in Abu Dhabi (if you are residing
in Abu Dhabi or Al Ain for the past one year) in person and sign a declaration in the
presence of Consular Officer in the Mission.
5) If you are in India, then submit the form to the Foreigners Regional Registration
Officer (FRRO), Mumbai, Kolkata, Delhi, Amritsar or Chief Immigration Officer
(CHIO), Chennai or Under Secretary, OCI Cell, Citizenship Section, Foreigners Division, Ministry of Home Affairs.
Countries
Persons of Indian origin residing in the following 16 countries are eligible for Overseas Indian Citizenship:
1) Australia
2) Canada
3) Finland
4) France
5) Greece
6) Ireland
7) Israel
8) Italy
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9) Netherlands
10) New Zealand
11) Portugal
12) Republic of Cyprus
13) Sweden
14) Switzerland
15) United Kingdom; and
16) United States of America
Fees in Dirham
Registration Fee as OCI - 1020/Registration Fee as OCI for PIO Card holders - 100/-
Transfer of Universal Visa (from the old passport to the new one) - 20/Duplicate Certificate of OCI (if the OCI card is lost/damaged) - 100/Note: - In case the application for Registration as OCI is rejected for any reason, the
fee will be refunded after deducting an amount of AED 100/- as processing fee.
Processing Time
The time for processing an application, from the date the application is received at
the Embassy, complete in all respects, would be a maximum of 30 days.
Period of Validity
The Registration Certificate will be valid for life unless renounced or cancelled.
Facilities
i) An Overseas Citizen of India will enjoy all rights and privileges available to Nonresident Indians (NRIs) in financial, economic and educational fields except in the
acquisition of agriculture and plantation properties.
ii)Multiple entry, multi-purpose lifelong visa to visit India.
iii)There would be no visa requirement for travel to India. The person would have to
141
carry his/her existing foreign passport along with Registration Certificate. The person so travelling would not be required to register with the FRRO/Police authorities
for any length of stay in India.
iv)All facilities as available to children of NRIs for getting admission to educational
institutions in India including Medical and Engineering Colleges, Management Institutes etc. under the general category and membership of various housing scheme
etc. will be open to holders of Certificate of Registration.
The Overseas Citizens, however, will not enjoy the following Rights:a) Right to Vote;
b) Right to hold Constitutional Offices (Member of Lok Sabha, Rajya Sabha, Legislative Assembly or Council, offices of President, Vice President, Judge of Supreme
Court & High Court etc.);
c) Appointment to Public Services (Govt. Services)
Persons with Dual Passports
Persons having the passport of the country concerned, (one of the sixteen countries
listed) and that of a third country, can also apply for a Certificate of Registration.
Overseas Citizenship is not Dual Nationality
It may kindly be noted that Overseas Citizenship is not a full citizenship of India
and, therefore, does not amount to dual citizenship or dual nationality.
HHH
142
CHAPTER
41
VERIFICATION OF GENUINENESS OF
UNIVERSITY/SCHOOL CERTIFICATES
DOCUMENTS REQUIRED:
1) Application in the prescribed form
2) Two photocopies of each document
3) Verification fees payable to University/Board/Institute
A fee of AED 50/- per certificate is charged (w. e. f. 01.08.2007) by the Embassy for verification of genuineness of educational certificates. In addition, the following fees are charged by
some of the Universities/Board as indicated against each. This is additional requirement for
confirming the genuineness, for which demand draft in favour of the concerned University/
Board is also required to be enclosed with the application. As and when new rates of fee are
announced by the concerned University/Board the same shall be payable by Demand draft in
favour of the concerned university / Board:
No. University/Board/Institute
Fee charged per certificate To be paid by
1 Pune University
Rs. 150/-
Registrar,
2 Bangalore University
Rs. 200/- +All Years Marks card
Registrar (Evaluation) Bangalore University,
+All years Marks cards
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Demand Draft in favour of
University of Pune, Pune
Bangalore
3 Mysore University
US $ 100+ Finance Officer,
4 Nagpur University
Rs. 100/+ Registrar,
Per Certificate
All years Marks card + Degree cert.
Nagpur University Nagpur
5 Osmania University
US $ 25
Controller of Exam.
6 Madras University
Rs. 1000/-
Registrar,
7 Allahabad University
US $ 100
8 University of Calcutta
Rs. 5000/- per certificate Attested Copy
9 University of Mumbai
or $100
Rs. 500/- per copy within 3 years 500, 3-8 700,
8-15 850 15 Years 1000
Osmania University, Hyderabad
University of Madras, Chennai
Registrer, Allahabad University
Allahabad
Registrar,
University of Calcutta
Kolkata
The Finance & Acctts. Officer
University of Mumbai
10 Kolhapur Divisional Board Rs. 100/-
Divisional Secretary,
Kolhapur
11 Andhra Board
Rs. 100/-+ 12 Andhra Intermediate
Nil Original certificate
13 Maharashtra State Board
Original Certificate
Rs. 200/-
14 Panjab University
Rs. 370/- 15 Drug Control Dept. Rs.75/- per copy
16 J & K State Board of
School Education
per certificate
+ Marks card
Rs. 400/-+
144
University of Mysore,
Kolhapur Divisional Board,
Secretary, to the Commissioner
for Govt. Exam Hyderabad
To the Board
Mumbai Divisional Board
Vashi Navi Mumbai-400703
Registrar,
Panjab University, Chandigarh
Drug controller for the Bangalore
state of Karnataka Bangalore
Chairman,
J & K State Board of
School Education,Srinagar
17 State Board of
Rs. 300/-
18 The M. S. University
Rs. 100/-
19 Kuvempu University
No Fee
Technical Education Madras
Baroda
20 Goa Secondary Board
Rs. 400/-
21 Kakatia University
US$ 40 or Rs. 3600/-
Education Examination, Chennai
Registrar,
M. S. University Baroda, Vadodara
Secretary Goa Board of
Sec.& Hr. Sec. Education
Secretary Goa Board of
Sec.& Hr. Sec. Education
Kakatia University Warangal
22 Karnataka Tech. Board
Rs. 100/-
23 South Gujarat
Rs. 500/-
University Surat
24 University of Burdwan
Rs. 100/- Controller of Examination,
Andhra Pradesh
In any govt. Polytechnic college
in India then along with
original receipt I, II,III marks cards
Registrar,
South Gujarat University, Surat
Finance Officer,
Each Certificate +
Burdwan University, Burdwan
25 Smt. Nathibhai Damodar Rs.1500/-
Registrar,
Necessary Postal Charges
T. Women University
26 University of Kashmir
Rs. 300/-
27 Jiwaji University
Rs. 200/- SNDT Women University, Mumbai
Registrar,
University of Kashmir,
Srinagar Payable at Jammu & Kashmir
Bank Hazratbal branch Srinagar
Registrar,
per Certificate
per Certificate + Goa University, Goa
Rs. 100/- Secretary,
28 Goa University
29 CBSE
Rs. 200/- All Year Marks Statement
per Certificate
145
Additional Director of Technical
Jiwaji University Gwalior
Registrar,
CBSE Chennai, Ajmer, New Delhi,
Allahabad, Panchkula and Guwahati
30 Himachal Pradesh
University
Rs. 750/- per Certificate
32 Bharathiar University
Rs. 1000/- per Certificate
31 Karnataka State
Rs. 1200/- Open University
per Certificate
33 Council for the Indian
Rs. 100/-
School Certificate Examination
34 Gujarat Secondary &
Rs. 25/- Higher Secondary
per Certificate for S. S. C.
Education Board
35 Gujarat Secondary &
Rs. 25/- Higher Secondary
per Certificate.
Education Board
+ Attested H. S. C. Certificate
36 Maharashtra State Board, Rs. 200/- Pune Board
per Certificate
37 Karnataka Secondary
Education Examination Board, Bangalore
Rs. 200/- per Certificate+ Original Certificate
39 Acharya Nagarjuna University
Rs. 500/- per certificate
38 Pandit Ravishankar
Rs. 100/- Shukla University, per Mark Sheets/ Certificate
Raipur
40 University of Lucknow
Rs. 500/- per certificate
41 Karnataka Secondary
Rs. 100/-+ Education Examination
Board, Mysore
42 Board of Higher Secondary Examination, Madras 146
Finance Officer,
H. P. University, Shimla
Finance Officer
Karnataka State Open University, Mysore
Registrar,
Bharathiar University, Coimbatore
Council for the
Indian School Examination,
New Delhi
Secretary,
Gujarat Secondary and Higher
Secondary Education Board,
Vadodara
Secretary,
Gujarat Secondary and Higher
Secondary Education Board,
Gandhinagar
Pune Divisional Board
Pune-411005
Karnataka Secondary Education
Examination Board, Bangalore
Registrar,
Pandit Ravishankar Shukla
University, Raipur (Chhattisgarh)
Registrar,
Acharya Nagarjuna University,
Gantur (A. P.)
Finance Officer,
University of Lucknow, Lucknow
Divisional Secretary
Karnataka Secondary Education
Examination Board,
Mysore Division, Mysore
No fee.
However, Attested copy
of Mark Sheet/Certificate is required
CHAPTER
42
ATTESTATION OF DIPLOMA
CERTIFICATES
Undergraduate/Diploma Certificates should be attested by:
• Notary Public
• Concerned State Home Department
• UAE Embassy/Consulate in India
Degree/Post Graduate Certificates should be attested by:
• Education Department of Ministry of HRD, Government of India
(Address: A-1/W-3, Curzon Road Barracks, Kasturba Gandhi Marg, New Delhi110001)
• Ministry of External Affairs, Government of India
(Address: Ground Floor, Patiala House, Tilak marg, New Delhi)
• UAE Embassy, New Delhi/UAE Consulate, Mumbai
HHH
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CHAPTER
43
MARRIAGES IN FOREIGN COUNTRY
A non-resident Indian can register his or her marriage in a foreign country. If both
the persons intended to get married are Indians, they can invoke the provisions of the
Special Marriage Act and if any one of them is a foreign national, they can utilise the
provisions of Foreign Marriage Act.
SPECIAL MARRIAGE ACT
The Special Marriage Act was enacted to provide a special form of marriage by any
person in India and all Indian nationals in foreign countries irrespective of the religion either party to the marriage may profess.
For the benefit of Indian citizens abroad, it provides for the appointment of Diplomatic and Consular Officers available in Embassies and Consulates, as marriage
officers for solemnizing and registering marriages between citizens of India in a
foreign country.
The Act extends to the whole of India except the state of Jammu and Kashmir and
also applies to citizens of India domiciled in the territories to which this Act extends
who are in the state of Jammu and Kashmir.
Conditions necessary for a marriage
To enter into a contract of marriage under Special marriage act, the following conditions are necessary:
1) That neither party has a spouse living at the time of marriage.
2) That neither party is incapable of giving a valid consent to the marriage due to
unsoundness of mind.
3) That neither party has been suffering from mental disorder of such a kind or to
such an extent as to be unfit for marriage and the procreation of children.
148
4) That neither party has been subject to recurrent attacks of epilepsy or insanity.
5) That the bridegroom has completed the age of 21 years and the bride the age of
18 years at the time of marriage.
6) That the parties are not within the degrees of prohibited relationship. However
where a custom governing at least one of the parties permits a marriage between
them, such marriage may be solemnized notwithstanding that they are within the
degrees of prohibited relationship
Notice of intended marriage
A notice has to be given in writing in the form available in the Embassy/Consulate to
the Marriage Officer in which at least one of the parties to the marriage has resided
for a period of not less than 30 days immediately preceding the date on which such
notice was given.
Publication
The notice given is then published by affixing it in some conspicuous place in the office of the Marriage Officer, and before the expiration of thirty days from the date on
which the notice was published any person can object to the marriage that it would
contravene any of the conditions necessary for the marriage.
After the expiry of thirty days from the date on which the notice was published the
marriage may be solemnized.
Declaration by parties and witnesses
Before the marriage is solemnized the parties and three witnesses shall sign a declaration in the prescribed form and the declaration shall be counter signed by the
Marriage Officer.
Place and form of solemnization
The marriage maybe solemnized at the office of the Marriage Officer, or at such
place within reasonable distance, as the parties may desire, upon payment of such
additional fees as may be prescribed.
The marriage may be solemnized in a form, which the parties may choose to adopt.
However, No marriage is complete and binding unless each party says to the other
in the presence of the Marriage Officer and the three witnesses in any language
understood by the parties, I_______take thee________to be my lawful wife (or husband).
149
Certificate of marriage
After the marriage has been solemnized the Marriage Officer shall enter a certificate
in the Marriage Certificate Book and this shall be signed by the parties to the marriage and the three witnesses and this shall be conclusive evidence of the marriage.
FOREIGN MARRIAGE ACT
This law is made with an intention to make provision relating to marriages of citizens of India outside India, especially in the circumstances, one of the persons contracted for marriage is a foreign citizen. For As in the case of Special marriage Act,
diplomatic or consular officers in the respective countries will act as the Marriage
Officers for the Foreign country.
A marriage between the parties one of whom at least is a citizen of India may be
solemnized under this Act by or before a Marriage Officer in a Foreign country, if, at
the time of the marriage, the following conditions are fulfilled, namely:
a) neither party has a spouse living,
b) neither party is an idiot or a lunatic,
c) the bridegroom has completed the age of twenty-one years and be bride the age
of eighteen years at the time of the marriage, and
d) the parties are not within the degree of prohibited of relationship
Provided that where the personal law or a custom governing at least one of the parties permits of a marriage between them, such marriage may be solemnized, notwithstanding that they are within the degrees of prohibited relationship.
When a marriage is intended to be solemnized under this Act, the parties to the marriage shall give notice thereof in writing in the form available with the Marriage Officer and all the formalities prescribed under Special Marriage Act has to follow in
this case also. A marriage solemnized in the manner shall be good and valid in law.
Whenever a marriage is not solemnized within six months from the date on which
notice thereof has been given to the Marriage Officer the notice and all other proceedings arising there from shall be deemed to have lapsed, and no Marriage Officer
shall solemnize the marriage until new notice has been given in the manner laid
down in the law.
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150
PART III
U.A.E. LAWS & REGUATIONS
CHAPTER
44
ENTRY VISAS AND ENTRY PERMITS
Anyone wanting to visit or to live in the UAE, whether alone or accompanied by
their families must follow the rules and procedures set by the authorities regarding
issuing visas, entry permits, work permits or any other kind of legal way to enter the
country. Visitors must know the differences and the definitions between entry visas,
entry permits, work permits and other types of permit set by Labour Ministry and
the Ministry of Interior. Anyone wanting to apply for entry visa should know what
the process entails, and understand the difference between an entry visa and an entry
permit.
Entry visa: An entry visa is described as an approval, to be made in the visitor’s
passport or travel document, allowing him or her to enter the country. This visa can
be issued by a UAE embassy or consulate in the country of the person who is applying for the entry visa and it can also be issued by the Naturalisation and Residency
department here.
Entry permit: An entry permit is a special document issued for the expatriates in order to allow them to enter the country and it can be issued only by the Naturalisation
and Residency Department. An entry permit or entry visa will not be granted unless
the applicant has a valid passport which allows him or her to enter the UAE and to
return to their home country or the country which issued their passport. Also in order
to be able to enter the UAE, the visa or the entry permit must be approved by the
authorities in accordance with the purpose for the visit.
In order to be able to enter the UAE, one needs a sponsor, which can be a company, a
UAE national or an expatriate who has a residence visa. But you will not be allowed
into the country if you have been banned or deported the UAE in the past, either for
one year or permanently. It you are banned for one year, do not attempt to come here
before the end of the year.
152
Expatriates wishing to enter the country must submit an application for an entry
visa to the UAE embassy or consulate in their own country. The UAE embassy
or consulate will obtain an approval for the applicant from the Naturalisation and
Residency Department here. If you are sponsoring an expatriate who wishes to enter
the country, you must abide by the information stated in the application. You will be
responsible if the person you sponsored is deported, and will have to accompany him
or her if necessary to avoid facing a penalty.
According to UAE labour and residency laws there are certain categories of expatriates, holding a residence visa, who are not allowed to sponsor or to recruit an
expatriate even if they comply with salary requirements. These categories include
domestic workers and labourers.
The main entry requirement of obtaining a visa in the United Arab Emirates are that
your passport is valid for at least 2-6 months before your arrival. Information about
the various UAE visa categories are explained in detail below.
Visit visa:
There will be two types of visit visas, both non-renewable. The first type, long-term
visit visa, allows the holders to stay in the UAE for 90 days. The second type, shortterm visit visa, allows the holders to stay in the country for 30 days.
Visit visas valid for 30 days will cost Dh500. This cannot be renewed. If a person
wishes to stay for an extended period, he or she must obtain a visa valid for 90
days which costs Dh1,000. A health insurance policy is mandatory for visitors and a
Dh1,000 deposit will be collected by the department before issuing visas. Residents
can apply for the visa for their spouse or blood relatives. Sponsoring other relatives
will need the approval of senior officials. Only UAE nationals will be allowed to
sponsor friends.
For entry permits to visit the UAE, the request should be submitted in the prescribed
application forms of the Ministry of Interior along with the documents required for
each case.
A) If the purpose of entering the country is visiting a relative or friend, residing in
the country legally, the following requirements should be fulfilled:
1. The visitor should be a spouse or one of the immediate relatives of the sponsor.
An exception could be made for the second-degree relatives to visit the sponsor on
approval by the Undersecretary of Ministry of Interior or his representative;
2. The sponsor should be a UAE citizen in case the visitor is a friend of the person
who submits the application; and
153
3. Proof of consanguinity, marriage or justification for the visit must be furnished
and the sponsor must stand as guarantees.
In all circumstances, the beneficiary should have a health insurance cover and pay
Dh1,000 as a financial guarantee that would be refunded upon departure.
The visit visa holder will be allowed to enter the UAE once within two months from
the date of issue.
Education: Visitors may be allowed into the country for studies and the holder of
this type of visa will be allowed to enter the UAE once during the two months from
the date of issue and they could stay for 60 days and may be extended for the same
term twice. Student visit visas will cost Dh1,000. To obtain this, a person must be
registered in one of the universities in the UAE and must obtain health insurance.
Additionally a refundable deposit of Dh1000 must be paid.
Medical Treatment: Visit visas may be issued for medical treatment. The holder
of such a permit may enter the country once, within two months from the date of
issue. The person could stay in the country for 90 days from the date of entry. Such
permit may be extended only once for the same period. A hospital must sponsor the
patient and a medical report must be furnished along with the refundable deposit of
Dh1,000.
Exhibition & Conference: Visas for attending an exhibition, festival or conference
will be only for a single entry within two months from the date of issue. The person
could stay in the country for up to 30 days from the date of entry. This visa cannot be
extended. The occurrence and timing of the event must be certified in a letter issued
by an official department. A refundable deposit of Dh1,000 must be paid.
Dignitaries: The UAE ambassadors and consuls abroad are also authorised to issue
entry visas for public figures, dignitaries and alike. The condition of sponsor may
even be dropped in such cases.
The beneficiaries, as per the bylaw, must, in all cases, have medical insurance.
Some 16 types of visit visas have been defined by the government specifying the
reason for visit, such as education, treatment, or for participating in an exhibition
or conference. To keep up with the fast paced development of the country, multiple
entry visa has also been introduced. The said visa costing Dh 2,000 is valid for six
months, but a person can stay in the country only for 14 days at a stretch.
Tourist Visa: It is available for tourists sponsored by tour operating companies and
hotels. The holder of a tourist visa may enter the country once within two months
from the date of issue. The person could stay for a maximum of 30 days in the country from the date of entry. Such visas could be extended once for the same period.
154
The sponsor of the visitor must be the tourist agency or institution. A deposit of
Dh75,000 must be paid when applying for an institution card.
A refundable deposit of Dh1,000 shall be paid for such a visa for people of certain
nationalities to be specified by the decision from the undersecretary of the Interior
Ministry. The application should be submitted to the department concerned a week
before arrival and the number of people for whom the visa is sought must not be
more than 10. The itinerary should be attached with the application. An exception
to the number of members of the group may be given by the Undersecretary of the
Interior Ministry. The persons must have health insurance cover.
Special Mission Entry Visa: This is issued for a non-renewable 14 days for a fee
of Dh220 and a delivery charge of Dh10. Commonly known as a transit visa, it is
collected by the visitor upon arrival. It is issued to businessmen and tourists sponsored by a company or commercial establishment or a hotel licensed to operate in
the UAE.
Mission Visa: This newly added type of visa is issued for the purpose of temporary
work in the country. It is issued for a maximum of 180 days with a combined fee of
Dh1,800. It is issued for three months against a fee of Dh600 and can be renewed
for another three months against a fee of Dh1,200. It has been introduced to facilitate
Labour Ministry>s Temporary Work Permit. An applicant must obtain the permit
from the Labour Ministry first to get the visa.
Transit Visa: It is issued to travellers transiting through UAE airports. It is issued
for 96 hours and must be sponsored by an airline operating in the UAE. The visitor
must have a valid ticket for onward flight. Transit visas will cost Dh100 while mission visas will cost Dh200.
Multiple Entry Visa: The UAE has introduced a new multiple entry visa regime.
According to the new rules, the visa holders can enter the country several times during the six months from the date of issuance and stay for a maximum of 14 days on
every visit. A fee of Dh. 2000 is to be paid for this.
Residence Visa: A residence visa is required for those who intend to enter the UAE
to live indefinitely with a person who is already a resident. It is issued to the immediate kin of a resident for three years for a fee of Dh300. The residence permit becomes
invalid if the resident remains more than six months at a time out of the country.
Parents of residents are issued residence visas after special approval with a renewable validity of one year for a fee of Dh100 for each year. A refundable deposit of
Dh5,000 has to be paid for each parent.
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Investor Visa: It is issued to an expatriate investor in partnership with a local. The
foreign investor must hold a minimum stake of Dh70,000 in the share capital. Like
the residence visa, it is issued for three years for a fee of Dh300.
Employment Visa: Employment Visa or Permit is issued by the Immigration Department to a foreign national who wishes to work for a company in the UAE upon
the approval of the Ministry of Labour and Social Affairs. It allows the holder to
enter the UAE once for a period of 30 days and is valid for two months from the date
of issue. When the employee has entered the country on the basis of the employment
visa, the sponsoring company will arrange to complete the formalities of stamping
his residence.
Documents required
- Typed form
- A copy of the sponsor>s passport
- A copy of the sponsored person>s passport and three passport photos
- Attested work contract if the sponsor is working in a private company or a salary
certificate if working in government
Fees
- Dh110 + typing fee
- Additional Dh100 for urgent application fee (optional)
- Dh10 Empost sticker for non-urgent visa
- Dh1,000 refundable deposit (retain receipt to obtain refund)
Procedure
Go to any authorised typing office and have the forms typed. If an urgent visa is
required, ask for urgent visa form to be typed & pay additional Dh100.
Go to any Naturalisation and Residency Department (NRD) branch or main office. If
you are applying for non-urgent visa, go to an Empost Counter and purchase a Dh10
sticker before submitting the visa form. Urgent visas are given within 10 minutes.
Empost will courier non-urgent visas to you within two working days at the address
you have listed on the sticker.
Send either the original or the copy to your friend. If only copy was sent, then deposit the original at a visa counter at the respective UAE airport at least five hours
before the flight lands.
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SPONSORING TEENAGERS
The residency laws of the UAE allows expatriate parents to sponsor their sons as
long as they are less than 18 years old. The laws are different for a daughter and the
parents can sponsor her beyond 18 years of age. The parents can sponsor her if she
is a divorcee or if she becomes a widow. Her residency visa will be valid for three
years.
The situation is different if it is a son and if he reaches 18, the parents cannot sponsor him anymore. The residency laws give the parents only one option in order to
keep their 18-year-old son with them here. According to the law the parents of the
teenager can keep him here if he is studying at a local educational institution, a university or a college in the UAE.
The teenager can be sponsored either by the educational institution or by either one
of the parents after submitting a document at the residency department that he is
continuing his studies here in the UAE. A deposit of Dh 5,000 must be made at the
naturalisation and residency department if he is studying in the UAE at an educational institution which is not an accredited institution or one which is not approved
by the Ministry of Higher Education and Scientific Research. There is no need for
a deposit if the educational institution or the university where the son is studying is
an accredited one.
Similarly, if the sponsored son who is less than 18 and is studying abroad, the parents must deposit Dh.5,000, which is refundable, to retain the residency visa. The
residency visa for the 18-year-old son is valid only for one year and should be renewed every year. In order to obtain a residency visa the son should submit to the
residency department a letter from the educational institution which states that he is
studying there.
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SPONSORING PARENTS
Expatriates who have a valid resident visa in UAE can sponsor their parents for a
year’s stay by paying a Dh 5,000 deposit as guarantee for each parent. But according
to new regulations, you cannot sponsor only one of your parents and have to sponsor
your father and the mother together, with proof that you are their sole supporter and
they have no one to take care of them back home.
If one of your parents has passed away or if you are divorced, you have to show
papers to prove that to the Naturalisation and Residency Department, as justification
why you want to sponsor only one of your parents. The son or daughter must also
prove he or she is the only supporter of the parents and that there is no one to take
care of them back home.
One should apply for the residency visa for parents at the department which issued
his or her own resident visa. The son or the daughter can sponsor the parents or the
father and mother-in- law. In order to be able to sponsor your parents or father and
mother-in-law, one should have a minimum salary not less than Dh6,000 with accommodation allowance or minimum salary of Dh7,000. They also need to obtain
a medical insurance policy for both with a minimum coverage of Dh600 for each,
to be renewed each year. Now besides a medical health check, an HIV test is also
needed before applying for the residence visa.
To obtain a residence visa for the parents, one has to show proof to the Naturalisation
and Residency Department that there is a humanitarian issue that requires to sponsor
them and that the son or daughter are their lone supporters. The expatriate should
also obtain a letter from his or her embassy or consulate certifying that the person is
the sole supporter.
The Dh5,000 guarantee deposit will be returned after the parents leave the country
and the visa is cancelled or the parent dies.
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Following are the procedures to be complied with in this regard:
• The UAE has allowed sponsoring the residency of parents because of ‘humanitarian reasons’ as elderly parents should be taken care of by their children, according to
the Interior Ministry.
• Earlier, you could sponsor your parent for a residency visa without having to pay
Dh5,000 as refundable guarantee. The new rule implemented few months ago now
requires the deposit.
• All expatriates can sponsor their parents but the sponsor’s minimum salary should
be Dh6,000, with housing allowance.
• You will now also need a Dh 600 medical insurance policy for your parents.
• One can sponsor the father-in-law or mother-in-law, under the same conditions.
• The residence visa for the parents is valid for one year only and should be cancelled or renewed after the end of the validity.
• If you fail to renew or cancel the visa, the parents will be deemed to be illegal
overstayers and will have to pay a fine.
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SPONSORING STEPCHILD
If a man sponsors his stepchildren their residence visas will be valid only for one
year. The visa can be renewed annually and sponsor has to put up a Dh. 5,000 deposit for each child. The deposit has to be paid at the Naturalisation and Residency
Department and will be returned on cancellation of the visa.
Before applying visa for stepchildren, you need to first check at the department if
the application will be approved as questions regarding guardianship of the children
must be addressed and cleared. The application will first have to be approved by the
director-general of the department.
The question of custody of children must be approved by the court in the mother’s
country and also by the UAE Embassy and Foreign Ministry in her home country.
The mother must show proof that she has legal custody of her children from her
former husband.
The man who wishes to sponsor his wife’s son or daughter must submit to the department a no objection letter from the father of the children that he agrees that his son or
daughter can be sponsored by their stepfather who lives in the UAE. The letter must
be approved and be legally binding and should be signed by the proper authority in
the child’s home country. It should also be approved by the UAE Embassy in the
country of the child and also by the foreign ministry.
The father or the child or the guardian must state in the letter that he does not have
any objection to the son or daughter shifting to the UAE and being sponsored by
their stepfather.
If the father of the child is dead and the mother remarried, the grandparents or relatives of the child must give the no-objection letter in accordance with the law in their
own country.
All documents must be official, legal and approved from the concerned authorities.
If the former husband of the wife or his family members are living in the UAE, the
wife should obtain proof of custody from the court and a no-objection letter from the
father of her children or from his family or their legal guardians.
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The following points may kindly be noted:
A woman cannot sponsor her former husband’s children unless she falls in the category who can sponsor her own family, such as a working mother.
The Naturalisation and Residency Department can allow her to sponsor her stepson
or stepdaughter on humanitarian grounds which is decided by the head of the department.
If the sponsored child is under 18 years, the application must include the birth certificate in addition to all needed documents.
All children must go to school if they are of school age and should be enrolled in an
educational institution.
If the sponsored stepson is over 18 years, you need to submit a certificate from an
authorised education institution here.
If you wish to sponsor your stepdaughter and she is over 18 years, she should be
enrolled in an authorised educational institution here and that educational institution
must approve that.
To sponsor stepchildren, the man’s salary must be over Dh6,000 including accommodation.
Papers needed are copy of the sponsor’s passport; salary certificate; labour contract.
The stepfather should also submit a document saying that he will financially support
the children. It should be attested by his embassy here and the foreign ministry in
his country.
Fee for the resident visa is Dh300 for each child.
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SPONSORING A RELATIVE TO VISIT
Expatriates who have valid residency papers can apply for a visit visa for relatives or
friends, but must fulfill certain conditions.
According to the Naturalisation and Residency Department (NRD) law, if the sponsored relative is a female, she should not be less than 25 years of age. If an expatriate
wants to sponsor his wife and children on a visit visa, he should personally apply at
the NRD at the emirate which issued him residency visa.
The following papers are needed for this purpose:
(1) Passport copies of the applicant as well his wife and children
(2) Marriage contract attested by the Ministry of Foreign Affairs
(3) Attested work contract if working with a private company, or salary certificate if
working in the public sector.
The salary of the expatriate should not be less than Dh3,000 per month with accommodation or Dh4,000 per month without accommodation. The applicant need not
pay any deposit. He must get an e-gate card. The e-form application will cost Dh100;
another Dh100 if the visa is needed urgently, as well as Dh10 for delivery of the visa
through Empost.
If an expatriate wishes to sponsor his parents on a visit visa, the application must
be submitted personally at the NRD. The papers required are passport copies and an
attested letter from the embassy proving the relationship.
Also needed are: an attested work contract if the person is working in a private company or a salary certificate if working in the government sector. The minimum salary
requirements are the same: not less than Dh3,000 per month with accommodation
or Dh4,000 per month without accommodation. No deposit is required, but the applicant must get an e-gate card.
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If you are sponsoring a relative, a deposit of Dh 2,000 is required and the salary must
not be less than Dh 5,000 per month with accommodation. But if you are sponsoring
a brother or sister, the salary and accommodation allowance should be Dh 6,000.
An expatriate can also sponsor two friends on visit at a time, but the salary requirements are higher - not less than Dh 10,000 and Dh 2,000 refundable deposit for each
person which is returnable after the friends leave the country. One should keep the
receipt safely and present it for the refund.
Here below give some of the monthly salary requirements for sponsoring relatives
or friends on a visit visa:
• Wife or husband's parents or grandparents. Salary must be Dh.4,000 or Dh.3,000
and accom modation facility.
• Wife or husband's brothers and sisters and their sons and daughters who are less
than 18 years. Salary should be Dh5,000 per month and Dh2,000 as deposit.
• Sister's or brother's sons and daughters. Salary must be Dh6,000 and Dh2,000
deposit for thos above 18 years.
• Grandsons under 18 years of age. Salary must be Dh4,000 or Dh3,000 with accommodation facility. No deposit is required.
• Adult grandsons. Salary must be Dh6,000 as well as a deposit of Dh2,000.
• Cousin. Salary of Dh8,000 and deposit Dh2,000.
• Wife's minor sons and daughters. Salary of Dh4,000 or Dh3,000 with accommodation facility.
• Wife, sons and daughters. Salary of Dh4,000 or Dh3,000 with accommodation
facility.
• A friend. Salary of Dh10,000. One can sponsor only two friends at a time. If there
are more, one should justify the reason for the visit of so many friends.
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VISA FOR DOMESTIC HELPERS
An expatriate resident can file an application for a domestic helper’s visa at the visa
section of the Residency and Naturalisation Department of the emirate which issued
him/her the residence visa. The head of the family (couple with or without children)
or a working widow or divorced mother with children, or a widower or divorced
father with children can apply for a domestic helper’s visa.
If a bachelor applies for such a visa it will be dealt with on a case by case basis.
The director-general of the department will decide if there is a need for the bachelor
to sponsor a domestic helper. The sponsor should earn a salary of not less than Dh
5,000 with accommodation or Dh6,000.
When applying for the domestic helper’s visa an expatriate must pay a Dh 5,000
refundable deposit which will be returned when the residence visa is stamped on the
domestic helper’s passport.
The sponsor must retain the deposit receipt to obtain a refund.
When the residence visa is stamped on the domestic helper’s passport Dh 4,800 must
be paid in Interior Ministry fees.
Apart from the fee another Dh 200 must be paid for the residence visa.
• Dh 100 for the sponsorship and
• Dh 100 for a domestic helper’s card.
When the domestic helper enters the cou ntry, she or he must undergo a health checkup at a government hospital in the emirate where the visa was issued. The cost of the
medical check-up is Dh 1,200. This should be done before applying for the residence
visa. The domestic helper will then be given a health card. He or she will also be
taken for an iris scan and fingerprinting at the police headquarters of the emirate. The
residence visa must be stamped on the domestic helper’s passport within 60 days
from the date of the person’s entry into the country.
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No one is allowed to employ a domestic helper who is not under his or her sponsorship. Those who employ maids illegally are liable to be fined not less than Dh
10,000. A resident can employ a domestic helper on his/her own by following the set
rules or use the services of a labour recruitment agency which will charge Dh 3,500.
The annual ministry fees of Dh 4,800 and the deposit amount of Dh5,000 is under
review and is expected to be reduced.
UAE nationals who apply for a domestic helper’s visa have to pay a Dh 1,200 refundable deposit. They do not have to pay the annual Dh 4,800 ministry fee.
A single UAE national male or female can sponsor a domestic helper, in the event of
the death of the family breadwinner.
For this purpose, the sponsor needs:
• An e-form application filled and signed by the sponsor which will cost Dh100.
• A copy of the sponsor’s passport.
• copy of the domestic helper’s passport.
• Three passport photos of the helper
• An official labour contract (approved and signed by the embassy of the domestic
helper) signed by the helper and by the sponsor.
• Copy of the work contract of the sponsor, with salary certificate.
The sponsor can bring a domestic helper from his or her own country, but you need
a letter from the embassy or consulate to prove that they are not relatives. An urgent
visa will cost an additional Dh100.
Each emirate has its own rules for issuing visas for housemaids. Some emirates will
not issue visas for certain nationalities. According to the labour contract, a sponsor
can change his or her domestic helper within three months without paying the fees
again.
In the case of a dispute between the sponsor and the domestic helper, the sponsor has
the right to cancel the visa of the domestic helper and impose a one-year ban, if the
sponsor can prove that the domestic helper has broken the law.
The sponsor will face charges and punishment in case he or she causes harm to
the domestic helper.
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SPONSORSHIP TRANSFER
The Naturalisation and Residency Department will not stamp a work ban on the
passport of a resident who wishes to change sponsors, unless the Ministry of Labour
instructs that it be imposed. The resident will then only get a renewable visit visa.
The person will not get a resident visa or a work permit. The ban is usually for six
months to a year.
The transfer form can be obtained from any typing centre. If the labour department
is involved, you will also need a form from that department. Those working for a
government department can transfer to another government department in another
emirate, but you need to apply for an application form at the entry permit section.
Your present sponsor will need to sign on the forms. You will have to submit the original documents and passport to the new sponsor for signature and company stamp.
The next step is to go back to the present sponsor and get the visa cancelled and then
get the residence visa stamped. If the first sponsor cancelled your visa without asking that a work ban be imposed on you, the Labour Ministry and the Naturalisation
and Residency Department will, however, automatically stamp a work ban on you if
it does not receive a ‘no-objection’ letter.
Sponsorship of wife
Meanwhile, the wife of a resident who wishes to leave her job, will not be able to
transfer her sponsorship to her husband directly. She should first cancel her visa and
then her husband has to apply for a new entry permit. She can also change her visa
status by paying Dh500 and another Dh500 if she does not want to leave the country
and then re-enter again. The residency fees cost Dh300 for three years. If the applicant wishes to get the passport urgently, the departments charge Dh110.
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If the wife receives a work ban, she can still be sponsored by the husband as a housewife. She cannot take up employment till the end of the work ban. As a precautionary measure everyone needs to first check with the Naturalisation and Residency
Department in their emirate, before going through the visa change process as some
rules change in accordance with the development and needs.
Also everyone needs to obtain a medical card prior to stamping the visa in the passport. The card can be obtained from the Ministry of Health office. You will also need
a passport copy and four photographs. The fee is Dh 300. A photocopy of the entry
permit is also needed in this regard.
Different Types of Transfers
In order to control the labour market in the country and to avoid confusion, the
Ministries of Interior and Labour, have set up specific rules regarding transfer of
sponsorship for expatriates. A woman who wishes to transfer her sponsorship from
a company to her husband, has to apply for a new entry visa.
If an employee wishes to change his or her job, the person needs to change sponsorship and follow the requirements of the Ministry of Labour. If approved, then the
naturalisation and residency department will issue a new residency visa for the applicant.
A No Objection Certificate (NOC) to transfer sponsorship is necessary with the
former sponsor’s approval and including the recent sponsor’s signature. Expatriates
who receive a ban from the Labour Ministry will automatically get a ban stamped on
their passports by the residency department.
Transfer of sponsorship is subject to Article No 68 Residency Law of the Interior
Ministry.
1) Government to government: If the application for transfer is from a government
authority, establishment or government company, to a similar firm in the government
sector, the following conditions shall be applicable:
2) Approval of the previous sponsor and the new sponsor and also the approval of
the residency department for the application.
3) Private to public sector: If the application for transfer is from the private sector to
the public sector, the same conditions as above shall be applicable. A fee set by the
Ministry of Labour and the Ministry of Interior, has to be paid. The applicant will
also need the attestation of the Residency Department to the application.
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4) Public to private sector: If the application is for transfer of sponsorship from
the public sector to the private sector, the following conditions apply: Approval of
the previous sponsor and the new sponsor. Attestation by the Ministry of Labour is
required if the sponsored person is among categories subject to the Labour Law. Approval of residency department to the application is a must.
5) Private to private sector: If the transfer is between private sector companies, the
following conditions apply: Approval of the previous sponsor, the new sponsor and
the Ministry of Labour, if the job is among the categories subject to Labour Law.
The sponsored person must hold a valid residency visa and must have spent at least
a year working in his job.
6) Family to private sector: In case the application for transfer is from an expatriate
sponsored by his or her parents or family to the private sector, the following conditions shall be applicable:
Approval of the previous sponsor and the new sponsor: Attestation by the Ministry
of Labour is required if the person is among the categories subject to the Labour
Law. Approval of the residency department is also needed.
Transferring from one private company to another is not possible unless you get a
no-objection letter from the old sponsor. The Labour Ministry and the naturalisation
and Residency Department will automatically impose a work ban. You cannot also
transfer sponsorship from the private to the public sector and vice versa.
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ADDITIONAL MATTERS ON VISA
Regulations for visa application:
• Passport must have minimum 6 months validity.
• All photographs are to be recent color photographs. (Polaroid Photographs are
not accepted)
• Those who are already in the U.A.E cannot get another entry permit until he/she
departs from U.A.E.
• DNRD working hours are from 8 am to 2 pm. Saturday to Wednesday except
public holidays. Thursdays and Fridays are normal weekend holidays.
The Dubai Naturalization & Residency Department (DNRD) issues different types of visas which are listed below:
1) 96 hour visa:
• Issued upon arrival at the airport
• Airline sponsored only
• Applicants should have onward booking
• Should have a minimum of 8 hour transit break
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2) Visit visa:
(a) In case of Personal sponsorship
• Fees: Dhs 100
• Entry permit application form with completed typed data
• Original Marriage certificate and copy of it, in case of wife sponsorship
• Salary Certificate; The monthly salary should not be less than Dhs. 4000 in case
of wife sponsorship, and Dhs. 6000 in case of first relatives sponsorship.
• Copy of the Sponsor passport
• Copy of the Sponsored passport.
In case of Establishments sponsorship
• Fees: Dhs 100
• Entry permit application form with completed typed data
• Establishment card and copy thereof
• Copy of the Sponsored passport.
Renewal
• Fees: Dhs 100
• Original Entry Permit.
(d) Extension
• Fees: Dhs. 500
• Original Entry permit
• Extension application form
• Original sponsored passport.
3) Transit visa
• Fees: Dhs. 120
• Establishment card
• Entry Permit Application form
• Copy of Sponsored passport.
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4) Tourist visa
• Fees: Dhs. 100
• Establishment card
• Statement of tourists data
For further information please contact The Department of Naturalization and Residency [http://www.dnrd.gov.ae].
All visitors except AGCC nationals (Bahrain, Kuwait, Qatar, Oman and Saudi Arabia) require a visa sponsored by a local entity such as a hotel or tour company. Where
travelling, please submit a copy of your passport to the local Hotel or Travel Agent,
who will apply for a visa on your behalf.
Health Requirements
No health certificates are required for entry to Dubai, but it is always wise to check
before departure, as health restrictions may vary, depending upon the situation at the
time.
Customs
No customs duty is levied on personal effects entering Dubai. Dubai Duty Free has a
sales outlet in the Arrivals Hall (but alcohol may only be purchased on departure).
SHARJAH - Visa Information
• Passport must have minimum 6 months validity at the time of applying for an
Entry Permit.
• All photographs are to be recent color photographs. (Polaroid Photographs are
not accepted)
• Those who are already in the U.A.E cannot get another entry permit until he/she
departs from U.A.E.
• All visas are to be obtained prior to the entry of the Passenger into the UAE
except in the case of a GCC country visa holders (certain designations only) and
Nationality holders of British, France, Italy, Germany, Holland, Belgium, Luxembourg, Switzerland, Austria, Sweden, Norway, Denmark, Portugal, Ireland, Greece,
Finland, Malta, Monaco, Iceland, Andorra, San Marino, Estonia, U.S.A, Canada,
Australia, New Zealand, Japan, Brunei, Singapore, Malaysia, Hong Kong, South
Korea, Spain
• Working hours is from 8 am to 2 pm. Saturday to Wednesday except public holidays. Thursdays and Fridays are normal weekend holidays.
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Transit Visa
• Forward Passport copy to the sponsor
• Visa will be normally ready within 3 days
• Duration of stay after entry is 14 days only, not renewable
• Person should enter UAE within 14 days from date of issue of visa
• Only one entry is allowed. Once the person departs from UAE, the visa will be
cancelled automatically
Visit Visa
• Visa will be normally ready within 7 days
• Validity is only 60 days
• Duration of stay after entry is 60 days. It can be renewed for an additional 30
days extension. The application for renewal should be submitted to the immigration
before the expiry of the first 60 days.
• Only single entry is allowed. Once the person departs from UAE the visa will be
automatically cancelled.
Visit Visa Renewal
Renewal will be made by the Issuing Authority only
The following documents are to be submitted to the immigration:
• Original Passport
• Original visa
• Required renewal form signed by the sponsor
• Visa will be normally renewed within 2 days and Passport can be collected from
Administration
• Extended validity is only 30 days.
• Duration of total stay after entry in to UAE is 90 days only including the extended period
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Tourist Visa
• This is applicable only for certain Nationals
• Visa will be normally ready within 2days
• Validity is one month from date of issue
• Duration of stay after entry is 30 days only, not renewable
• Only one entry is allowed. Once the person depart from UAE, the visa will be
cancelled automatically
96 Hours Visa
• An onward journey passenger can break journey and stay in the UAE for a maximum duration of 96 Hours, if sponsored by the airline.
• The Procedures/Rules/Charges are subject to change without prior notice
Admission and transit restrictions
VISA Warning:
• Non-compliance with the entry/transit regulations may result in a fine of AED
500/=, in combination with a fine of AED 100/- per passenger per day, until the
passengers departure from Sharjah International Airport and proof of this action has
been passed to the Department of Civil Aviation.
Employment Visa (Entry Permit)
Forward the following to the sponsor:
• Passport photocopy
• 1 - Passport size photograph
Normally the Entry Permit will be ready within 7 days.
The entry permit is valid for two months
Cancellation of an employment entry permit
Cancellation can be done through the issuing Authority only.
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The following documents are to be submitted to the Immigration Authority:
• Original Entry Permit
• Required forms signed by the sponsor
Cancelled Passport can be collected from Immigration the next day
Visa stamping in the passport
All should obtain medical card prior to stamping visa in the Passport.
Medical card can be obtained from the Ministry of Health office.
Passport copy, 3 photographs and Dhs. 300/- required.
1) Passport photocopy,
2) photocopy of the entry permit,
3) 4 photographs are to be submitted to the Medical Authorities for the medical
test
• For government department’s medical tests will be normally done only in the
afternoons from 4 to 6 hr.
• The certificate will be ready after 3 days.
The following documents are to be submitted to the Immigration Authorities
within 28 days after entering the UAE:
• Original Entry Permit
• Original medical certificate
• 2-Passport size photographs
• Dhs. 302/-(residence visa fee)
• Duly filled in security form (only in Arabic)
• Residence visa forms duly signed and sealed by the sponsor
Normally the Residence visa will be stamped in the Passport within 10 days valid
for 3 years
Sponsoring wife / children
Husband has to sponsor himself and a company cannot sponsor the dependent.
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Requirement:
Marriage certificate/birth certificate for children
Education certificate
These documents are to be attested by the concerned Consulate
Thereafter obtain attestation from the UAE Ministry of Foreign Affairs Salary Certificate from the sponsor.
Purchase an immigration file and type all the necessary information in it.
Type all the necessary visa forms and attach the following documents:
• Passport copy of the person/s for whom the visa is being requested
• 2 Photographs each
• All attested certificate copies
• Salary certificate
• Original and copy of the Passport of Husband
• All necessary forms typed and signed by Husband
Visa should be ready within 10 days.
After entering the U.A.E. follow the steps of Visa Stamping which is described
above.
No medical test is required for children below 16 years of age
Renewal of a Residence Visa
Follow the steps for Visa Stamping which is described above.
Transfer of Visa from one company to another company
Transfer of visa is possible only to Government sector
Transfer form is available in typing center.
If the Labor department is involved type the labor department required form also.
Obtain the signature of the present sponsor on it.
Submit the original documents and Passport to the new sponsor for signature and seal.
Approach the present sponsor and get the visa cancelled without the ban.
Follow the steps for Visa Stamping described above.
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Cancellation of a residence visa
Only the issuing authority can cancel the visa.
The following documents are to be submitted to the Immigration:
• Necessary forms signed by the sponsor
The visa-cancelled Passport can be collected after one day.
Duration of permitted stay in the UAE after cancellation will be written in the cancellation form. This form has to be returned to the sponsor after departure from
UAE.
If this person has his/her family members in his/her sponsorship, then their visas are
to be cancelled prior to he/she canceling his/her visa
GCC country residence visa holders
Certain category of visa holders of GCC Countries can enter the UAE and the visa
will be issued up on their arrival. Prior approval is not required.
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OBTAINING WORK PERMIT
The UAE labour law and the residency regulations for expatriates are almost the
same in the seven emirates. If you are planning to come here and work you need to
obtain a work permit and should be sponsored by a company which must be licensed
and registered with the Ministry of Labour.
On the other hand, if you are planning to invest here by setting up a company in partnership, you will be sponsored by a government department and your residency visa
will be under the responsibility of the residency department of the emirate.
Work permits for individuals working in a company in the private sector will be issued by the Ministry of Labour. If you find a job in UAE through any of the recruitment agencies here, you do not have to pay them any fees to find the job for you
because they are paid by the employer who is hiring you. There are specific requirements and conditions to be able to work in the UAE. First, you should not be less
than 18 years old and not more than 60 years.
But if your employer needs you, the age limit can be extended to 65 years, but with
the approval of the Minister of Labour. The labour contract, labour card and residency visa will be valid only for one year and has to be renewed. To work in the
UAE, you should be the holder of a professional degree or have the skill sets that are
needed in the UAE labour market.
Before applying for a work permit in the UAE, make sure that your passport is valid
for at least six months. If you have diseases such as Aids or TB, your work permit
will be cancelled. All workers must have three copies detailing the labour contract
in Arabic or English which must be approved by the Labour Ministry. It is important
that your employer should apply for a labour card for you immediately after joining work. The card is valid for three years and should be renewed within 60 days of
expiry in accordance with the worker’s labour contract.
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A medical health check is needed as part of the employment process in the UAE.
All your employment costs which include labour permit, labour contract and labour
card, medical health check and other fees or fines related to your employment, must
be paid by your employer. If your employer fails to issue you the labour card or did
not renew it you can complain at the Labour Dispute department at the Ministry.
Your working hours will be eight hours a day or 48 hours a week. The working hours
may be decreased or increased if approved by the Ministry of Labour and depending
on the nature of your work. According to the Labour Law, working hours must be
shortened by two hours in Ramadan. Friday is the weekend for all workers, except
for the daily unskilled worker.
Housewives doing jobs
In a bid to protect working women’s rights, the UAE Federal Labour Law and the
UAE residency and entry law allows women to work in any profession but under
specific conditions. Women must not be employed in any job that is unsafe, hard or
damaging to their health. An expatriate woman who is sponsored by a father or husband can work in any job, even if she is listed in the resident visa as housewife.
The woman only needs to obtain a labour card which should be renewed every year.
Some companies are ready to employ women on their father’s or husband’s sponsorship but some prefer that the woman they employ be sponsored by the company.
Women need an approval from the husband or father if they wish to work. The
labour card of a working women sponsored by the husband or the father will be
cancelled automatically when the card expires and is not renewed at the Ministry of
Labour. Companies will have to reapply every year for a new labour card.
Labour card fees
The fee for a labour card for a working woman sponsored by her husband or father
is Dh 1,200, to be paid in two instalments; Dh 200 at the time of submitting the application and the remaining Dh 1,000 at the time of the ministry approval. The fees
have to be paid by e-dirham.
It is obligatory on the part of the employer to pay the fees. Working women also do
not need to give their passport to the employer. She should also keep her labour card
with her.
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But if the woman wants to transfer sponsorship from her father or husband to work
in the private sector, she needs approval of the previous sponsor and the new sponsor. She also needs approval from the Ministry of Labour if her work is among the
categories that are subject to the Labour Law. She would further need approval of
the residency department.
The expatriate wife or daughter who has a work visa and then leaves the job, should
apply at the Naturalisation and Residency Department, to amend her status.
According to the UAE Labour Law, a working expatriate woman, sponsored by the
husband or father, is not allowed to work late into the night. A wife or daughter who
leaves a job, cannot transfer her sponsorship to her husband or father directly, but
should apply again for a new entry permit. Employers are not allowed to employ
women to work for 11 uninterrupted hours. Employers are not allowed to make
women to work at their establishments from 11pm at night till 7am next day in the
morning. It is not allowed to hire women to work in any dangerous kind of work.
Women who work in the field of health can work at night but should not do manual
work. They can work at night on emergency cases. They can work at night if they
are working in a directorial position or technical work. Women’s salary should be
equal to that of men, if the work performed is the same. Working women have the
right to maternity leave.
HHH
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CHAPTER
53
TAKING VEHICLES TO YOUR HOME
COUNTRY
You are living in the UAE and may be interested in exporting a vehicle to your home
country. May not necessarily to your home country; but any country.
Specific rules and regulations are available in this regard set by the authorities for
importing and exporting goods. And also we have to remember the customs regulations and requirements of the countries to which you are transferring the vehicle.
The UAE allows exporting vehicles from the country and there are clear rules and
regulations that have to be followed. The fundamental point is that those who want
to export or import vehicles must have a valid residence visa. Shipping a vehicle out
is only allowed to those who have a residence visa. The vehicle must be registered
in the name of the person who plans to ship it out.
There are a different set of regulations if you plan to drive it out of the country. If the
owner wishes to take the car out by road, which requires crossing the borders and
the most important bit is that the driver must have a valid residence visa. The other
regulation is that the owner of the car should himself drive the vehicle through the
borders and must be legally authorised to drive that specific type of vehicle. If there
are passengers on the drive, they should also have a valid UAE residency visa.
There are a number of documents which should be obtained before transferring the
vehicle either by land or by sea. If you purchase a car specifically for exporting
outside the UAE to any other country, then it should be shipped out as cargo only.
In this case it is not allowed to drive this car. It will not have any number plate. A
paper is required from the police that it is OK to take this vehicle out of the country.
For that the vehicle must be taken to the traffic department. The owner also needs to
obtain transfer documents, which are needed for shipping the vehicle out. The vehicle will be given transfer plate number for taking it outside the country. After paying
the fees, the owner needs to obtain export declaration documents from the customs.
Before transferring a vehicle it has to be inspected by the traffic department.
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Other shipment requirements include providing the original invoice and export declaration of the vehicle to the customs authorities in the country where the car is being
exported.
Driving a car here and taking it home to the owner’s home country is relatively
cheaper, even after adding the shipping costs. But taking the car home to countries like Britain might require changes to match the right hand or left hand driving
norms.
The formalities to be followed for exporting a vehicle are (1) Visit the Police Traffic
and Licensing Department or authority in charge (2) Fill in the needed form related
to exporting a vehicle (3) Submit the required documents at the traffic department or
authority (4) You need notification of non-objection if the vehicle is mortgaged.
If your car is still mortgaged, it means it is owned by the finance company or bank,
normally the bank or the finance company will not allow the vehicle to leave the
country until such time as that mortgage is redeemed.
One needs to check with his or her finance company or bank if they allow the car
to travel outside the country or to be sold outside the country. Pay the fees which
range between Dh800 and Dh1,000. Applications are accepted only from the vehicle
owner or a properly designated legal representative. Pay traffic fines (if any). Obtain
vehicle export plate number.
All the documents described above must be presented to customs for verification to
ship the vehicle through land or sea. Customs will advise whether the clearance has
been accepted. If an amendment is required, the exporter should amend the declaration and re-submit the documentation to the customs. Customs will notify the exporter of the amount payable on the shipment depending on the country the vehicle
is being sent to. The person temporarily importing the vehicle into the other country
by land must be the owner of the vehicle, or must have special authorisation permitting the person to use the vehicle abroad. Needless to mention that the driver must
have a valid residency visa and driving license.
HHH
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CHAPTER
54
BUYING AND REGISTERING
A VEHICLE
In order to buy a vehicle in UAE, you must have a residence visa. Most insurance
policies cover multiple drivers as long as they have a valid UAE driving license,
either temporary or permanent.
New Vehicles
Most of the major car makers are available through franchised dealership in Abu
, Dubai and other emirates. Used cars are also available through used car dealers.
Many new and second-hand car dealers will be able to arrange finance for you, often
through a deal with their preferred banking partner.
In order to register a second-hand car in your name you must transfer vehicle ownership. You will need to submit an application form, the valid registration card, the
insurance certificate, the original license plates and the prescribed fee to the Traffic
Police, plus an NOC from the finance company, if applicable.
Vehicle Import
For importing cars by individuals or private car showrooms that were manufactured
after 1997/98, an NOC from the official agent in the UAE or from the Ministry of
Finance and industry (if no official agent exists) is required.
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Vehicle Insurance
Before you register your car, you must have adequate insurance, and there are many
insurance companies to choose in UAE. The insurers will need to know the usual
details such as year of manufacture, and value, as well as the chassis number. The
rates generally4 - 7% of personal accident insurance is highly advisable.
The Process
In order to get license plates for the vehicle, the car must first be tested, then registered with the concerned Traffic Police .
Traffic Accidents
If you are involved in an accident, in serious cases dial 999 .
Repairs
By law, no vehicle can be accepted for major ‘collision’ repairs without an accident
report from the Traffic Police, although very minor dents can be repaired without a
report. Your insurance company will usually have an agreement with a particular
garage to which they will refer you. If your car is in need of attention then the authorized dealer may be the best place to start.
Registering a Vehicle
All cars must be registered annually with the Traffic Police. There is a one-month
grace period after your registration has expired in which to have your car re-registered (hence the 13 month insurance period), but after that you’ll face fine for each
year the registration has expired.
Documents required:
To purchase a car you will need the following documents:
• Copy of your passport
• Copy of your residency visa
• Original + a copy of your driving license
• If you need financing for the car you will also need: Salary certificate signed and
stamped from your employer confirming the amount you receive
• Salary Transfer letter from your employer confirming they will pay your salary in to an
account with the Bank providing financing for you. (Many dealers usually have arrangements with banks to arrange financing – check with them the services they offer)
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• If you are purchasing a company car you will need to produce a copy of the valid
trade license.
Dubai Procedures:
Different procedures are to be adopted in testing and registering vehicles in Dubai
and Abu Dhabi.
Vehicle Testing:
In Dubai all testing takes place by EPPCO Tasjeel who have 5 testing stations in
Dubai. EPPCO Tasjeel offers these tests for people buying used cars. Once your
vehicle is tested by EPPCO Tasjeel you must then register the vehicle with Dubai
Traffic Police.
Registration is a must for the vehicles, so that the car can be issued with license
plates and can be entered on to the police’s database. The new license plates have
a picture of the Burj Al Arab hotel on them. If your car does not have these plates,
when you register you must exchange them for the new plates. Some dealers can
register the vehicle for you & will include it as part of their service. To register your
car you must have a Test Certificate, be a resident in Dubai and have insurance that
is valid for a minimum of 13 months. (Insurance is usually given for 13 months to
enable you a month’s grace in which to renew your registration)
Procedure
• Go to one of the EPPCO Tasjeel testing stations (Open: Sun -Thurs 7am-9pm and
Thurs 7am-2pm) handover your registration card at the check-in counter
They will punch your vehicle registration card and hand it back to you.
• Go to any of the testing bays and remove all valuables from your car. The Tasjeel
inspector will take your key and registration card and you can wait in the Tasjeel
building until completed.
• When your name is called you will be asked to pay and will be handed your ‘Test
Result Certificate’
• Cost? Motorcycle or light vehicle - 50AED; Heavy vehicle - 75 AED; Second
vehicle retest within 31 days - 25 AED; Vehicle retest after 31 days - 50AED.
If your vehicle fails its test you can have it repaired and re-tested within 31 days
at no extra cost. If the vehicle fails a second time the second re-test must be taken
within 31 days & will cost you 25AED. Any further failures and you will be charged
the full fee.
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Tasjeel:
Tasjeel is the vehicle test & registration service launched by EPPCO (’Emirates Petroleum Products Company’) & Dubai Police. Tasjeel was set up in 1999 & currently
has 4 locations in Dubai.
Sheikh Zayed Road – 04 347 6620 (Open: Sat-Thurs 7am-9pm)
Location - Junction 4 next to Dubai Traffic Police
Al Awir – 04 333 1510 (Open: Sat-Thurs 7am-9pm)
Location - On Ras Al Khor Road at the Used Car Complex
Al Qusais – 04 267 3940 (Open: Sat-Thurs 7am-9pm)
Location – New Sharjah Road
Warsan – 04 333 6470 (Open: Sat-Thurs 7am-3pm)
Location – Dubai Hatta Road.
Renewal of registration
Do not forget to renew your Vehicle registration annually. For this purpose, go to Traffic Police counter and submit the same documents as before + a fee of 330AED.
If your registration is overdue - you are charged a penalty of 63 AED per quarter it
is overdue. Your details will be entered on to the system. Pay the registration fee at
the Cashier and cover any outstanding fines. (Cash only) - Registration cards and
insurance documents must be kept in the vehicle at all times.
Abu Dhabi Procedures:
In Abu Dhabi, please follow the steps below:
1) Visit Traffic & Licensing Department.
2) Fill in the designated form.
3) Submit the required documents.
4) Check with the delivery counter to receive the registration.
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Required Document
Special Consideration
Passport, nationality certificate, or ID card issued by the competent authority
Original and copies (for UAE nationals)
Valid passport, residence permit with copy and an employment certificate
When reporting in person to the driver license
section (for expatriates)
Employment certificate
Driving License
For expatriates
Issue Date shouldn’t exceed one month
Copy
Car Insurance Policy for 13 months
Mortgage Certificate
If available
Vehicle contract issued by the manufacturer
or a vehicle selling agent
Ownership-transferring document outside the cases mentioned in the above item.
Disposal notarised or contract signed by the
owner before the licensing authority officer
Customs declaration for release
Vehicles imported from abroad for the 1st time
Legal documents proving death, succession. succession and legacy certification.
If the vehicle ownership results from
Attach a declaration from all heirs concerning the person they select as responsible
for the vehicle
Legal document appointing the owner’s legal representative and indicating his
residence, capacity, nationality and
profession.
In cases where an owner representative
must be legally appointed
Fees
Fee
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Value (AED)
Payable to
Light vehicles (private)
200
Abu Dhabi Police GHQ
Less than 3 tons (private)
400
3 tons (private)
500
Over 3 tons and below 12 tons (private)
800
Over 12 tons (private)
1000
Light bus less than 27 passengers with driver 400
Heavy bus over 27 passengers (private)
1000
Light vehicle equipment less than 3 tons (private)
500
Heavy vehicle equipment over 3 tons (private)
2000
Motorbike (private)
100
Light vehicles (public)
200
Less than 3 tons (public)
500
3 tons (public)
700
Over 3 tons and below 12 tons (public)
1000
Over 12 tons (public)
1000
Light bus less than 27 passengers with driver
500
Heavy bus over 27 passengers (public)
1000
Light equipment less than 3 tons (public)
500
Heavy equipment over 3 tons (private)
2000
(private)
(public)
HHH
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CHAPTER
55
INSURING VEHICLES
In order to own a car in UAE and get it registered in your name, you should first get
the car insured. According to traffic laws in the UAE, vehicles whether old or new
should be covered for 13 months before getting it registered with the traffic authority. Be sure to read the conditions set by the insurance company carefully before
signing the agreement in order to avoid any problems later on.
Most insurance companies here will provide insurance cover for the car for the geographical area of the UAE and will cover vehicles which are registered in the UAE.
Claim
If you wish to claim insurance in case of an accident and avoid any liability with the
insurance company, you should not use the vehicle except for the purpose for which
it is licensed. The foremost thing is that you should first have a valid driving license.
If you allow another person to drive your car, that person should also have a valid
UAE driving license to do so.
Premium
If your driving license is new, the premium will be higher. Most insurance companies will also refuse to provide cover for a motorist below 25 years of age or hike the
insurance premium; they will quote statistics to show that most accidents are caused
by drivers in this age group. Some insurance companies will not insure vehicles of
motorists over 70 years of age. If your track record is good the insurance company
may offer you a discount.
Some of the things that affect the cost of insurance include, the year of manufacture
and the model of the car, the estimated price of the vehicle in the market. Sports cars
and expensive, luxury car owners will have to pay higher premium for the cover.
Comprehensive insurance will cover vehicles that are up to seven years old. This
cover is also available only for vehicles whose value does not exceed Dh250,000.
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There are many insurance companies in the UAE and you are free to choose the one
you want.
Please note that driver and passenger cover will cost an additional fee.
If you opt to rent a car make sure it has full insurance. If you are visiting the UAE
and wish to rent a car, check out the insurance policy and whether there are any
restrictions or limitations.
Do not drink and drive. If you cause an accident, your insurance company will not
pay for the damages.
There are basically two types of covers namely Comprehensive and Third Party
Liability. You have a choice to get additional coverage by paying additional fees,
for adding family members, spouse, children and parents. Comprehensive insurance
covers loss or damage of the vehicle by accidental collision, by fire, external explosion, lightning, burglary, theft, natural disasters and malevolent acts. Third party liability insurance provides compensation in accordance with the UAE motor vehicle
licensing regulations.
To re-insure your vehicle you need your passport copy, driving license copy and car
registration copy.
HHH
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CHAPTER
56
DRIVING LICENSE
In order to get a driving license, slight different procedures are to be followed in Abu
Dhabi and Dubai.
Abu Dhabi
Document required of the customer to bring:1) The original passport + a copy of it.
2) (4) Recent personal color photographs.
3) A letter of no objection of sponsor or work authority.
4) Acquaintance claim + a copy of it (For citizens).
5) A written agreement from guardian of females (for citizens).
6) Eye examination report.
7) Fees (100) Dirhams.
a) A copy of the driving license that an applicant possess (For those who wish to apply
for a trial test).
8) Payment of fees (100) Dirhams.
Remember:
1) After a customer has obtained a learning card he must contact Emirates company for teaching how to drive in order to obtain the theoretical training certificate
in which as a customer will not be allowed to apply from the test before bringing this
certificate.
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2) A customer can apply for a test for a payment of a (50) dirham fee.
3) In case an applicant fails three times on the road test his file is then transferred
to the Emirates company in order to undergo the theoretical and practical training.
Renewing a Driving License
For renewing a license, following documents are to be brought:
1) The original license to be renewed.
2) The original passport + a copy of it.
3) Recent personal photograph.
4) A letter of no objection of sponsor or work authority (For non-citizens).
5) Eye exam.
6) Fees (100) dirhams.
Remember:
Additional fees will be obtained conferred on license that have expired for more than
one month at the rate of (10) dirhams for each month of delay.
Replacement of Foreign Driving License
Following documents are required for replacing a foreign driving license:
1) The original passport + a copy of it.
2) (4) Recent personal color photographs.
3) The foreign license to be replaced (provided that it is valid).
4) A legal translation of the license enclosed with a copy of the license.
5) A letter of no objection of sponsor or work authority
6) Eye exam.
7) Blood type.
8) Fees (200) dirhams.
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Remember:
A foreign license can be replaced for its bearers among the foreign countries listed
in the table below on condition that they have a valid residence in the Emirate of
Abu Dhabi.
1) The person who wishes to replace a license must possess the same citizenship of
the country issuing the license.
2) A foreign license may not be replaced for those who have already obtained a
driving license from another Emirate of the country.
3) Those who bear a Canadian license are to certify the translation of the license
from the Canadian consulate.
Countries certified for replacement are:France-Britain-USA-Holland-Germany-Italy-Belgium-Japan-Switzerland-SwedenGreece-Spain-Denmark-Austria-Irelend-Norway-Turkey-Canada-Poland-South
Korea-Finland-South Africa-Australia-New Zealand.
Dubai
Driving licenses can be obtained by adult UAE citizens/residents after training from
an authorized driving school in Dubai. If you are 18-21 year of age, you can apply
for a probationary license.
Criteria:
If you have never driven before or have a driving license that is not on the approved
list of 36 countries then you must undergo training.
Documents Required:
Passport (original & copy) with residence stamp, No-Objection Certificate from employer & 8 photos.
Authorized Driving Schools :
Al Ahli Driving School-04-3411500 (8 branches)
Belhasa Driving School - 04-3243535 (18 branches)
Dubai Driving Centre- 04-3455855 (13 branches)
Emirates Driving Institute-04-2631100 (35 branches)
Galadari Driving School-04-2676166 (8 branches)
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Steps:
1) Get an eye test done either at an optician or at your driving school.
2) The school will handle all paper-work with RTA who may even have a counter
at the school.
3) Receive your temporary driving license, which you must carry in your training
car.
4) Once you have passed all internal tests like garage and parking, your school will
apply for your signal test followed by your road test.
Signal Test:
On the date assigned, go with your passport, driving file+ 2 photos to RTA License
Section as advised by your driving school. Fill up application form & submit AED
35. When your name is called out, go to the computer booth and identify the traffic
signals. (In case you are not computer literate, you can opt for the manual test). Collect the pass print-out with your road test date (if you fail, pay the test-fee & you will
be given another new test time and date) and submit to your driving school.
Road Test:
On the date assigned, go with your passport, driving file+ 2 photos to the RTA License Section as advised by your driving school. Fill up application form & submit
AED 35 for road test. When your name is called out, go along with the other three
candidates and the RTA inspector to the designated car. You will be given just a few
minutes to demonstrate your driving and anticipatory skills.
If you pass, collect the approval paper from your inspector and go to the Pass Counter. Submit along with suitable ID & AED 100. Collect your test file and submit to
Control Counter. After processing, pay required fee and proceed to photo area. When
your name is called out, have your photo taken. Congratulations. In a few minutes,
you will receive your DL and be eligible to drive in Dubai and the UAE.
Do keep in mind that Dubai has a zero-tolerance policy on drinking and driving.
Plainclothesmen travel about in unmarked vehicles and can legally stop you at any
time to check. Dubai eGovernment recommends that you buckle up your seatbelt
and drive safely at all times.
HHH
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CHAPTER
57
GUARDIANSHIP OF CHILDREN
The custody of a child is described as ‘Hadana’ in Arabic, which means holding the
child close to one’s heart by protecting, taking care of and offering education to the
child.
The UAE Personal Affairs Law No 28, 2005 gives attention to child custody issues.
In the UAE, there are more than 200 nationalities of various ethnic backgrounds,
many of whom are married and live with their children in the country. According to
Article No. 50 of the Personal Affairs Law, if the expatriate parents are divorced and
the children are in their mothers’ custody, she is not allowed to take the children out
of the country.
The law says that whatever the nationalities of father and mother, the children should
live in the same country where the father is living. However, if the father submits to
the court a letter that he agrees and approves that his children can go and live outside
the country with their mother, then she can travel with them.
According to article No.142, in case of a divorce, the guardianship or the custody of
the children is handed to the mother if the child is very young. The mother is also
entitled to the custody of her infant child after separation from her husband. There
are several conditions that need to be met before a parent is given custody of the
child. The custody of the child is given to a person who is an adult of sound mind,
good character and has not been sentenced for any crime. The person should not suffer from infectious diseases or mental problems.
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In the case of the mother, she should also not be married to a person who is a stranger
to the child. If any one of these conditions is not fulfilled and there is an obstruction, such as insanity or the mother having remarried, the woman has no right to
custody. If the woman is married, a sister of the woman is entitled to the custody of
her child.
The law here sets the location of the child’s custody at a place where the father lives.
However, there is no objection to the wife moving with the child from a village to the
city if this is advantageous to the child. If the mother of the child is dead, the custody
passes to the maternal grandmother, but she cannot move the child to her own city.
The guardianship of a minor for the management and preservation of his property
involves the father first.
The law and Sharia gives women more rights in the custody of small children, as
women know better how to raise small children and they are more patient in dealing
with the difficulties involved. The mother has more rights in the custody of her child,
whether a boy or a girl, so long as she does not re-marry and so long as she meets
the conditions of custody.
In order for the mother to be able to take custody of her children, she should be of the
same religion as her children. If the child is Muslim, the guardian must be a Muslim.
The guardian has the right to keep the child’s passport with him and it should be
handed over to the person who will take care of the child.
The woman’s custody of a boy ends when he reaches seven or eight years, while the
custody of a girl ends when she becomes a teenager. The man’s custody of a boy
continues until he becomes a teenager, and for a girl until she can safely be left alone
and can be trusted to take care of herself.
If no one can be found to take care of a child, the judge will decide who is suitable
to take care of that child. If a boy or a girl passes the period of ‘hadana’, he or she
has no option to be with one parent or the other, but must remain in the charge of
the father.
Expatriate mothers who has children from a previous marriage and comes to live in
the UAE with their husband should submit at the Naturalisation and Residency Department a proof of child’s custody and an approval from the father of the children
that he agrees they will live here with their step father.
HHH
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CHAPTER
58
HANDLING OF DEAD BODY
The UAE is an open country and any person of any religion or ethnic backgrounds
can shift to live here or choose to visit if he or she meets the residency and labour
requirements.
However, if an expatriate dies here there is an established process and certain steps
need to be taken either to bury him or her or to repatriate his or her body to their
home countries.
There are seven emirates in the UAE in which expatriates are allowed to reside but
when a person dies, his or her friends will encounter big differences in the law between the emirates which allows burying expatriates here.
Some emirates like Sharjah and some other emirates will not allow the burying of
non-Muslims in its cemeteries as its cemeteries are open only for burial of Muslims.
It is immaterial from which emirates their residency has been issued.
While in Dubai and Ajman they allow the burial of Muslims or non-Muslims in their
grave yards. However, in order for a burial in Dubai you must have your residency
visa issued from Dubai only otherwise you will not be allowed to be buried in this
emirate. While in Ajman incidentally, the law permits the burial of dead expatriates
regardless of from where their residency visa has been issued.
There are some religions which do not bury their dead beloved but they cremate them
such as Hinduism. One should know that the emirates which have such facilities for
cremating bodies are Abu Dhabi and Dubai but one should have the residency visas
of the respective emirates to be able to be cremated there.
The burying of Muslims of any nationality at any of the emirates is free of charge while
non-Muslims have to pay specific amount of money for burying and using the municipalities vehicles to transfer the body from hospital or morgue to the graveyard.
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At the same time there are many expatriates who do not want to bury their beloved
here but they refer to transfer the body to their home countries. In order to do so,
there are specific processes to repatriate the body of their beloved friends or relatives
which could take a long time even exceeding one week.
Following procedures are to be complied with to send the dead body of a person to
foreign countries:
1) If the death certificate issued from the private hospital is in English, it should be
translated into Arabic by a certified legal translator. Remember that the death certificate is the fundamental document as regards a dead body is concerned.
2) Once the body is transferred to the Mortuary, government hospital will issue a
death notification and send the same to the preventive medicine department.
3) Somebody has to go to the concerned Embassy or consulate with the death certificate and fill up the necessary forms.
4) If the body need not be taken to a foreign country and to be buried in UAE only,
a consent letter is to be produced from the next kin of the deceased. If the next kin
is in the foreign country, such letter should be legalized by affixing the stamps of
Notary Public and concerned government department of the foreign country and also
the Embassy.
5) First action that may be taken by the Embassy is the cancellation of the passport
of the deceased person.
6) Thereafter work permit and residence visa are to be cancelled from the labour
department and Immigration department respectively.
7) Next step is to book the space in the air craft to take the body. If nobody is accompanying the body, a consent letter is to be produced before the airlines office
issued by the next kin of the deceased.
8) Once the labour card and visa are cancelled, steps are to be taken to embalm the
body.
9) Letters will be issued from the government hospital for (a) embalming the body,
(b) addressed to the Airport, (c) addressed to the Immigration department of the foreign country and (d) addressed to the Customs department of the foreign country.
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10)Ten copies of these letters are to be taken and get all of them separately attested
from the concerned Embassy. (Remember, all the 10 copies should contain the original stamp and signature of the Embassy.
11)Body will be released to take to the Airport, four hours before the departure of
the aircraft.
12)If the cause of death is something related to murder, homicide or having any
other criminal nature, Post Mortem, police clearance, forensic expert’s report are
required.
13)In case any money is to be claimed from the insurance companies, do not forget
to keep the original death certificate and police-clearance certificate with you.
If a worker dies here, the company where the labourer worked has to pay the cost of
repatriating his or her body to their home country. In the case of a domestic helper
too, the cost of burying or repatriating his or her body to their home country must be
paid by the employer only.
People on visit visa are also allowed to be buried in UAE grave yards.
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CHAPTER
59
BUYING PROPERTY IN U.A.E.
Expatriates can purchase an apartment, villa or a plot of land in Abu Dhabi, Dubai,
Ajman, Ras Al Khaimah, Umm Al Quwain and get a three-year residency permit.
But they will own the property for only 99 years and the land purchase is only allowed in certain areas of the emirates. Sharjah also allows expatriates to invest in
land, villa or an apartment for a maximum 99 years, but will not issue a residency
visa.
The residency visa has to be renewed after three years and can be obtained from
the residency department at the emirate from which the expatriate purchased the
property. The sponsor of the expatriate property owner will be the national property
development company from which he or she bought the property.
While a residency visa is not issued in Sharjah, the expatriate will only receive an
"investment contract" from the owner of the property. The investment contract will
be endorsed by the Sharjah Municipality and it will allow the buyer to 'invest' in the
apartment for 99 years. But a plot of land can be 'invested' for a specific number of
years, but not more than 99 years. However, the ownership will not be given to the
buyer because it is an investment contract between the two parties. None of the emirates allow freehold ownership of the property. Freehold means that you fully own the
property. As a freeholder you will have full responsibility for the maintenance and
repairs of the property.
One should not forget that he or she need to pay yearly cost for his or her property
maintenance such as security, cleanliness and for other services. The maintenance
cost will be paid for by the real estate that will take care of the maintenance.
The cost of maintenance in Dubai for an apartment may exceed Dh 50,000 per
year depending on the price of the property itself while in Ajman it will not exceed
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Dh3,000 per year. The property laws are still under review, but most of the expatriate
ownership of property is leasehold at present. That means that you own the property
for as long as is specified in the lease, such as 99 years.
At the end of the lease, the property again becomes the possession of the freeholder.
The lease stipulates who is responsible for maintaining and repairing different parts
of the property and any conditions you must meet as a resident.
Expatriates can choose from a wide range of property development companies
around the emirates who offer wide range of prices for villas, apartments, townhouses, lands, offices or shops.
Abu Dhabi, Dubai, Ajman, Ras Al Khaimah and Umm Al Quwain allow leasehold
ownership for expatriates. Sharjah has a different term for it - 'investment'.
All emirates, except Fujairah, allow land purchase by expatriates, but only in certain
specific areas.
Expatriates can buy or invest in land and build a shop, villa, or apartments on it. One
can sell the property or can rent it out. You can transfer the leasehold of the property
or 'investment' to anyone. The leasehold property can be passed on as inheritance,
in case of the death of the expatriate. You are not required to live here in order to
purchase leasehold property. Those who are living abroad have to, however, briefly
visit the country every six months.
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CHAPTER
60
OPENING BANK ACCOUNT
Opening a bank account is not a lengthy or complicated procedure, provided that
you present all the required documents, which are more or less standard among most
UAE banks. However, as the UAE has a large number of expatriates and tourists,
strict steps are necessary for the sake of security.
Expatriate residents can open accounts in UAE banks with the correct documents,
which for most major banks means the original passport containing a valid residence
visa, as well as an additional piece of official identification, such as a labour card or
driver’s license, and a salary certificate from your employer.
Those who wish to open a salary transfer account will require a no-objection letter
from the employer addressed to the appropriate branch. Most human resources departments would be aware of the requirement and have template letters.
Dependents on a husband’s or father’s visa who want to open accounts need their
original passports which verify the sponsorship of the father or husband.
Banks will also be willing to offer accounts to those newcomers whose residence
permits are under processing provided that they either provide a letter from an employer certifying their employment, or a letter of introduction or verification from a
bank with which the applicant has an account in his or her home country.
You might also find advantages in banking with your employer’s bank, such as fast
salary transfers and quick loan approvals. Banks often offer special packages to those
employed including the waiving of minimum balance requirements, special interest
rates and free credit cards for the For security reasons, some banks will require you
to visit your branch for even minor changes to your account details such as a phone
number or address. Other banks, however, offer phone and internet banking.
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The degree of functions of a phone or internet banking plan differ from bank to
bank, so it would be wise to find out if you like processing your transactions over the
phone or the internet. Some banks only allow you to pay bills and transfer funds to
other local banks or its different branches online or over the phone.
Most major banks offer customers the option to open accounts in major currencies
such as US dollars, British pounds, Euros and even yen for some. Expatriates who
regularly send money home often prefer to have foreign currency accounts at local
banks. Those who travel frequently or tend to shop on the internet tend to prefer US
dollar credit card accounts.
Most UAE banks also accept cheques in major currencies, which usually has a
charge starting at Dh100 and can take 30 to 45 days.
Those who have recently moved to the UAE might be surprised to find themselves
being regularly contacted by banks offering loans and credit cards in their first
months of employment. Two of the popular types of loans are personal loans and
auto loans. Personal loans can be taken out for ten to 27 times your salary, depending
on how long you’ve been working at the company. Loans during probation periods,
if approved, usually have a significantly lower maximum limit, of about ten times
your salary.
Those seeking to buy a vehicle on credit can choose between an auto loan and personal loan. Auto loans, which have fewer requirements and are easier to approve,
have lower interest rates, fewer requirements, and a lower maximum limit than personal loans. Vehicles purchased through auto loans are co-owned by the bank and
cannot be exported until the entire loan amount is paid.
Requirements for car loans usually include a salary certificate from an employer and
a blank check for insurance purposes and a security, or post-dated cheque if the applicant does not have an account at the bank.
Personal loans often require you to have an account at the bank you’re applying for
the loan at. Further, your employer must be ‘listed’ as an approved client of the bank
for a personal loan application to be accepted.
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CHAPTER
61
GETTING LAND PHONE LINE
Post paid fixed-line phone service is a good value product and also easy to use. Calls
made within the same emirate, from a fixed telephone line to another, are free of
charge. At present, fixed telephone lines can only be obtained from Etisalat. You can
also keep yourself updated with news from the new telecommunication provider, Du
who is presently rolling various kinds of telecommunication services.
To get an etisalat standard fixed telephone line in your home you must be at least 21
and have a resident’s visa. The installation charge is Dh180.
For this purpose, you should fill an application form and bring along a copy of your
passport, residence visa and property lease to your nearest etisalat business or customer office.
A telephone line will normally take a maximum of two working days to be installed,
and you will pay a quarterly rental charge of Dh45. An additional wall socket is
available for Dh50 each.
etisalat machines are available in most shopping malls which allow you to pay your
bill directly, or you can pay your bills at etisalat office or at a post office.
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Another service exists for a pre-paid telephone line called Maysour where you always pay for your calls in advance. The same documents are needed for this service.
The subscription charge for the first year is Dh170 and this drops down to Dh120 the
second year and onwards. Callers then use prepaid phone cards to make calls from
the telephone.
The new telecommunications company du, due to launch next year will offer land
line packages. However, information about this is limited at this stage.
For internet connection du will also offer several packages with various access
speeds to suit your needs. However this has not yet been launched.
etisalat provides a Dial-Up internet connection which provides users with a username and password, and an email account with storage capacity of 50MB.
There is a one-time registration charge of Dh100 and then monthly rental charge of
Dh20. The usage charge is Dh1.80 per hour and Dh1 off peak per hour. If you subscribe online the registration charges are free. Visit www.e4me.ae for more information or bring your passport copy and residence visa to any Etisalat office.
etisalat offers five different broadband packages to choose from ranging from Dh99
to Dh349 a month. You can buy a wireless modem which allows more than one
computer to log on at a time for Dh240. A wired modem for one computer costs
Dh108. There is an installation fee of Dh100 when you apply online and Dh200
when you apply at an Etisalat office. However it is completely free if you sign up
for one year.
How to apply
Documents to be brought to etisalat office for landline connection are the following:
GCC countries citizens:
• Passport copy or khulasat Al Qaid
• Copy of Tenancy Agreement or Proof of Ownership
• Guarantee letter from guardian or parent (if under 21 years old)
• Letter of employment
• An existing telephone number at or near the premises
• Completed application form
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Non-GCC countries citizens:
• Passport copy including visa page
• Copy of Tenancy Agreement or Proof of Ownership
• Guarantee letter from guardian or parent (if under 21 years old)
Commercial business:
• Passport copy of owner or local sponsor
• Copy of valid Trade License
• Power of Attorney
• Visa copy for non-GCC owner or partner
Check online for your closest Etisalat business or customer service centre at www.
etisalat.co.ae or dial 101 for help.
Etisalat broadband packages:
256Kbps Limited Access for Dh99 per month
Light User 256Kbps for Dh149 per month
Moderate User 512Kbps for Dh189 per month
Active User 1Mbps for Dh249 per month
Heavy User 2Mbps for Dh349 per month
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Emirate dialing codes:
Abu Dhabi - 02
Dubai - 04
Sharjah - 06
Ajman - 06
Fujairah - 09
Umm Al Quwain - 06
Al Ain - 03
Ras Al Khaimah - 07
Internet access
You can get Internet access for your home from two service providers: Etisalat or Du
(Du is currently available only in some free zones).
Documents Required:
Your passport copy, with valid residence visa
Form to be filled up
Internet Access Options:
Internet access ranges from Basic Dial-Up (56 kbps) to Superior (4 mbps)
Dial Up:
Dial-Up provides you with a basic method of accessing the internet and enables you
to browse the net and use email with light attachments.
Charges:
Installation Charges AED 100
Rental Charges AED 20 per month
Usage Charges AED 1.80 per hour & AED 1 for off peak time hours (1 am – 6 am)
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Broadband (Al Shamil):
Broadband options are more varied, ranging from limited usage, light user, moderate
user, active user and superior user.
Fees
AED 200 for installation if you apply for the service at an Etisalat office
AED 100 if you apply online
Monthly charges:
Limited Light User (15 hours AED 99/month)
Light User (256 Kbps) AED 149/month)
Moderate User (512Kbps) AED 189/month)
Active User (1Mbps) AED 249/month)
Heavy User – 2Mbps AED 349/month)
Superior User-4Mbps AED 499/month)
Modem Price
Wired Modem
AED 108
Wireless Modem
AED 240
How to Subscribe:
You can apply for the service online over the phone (call 800 77 666), or at any
Etisalat office.
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CHAPTER
62
SCHOOLING NEEDS OF YOUR CHILDREN
Primary education is compulsory in the UAE for children of all nationalities who are
over five years old. In order to enroll your child in a school - either private or public
- in the country, the child must have a valid residence visa. Government schools offer free education only to UAE citizens. A Cabinet decision issued in 2006 allowed
expatriate children to be enrolled in government schools, but they must pay fees set
by the government.
The UAE has a large number of community schools that cater to citizens from India,
Pakistan, Philippines, Russia, Japan and many others. These schools follow the educational system in their own respective countries. Apart from that there are also international schools that offer British and US curriculums. Annual fees in such schools
range between Dh15,000 and Dh100,000. Academic fee structures are decided by
the schools, but they are subject to approval from the Ministry of Education.
In the UAE pupils are allowed to switch their schools as well as curriculums. Switching of schools are allowed at the end of an academic year. The ministry on special
cases allows a child to change schools during the academic year. However, switching of curriculums such as shifting to American or British syllabus is allowed only
till the ninth grade. Study of Arabic is mandatory in all schools and classes.
According to ministry rules, children from Grade 1 to 4 must pass from one grade to
another automatically and cannot repeat the same academic year. Schools here also
prepare pupils in Grades 9 to 12 for IGCSE, TOEFL and SAT I and II.
Majority of the schools here do not allow co-education. Girls and boys have separate
sections or schools from Grade 5 onwards as per education ministry directives.
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CHAPTER
63
YOUR PETS
If you want to bring a pet into or take a pet out of the UAE, owners have to overcome
several hurdles. You cannot bring a pet to UAE as baggage accompanying a passenger, but they are to be brought into the UAE as cargo.
To bring a pet in, you must obtain an import permit. Requirements for this include
a document from your veterinary surgeon (signed and stamped) showing the animal
was vaccinated against rabies between one year and 30 days previously. You must
have a good health certificate from the government of the country where the animal
is coming from. In addition, the animal must be micro chipped.
Vaccination
People with pets already in the UAE must ensure they get them vaccinated against
rabies once a year. In Dubai this means they will get a red identification disc from
Dubai Municipality. Vaccination can be carried out by Dubai Municipality for Dh50
or at private veterinary clinics for a higher charge. If you are in Dubai, please ensure
your pet wears the disc on its collar at all times, otherwise it could be picked up as a
stray by the authorities.
No similar system exists in the other emirates, but Dr Martin Wyness from the British Veterinary Centre in Abu Dhabi said owners should consider getting their animals micro chipped.
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In addition to rabies, dog owners are recommended to vaccinate their pets against
distemper, hepatitis, leptospirosis and parvovirus. Important additional vaccinations
for cats include two types of cat flu as well as panleukopenia.
For an export permit, at least five days before export, the pet must be examined by
a government veterinary doctor at the cargo village of Abu Dhabi, Dubai or Sharjah
International Airports.
Bring along a signed and stamped document from your vet showing the animal,
which must be micro chipped, was vaccinated against rabies between one year and
30 days previously. The fee is Dh100, payable by e-card.
Several kennels and catteries will deal with all of the paperwork, both for import
and export.
Animals brought into the UAE without the proper documents will be held until those
documents are obtained. The importation of some dangerous breeds of dog, such as
Pit Bulls and Neapolitan Mastiffs, and cross breeds of them, is banned. Travel boxes
must meet International Air Transport Authority guidelines.
To either bring in or take out a pet from the UAE, you will have to process the papers at the Ministry of Agriculture and Fisheries. Do not forget to take your passport
copy and your residence permit copy also. The Ministry is open between 7.30am and
2.30pm from Sunday to Thursday. The import permit will cost Dh200 and is valid
for one month. It is payable by e-card. This permit should be submitted at the Cargo
Village at Dubai, Abu Dhabi or Sharjah international airports prior to the animal’s
arrival. When collecting the animal, take along the original vaccination document
and the official certificate issued by the government of the country of origin. There
is a Dh90 customs charge.
YOUR PETS...
A re-import certificate should be collected if the animal is coming back to the UAE.
Before the pet is brought back, a health certificate, which is valid for 10 days, should
be obtained from an official vet. For more information see the website of the American Veterinary Clinic in Abu Dhabi at www.avcclinic.com/Pet%20Travel/exportfromuae.htm
The requirements for exporting a pet from the UAE vary depending which country
you are sending the animal to. The British Veterinary Centre in Abu Dhabi publishes
a country-by-country list at www.britvet.com/info.htm. Click on the “Pet Travel Country Specifics” link.
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CHAPTER
64
LOST PASSPORT
If you lose your passport, it should be immediately reported to the police to avoid
any possible misuse of the travel document. There is a form to be filled and documents to be submitted. After one working day, the police will issue a lost-passport
report. You should also check with the Naturalisation and Residency Department if
it has received the lost passport. If not, the officials at the department will sign and
stamp the police report confirming the lost passport report.
The other step to take is to go to the Public Prosecution Department and get the police report signed and stamped. The Criminal Investigation Department should also
be informed about the lost passport. Here you will need to submit the police report
and the sponsor’s letter, within two days of the loss. If you report it later you will
have to pay a fee of Dh20 and then get a statement on the loss from the CID. It is important that you notify the police immediately because of the details of the passport
can be entered into official databases and prevent its misuse.
If you are on a company sponsorship, you should submit a letter on the loss in Arabic
to the police and the naturalisation and residency department at the emirate which
issued the residency visa. The letter should be typed on the sponsoring company’s
letterhead. The sponsor will have to give a photocopy of the trade license of the company, in addition to a photocopy of the establishment card, copy of the lost passport
if it is available, and two recent photos of the owner of the passport.
If the person who lost the passport is on an individual’s sponsorship as a parent, husband, son or daughter, then you need to submit to the Naturalisation and Residency
Department and to the police a letter from the sponsor showing his or her signature.
You will also need a photocopy of the sponsor’s passport.
After you receive the police report and all the necessary documents you have to apply at the consulate or embassy for a replacement passport.
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CHAPTER
65
UAE LABOUR LAWS
U.A.E. has a well framed labour relations law. The provisions of UAE Labour Laws
are applicable to all categories of people except the following:
1. Employees of the Federal Government and of governmental departments of the
emirates of the Federation, employees of municipalities, other employees of federal
and local public authorities and corporations, as well as employees who are recruited
against federal and local governmental projects.
2. Members of the armed forces, police and security.
3. Domestic servants employed in private households, and the like.
4. Farming and grazing workers, other than those working in agricultural establishments that process their own products, and those who are permanently employed to
operate or repair mechanical equipment required for agricultural work.
Employment Contract
Basic document which governs the terms and conditions of an employment is a contract which shall be written in duplicate, with one copy to be delivered to the worker
and the other to the employer.
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An employment contract may be for a definite or indefinite term. An employment
contract shall particularly specify the date of its conclusion, the date on which work
is to begin, the type and place of the work, the duration of the contract, (if definite)
and the amount of the wage.
Probation
A worker may be employed on probation for a period not exceeding six months, during which the employer without notice or severance pay may terminate his services.
The law specifies that a worker shall not be placed on probation more than once with
the same employer. If a worker successfully completes the period of probation and
continues in employment, the said period shall be calculated as part of his period of
service.
Working Hours
The maximum normal working hours for adult workers is fixed as eight hours in the
day, 48 hours in the week. The law says that it may be increased to nine hours a day
in commercial establishments, hotels, cafeterias, security services and such other
businesses as may be added by resolution of the Minister of Labour and Social Affairs. The time spent by a worker in travelling between his home and place of work
shall not be included in his working hours.
Where the work circumstances require a worker to work more than the normal
number of hours, any period worked in excess shall be treated as overtime, for which
the worker shall receive the wage stipulated for his normal working hours, plus a
supplement of at least 25 per cent of that wage.
But, if the work circumstances require a worker to work overtime between 9 p.m.
and 4 a.m. he shall be entitled in respect of such overtime to the wage stipulated for
his normal working hours, plus a supplement of at least 50 per cent of that wage.
Nevertheless, the number of hours of actual overtime shall not exceed two a day, unless such work is essential for preventing a substantial loss or a serious accident, or
eliminating or alleviating the impact of the latter.
Friday shall be the normal weekly rest day for all workers except the daily-paid.
Where a worker has to be put on duty on that day, he shall be compensated with a
substitute rest day or be paid his basic wage for his normal hours of work plus a supplement of at least 50 per cent of that wage.
But remember, the provisions of law narrated above will not apply to the Persons
holding senior executive managerial or supervisory positions and crew of marine
vessels and seamen who serve under special conditions of service.
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Leave
Each worker shall be entitled to leave with full pay on the following occasions:
1) New Year’s Day (Hire): one day.
2) New Year’s Day (Gregorian): one day.
3) Lesser Bairam: two days.
4) Greater Bairam and Eve: three days.
5) Birthday of Prophet Mohammed: one day.
6) Al Isra and Al Mi’raj: one day;
7) National Day: one day.
Where it is necessary for the work interest to put a worker on duty during public
holidays or days off in respect of which he is entitled to full or partial pay, he shall
be granted substitute leave in respect of such days, plus 50 per cent of his wage. If he
is not granted substitute leave, his employer shall pay him 150 per cent of his basic
wage in respect of the days worked.
In addition to the above, a worker shall, for each year of service, be entitled to an
annual leave of not less than:
1) Two days a month, where the worker’s period of service is more than six months
but less than one year.
2) Thirty days a year, where the worker’s period of service is more than one year.
Law also specifies that if worker’s service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.
Each worker shall be entitled to his basic wage and the housing allowance, if applicable, in respect of his days of annual leave. It may also be noted that before a
worker goes on annual leave, his employer shall pay him the full wage due to him
plus the leave pay prescribed for him under this Law.
A worker shall not be entitled to any paid sick leave during the probationary period.
A worker who contracts illness after completing three months, following the probationary period, in the continuous service of an employer, he shall be entitled to a
sick leave not exceeding 90 days, successive or otherwise, in respect of each year of
service, to be calculated as follows.
The first 15 days: with full pay.
The next 30 days: with half pay.
Any subsequent periods: without pay.
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But no wage shall be payable for sick leave if the illness is the direct result of the
worker’s misconduct (such as consumption of alcohol or narcotic drugs).
Points to remember:
• Muslim workers are granted leave for Haj or pilgrimage once during their term of
service. It is unpaid leave and is not calculated with the other days off. It is not more
than 30 days.
• All workers are entitled to an annual leave for each year of their service. If you
have spent three months of continuous service after the probation period, but then
fell ill, you can apply for 90 days sick leave, the first 15 days are fully paid, the next
30 days are half salary and the rest are unpaid leave.
• Women are entitled to maternity leave of 45 days with full pay, including the
period before and after delivery, if she has completed one year of service, otherwise
the leave is half-pay.
• The working woman can stop working for a maximum period of 100 days without pay, which is not calculated with other leaves, if it is taken because of an illness.
It must be proved by a medical certificate attested by an authority.
• You should join your work straight away after the end of your annual leave or any
other leave.
• You should keep your passport with you. It is illegal and against Interior Ministry
law for your employer or for anybody to hold your passport for any reason.
• You should not abscond from your work or you will face strict penalties.
Termination
An employment contract can be terminated by mutual agreement of the Parties, upon
expiry of its term, on disciplinary grounds and on giving statutory notice if it is an
indefinite term contract.
If an employment contract is for a definite term and the employer revokes it for reasons other than those specified in Article 120, he shall be required to compensate
the worker provided that the amount of compensation shall in no case exceed his
three month’s pay or the remaining period of the contract, whichever is shorter.
On the other hand, if a contract is revoked by the worker for reasons other than those
specified in Article 121 of the law, he shall be required to compensate the employer
for any damage the latter sustains, provided that the amount of compensation shall
not exceed One and half month’s pay or for the remaining period of the contract,
whichever is shorter.
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Either the employer or the worker may terminate an indefinite term contract for a
valid reason at any time following its conclusion, by giving the other party a notice
in writing at least 30 days prior to termination.
Article 120 says that an employer may dismiss a worker without notice if the worker:
1) Assumes a false identity or nationality or submits forged certificates or documents.
2) Is engaged on probation and is dismissed during or at the end of the probationary
period;
3) Commits a fault resulting in substantial material loss to the employer, provided
that the latter notifies the labour department of the incident within 48 hours of his
becoming aware of its occurrence;
4) Disobeys instructions on the safety of work or workplace, provided that such
instructions are in writing and posted at a conspicuous place and are communicated
verbally to the worker, in case he is illiterate;
5) Defaults on his basic duties under the contract and fails to redress such default
despite a written interrogation and a warning that he will be dismissed if such default
is repeated;
6) Is finally convicted by a competent court of a crime against honour, honesty or
public morals
7) Reveals any confidential information of his employer;
8) Is found in a state of drunkenness or under the influence of a narcotic drug during working hours;
9) Assaults the employer, the manager in charge or any of his workmates during
working hours; or
10)Absents himself from work without a valid reason for more than 20 intermittent
days in one single year, or for more than seven continuous days.
In the same way, under Article 121 of the Labour Laws, a worker may abandon his
work without notice in either of the following cases:
1) If the employer fails to honour his obligations towards the worker, as provided
for in the contract or in this Law.
2) If he is assaulted by the employer or the employer’s legal representative.
If a worker is arbitrarily dismissed, the competent court may order the employer
to pay him a compensation but not to exceed the worker’s wage for three months,
calculated on the basis of his last wage.
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Gratuity
A worker who has completed one or more years of continuous service shall be entitled to severance pay at the end of his employment. The days of absence from work
without pay shall not be included in calculating the period of service. The severance
pay shall be calculated as follows:
1) 21 days’ wage for each of the first five years of service.
2) 30 days’ wage for each additional year of service provided always that the aggregate amount of severance pay should not exceed two year’s wage. A worker shall be
entitled to severance pay for any fraction of a year he actually served, provided that
he has completed one year of continuous service. Severance pay shall be calculated
on the basis of the last drawn basic salary.
If a worker under an indefinite term contract abandons his work at his own initiative
after a continuous service of not less than one year and not more than three years, he
shall be entitled only to one-third of the severance pay provided for in the preceding
paragraph. Such a worker shall be entitled to two thirds of the said severance pay if
his continuous service exceeds three years up to five years, and to the full severance
pay if it exceeds five years.
In the same manner, if a worker under a definite term contract abandons his employment at his own initiative before the expiry of his contract period, he shall not be
entitled to severance pay unless his continuous period of service exceeds five years.
A worker shall not be entitled to his severance pay in any of the following two
cases:
1) If he is dismissed from service for any of the reasons specified in Article 120
hereof or if he abandons his employment in order to avoid being dismissed in accordance with that Article.
2) If he abandons his employment of his own accord, otherwise than in either of
the two cases specified in Article 121 hereof, without notice (in the case of indefinite
term contracts) or before completing five years of continuous service (in case of
definite term contracts).
Settlement of Labour Issues
Expatriates have the right to file a case in the Court of First Instance if the Ministry
of Labour does not solve their problems or complaints. The Court of First Instance
is the first stage of litigation. The Court of Appeal is the second stage and the Court
of Cassation is the final stage of litigation.
Workers and labourers need to submit two copies of the petition filed at the labour
ministry and the information must include the full names, address, the facts and the
217
claims. If the documents are drawn up in a foreign language, they must be submitted
with a legal Arabic translation. A letter from the Ministry of Labour should also be
attached stating that a friendly settlement is not possible.
The plaintiff or his representative, whether an attorney or a close relative, can attend
the court proceedings. You can appeal the judgment of the Court of First Instance
within 30 days. But don’t forget to attach a copy of the judgment and attach a copy
of your identity card. If the appeal is lodged by an attorney, a copy of the attorney’s
proxy should be attached.
A copy of the legal representation document should also be attached if the applicant
is a legal representative, such as the sole owner of the establishment, the partner, the
company’s manager, the tutor or the guardian or the custodian of a child.
Registration of the appeal should be made at the office of the clerks of the court.
There is a fee of Dh500 and a deposit of Dh1,000. The deposit will be returned
should the appeal is accepted. A court session reserved to adjudicate the appeal for
cassation will then be determined.
The date and place of the court session will be notified to the litigants. On that day, a
report drawn up by one of the commissioned judges, will be read. The statements of
the attorneys on behalf of the litigants or the statements of the litigants themselves
will be heard during the session.
If the Court of Cassation if satisfied then the appeal is ready for adjudication. The
court may quash the judgment in whole or in part, and in this instance the court can
decide any of the following:
1) Refer the lawsuit to the court which rendered the judgment, and composed of
same judges.
2) Refer the lawsuit to a Court of Appeal composed of other judges.
Refer the lawsuit to the competent court to adjudicate once again.
Labourers who have a dispute with their employers cannot complain directly to the
court. It should first go to the complaints cell of the labour department and if it is not
settled amicably, it will be transferred to the court.
The UAE Federal Law will be implemented to sort out the labourer’s issues. The
labourer’s case will not be accepted if they do not file a complaint within a year from
the date of not getting their dues or rights. There is no fees charged to the labourers
who file complaints against their employer. The labour disputes are given priority
at the court.
If it was proved that the labourers who filed a case have no rights, they will have to
pay all the fees for the case.
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The labour law will not be applied on those working for governmental departments.
It will also not be applied to those who are working for police, military or security, or
domestic helpers, gardeners or those working for small establishments which have
less than five workers or those who are here for less than six months.
HHH
CHAPTER
66
PERMIT TO BUY SPIRITS
The UAE, as a Muslim country, implements Sharia law which prohibits the purchase
and consumption of alcohol. However, the UAE authorities are aware that drinking
alcohol is popular among non-Muslims, so for that reason the UAE sets rules for
purchasing and drinking alcohol.
In hotels in all emirates except Sharjah - where the sale, consumption or possession
of alcohol is prohibited - alcohol is offered to customers. Some embassies also offer
alcohol for sale to their nationals. Similarly, in all emirates except Sharjah, alcohol
can be purchased from licensed retailers by non-Muslims who obtain a “liquor permit” from the emirate that issued the residence visa.
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Liquor permits are issued by the police departments in all emirates to non-Muslims
aged 21 and over who fulfill the minimum salary requirements. The permit or license, valid for a year, allows the holder to buy a certain amount of alcohol per
month. Purchases from retailers that do not have official approval are illegal. Only
the husband in a married couple can apply for a license, but his wife can use the
license if her details are included in the application form.
In Dubai, licenses can be applied for at police headquarters or any branch of retailers MMI or A&E, which sell alcohol. Along with the completed application form
- forms can be obtained from MMI or A&E branches – you have to bring Dh 150
towards fee and the documents indicated in the table.
If a husband wants his wife to be able to use the license, a passport-size photograph
of her must also be included.
After about 10 days, subject to approval, the license will be issued. The amount of
alcohol it permits the holder to buy will be determined by Dubai Police according to
factors such as salary level, age and family size.
If the residence visa expires before the license does, the license must be renewed by
submitting it along with another completed application form and a photocopy of the
new residence visa. At most alcohol retailers in Dubai, a municipality tax is levied
on each sale.
Individuals, free zone employees, semi-government employees, self employed individuals, Green Book holders and Smart Card holders will need the following documents:
Passport copy
Residence visa copy
Tenancy contract copy (or NOC letter from leaseholder)
Labour contract copy (only required from Smart Card holders who have changed
sponsorship)
Trade license copy
One recent passport size photograph
Free zone authority stamp on application form
Salary Certificate
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Punishments:
Non-Muslims who possess a valid liquor permit can transport alcohol from one
emirate to another emirate but the quantity should be for personal use only. If caught
transporting a large quantity, the alcohol and vehicle will be seized and the person
or persons will face punishment as per law. Consuming alcohol is not allowed in
unlicensed public places. Drunkenness in public is also an offence. Those caught
drunk or drinking in public may be punished as per Sharia law which implements
lashes, but the judge can replace lashing with other punishments such as a jail term,
fine or deportation.
There is a zero tolerance policy towards drinking and driving.
A strict regulation to remember is that Muslims are not allowed to buy or consume
alcohol in the UAE, and people are banned from offering or selling alcohol to Muslims. That means that all the rules that describe the processes allowing people to
purchase and consume alcohol apply only to non-Muslims. It is important that nonMuslims are considerate and ensure that their decision to buy or consume alcohol
legally does not cause offence to Muslims.
HHH
221
CHAPTER
67
FORMATION OF A COMPANY IN UAE
United Arab Emirates is the leading regional trading hub; it offers access to a market
of outstanding potential for overseas companies. UAE offers incoming businesses
all the advantages of a highly developed economy. The infrastructure and services
match the highest international standards, facilitating efficiency, quality and service.
Among the benefits are:
• Free enterprise system.
• Highly developed transport infrastructure.
• State-of-the-art telecommunications.
• Sophisticated financial and services sector.
• Top international exhibition and conference venue.
• High quality office and residential accommodation.
• Reliable power, utilities etc..
• First class hotels, hospitals, schools, shops etc. Cosmopolitan lifestyle.
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Doing business in the UAE is very attractive due to the following reasons:
• No personal income and capital taxes
• No corporate taxation
• 100% repatriation of capital and profits
• No currency restrictions
• Competitive import duties (5% with many exemptions).
• Modern efficient communication facilities
• Abundant and inexpensive energy supply
• Simple staff recruitment procedures
• Competitive freight charges
• Competitive real estate costs.
• Easy access to both sea and airports.
Taxation
There is no corporate tax or personal tax in the UAE. The only exceptions to this are
oil producing companies and branches of foreign banks. Direct taxation is against
the traditions of the UAE and it is highly unlikely that it will be introduced in the
near future.
Licensing
The basic requirement for all business activity in UAE is one of the following three
categories of licenses:
• Commercial licenses covering all kinds of trading activity;
• Professional licenses covering professions, services, craftsmen and artisans;
• Industrial licenses for establishing industrial or manufacturing activity.
Some categories of businesses require approval from ministries also: for example,
banks and financial institutions from the Central Bank of the UAE; manufacturing
from the Ministry of Finance and Industry; and pharmaceutical and medical products from the Ministry of Health; branch of foreign company from the ministry of
Economy and Commerce. More detailed procedures apply to businesses engaged in
oil or gas production and related industries.
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Ownership Requirements
Fifty-one per cent participation by UAE nationals is the general requirement for all
UAE established companies except:
• Where the law requires 100% local ownership;
• In the Free Trade Zones where 100% foreign ownership is permitted;
• In activities open to 100% AGCC ownership;
• Where wholly owned AGCC companies enter into partnership with UAE nationals;
• In respect of foreign companies registering branches or a representative office in Dubai;
• In professional or artisan companies where 100% foreign ownership is permitted.
Procedures governing the operations of foreign business interests.
In practice, however, Dubai and the other emirates followed the same general system, whereby foreign companies operated in one of three ways: with a local sponsor, through a partnership with a UAE national or company, or through a private
limited company or public shareholding company incorporated by Ruler’s decree.
Since 1984, steps have been taken to introduce a codified companies law applicable
throughout the UAE. Federal Law No. 8 of 1984, as amended by Federal Law No.
13 of 1988 - the “Commercial Companies Law” - and its by-laws have been issued.
In broad terms the provisions of the Law are as follows: The Federal Law stipulates
a total local equity of not less than 51% in any commercial company and defines
seven categories of business organization which can be established in the UAE. It
sets out the requirements in terms of shareholders, directors, minimum capital levels
and incorporation procedures. It further lays down provisions governing conversion,
merger and dissolution of companies.
Legal Structures for Business
Federal Law No. 8 of 1984, as amended by Federal Law No. 13 of 1988 - the Commercial Companies Law - and its by-laws govern the operations of foreign business.
In broad terms the provisions of these regulations are as follows:
The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organisation, which can be
established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. The seven categories of
business organisation defined by the Law are:
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•
General partnership company
•
Partnership-en-commendam
•
Joint venture company
•
Public shareholding company
•
Private shareholding company
•
Limited liability company
•
Share partnership company
Partnerships
General partnership companies are limited to UAE nationals only. The Dubai government does not presently encourage the establishment of partnership-en-commendam and share partnership companies.
Joint Venture
A joint venture is a contractual agreement between a foreign party and a local party
licensed to engage in the desired activity. The local equity participation in the joint
venture must be at least 51%, but the profit and loss distribution can be mutually agreed. Joint ventures are suitable for companies working together on specific
projects.
Public and Private Shareholding Companies
The Law stipulates that companies engaging in banking, insurance, or financial activities should be run as public shareholding companies. Foreign banks, insurance
and financial companies, however, can establish a presence in Dubai by opening a
branch or representative office.
Shareholding companies are suitable primarily for large projects or operations, since
the minimum capital required is Dh. 10 million (US$ 2.725 million) for a public
company, and Dh. 2 million (US$ 0.545 million) for a private shareholding company. The chairman and majority of directors must be UAE nationals and there is
less flexibility of profit distribution than is permissible in the case of limited liability
companies.
Limited Liability Companies
A limited liability company can be formed by a minimum of two and a maximum of
50 persons whose liability is limited to their shares in the company’s capital. Most
companies with expatriate partners have opted for this form of company.
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In Dubai, the minimum capital is currently Dh. 300,000 (US$ 82,000), contributed
in cash. While foreign equity in the company may not exceed 49%, profit and loss
distribution can be mutually agreed. Responsibility for the management of a limited
liability company can be vested in the foreign or national partners or a third party.
Branches and Representative Offices of Foreign Commercial Companies
The Commercial Companies Law also covers the formation and regulation of
branches and representative offices of foreign companies in the UAE and stipulates
that they may be 100% foreign owned, provided a local agent is appointed.
Only UAE nationals or companies 100% owned by UAE nationals may be appointed
as local service agents. Local agents - also sometimes referred to as sponsors - are
not involved in the operations of the company but assist in obtaining visas, labour
cards, etc and are paid a lump sum and/or a percentage of profits or turnover. In general, branches and offices of foreign commercial companies are not licensed to engage in importing activity except for re-export or in the case of products of a highly
technical nature. To establish a branch or representative office in UAE the following
documents are required:
• Company registration certificate
• Board of directors’ resolution for establishing a branch
• True copy of company’s memorandum / articles of association
• Power of Attorney to the representative
• Financial statements for the last two years
• Local service agency agreement
• Details of local service agent
• Company profile
Professional Firms
In setting up a professional firm, 100% foreign ownership, sole proprietorships or
civil companies are permitted. Such firms may engage in professional or artisan
activities but the number of staff members that may be employed is limited. A UAE
national must be appointed as local service agent, but he has no direct involvement
in the business and is paid a lump sum and/or percentage of profits or turnover. The
role of the local service agent is to assist in obtaining licenses, visas, labour cards,
etc…
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FREE ZONES IN UAE
The Free Trade Zones have been set up with the specific purpose of facilitating investment. The procedures for investing in the zones are relatively simple.
The companies operating in the Free Zones are treated as being offshore, or outside
the UAE for legal purposes.
The free zones are suitable for companies intending to use UAE as a regional manufacturing or distribution base, with the bulk of their business outside the UAE.
Free Zone Incentives
• 100% foreign ownership;
• Exemption from all import duties;
• 100% repatriation of capital and profits;
• Freedom from corporate taxation for 50 year;
• Inexpensive energy;
• Efficient recruitment procedures ensuring the availability of a skilled and experienced workforce;
•
A high level of administrative support.
Licenses
Companies approved for operation in Free Trade Zones, can apply for one of the following types of licenses: Trading; Industrial; Service; or National Industrial. These
licenses are renewable annually.
Trading licenses are granted to locally incorporated companies, and to companies
incorporated outside the UAE. Trading licenses are also issued to Free Zone Establishments (FZE) and Free Zone Companies (FZCo’s).
Industrial licenses are issued to companies incorporated outside the UAE, FZE’s and
FZCo’s. Service licenses are only granted to companies holding a UAE license
National Industrial licenses are issued to industrial companies registered within or
outside the UAE, provided they meet the conditions of having at least 51% AGCC
equity and their local production accounts for at least 40% value added. Products
exported by such companies to AGCC states will be exempted from custom duties.
Companies holding Free Zone license are also permitted to operate outside the UAE.
Operations within the UAE can be undertaken by appointing a commercial agent.
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SETTING UP A BRANCH OF A FOREIGN COMPANY
A foreign company can set up a 100% owned branch in the Free Zone. A questionnaire and license application form with necessary documents are required to set up a
project by a foreign company. Thereafter, a lease agreement and a personnel secondment agreement will be signed.
If the company’s project involves the erection of a structure, a building permit will
be issued after detailed plans are submitted and agreed.
Administrative work, such as importing equipment or engaging labour for installation of equipment, may proceed in parallel with construction work
OFF SHORE COMPANIES
Some of the principal uses for going offshore are: trading, investment, holding, financing, professional services or consultancy, patent, royalty and copyright holding,
ship management and yacht owning personal and corporate tax planning.
We can assist with the registration of International Business Companies (IBCs) or
trusts in the major offshore jurisdictions. Our expertise in the British Virgin Islands
(BVI) and abroad can help you in optimizing your bottom line.
The Jebel Ali Free Zone Authority (JAFZA) introduced regulations in 2003 for the
establishment of Jebel Ali Free Zone Offshore Companies. The international business community can now establish offshore entities at JAFZA in line with other
international offshore jurisdictions. Regulations were framed in a manner so as to
deliver the convenience and efficiency of global offshore locations and maintain a
high repute with international financial authorities.
Besides the traditional advantages of total tax and duty exemption, and a cooperative
regulatory regime, offshore companies established under the Offshore Regulations
can enjoy the added benefits of Dubai’s reputation for commercial transparency and
its forward regional location. We are also a registered agent with JAFZA offshore
companies.
HHH
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CHAPTER
68
TRAFFIC VIOLATIONS,
FINES AND BLACK POINTS
The ministry of interior has started applying the new amendments of the federal traffic
law from March 1, 2008. The new system will register black points even in absentia
offences unlike the old system, which registers black points only for spot offences. The
new law aims at curbing reckless motorists by imposing tough penalties.
Under the new system, if a motorist scores 24 points in a year, his driving license
will be confiscated for 3 months and his vehicle for a month. However, if he acquires
24 black points in one year for the second time, his driving license will be confiscated for 6 months. This new rule is applied for drivers who carry UAE driving
license, international driving license or licenses from other countries. However, the
international driving license holders or licensees from other countries will not be
given black points. In case the offence is repeated for the third time, the license will
be seized for a year, and will not be returned to the driver unless he/she completes a
training course in a driving institute approved by the authority.
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The black points accumulated may be cancelled a year later if the total black points
registered in that year do not exceed 24. However, fine will still be applicable. The
amended law also stipulate that if a driver of a heavy vehicle causes an accident
after jumping the red signal, the vehicle would be impounded for one month and the
license of the driver seized for one year. The license will be returned only after the
driver passes a training course in a driving institute approved by the traffic authority.
He will, however, have to pay a fine of Dh 3,000 if he has other penalties.
As per the law, violators will be dealt with according to 147 traffic violations classified below.
List of black points for traffic offences in the UAE.
Violations, fines and black points
No. Violation
Fine Black
In Presence/
Vehicle
points
In Absence confiscated / Days
230
1
Driving dangerously (racing)
2000
12
Both
30
2
Driving under the influenc of
alcohol, drugs or similar substances
Decided
by court
24
Both
60
3
Driving a vehicle without number plate
1000
24
In presence
60
4
Causing death of others by Court
Decided
12
In presence
30
5
Not stopping after causing an accident
that resulted in injuries
Decided by Court
24
Both
60
6
Reckless driving
2000
12
Both
30
7
Exceeding maximum speed
limit by more than 60km/h
1000
12
Both
30
8
Driving in a way that is dangerous to
the public
1000
12
Both
30
9
Jumping a red light
800
8
Both
15
No. Violation
Fine Black
In Presence/
Vehicle
points
10 Running away from a traffic policeman
800
12
Both
30
11
Dangerous overtaking by trucks
800
24
Both
60
12 Causing a car to overturn
Decided
by court
8
Both
-
13 Causing serious injuries Decided
Decided by court
8
In presence
-
14
Exceeding maximum speed limit by not more than 60km/h
900
6
Both
-
15
800
Both
-
16
Overtaking on the hard shoulder
600
6
In presence
-
17
Entering road dangerously
600
6
Both
-
Decided
by court
6
Both
-
18 Causing moderate injury
19
Heavy vehicle lane discipline
600
6
Both
-
20
Overtaking from a prohibited place
600
6
In presence
-
Decided
by court
6
In presence
-
Both
-
4
Both
-
Both
-
21 Causing serious damage to a vehicle
231
22
700
23
Parking in fire hydrant places, 1000
spaces allocated for people with
special needs and ambulance parking
24
600
25
Driving against traffic
400
4
In presence
-
26
Allowing children under 10 years old 400
4
In presence
-
to sit in the front seat of a vehicle
No. Violation
Fine Black
In Presence/
Vehicle
points
232
27
Failure to fasten seat belt while driving
400
4
In presence
-
28
Failure to leave a safe distance
400
4
Both
-
29
Failure to follow the directions of
a traffic Ppoliceman
30
Exceeding maximum speed limit
by not more than 20km/h
500
Both
-
31
Entering a road without
ensuring that it is clear
400
4
In presence
-
32
Exceeding permitted level of car window tinting
500
In presence
30
33
Not giving way to emergency, police
and public service vehicles or
official convoys
500
Both
-
34
Driving a heavy vehicle that does not comply with safety and
security conditions
500
In presence
30
35
Failure to stop after causing an accident
500
Both
-
36
Driving a noisy vehicle
500
Both
30
37
Allowing others to drive a vehicle for
which they are unlicensed
500
In presence
-
38
Loading a heavy vehicle in a way
that may pose danger to others
or to the road
500
6
Both
7
39
Overload or protruding load from
a heavy vehicle without permission
500
6
Both
7
40
Driving a vehicle that causes pollution
500
Both
-
41
Stopping on the road for no reason
500
In presence
-
42
Stopping on a yellow box
500
Both
-
4
4
No. Violation
Fine Black
In Presence/
Vehicle
points
43
Not giving pedestrians way
500
6
Both
on pedestrian crossings
233
44
Failure to abide by traffic signs and directions
500
Both
-
45
Throwing waste from
vehicles onto roads
500
Both
-
46
Refusing to give traffic police name
500
In presence
-
and address when required
47
Stopping vehicle on the left side
of the road in prohibited places
500
Both
-
48
Stopping vehicle on pedestrian crossing
500
Both
-
49
Teaching driving in a training
vehicle that does not bear a learning sign
500
Both
-
50
Teaching driving in a non-
500
In presence
training vehicle without
permission from licensing authority
-
51
Placing marks on the road that
may damage the road or block traffic
500
Both
-
52
Operating industrial, construction
and mechanical vehicles and tractors
without permission from
licensing authority
500
In presence
7
53
Modifying vehicle’s engine
without permission
400
In presence
-
54
Modifying vehicle’s chasses
without permission
400
In presence
-
55
Changing vehicle’s colour without permission
400
In presence
-
56
Exceeding maximum speed
limit by not more than 10km/h
400
Both
-
4
No. Violation
Fine Black
In Presence/
Vehicle
points
234
57
Driving with a driving license
400
In presence
issued by a foreign country except
in permitted cases
-
58
Violating the terms of the driving license
300
In presence
-
59
Parking behind vehicles
and blocking their movement
300
Both
-
60
Towing a vehicle or a boat
with an unprepared vehicle
300
In presence
-
61
Driving a vehicle that omits gases or
300
fumes with substances exceeding permitted rates
Both
-
62
Leaving a vehicle on the road
with its engine running
300
Both
-
63
No lights on the back
or sides of trailer container
200
Both
-
64
Lights on the back or sides
of container not working
200
Both
-
65
Taxis, which have designated pickup
200
4
Both
areas, stopping in undesignated places
66
Prohibited entry
200
4
Both
-
67
Blocking traffic
200
Both
-
68
Vehicle unfit for driving
200
Both
7
69
Driving a light vehicle that
200
Both
does not comply with safety and
security conditions
7
70
Not lifting exhaust of trucks
200
Both
7
71
Not covering loads of trucks
3000
Both
7
72
Using vehicle for purposes
other than designated
200
In presence
7
4
No. Violation
Fine Black
In Presence/
Vehicle
points
235
73
Heavy vehicle prohibited entry
200
4
Both
7
74
Violating loading or unloading
regulations in parking
200
4
In presence
7
75
Carrying and transporting
passengers illegally
200
4
In presence
7
76
Writing phrases or placing
stickers on vehicle without permission
200
Both
-
77
Not taking road safety measures
during vehicle breakdowns
200
Both
-
83
Transporting passengers by
vehicle undesignated for this purpose
200
4
In presence
-
84
Sudden swerve
200
4
In presence
-
85
Driving a taxi without required license
200
4
In presence
-
86
Carrying passengers
in driving training vehicle
200
4
In presence
-
87
Driving a taxi with an expired warranty
200
In presence
-
88
Reversing dangerously
200
Both
-
89
Taxi refusing to carry passengers
200
4
Both
-
90
Falling or leaking load
3000
12
Both
30
91
Not securing vehicle while parked
200
Both
-
92
Parking in prohibited places
200
2
In presence
-
93
Parking in loading and offloading
areas without need
200
In presence
-
94
Parking on road shoulder
except in cases of emergency
200
In presence
-
95
Using multi-coloured lights
200
Both
-
No. Violation
Fine Black
In Presence/
Vehicle
points
236
96
Not wearing helmet while
driving motorbike
200
4
Both
-
97
Exceeding passenger limit
200
3
In presence
-
98
Driving with tyres in poor condition
200
In presence
7
99
Driving with an expired driving license
200
3
In presence
-
100 Not renewing vehicle registration after expiry
400
In presence
-
101 Driving unlicensed vehicle
200
In presence
7
102 Violation of laws of using
commercial number plates
200
In presence
-
103 Not fixing number plates in designated places
200
2
In presence
-
104 Driving with one number plate
200
2
In presence
-
105 Driving at night or in foggy
weather without lights
200
4
In presence
-
106 Using unmatching number
plates for trailer and container
200
Both
-
107 Not fixing reflective stickers
at the back of trucks and heavy vehicles
200
Both
-
108 Not using indicators when
changing direction or turning
200
In presence
-
109 Not giving way for vehicles to pass on the left
200
Both
-
110 Not giving way to vehicles
coming from the left where required
200
Both
-
111 Stopping a vehicle in a way that
may pose danger or block traffic
200
Both
-
3
3
No. Violation
Fine Black
In Presence/
Vehicle
points
237
112 Failure to have vehicle examined
after carrying out major modification
to engine or body
200
In presence
7
113 Using training vehicles outside
of timings specified by licensing authority
200
In presence
-
114 Using training vehicles in
places not designated by licensing
authority
200
Both
-
115 Overtaking from the right
200
4
Both
-
116 Overtaking in a wrong way
200
3
In presence
-
117 Driving an unlicensed vehicle
200
In presence
7
118 Abuse of parking space
200
3
Both
-
119 Number plates with unclear numbers
200
3
Both
-
120 Violating tariff
200
6
Both
-
121 Light vehicle lane discipline
200
2
Both
-
122 Parking vehicles on pavement
200
3
Both
-
123 Not showing vehicle
registration card when required
200
In presence
-
124 Not showing driving license
when required
200
In presence
-
125 Not fixing taxi sign where required
200
Both
-
126 Not fixing a sign indicating licensed overload
200
3
In presence
-
127 Using interior lights
for no reason while driving
100
In presence
-
No. Violation
Fine Black
In Presence/
Vehicle
points
128 Failure to abide by specified
colour for taxis or training cars
200
In presence
-
129 Failure to display tariff of buses
or taxis or not showing
them when required
200
In presence
-
130 Broken lights
200
6
In presence
-
131 Using horn in prohibited areas
200
2
In presence
-
132 Driving below minimum speed limit
200
Both
-
133 Failure to keep taxis and buses
clean inside and outside
200
In presence
-
134 Smoking inside taxis and buses
200
Both
-
135 Using hand-held mobile phone while driving
200
4
In presence
-
136 Not abiding by taxi drivers obligatory
uniform or not keeping
it in good condition
100
In presence
-
137 Calling on passengers
100
Both
-
100
Both
-
139 Not carrying driving license while driving 100
In presence
-
140 Not carrying vehicle
registration card while driving
100
In presence
-
141 Driving without spectacles
100
In presence
-
142 Not using interior light in buses at night
100
In presence
-
143 Broken indicator lights
100
2
In presence
-
144 Using horn in a disturbing way
100
2
In presence
-
in the presence of signs
138 Not displaying truck’s load on both sides
238
or contact lenses
No. Violation
Fine Black
In Presence/
Vehicle
points
239
145 Having no red light
at the back of vehicle
100
Both
-
146 Opening left door of taxi
100
3
In presence
-
147 Pedestrians crossing from
undesignated places (If any existed)
200
In presence
-
“ The law of love could be understood and learned
through little children”
- Mahatma Gandhi.
“ More than an end to war, we want an end to the begining
of all wars - yes, an end to this brutal, inhuman and
thoroughly impractical method of settling the differences
between governments.”
- Franklin D. Roosevelt.
K.V. Prakash, hailing from Cochin, India is a renowned legal consultant and a
leading social activist in UAE. This handbook is a humble gift from the author
to the non-resident Indians, especially those living in U.A.E. Mr. Prakash is
completing two decades of service in Abu Dhabi. On this occasion, he
presents this book to the fellow Indians as a token of his love and gratitude
towards them. The name of the book is aptly titled “ Cadeau “ - a French
word, meaning ‘gift’.
The book has been divided into three
parts. The first part deals with the laws of
India while the second is a well researched
narration on the laws, regulations and
procedures dealt with by missions of India
abroad. The last part deals with certain
important laws of the UAE that every
expatriate must necessarily be aware of.
Chief Justice of the Supreme Court of
India, Hon'ble Justice K.G. Balakrishnan
captures the essence of the book in his
foreword, thus: “this book will be of
immense utility not only to persons
dealing with the law, but to general
readers as well. It will be an asset to any
person who has callings in the UAE, as
well as to those who aspire to work
there. The author has conducted a
thorough and threadbare analysis of the
laws pertaining to NRIs in UAE, and his
efforts are commendable. The hard work
and effort that has gone in making this
book is evident from its language, style
and content.”
Published by
De Valor Management Consultants (Pvt) Ltd.
Cochin 682025, Kerala, India
www.devalor.org

cadeau... - my personal Website | Home

Transcription

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