Global Client Alerts
India
Foreign National Worker Quota Introduced
Foreign Hiring Limited to Less than 1% of an Employer’s Workforce
December 14, 2009
Indian authorities are beginning to enforce a new quota system that seeks to limit the number of foreign workers in that country. Full details of the new quotas are not yet available and the situation remains in flux, but in general, employers seeking to sponsor foreign national workers for employment visas must now certify that the number of foreign national workers they employ in India does not exceed 1% of their total workforce or 20 foreign workers total, whichever is less.
Large employers may be able to employ more than 20 foreign workers, provided the overall number is less than 1% of their workforce, but their employment visa applications will be subject to additional scrutiny and are likely to be significantly delayed. There are reports that the numeric cap could be temporarily expanded, until June 2010, to allow employers to sponsor up to 40 foreign workers.
The new quota system was officially announced last week, though earlier media reports suggested that the Ministry of Labour and Employment had issued an internal office memorandum on the quota as early as September.
New Tax Information Requirements for Sponsors at Indian Posts in the United States
Indian consulates in the United States now require employment visa sponsors to certify that the visa holder complies with all necessary tax regulations, including the timely filing of tax returns in India. The sponsor must provide its corporate tax identification number in the certification. Travisa Outsourcing, the private firm which manages India’s visa services in the United States, has confirmed this new requirement. At this time, it is unclear whether these new requirements will be implemented in other countries.
Fragomen is closely monitoring these developments and will provide updates as they become available.
The content herein is provided for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen Global Immigration Services or send an email to .