Sponsor’s Social Security ID Number Now Required for Employment Visa Applications
September 29, 2014
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Companies applying for new Indian Employment Visas must provide the Indian sponsoring entity’s unique Employees Provident Fund Organization (EPFO – India’s primary social security organization) identification number on the application form. This will allow the Indian government to verify that the sponsor complies with future social security payment requirements on behalf of the foreign national.
An EPFO identification number will not be required for Employment Visa applications submitted on behalf of foreign nationals whose home country is a party to a bilateral agreement with India regarding social security. Only the Netherlands and Germany are known to have such agreements at this time. There is also an exception for Indian sponsoring entities with fewer than 20 employees. To claim an exemption, the Indian sponsoring entity must provide a declaration to the Indian Consulate stating that it is not subject to the Employer’s Provident Fund Scheme.
If the employer is subject to the Scheme but does not provide the EPFO identification number, a valid justification needs to be provided, and it will be at the consular officer's discretion whether to grant the Employment Visa without the number.
It is expected that sponsoring employers may be required to provide the EPFO identification number for in-country applications – such as visa extensions and in-country registrations – in the future.
What This Means for Employers and Foreign Nationals
Employers submitting Employment Visa applications may face delays if they fail to provide the EPFO identification number of the Indian entity to initiate Employment Visa applications. Because compliance with the EPFO requirement could have tax implications, employers should review the new requirement with their tax consultants.
We worked closely with Fragomen Immigration Services India (Pvt.) Limited ("Fragomen-India") to prepare this alert. It is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work or send an email [email protected].
© 2009 - 2015 © Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.
An EPFO identification number will not be required for Employment Visa applications submitted on behalf of foreign nationals whose home country is a party to a bilateral agreement with India regarding social security. Only the Netherlands and Germany are known to have such agreements at this time. There is also an exception for Indian sponsoring entities with fewer than 20 employees. To claim an exemption, the Indian sponsoring entity must provide a declaration to the Indian Consulate stating that it is not subject to the Employer’s Provident Fund Scheme.
If the employer is subject to the Scheme but does not provide the EPFO identification number, a valid justification needs to be provided, and it will be at the consular officer's discretion whether to grant the Employment Visa without the number.
It is expected that sponsoring employers may be required to provide the EPFO identification number for in-country applications – such as visa extensions and in-country registrations – in the future.
What This Means for Employers and Foreign Nationals
Employers submitting Employment Visa applications may face delays if they fail to provide the EPFO identification number of the Indian entity to initiate Employment Visa applications. Because compliance with the EPFO requirement could have tax implications, employers should review the new requirement with their tax consultants.
We worked closely with Fragomen Immigration Services India (Pvt.) Limited ("Fragomen-India") to prepare this alert. It is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work or send an email [email protected].
© 2009 - 2015 © Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.
