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Presentation by: Prashant Ajmera B.Sc. LL.B. (India) ICSA (UK) Indian Law office of Prashant Ajmera & Associates (Ajmera Corporate Services Pvt. Ltd. )

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Presentation on theme: "Presentation by: Prashant Ajmera B.Sc. LL.B. (India) ICSA (UK) Indian Law office of Prashant Ajmera & Associates (Ajmera Corporate Services Pvt. Ltd. )"— Presentation transcript:

1 Presentation by: Prashant Ajmera B.Sc. LL.B. (India) ICSA (UK) Indian Law office of Prashant Ajmera & Associates (Ajmera Corporate Services Pvt. Ltd. ) Date: 30 th Jnauary 2013 Venue: St James court, Lodnon

2 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Trends in the type of foreign investment by Indian HNIs.- for investment purpose, residency and citizenship, children’s education and personal qualify of life. Regulatory and other consideration impacting Indian clients foreign investment planning and other considerations impacting Indian clients’ foreign investment planning Insight in to exchange control laws and taxation laws in India and its direct impact on: - Indian residents having foreign wealth / foreign beneficiaries - Non Residents having Indian wealth / Indian beneficiaries; Jurisdiction over view of Indian HNIs Investment: - What is the future of the UK as the jurisdiction of choice for Indian wealth? - How does it compare to other financial centers? - How can the UK keep up and leverage the historical UK-India partnership? - What are the favorite international hubs for Indian wealth – UK, Singapore, Mauritius, UAE and others Corporate Services Pvt. Ltd.

3 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Trends in the type of foreign investment by Indian HNIs.- for investment purpose, residency and citizenship, children’s education and personal qualify of life. Corporate Services Pvt. Ltd.

4 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Three factors give rise to national and International Wealth management practice in India: 1. Options available for choice of investment products 1. Options available for choice of investment products 2. Rise in number of HNIs in India 2. Rise in number of HNIs in India 3. Foreign exchange policy allowing to invest abroad 3. Foreign exchange policy allowing to invest abroad Corporate Services Pvt. Ltd.

5 Indian clients’ offshore Wealth Investment & Planning: Currents Trends and Future Prospects 1. Options available for choice of investment products pre economic liberalization era: Only stock and debenture in primary and secondary market 2003 – Entry of Mutual fund 2007 – Entry of Insurance fund and ULIP policies 1992 –boom in Land and Real Estate Economic boom of last 20 years has seen fruits of economic growth in the country and rise in Billionaires and HNIs Corporate Services Pvt. Ltd.

6 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects 2. Rise in HNIs in India Number of HNI and Billionaires in India: In No Billionaire in India In 2011 – 57 Billionaires in India By 2015 – HNI to grow more then double to 403,000 Asia pacific report by Julius Baer Corporate Services Pvt. Ltd.

7 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects 2009 HNIs = 126, HNIs = 153,000 / Rise of 20.8% The cumulative wealth of Indian HNI rise by 22% from US$ 477 billion to US$ billion Indian has 12 th largest HNI population ( Asia pacific report by Merrill Lynch Global Wealth Management) Corporate Services Pvt. Ltd.

8 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Total Net Worth of ultra HNI in India as per Kotak wealth & CRISIL Research : Trillion - represents 81,000 houses hold – 318 Trillion – represents 286,000 house hold 50% in 4 major metros – 13 % in 6 other cities 15% in 40 other cities These high spender were cautious in investing in stock but moved towards Corporate Services Pvt. Ltd.

9 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Cognizant Report: Wealth Management in India : Fast Growing wealth in India: Key Indicators2009Forecast HNI wealth ( US$B) % rise HNI Population (000)53, % rise Liquid assets ( US$B) % rise Wealthy Individuals2.5 Million60.5 million Corporate Services Pvt. Ltd.

10 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Three factors will give rise to national and International wealth management practice in India: 3. Foreign exchange policy allowing to invest abroad 3. Foreign exchange policy allowing to invest abroad Ajmera Corporate Services Pvt. Ltd.

11 Non-Residence Indian Remittance 1993 Deposit US$ 15,015 millions 2011 Deposit US$ 51,682 millions – Sep Main source of remittance are workers, professionals and students living abroad. NRIs all over world: (In million $) Africa – 2.8+ Asia – 9.8+ Middle East Europe – 1.8+ North America – 5.1+ South America – Total Corporate Services Pvt. Ltd.

12 Investing Abroad Until recently, India Inc. was all about INVESTING IN INDIA. However, in recent times there has been a shift in government policy: – Invest in India 2005 and after – Invest abroad as well (http://business.gov.in) Corporate Services Pvt. Ltd.

13 Outbound investment in JVs & businesses China 209 & 2010 (in million $) India 2009 & 2010 (in million $) 18,000 & 43, overseas investment transactions have resulted in outward FDI of US$ 2.69 billion during July Overseas direct investments by India Inc stood at US$ 1.24 billion for July 2012, Reserve Bank of India (RBI). The equity investment rose to US$ million while the total loan amount increased to US$ million through as many as 459 deals. Corporate Services Pvt. Ltd.

14 Indian HNIs can make investments abroad 1 st July, 2010 – US$ 200,000 per person per year can be remitted and invested outside India. US$ 1,000,000 per person per year can be remitted by NRIs from NRO account. This facilitates Indian HNIs to: Invest globally Compete globally Seize global opportunities Become global citizens Corporate Services Pvt. Ltd.

15 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects After July 2010 invest in India or abroad Before July 2010 invest in India Only HNIs number 12 th in the world Indian HNI Share, bond, mutual fund, Insurance etc Invest In India Wealth Management Invest Abroad Wealth Management Personal Objectives Real Estate, Gold & Silver etc. Corporate Services Pvt. Ltd.

16 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Wealth Management Personal Reason Tax planning NRI status and benefits Portfolio diversification Wealth management at international level Social status Children’s education Quality of life Retirement Family reunion Expansion of business Visa free travel Ajmera Corporate Services Pvt. Ltd. Wealth Managers in India should be ready with both type of products to offer to HNIs in India

17 Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects Wealth Management jurisdiction Personal Reason jurisdiction UK Singapore Mauritius UAE Tax havens USA Canada Australia Europe UK Wealth Managers in India should be ready with both type of products to offer to HNIs in India Corporate Services Pvt. Ltd.

18 Options available for Indian businessmen to become NRIs: UK As of April 2011, UK Border Agency introduced a three level tier investment option. To qualify for the United Kingdom Immigrant Investor Program you must satisfy one of the following prescribed investment levels: Net Personal Assets Full Investment £2,000,000 £1,000,000 £10,000,000£5,000,000 £20,000,000£10,000,000 The remaining criteria are: Being able to maintain and accommodate yourself and any dependents without taking employment (other than self employment or business). You must make the UK your main home. You do not need to spend all your time in the UK but you should spend at least 50% (6 out of 12 months) in order to maintain your visa status. Corporate Services Pvt. Ltd.

19 Personal Reason jurisdiction: Direct Residency : USA Investment of $1 million in a NEW business and create 10 NEW jobs OR Invest $ 500,000 for 5 years in a high unemployment area and create 10 direct or indirect jobs. Many government approved projects known as “Regional centers” are available for safe investment. Husband, wife and children under 21 years can be included. Processing time 6-10 months. Ideal for businessmen who wish to send their children for study in USA and / or do business in USA. Citizenship in 5 years. Corporate Services Pvt. Ltd.

20 Options available for Indian businessmen to become NRIs: Canada -> M ust have net assets in home country of $ 1.6 million (Rs. 8 crores). -> Invest $800,000 in a government bond for 5 years without interest. -> 100% loan available from government approved Canadian banks. -> One time payment of $ 180,000 (Rs. 90 lakhs) in lieu of interest on loan required. -> Husband, wife and children of any age can be included if they are unmarried and pursuing full time study without break. -> Processing time 6-12 months. -> Ideal for businessmen who wish to send their children for study in Canada and/or do business in Canada. -> Citizenship in 3 years. -> 100% tax exemption for 5 years on assets placed in Offshore Trust. Ajmera Corporate Services Pvt. Ltd.www.AjmeraGroup.biz

21 Options available for Indian businessmen to become NRIs: Switzerland Private residency and pay annual tax of CHF 150,000 per year. Depends on canton of residency. Cyprus Purchase a property in Cyprus, become eligible to apply for a residency permit and subsequently a permanent resident in Cyprus. Country is a EU member and advantages of free movement within Europe. Corporate Services Pvt. Ltd.

22 Options available for Indian businessmen for becoming NRIs: Hong Kong Owner of $10 million HK in net assets for 2 years before making application and investment of $10 million HK in Permissible Investment Asset Classes for 5 years – must have other income for support. Singapore Option A: Invest at least S$2.5 million in a new business entity or expansion of an existing business operation. Option B: Invest at least S$2.5 million in a GIP-approved fund. Must have an excellent business record. Corporate Services Pvt. Ltd.

23 Options available for Indian businessmen to become NRIs: Direct Citizenship/Citizenship by investment: St Kitts & Nevis Island in the Caribbean Sea, south of Florida. Contribution of US$ 250,000 in government diversification fund or purchase of a villa for US$ 400,000 and above. Visa free travel to over 130 countries. Austria Private residence – €100,000 per adult, €50,000 per child, have to obtain health insurance and accommodation. Or by making a substantial business investment. Republic of Dominica Contribution of US$ 75,000 for single person and US$ 100,000 for family of four. Corporate Services Pvt. Ltd.

24 Q & A Corporate Services Pvt. Ltd.

25 (India) (Canada) (USA)


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