Presentation on theme: "1 Vertriebsmeeting Fa. Willis GmbH am 12.10.2011 in Bremen Dozent : Dipl.-Betriebswirt Kai Mütze Global Visa and Immigration Law Speaker: Kai Mütze General."— Presentation transcript:
1 Vertriebsmeeting Fa. Willis GmbH am 12.10.2011 in Bremen Dozent : Dipl.-Betriebswirt Kai Mütze Global Visa and Immigration Law Speaker: Kai Mütze General Manager of International Assignment Consulting GmbH, Germany
2 Agenda Relevance of visa issues for international companies General considerations – Risks of inappropriate status Visa Screening Typical visa categories Global visa regulations – Examples Correlation of visa with tax issues General challenges
3 General Considerations & Risks Relevance of visa issues for international companies -Every country has specific immigration laws and regulations -Possible risks of inappropriate immigration status: On-site inspectionsRisk of accidents Violation of fiduciary duty Illegal stays can result in fines (for company and/or employees) or entry bans Involvement of police or other local authorities Every employer has a legal fiduciary duty towards its employees, which he may not violate!
4 Visa Screening Step I in the application process: Visa Screening -How long will the employee stay? -Which activities will be performed? -Which qualifications does the employee have? -Will he/she receive any local renumeration? -Does the applicant have a „visa history“ (e. g. previous stays in the country, previous visa, violations of immigration law)? → Identification of the appropriate visa category
5 Visa Categories Business visaAllowed activities can include meetings, negotiations, conclusion of contracts, after-sales service Commissioning VisaOffered by some countries as simplified version of a work visa; normally does not require a work permit Work visaNecessary for certain activities or long-term stays; normally requires a prior work permit application within the country; some countries require a local work contract Different types of visa typically used by international companies:
6 Global Visa Regulations – Examples USA -Business Trips: Visa Waiver Program (VWP) allows nationals of 27 countries to enter the U. S. without visa for business trips up to 90 days → allowed activities include e. g. meetings, contract negotiations, short term training -Engineering or commissioning tasks can be fulfilled as business traveller if it concerns after-sales-services on equipment delivered from outside the U. S., as long as these services are explicitly part of the sales contract -Work Visa: Various categories for special entry purposes (e. g. Intra Company Transfers, Speciality Occupations, Foreign Investors, Persons with Extraordinary Abilities); work visa in most cases require prior approval from the immigration authorities -General distinction between non-immigrant and immigrant status
7 Global Visa Regulations – Examples India -Business Trips: Every business trip requires a visa → Allowed activities are limited to ONLY meetings, purchase trips, travel related to investment -All other activities (e. g. signing of contracts, assignments, engineering or commissioning tasks) require an employment visa -Exemption: Since 2010 some Indian missions have started to issue Project Visa for projects in the steel and energy sector -Some embassies distinguish between short-term and long-term employment (short-term = delegation agreement vs. long-term = local work contract with an Indian company) -Employment visa may be issued in the home country without prior approval of local authorities
8 Global Visa Regulations – Examples Russia -Business visa for meetings, visits to clients or subsidiaries, contract negoatiations etc. -All work requires a work permit (in some cases including a quota) -Exemption: Engineering or commissioning tasks can be fulfilled as business traveller if it concerns after-sales-services on equipment delivered from outside Russia, as long as a special invitation letter is applied for by the Russian client -Work Visa: Based on a local work permit (regular procedure vs. simplified procedure for highly qualified foreign specialists)
9 Global Visa Regulations – Examples Germany -Member country of the Schengen Area: Schengen Visa for business trips for up to 90 days within a period of 180 days – allows participation in meetings, visits to clients or subsidiaries, short term training within an international company group etc. in all Schengen countries -Work Visa: Issued as „Residence Title for Emplyoment“ -Requires approval by foreigners‘ office and labor authorities -May be issued for one specific emplyoer or as general work permit -Some procedures (e. g. International Personell Exchange within an international company group) is exempted from the requirement of searching the labor market for local personell -National Visa (valid for 90 days) is transformed into residence titel after arrival in Germany
10 Correlation of visa with tax issues Examples: Work permit applications in many countries require local employment contracts, often including a local payroll → Local tax regulations need to be considered ! → Involvement of accountants and tax consultants In some countries an appropriate immigration status is precondition for tax registration / tax compliance → Correlation of Visa and Tax Management
11 General challenges Many companies are involved in project business → Short-term planning, (technical) emergency situations, requires a high flexibility in scheduling and personell planning Work permit applications are in most cases filed locally and require local support Requirement of local employment contracts → Assignment to subsidiary vs. client‘s site Compliance with local and company standards Often limited capacities and knowledge in HR Departments → IAC supports with long-term expertise and country- specific knowlegde!
13 Please feel free to come back to me with any further questions! Kai Mütze Business Economist General Manager IAC Unternehmensberatung GmbH Lutherplatz 1 34466 Wolfhagen, Germany Tel.: +49 (0) 5692 - 997720 - 0 Fax: +49 (0) 5692 - 997720 - 19 Email: email@example.com@i-a-c.de Homepage: www.i-a-c.dewww.i-a-c.de