FORGET those unhappy images of impoverished and semi-literate young people from Punjab, selling their family land and running away on a mission to immigrate to the UK—in many instances falling prey to unscrupulous agents and being illegally trafficked. In fact, moving to the UK these days is no longer an act of desperation or dare-devilry by adventurous young men from Punjab. The latest statistics from UK Visas, the department that manages migration matters at the British High Commission in Delhi, shows a humungous 500% hike in the investor category of visas in the last twoyear period (April 1, 2005 - March 31 2006 and April 1, 2006 to March 31, 2007). In the same period, work permits for UK went up by 37% and sole representative visas - another category of business visas - went up by 27%. 

   The typical profile of an HNI moving to UK today is probably an young business person with a substantial amount of money to invest, who’s looking at London as a global base. He or she is probably eyeing the markets in Europe and planning to tap the London Stock Market at a later stage. In fact, high net worth Indians who are moving to the UK are providing a leg-up to London’s burgeoning property market too, feel real estate experts. “Many wealthy Indians who are arriving in London are buying high-end properties in premium locations such as Knightsbridge, Kensington, Mayfair and Belgravia. In fact, many of the new Indian immigrants are giving other nationalities a run for their money when it comes to acquiring upscale property. This is a big change from yesteryears when Indian immigrants settled down in modest, middle-class areas such as Southall, Norwood Green and Tooting,” says Superna Sethi, founder of UK’s premium property development firm Manhattan Properties. 

   The investor category visa - which is an ideal vehicle for HNIs from India looking to go global - is meant for those who have at least 1 million pound sterling in their kitty to invest in the UK. Of the entire amount, at least 750,000 pounds must be invested in unit trusts, private companies, off-shore companies and banks or building society accounts. The remaining 250,000 pound sterling may be invested according to the immigrant’s wish. 

   UK-based solicitor and founder of law firm Optimus Law Group, Ms Mona Chawla, feels that the biggest advantage that this category of visa has for well-heeled applicants is the fact that they don’t have to work in UK in the traditional sense. “They can simply ‘invest’ in private companies or unit trusts in the UK and remain in the country to manage their investments. Unlike other UK business visas, applications for investment visas do not require candidates to actively partake in the day-to-day running of a business in the UK. In addition, unlike the skills-based HSMP and innovator visa, no comprehensive points-based assessment is required. An investor visa is intended as a potential route to settled status in the UK and unlike a UK work permit it is an applicant-led process. Investors visas place no work restrictions or time limits upon their holders as with the temporary business visit visa, and ultimately candidates may apply for permanent residence status leading in time to UK citizenship if required,” Ms Chawla told ET. 

   While those who go to UK under the investors’ category have to make UK their main home - they do not need to spend all their time in the UK, it can be only about 50% of their time. Ms Chawla adds that for owners of companies, the investor visa is a very good option considering that the sole representative visa only allows businesses to send their senior level employees to open a UK-based office of an already existing company in India, and the owner of the company will not be eligible under this category. “The biggest problem for the investor category, however, tends to revolve around transferring funds to the UK as the investor must have unrestricted rights to transfer or use the capital,” adds Ms Chawla. 

   Joanne Freeman, first secretary, trade & investment at the British High Commission in India feels that the opportunities the UK offers as the world’s leading investment destination (only after the US though) are helping to attract high net worth investors from India. “The investment climate is favourable and the UK has become a very good place to invest for Indian business people. For Indian entrepreneurs too, UK is among the best places to relocate their business because of similar business practices in the both the countries. It is the gateway to Europe and among the top three countries for investment globally. The favourable tax regime also helps,” Ms Freeman told ET. UK Trade & Investment and UK Visas have been working closely together in India in holding roadshows and field trips in states such as Punjab to increase awareness about business immigration to UK. “During the roadshows in Punjab, we’ve met many potential investors who are looking at relocating to UK under the investors’ programme. There are investors in that region who are looking at investments in sectors such as automotive industries, IT and agro-based businesses,” Mr Chris Feist, second secretary at the visa department at BHC said. 

   Another category of business visas that are attracting a lot of interest in India are the innovator category, which works for those entrepreneurs who have a business idea that will bring very considerable economic benefits to the UK. The entreprenuer category where the applicants will
have to invest £200,000 in a new UK business and create full-time employment for at least 2 EU nationals can also benefit some Indians. “While there’s a lot of interest in the entrepreneur category, it’s a little tough for small entrepreneurs who have to create two jobs and invest 2 million pounds. Often they end up using the sole representative category instead, which is straight forward and does not require any investment. It also ensures visas for spouses and children,” says Mr Feist.
   Overall, business visas for UK, including sole representative, investor, entrepreneur and innovator are now a big draw for Indians. Says Mr. Ranjit Malhotra, an advocate whose Chandigarh based law firm Malhotra & Malhotra Associates specialises in immigration and international law: “Business persons become eligible for settlement in the UK if they have spent a continuous period of five years there while being engaged in their business ventures. The applicant is permitted to travel overseas for business promotion trips. This is very helpful for Indian nationals who may have cross-border business commitments. However, one has to be cautious about the absences abroad, since they may have an adverse impact at a later point of time when permanent settlement is being considered.” 
   Mr Malhotra, however, has a word of caution for business immigrants. “Documentation should be meticulous and supported by proof such as business plans, income tax returns, audited balance sheets, bank statements for the last two years, brochures and website details are also important. Track record of the investor is a major issue. In case of sole proprietorship/partnership money should not be pumped into bank accounts all of a sudden. The investor applicant should have a solid financial background and a good stable profile. Also, the business investor should not have any hidden agenda and be actively involved full-time in trading or providing services on his own or in partnership, or in the promotion and management of a company as a director,” he says.

ALL INDIA VISA STATS FOR 2006 FOR UK

Family visitors: Over 87,000 Business/other visitors: Over 175,000 Students: Almost 20,000

WHY UK ATTRACTS HNIs World’s leading investment destination (after US) A springboard for global growth that attracts more regional headquarters than any other location worldwide It is an investment multiplier, a jump-off point to further international growth    Source : Economic Times , Delhi  Comments : It is a very educative article to legally set up Business in UK , financial hub of the world .  www.commonwealthtv.tv       Tags:Business EDUCATION FORTUNES Immigration investments Law Firms Set up Business in UK uk WEALTH