This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Private Client Wealth Forum India 2013
London Presentation by:
Prashant Ajmera B.Sc. LL.B. (India) ICSA (UK)
Indian Law office of Prashant Ajmera & Associates
(Ajmera Corporate Services Pvt. Ltd. )
Date: 30th Jnauary 2013 Venue: St James court , Lodnon
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 www.AjmeraGroup.biz
Ajmera Corporate Services Pvt. Ltd.
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.
Indian clients’ offshore Wealth Investment & Planning: Currents Trends and Future Prospects
1. Options available for choice of investment products
1947 -1992 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
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 1992 - No Billionaire in India In 2011 – 57 Billionaires in India By 2015 – HNI to grow more then double
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
Ajmera Corporate Services Pvt. Ltd.
Non-Residence Indian Remittance1993 Deposit US$ 15,015 millions 2011 Deposit US$ 51,682 millions – Sep. 2011 Main source of remittance are workers, professionals and
students living abroad. NRIs all over world: (In million
$) Africa – 2.8+ Asia – 9.8+ Middle East - 4.2+ Europe – 1.8+ North America – 5.1+ South America – 0.5+
have resulted in outward FDI of US$ 2.69 billion during July 2011.
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$ 436.14 million while the total loan amount increased to US$ 341.12 million through as many as 459 deals.www.AjmeraGroup.biz
Ajmera Corporate Services Pvt. Ltd.
Indian HNIs canmake investments abroad
1st 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 opportunitiesBecome global citizens
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 educationQuality of life Retirement Family reunion Expansion of business Visa free travel
Wealth Managers in India should be ready with both type of products to offer
to HNIs in India
Indian clients offshore Wealth Investment & Planning: Currents Trends and Future Prospects
Wealth Management jurisdiction
Personal Reason jurisdiction
UKSingapore Mauritius UAETax havens
USACanada Australia Europe UK
Wealth Managers in India should be ready with both type of products to offer
to HNIs in India www.AjmeraLaw.com
Ajmera Corporate Services Pvt. Ltd.
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.
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.
Options available for Indian businessmen to become NRIs:
Canada
-> Must 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.
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.