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Permanent Residency Status (PRS) for Foreign investors investing Rs 10 crore in India

The Union Cabinet on Wednesday approved a scheme allowing foreigners to settle in the country if they bring significant investment. Foreign investors bringing in at least Rs 10 crore capital will be eligible for Permanent Residency Status (PRS), easier visa regime and employment for family members among other benefits under a new policy.

The Permanent Residency Status, which is granted first for 10 years, with multiple entries, can be extended for another 10 years. A statement from cabinet declared “The scheme will be applicable only to foreign investors fulfilling the prescribed eligibility conditions, his/her spouse and dependents”. Also, PRS holders will be allowed to purchase one residential property for dwelling purposes.

The scheme is expected to encourage foreign investment in India and facilitate the Make in India programme. Under the scheme, suitable provisions will be incorporated in the Visa Manual to provide for the grant of permanent residency status to foreign investors. “In order to avail this scheme, the foreign investor will have to invest a minimum of Rs 10 crore to be brought within 18 months or Rs 25 crore to be brought within 36 months. Further, the foreign investment should result in generating employment to at least 20 resident Indians every financial year," the statement said. Also, it will not apply to nationals of Pakistan.

According to existing rules, all foreigners (including those of Indian origin) visiting on a long term (more than 180 days) student visa, medical visa, research visa or employment visa are required to book with the Foreigners Registration Office concerned, having jurisdiction over the place the person intends to stay, within 14 days of arrival. Pakistani nationals have to register within 24 hours of arrival. Various places — Singapore, Hong Kong, America, Canada, others — offer residency status for foreign entrepreneurs in return for investment.

1 September 2016
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