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VertriebsmeetingFa. Willis GmbHam 12.10.2011
in Bremen
Dozent : Dipl.-Betriebswirt Kai Mütze
Global Visa and Immigration Law
Speaker: Kai MützeGeneral Manager of International Assignment
Consulting GmbH, Germany
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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
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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 inspections Risk of accidentsViolation 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!
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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
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Visa Categories
Business visa Allowed activities can include meetings, negotiations, conclusion of contracts, after-sales service
Commissioning Visa Offered by some countries as simplified version of a work visa; normally does not require a work permit
Work visa Necessary 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:
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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
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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
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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)
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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
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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
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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!
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Thank you very much
for your attention!
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• 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 protected] • Homepage: www.i-a-c.de