What is an OCI card and how to get one?

OCI stands for Overseas Citizen of India. You can obtain an OCI card when you are looking to have a dual citizenship between India and another country. If you are an Indian, but you have moved abroad and obtained a foreign passport, you can apply for an OCI card.

An OCI card would be very useful when doing anything financial in India. You can work on an OCI card, you can invest on an OCI card, and you can buy property using your OCI card.

Why not a PIO card? It is Simple. If you were born in India, apply for an OCI card, if you were born in another country and are married to an Indian or of Indian origin, apply for a PIO card.

If you are in India and you are looking to apply for your OCI card, you will first need to visit the FRRO office and make sure that you can do that on the visa that you have. You will then need to visit the MHA office. This is where you will get the forms that you will need to fill up and return to the same place.

You usually need to provide your passport, visa, address proof abroad and in India. Proof that you have been an Indian citizen (copies of your old Indian passport will serve as proof). Once you have all of the documents, you also need to have passport size photos taken.

An OCI card comes in the form of a stamp on your passport and/or a passport size booklet with the country logo for India on it. Now that you have your OCI card, you can come to India and leave India as you please without any hassle when you go through customs.

Setting up a business in India as an NRI

A lot of people have started avoiding even the idea of starting a business in India. There is such a hassle involved that it seems not worth the idea. Things have gotten a little better over the years. There are now some simple steps that you can take to make sure that your process goes as smoothly as possible.

-  Get your business name approved in the state that you are opening the company.

- Register your company. This usually takes a few days.  

-  You need to obtain a Memorandum of Association. This Memorandum will state all of your company objects. Make sure to obtain the original.

-  You need to obtain Articles of Association. This Article will state all of your company financial regulations. Make sure to obtain the original. 

-  You need to obtain a Power of Attorney.

-  If you are going into business with any partners, have a legal agreement made for each partner to sign. 

-  Then, you will need to follow up with the Ministry of Company Affairs until you have received your Certificate of Incorporation. 

All in all, you should set aside at least forty days to get your business set up in India. It is best if you have a PIO card before you start. 

If you are living outside of India and are looking to start a business in India, you will first need to apply for a PAN card. You can do so at: http://www.pancardonline.com/apply.html

Also, let it be known that because you are starting a business in India, you will be required to file your taxes in India every year. Make sure that you register with the Director General of Foreign Trade if you are an export/import business.

Foreign Direct Investment: Money invested by an NRI.

Foreign Investment Promotion Board: The ones that approve an NRI’s investment.

Do I need a PAN Number to invest in India?

Nowadays, it is required that you have a PAN card to invest inIndia at all. This includes mutual funds, in real estate, and the stock market. When you are investing in India while living abroad in the UK, there is an easy way to get everything you need. You should start with a pan card.

NRIs apply for your PAN: http://www.indiapancard.in/apply.html

Investment in India is more common now, because the Indian stock markets are booming. The Indian economy has never been better. So if you are looking to invest your money, Indiawould be your best bet right now.

The Indian stock exchange was at 25% and still rising. If you plan and invest, you too can make your money grow and come out on top.

Companies: One of the most common ways to invest into Indiais through companies. There are many large companies based in India that are listed on both the Indian Stock Exchange   as well as in the USA. So you can even buy shares for that company by purchasing them from the Stock exchange in theUS. A good example of an Indian company that is worth investing in would be Reliance. Almost half of all Indian investors own stock from Reliance.

EFTs: Another way that you can invest in India is through ETFs. They are popular due to the lower risk involved with them. If you do not know what ETFs are, I would advise you to look into it so that you can keep your options open.

When is a PAN card Useful?

A PAN (Permanent Account Number) has not always been as important as it is today. Today, it is essential to have a PAN card when doing anything financial in India. When PAN was first introduced, the main purpose was for the IT department to keep track of who has paid their taxes and who hasn’t. Now, you need a PAN when investing, opening a bank account, getting a loan, filing taxes, opening a demat account, buying or selling property, etc. Some other less known uses for a PAN are:

A Bank Fixed Deposit: You now need a PAN card number in order to open a Fixed Deposit with your bank, unless it is less than Rs.50,000. If you do not have a PAN number, you will be charged a greater amount of interest. Then, you will not be issued a TDS certificate and the forms and other certificates will be invalid.

Hotel Payments and Restaurant Payments: If your bills are exceeding Rs. 25,000, many hotels and restaurants will ask you for a copy of your PAN card.

Travel Payments: If your bills are exceeding Rs. 25,000 when traveling international, many hotels and restaurants will ask you for a copy of your PAN card.

Rental Agreements: If you are thinking of renting a place, then you will need to submit a copy of your PAN to your landlord. They prefer this form of ID proof over any other.

Jewelry Payments: For any large purchase of jewelry, you will be asked to submit a copy of your PAN card by the jeweler.

Used Car Payments: It is necessary to submit a copy of your PAN card to a car dealership in India, before making your first payment.

Landline Phone Installation: You are required to submit a copy when getting a landline phone installed in your home.

Visa Centers: The visa centers need your PAN card number before giving you a visa.

PAN card has become a requirement for everything financial. It is not only used for tax purposes anymore, it is also the most legit form of ID proof.

PAN Card is just as important as an NRI

If you are living abroad, A PAN card is an important document for you to have as well. If you file taxes in India, have any income in India, or any other financial connections to the country, you are required to have a PAN number.

 
PAN Card Warnings:

-Identity Theft: Identity theft can become your problem after your get a pan card. You need to keep the card safe and with you at all times and be sure when you are mentioning your PAN number on applications. People can easily get a copy or obtain your PAN card number and misuse it. They can quote your PAN card number in transactions that you had nothing to do with.

What do you do if you are a victim of Identity Theft?

When a credit card is stolen and misused, you will probably know about it within a few days. When a PAN card is stolen and misused, it could take up to 8 months before you find out about it. When you go through form 26AS, your tax deduction statement, be careful to look over all the transactions carefully. This is where you will find if your PAN number has been misused. If you do not pay taxes, you will not have this form. When you submit a claim of identity theft to the IT department, they will ask you to prove that the transaction is not yours. This is a very tedious and time-consuming process. Before your give your PAN card details to anyone, be sure of whom you are giving it to.

What is a Phonetic PAN? (PPAN):

The phonetic PAN (PPAN) is a new concept introduced to insure that the same PAN card number is not given to more than one person. When PAN is allotted, the PPAN of the applicant is compared with the PPANs of all the people who have a PAN number in the same country. If there are identical PPANs, the PAN Officer will be notified. Then, the PAN card officer will have to produce a duplicate PPAN report for that applicant. The applicant will then receive a duplicate PAN card with a different PPAN.

If you are in need of a PAN card, visit: http://www.pancardonline.com/apply.html

How to Get India’s PAN Card?

Permanent Account Number (PAN) is issued by the Income Tax Authority of India. It generally used to quote on tax returns and other financial transactions in India. It is comparable to the Social Security Card in the USA.

Many NRIs living abroad have started investing in India because of the interest rates India has. Every time someone decides to invest in India, he/she must obtain a PAN card first. This can become a lengthy process in itself without going through an online broker. The online process has been made so simple that the majority of NRIs choose to take that route and pay more in service fees.

When you go through the PAN department directly, you almost have to be present in India in order to visit there office on a daily basis and make sure that everything is getting done. If not, sometimes there will be issues with your application and you will never know about it until 6 months later when you still haven’t received your PAN card. 

The online process is simply. You apply online and pay with your credit card, download forms and instructions, fill up the forms and provide the documents, then send everything to the broker’s office in India. Everything else is taken care of by them. Sending sensitive document all the way to India can be a problem so it is better if you send it to the broker, that way you can talk to them and make sure they have received everything all right. 

There a many brokers on the internet today that can provide you with fast service and get the job done in a timely matter. http://www.pancardnumber.com/apply.html is a broker that has been doing this for a long time. They have very good ratings. You will always have to send your documents by post with any legit broker because the government only accepts original signatures on applications. It is recommended that you send something that is traceable so that you know where your documents are at all times. The government sends your PAN card via India Speed Post. There are some brokers that will receive it at their office and send it via courier.

As time goes by, the government introduces more and more rules and regulations for all of these processes. It is easy now, but you never know how difficult it will become next month or the month after. It is always better to obtain your PAN card as soon as possible with all that in mind.