Presentation by: Prashant Ajmera B.Sc. LL.B. (India) ICSA (UK) Indian Law office of Prashant Ajmera & Associates (Ajmera Corporate Services Pvt. Ltd. )

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.


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.

www.AjmeraGroup.bizAjmera Corporate Services Pvt. Ltd.


Currents Trends and Future Prospects Three factors give rise to national and

International Wealth management practice in India:

1. Options available for choice of investment products

2. Rise in number of HNIs in India

3. Foreign exchange policy allowing to invest abroad


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

to 403,000

Asia pacific report by Julius Baer



2009 HNIs = 126,7002010 HNIs = 153,000 / Rise of 20.8%

The cumulative wealth of Indian HNI rise by 22% from US$ 477 billion to US$ 582.11 billion

Indian has 12th largest HNI population

( Asia pacific report by Merrill Lynch Global Wealth Management)



Total Net Worth of ultra HNI in India as per Kotak wealth & CRISIL Research :

2011-12 - 68 Trillion - represents 81,000 houses hold

2016-17 – 318 Trillion – represents 286,000 house hold

50% in 4 major metros – 13 % in 6 other cities 15% in 40 other cities These high spender were cautious in

investing in stock but moved towards www.Ajmeralaw.comAjmera Corporate Services Pvt. Ltd.


Cognizant Report: Wealth Management in India :

Fast Growing wealth in India: Key Indicators 2009 Forecast -

2012

HNI wealth ( US$B)

143 20.7 % rise

HNI Population (000)

53,000 20.50 % rise

Liquid assets ( US$B)

481 19.80 % rise

Wealthy Individuals

2.5 Million 60.5 million

www.AjmeraLaw.comAjmera Corporate Services Pvt. Ltd.


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


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+

--------------------------------- Total 24.20


Investing Abroad

Until recently, India Inc. was all about INVESTING IN INDIA.

However, in recent times there has been a shift in government policy:

1992-2005 – Invest in India2005 and after – Invest abroad as well

(http://business.gov.in)


Outbound investment in JVs & businesses

China 209 & 2010(in million $)

India 2009 & 2010 (in million $)

18,000 & 43,900289 overseas investment transactions

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


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 HNI

Share, bond, mutual fund, Insurance etc

Invest In India

Wealth Management

Invest Abroad

Wealth

Management

Personal Objective

s

Real Estate , Gold & Silver etc.

HNIs number 12th in the world

Before July 2010 invest in India Only

After July 2010 invest in India or abroad




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


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


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.


Personal Reason jurisdiction:

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.

Ajmera Corporate Services Pvt. Ltd. www.AjmeraGroup.biz

Options available for Indian businessmen to become NRIs:

Switzerland

Private residency and pay annual tax of CHF 150,000 per year. Depends on canton of residency.

Cyprus Purchase a property in Cyprus, become eligible to

apply for a residency permit and subsequently a permanent resident in Cyprus. Country is a EU member and advantages of free movement within Europe.


Options available for Indian businessmen for becoming

NRIs: Hong Kong Owner of $10 million HK in net assets for 2 years

before making application and investment of $10 million HK in Permissible Investment Asset Classes for 5 years – must have other income for support.

Singapore Option A: Invest at least S$2.5 million in a new business

entity or expansion of an existing business operation. Option B: Invest at least S$2.5 million in a GIP-approved

fund. Must have an excellent business record.


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.


Thank you for your time

Q & A



[email protected]

+ 91 963 897 1200 (India)

+ 1 514 697 1597 (Canada)

+ 1 212 461 0005 (USA)

mailto:[email protected]



http://www.ajmeragroup.biz/

Documents

Presentation by: Prashant Ajmera B.Sc. LL.B. (India) ICSA (UK) Indian Law office of Prashant Ajmera & Associates (Ajmera Corporate Services Pvt. Ltd. )