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IN India’s Immigration and Foreigners Bill, 2025: What Businesses Need to Know

On March 11, 2025, the Indian government introduced the Immigration and Foreigners Bill, 2025 in the Lok Sabha. This comprehensive reform marks a significant shift in India’s immigration policy—aiming to replace outdated laws and bring the country’s immigration system in line with modern global standards.

 Why It Matters for Businesses:

The bill is strategically designed to:

  • Simplify entry for global talent, entrepreneurs, and investors

  • Enhance digital compliance and tracking

  • Improve India’s business climate

  • Align immigration with national security and economic growth goals


⚖️ What the Bill Replaces:

The new bill consolidates and replaces four legacy acts:

  • Passport (Entry into India) Act, 1920

  • Foreigners Act, 1939

  • Foreigners Act, 1946

  • Immigration (Carriers’ Liability) Act, 2000


 Key Business-Relevant Highlights
1. New Visa Categories Introduced

The bill proposes a restructured visa regime designed to attract talent and capital:

  • Business Visa Plus: Long-term visa with fast-track clearance and lower compliance hurdles

  • Startup Visa: For entrepreneurs launching innovation-driven ventures

  • Skilled Talent Visa: Targeting sectors like AI, biotech, renewable energy, and IT

  • Investor Visa: For individuals investing significant capital in Indian projects

  • Transit & Digital Nomad Visas: Designed for the gig economy and remote workers

🔍 Opportunity for foreign businesses: These new categories offer smoother entry points for expansion, hiring, and partnerships in India.


2. Creation of the National Immigration Authority (NIA)

A central body, the NIA, will:

  • Oversee immigration enforcement and policy

  • Coordinate with state and intelligence agencies

  • Maintain a centralized, biometric-linked database of all foreign nationals


3. Integrated Immigration Management System (IIMS)

This new tech-enabled system will use:

  • Biometric ID and facial recognition

  • AI for real-time tracking

  • Border control integration (air, land, and sea)

Digital transformation reduces red tape, increases security, and streamlines mobility for foreign workers and executives.


4. Mandatory Digital Registration

Foreign nationals staying in India for 180+ days must register online with the new National Foreigners Registry (NFR)—replacing the older FRRO system.

Simplifies compliance, especially for long-term assignments or secondments.


5. Reporting Obligations for Businesses and Institutions

Under Chapter 3:

  • Universities, hospitals, hotels, and businesses hosting foreign nationals must report their details to immigration authorities

  • Includes individuals receiving inpatient medical care or using on-site accommodation

Non-compliance could attract scrutiny or penalties—make sure HR, legal, and compliance teams are updated.


Penalties for Non-Compliance (Chapter 5)

 

Offense Penalty
Entering India without valid documents Up to 5 years in jail + ₹500,000 fine
Using fake documents 2–7 years in jail + ₹100,000–₹1 million fine
Visa overstaying Up to 3 years in jail + ₹300,000 fine
Transporting undocumented foreigners ₹500,000 fine + possible vehicle confiscation

Businesses transporting or hosting undocumented foreign workers are at risk of legal action.


 Dual Citizenship Clarification

Foreign nationals will be treated as citizens of the country whose passport was used to enter India—important for dual nationals and visa documentation.


 Final Takeaway for Employers

The Immigration and Foreigners Bill, 2025 is a bold step toward a more business-friendly, tech-driven, and secure immigration regime.

What Businesses Should Do:
  • Review hiring and relocation practices to ensure compliance

  • Prepare for digital registration requirements for long-stay foreign employees

  • Stay informed on final implementation timelines and visa rule changes

  • Train HR and legal teams on the new reporting and documentation duties

April 19, 2025 2:30 p.m. 123

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