Passive Investor (Company Director) in India while working under H1B in US

[sk16]

Hi Experts,

 

I am working in H1B for my employer in USA.  One of the Pvt.Ltd. company in India wants me to join them as "Passive Investor" without doing any "work" (Paid/Unpaid) for them. Because they have people (Managers,other Directors) to do all the  "work". I will be in capacity of one of the directors (passive investor), eligible for dividend. Upon return to India my plan to start work for them. I will show my global income (US Salary any Dividend from Indian Company) while doing US tax. Is this legal as per USCIS H1B rules ?

 

Any help will be appreciated.

 

Regards

SK

[JoeF]

A director has responsibilities, so this wouldn't be a passive investment.

A passive investment means you are putting money into a business and otherwise stay out of it.

Having a formal position in the company is not compatible with the H1.

[sk16]

Thanks for your reply JoeF.

 

Is the same valid for "Non-Executive Directors" ? because in that capacity you are barred from day to day responsibilities, it's not an employment. This role  will be source of wise independent advise, share knowledge,experience etc. There won't be any 'Salary" part of it...only certain % of dividend. I don't think this falls under "formal" position (correct me if I am wrong) as well.

 

Is this also not compatible with H1 rules? Becuase I will be sharing knowledge, experience for a company in India, nothing to do with any company in US . Any advise will be appreciated.

[JoeF]

A "certain % of dividend" looks quite a lot like a salary.

Every shareholder would have to get a dividend based on their number of shares, being a "non-executive director" or not.

If there is a special arrangement for the non-executive director, it would look like a hidden salary, trying to get around the laws. It would be work, and not a passive investment.

In any case, the company and you should discuss this with a good immigration lawyer.

[sk16]

Thank you for your advise.