Granting Power of Attorney: A Comprehensive Guide for Residents of India from the United States

Granting Power of Attorney: A Comprehensive Guide for Residents of India from the United States

Introduction

As a U.S. resident with business interests and/or property in India, you may find yourself in a situation where you need to grant Power of Attorney (PoA) to someone in India to carry out transactions on your behalf. Power of Attorney is a legal document that authorizes a third party, known as the agent, to act on your behalf. In this comprehensive guide, we will explore the important terms, types of Power of Attorney, the process of granting Power of Attorney from the United States to India, and other essential information you need to know.

Important Terms

Before we delve into the process of granting Power of Attorney, it's crucial to familiarize ourselves with some important terms. The person granting the Power of Attorney is known as the principal, while the person receiving the Power of Attorney is referred to as the agent. In addition to these terms, you may come across the terms "property affidavit" and "financial affidavit," which are used interchangeably with Power of Attorney.

Types of Power of Attorney

There are two main types of Power of Attorney that you can consider depending on your specific needs:

1. General Power of Attorney

As a U.S.-based Non-Resident Indian (NRI) with business interests in India, you may require someone to carry out financial deals on your behalf frequently. In such cases, it is practical to grant your trusted representative a General Power of Attorney. This type of Power of Attorney is valid for an unspecified or specified period of time and covers all commercial, financial, and property-related matters.

2. Specific Power of Attorney

A Specific Power of Attorney, on the other hand, is suitable for a specific need, such as buying or selling property. This type of Power of Attorney is valid only for the activity mentioned in the document and expires after the transaction is complete. It's important to note that for a property purchase in India, you must grant a special Power of Attorney. A general Power of Attorney is not acceptable. However, you can use the same special Power of Attorney for purchasing the property and securing a bank loan for the same.

How to Grant Power of Attorney to Someone in India from the U.S.

To ensure the validity of the Power of Attorney in India, it needs to be attested by the Indian Embassy or any of the Indian consular offices in the United States. The process can be done either by appearing in person or by making arrangements through the mail. The following steps outline the process for an "in-person" application:

1. Download the Miscellaneous Application form and fill it out. However, do not sign it at this stage.

2. Visit the designated consular counter at the Indian embassy or consular office in the presence of consular staff to sign the Power of Attorney document.

3. Ensure that your signature matches the one on your most recent and valid passport. If there is a mismatch, you may need to sign again.

4. Two U.S.-based individuals need to be present as witnesses during the signing process. If the witnesses cannot be present at the consular office, their signatures must be notarized.

5. The witnesses should not be immediate family members.

6. In the case where both spouses are principals in a Power of Attorney document, all the above requirements apply to both of them.

7. You will receive the attested document on the same day unless there are any technical glitches that may cause a delay in the process.

Documents Required

When submitting your application for Power of Attorney, you will need to provide the following documents:

1. Your most recent and valid passport. Both the original passport and a photocopy are required. For Indian passport holders, photocopy the first five non-blank pages and the last two pages of your passport.

2. The original and a photocopy of your valid visa status in the U.S. B-1/B-2 visa types do not qualify for creating Power of Attorney.

3. Original visa approval number and extension records.

4. Two recent passport-sized photographs attached to the application.

5. Proof of residence in the U.S., such as a lease agreement or mortgage deed, state identity card, U.S. driver's license, or utility bill.

6. Attach photocopies of all these documents to your application and bring the originals for verification.

Procedural Details for Application by Mail

If you prefer to apply for Power of Attorney by mail, the process is slightly different. You will need to follow these steps:

1. Attach photocopies of the documents mentioned earlier, including a self-addressed envelope with postage paid.

2. Ensure that the envelope is easily trackable.

3. Notarize the signatures (both yours and those of your two witnesses) when applying for a property affidavit or a financial affidavit by mail.

Fees

Fees for attesting Power of Attorney may vary among different Indian consulates. Here are some examples of the fee structures:

• The usual non-refundable fee for in-person applications is $20 per person, per page. However, the Indian consular office in New York charges per document rather than per page.

• The Indian consular office in San Francisco charges $20 per attestation, along with an additional $2 as the Indian Community Welfare fee. If you require attestation on every page of a document, the total fee will be higher.

• The Indian consulate in Chicago charges $22 per person for property-related affidavits and $12 per person for other affidavits.

• For applications through mail, there is an additional nonrefundable fee of $2.

Please note that these fees are subject to change, so it's essential to verify the exact amount with your consular office. Payments for mail applications can only be made by cashier's check or money order.

Apostilling Power of Attorney

Apostilling Power of Attorney involves obtaining a certificate from state authorities, indicating that the notarized Power of Attorney is valid. However, it's important to note that apostilling is not necessary as mentioned on the Indian Embassy website.

Registering the Power of Attorney

Regardless of whether the Power of Attorney is attested by an Indian consulate or apostilled, it must be registered in India.

Conclusion

Granting Power of Attorney from the United States to someone in India is a process that requires careful attention to detail. By following the steps outlined in this comprehensive guide, you can ensure that your Power of Attorney is valid and legally recognized in India. Remember to consult with the Indian embassy or consular office for the most up-to-date information and fee requirements. With the Power of Attorney in place, you can confidently manage your business interests and property transactions in India from the United States.

Remember, this guide is for informational purposes only and should not be considered legal advice. It's always recommended to consult with a qualified attorney for personalized guidance regarding your specific situation. Hishaw Law BLOG

Disclaimer: The information provided in this article should not be construed as financial or investment advice. It is recommended to consult with a qualified professional before making any investment decisions.