I moved back to India on Dec 2007 after staying in the US for 18 months on H1B status. My visa is still valid for another year, can my existing H1b visa be transfered or do I need to start the petition process again?
Every new job is a new petition. You do not need to go through the quota. You may only "transfer" to a new company if you are in status; "transfer" implies beginning work before receiving approval notice. Your new employer must file a new petion and you may only enter the US after receiving the approval notice; a valid H1B stamping is required.
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