Investing In Indian and Foreign Start-Up Companies

Investing in Indian & Foreign Start-up Companies provides an overview of the regulatory framework in India for direct and indirect investment through funds, in Indian and foreign start-up companies. This handbook explains, in a simple language, the incentives to investors investing in a start-up company in India, the various benefits enjoyed by a DPIIT registered start-up company, the income tax impact on Indian start-up companies and on investors at the time of investing and sale or transfer of securities.

Keeping in view the foreign investments that Indian start-ups continue to attract, the trend of Indian start-up companies expanding their operations outside India and Indians investing in foreign start-ups, this handbook also examines the foreign exchange regulatory regime in India as well as the income tax consequences . The handbook elucidates the applicable regulations for issue of ESOPs, sweat equity shares and shares on a preferential basis; and the income tax consequences on the company and its employees, directors, consultants and advisors on such allotment.

The year 2019 witnessed significant changes in the Income-tax law and revamping of the Foreign Direct Investment regulations in India. This 2nd edition incorporates these changes and its impact on start-ups as well. This handbook is presented in a Question and Answer format to help investors, start-up entrepreneurs and the various stakeholders understand the regulatory regime easily and use it as a reference guide.

This handbook will be useful to angel investors, angel funds, general investors, entrepreneurs, start-up entities, as well as employees, advisors, and consultants of start-up companies .