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can I take Foreign Investment from a friend for startup


05-Jun-2023 (In Corporate Law)

Is it possible to take an investment from a friend who is a foreigner for a new startup? What are the possible channels? Note: The foreigner is just a friend not VC.

Answers (2)

Answer #1
457 votes

In legal terms you can take the investment only through a route of Venture Capitalist .

Incase you intend to take in another route we suggest that you speak to your CA.

Answer #2
611 votes
Yes it is but you have to evaluate FDI laws as well as ensure the share pricing is in accordance with RBI guidelines. There are also a fair bit of reporting requirements once an Indian company receives funding from outside.

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