can I take Foreign Investment from a friend for startup

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)

202 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.

64 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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