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)


445 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.

324 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.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Corporate Lawyers


Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
20 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
33 years Experience
Advocate Bala Janaki
330 Thambuchetty Street, Chennai
35 years Experience
Advocate Prerna Oberoi
Sector 41, Noida
8 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Corporate Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.

Related Questions


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."



Related Articles