GENERAL CONDITIONS ON FDI FOR START –UPS
GENERAL CONDITIONS ON FDI FOR START –UPS Start-ups can issue equity or equity linked instruments or debt instruments to FVCI (Foreign Venture Capital Investor) against receipt of foreign remittance, as per the Schedule VII of Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. In addition, start-ups can issue convertible notes to person resident outside India subject to the following conditions: (i) A person resident outside India (other than citizen of Pakistan or Bangladesh or an entity which is registered/incorporated in Pakistan or Bangladesh), may purchase convertible notes issued by an Indian startup company for an amount of twenty-five lakh rupees or more in a single tranche . Explanation: For the purpose of this Regulation, a ‘startup company’ means a private company incorporated under the Companies Act, 2013 or Companies Act,1956 and recognised as such in accordance with n...