Crowdfunding in an foreign company from India
2 years ago
I am planning to participate in an online crowdfunding campaign in the UK. I understand the risk of investment by crowdfunding. I want to understand is it legal? Because as per The Financial and Regulatory laws of India do not permit investment by way of crowdfunding in an Indian incorporated entity. So please help me to understand
thank you
The answer is, “Yes!”, Online Crowdfunding and Online Fundraising is legal in India. Ketto provides a Safe, Reliable & Simplified method of Raising Funds Online through its Online Crowdfunding Platform.
Vaidehi Samant
Responded 2 years ago
A.In such a case you will need to check the laws and regulations or guidelines if any of the other country where you intend to invest money towards crowdfunding from an Indian citizen. For India there are no specific laws made in respect of crowdfunding but there are certain notification/ circulars issued by Reserve Bank of India released in 2014 or so which you may go through if you want.
Thank you.
When you are going to seek crowdfunding then you need to keep few points in your mind;
1. Crowdfunding within India is ok and not much of questions will be asked to you
2. Crowdfunding involving foreign nationals- you need to be ready with questions that might be raised by the Indian authorities
3. Seeking funds form abroad will attract the RBI and FEMA guidelines a well as FCRA
4. Usage of fund by you has to be well documented to showcase whenever it is required.
Indian investors can invest in start-ups and early-stage businesses on foreign platforms
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