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Raise crowd source funding in india
Is it allowed legally in India to raise funding for a LLP through crowd funding. If not which construct allows for crowd funding.
( Madurai, Tamil Nadu )
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A.
Dear client the answer of your question would be depend on the type of crowdfunding. Equity Crowdfunding, specifically digital equity crowdfunding platforms, is illegal. Reward-based crowdfunding and donor-based crowdfunding is not. The Securities and Exchange Board of India (SEBI) has issued laws on digital equity crowdfunding in India as “unauthorized, unregulated and illegal”.apart from this Donation Based Crowdfunding,Rewards Based Model,Equity Model,Lending Model are currently popular into investors.but combining equity plus reward based structures can immensely go a long way in attracting an investor.
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