What compliances apply when a foreign investor invests in my startup?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerWhen a foreign investor invests, you must price the shares per RBI/FEMA pricing guidelines (backed by a valuation), receive the funds through proper banking channels, and report the investment to the RBI by filing Form FC-GPR within 30 days of allotment. Missing the reporting attracts penalties.

The key steps

Price the shares per FEMA guidelines, supported by a valuation
Receive the money through normal banking channels (FIRC/KYC)
Allot shares and file FC-GPR with the RBI

Timelines and penalties

FC-GPR is due within 30 days of allotment. Late or missed filing carries late-submission fees and penalties under FEMA. Confirm current forms and timelines.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.