• Investing in start-up companies abroad

Is it legal for non-accredited Indian Investors to invest in start up companies in USA through equity crowdfunding platforms. ?if yes what % of tax do in need to pay?
Asked 6 years ago in Capital Gains Tax

There is no tax on investing. However, i am not the right person to comment on whether this kind of investment is allowed or not.

Any FEMA expert here can answer your queries around that.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Apologies but I am not a subject matter expert in this and would not be able to respond to your query.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

HI,

Assuming you are an Indian citizen, Yes it is legal up to certain limit prescribed by India Foreign exchange rules under RBI if you residing in India. If you are residing outside India then you may have to check with the US laws.

There is no tax at the acquisition stage, off course you are doing it out of taxed funds. When you sell those investments in the future, you may have to pay capital gains.

Thanks

Damini

Damini Agarwal
CA, Bangalore
405 Answers
31 Consultations

5.0 on 5.0

It is advisable to get in touch with consultant well versed with FEMA provisions.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Hi

As far as taxation, there are no taxes involved at the time of making the investments. Taxation comes into play at the time of sale of such investments.

However, such investments shall be allowable upto a certain limit only according to the rules and regulations under FEMA. Please consult a FEMA expert for the same.

Lakshita Bhandari
CA, Mumbai
5687 Answers
908 Consultations

5.0 on 5.0

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