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Introduction Startups in India often rely on external funding to fuel their growth. Angel investors, who provide seed capital to early-stage startups, play a crucial role in this ecosystem. However, the Indian tax authorities closely scrutinize investments made by angel investors, especially when it comes to the application of angel tax. Angel tax, which is...
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Introduction External Commercial Borrowings (ECBs) are loans provided by foreign lenders to Indian companies, offering startups a vital avenue for capital infusion. However, these transactions are subject to stringent compliance under the Foreign Exchange Management Act (FEMA) and RBI guidelines. Non-compliance can attract scrutiny from the Enforcement Directorate (ED), especially concerning money laundering and foreign...
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Introduction External Commercial Borrowings (ECBs) are loans provided by foreign lenders to Indian companies, offering startups a vital avenue for capital infusion. However, these transactions are subject to stringent compliance under the Foreign Exchange Management Act (FEMA) and RBI guidelines. Non-compliance can attract scrutiny from the Enforcement Directorate (ED), especially concerning money laundering and foreign...
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Introduction Round-tripping, a practice in which funds are routed through foreign jurisdictions and then reinvested into India, has raised significant concerns for regulators. While it may seem like a legitimate means of financing, round-tripping often violates the Foreign Exchange Management Act (FEMA) and other anti-money laundering regulations. This article explores the complexities surrounding round-tripping in...
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IntroductionConvertible Notes and SAFE agreements are widely used by startups raising capital. These instruments provide flexibility by deferring the valuation of the company until a future funding round. While beneficial for both startups and investors, these financing instruments can attract Enforcement Directorate scrutiny, due to potential violations of the Foreign Exchange Management Act (FEMA), 1999,...
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IntroductionForeign Direct Investment (FDI) is a critical source of capital for Indian startups. However, attracting foreign investors comes with regulatory obligations under the Foreign Exchange Management Act (FEMA), 1999. FEMA governs FDI in India through specific rules and compliance measures, and failure to adhere to these can lead to scrutiny by authorities, including the Enforcement...
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IntroductionConvertible Notes and SAFE (Simple Agreement for Future Equity) Agreements are popularfinancing tools for startups, offering flexibility to founders and investors alike. However, theircomplex legal nature can attract regulatory scrutiny, particularly from the Enforcement Directorate(ED), which monitors foreign exchange and money laundering violations. This blog explores the legalframework, stakeholders involved, and key compliance risks associated...
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Environmental compliance has become a critical component in the real estate development process, with stricter regulations being enforced globally to ensure sustainability. Real estate developers now face increasing pressure to align their projects with eco-friendly practices, from waste management to energy-efficient designs. Failing to comply with real estate environmental standards can lead to heavy fines,...
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Due diligence is the cornerstone of any successful real estate investment. This phase of the investment process involves thoroughly assessing the property, understanding its legal status, and reviewing any potential risks. Whether you’re a developer looking to acquire land or an investor considering a residential or commercial project, due diligence can significantly influence the success...
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Legal frameworks, such as zoning laws, building codes, and land use regulations, play a significant role in determining the timeline of a real estate development project. Navigating the complex web of laws governing construction, property use, and urban planning is a challenge that real estate developers face regularly. While these legal processes ensure public safety...
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