Ask HN: Can an American easily partner in an Indian startup?

Posted by newman8r on Friday April 23, 2021 @02:05AM
from the ask-hn dept.

I'm contemplating starting a company with Indian partners, and it would be an Indian company (it's a financial company, dealing in their local markets).

Are there any hurdles or pitfalls to be aware of here? I'm having trouble finding any information on this topic, but I know there are various restrictions on foreign investments.

( 5 comments | 4 points | on HN )

Re:Ask HN: Can an American easily partner in an Indian startup? by tldrthelaw on Friday April 23, 2021 @06:25PM (#26919926)

Tax attorney here, so the hammer/nail analogy applies.

There are (almost certainly) tax implications, seek advice come tax day. Don't just go the TurboTax route. You'll either be leaving money on the table or setting yourself up for a costly problem a few years down the road.

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Re:Ask HN: Can an American easily partner in an Indian startup? by avinashjn on Friday April 23, 2021 @10:16AM (#26914997)

You can and India is actually safe in the tech space. But please get a local lawyer and accountant on your side first to vett documents and legalities.

There are good ones available, a quick internet search will help.

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Re:Ask HN: Can an American easily partner in an Indian startup? by tarun_anand on Friday April 23, 2021 @02:10AM (#26911463)

There are plenty of Americans invested deeply in India.

As long as you report the investment in a timely manner, there are no issues. Secondly, make sure to run everything by a local lawyer/Company Secretary

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Re:Ask HN: Can an American easily partner in an Indian startup? by newman8r on Friday April 23, 2021 @02:23AM (#26911536)

Yeah it's probably best to get some professional assistance on this. I'm just kind of curious how the whole process works.

I think it might fall under a foreign direct investment (FDI) https://en.wikipedia.org/wiki/Foreign_direct_investment_in_I...

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Re:Ask HN: Can an American easily partner in an Indian startup? by tarun_anand on Friday April 23, 2021 @02:45AM (#26911709)

Yes it falls under FDI but also depends on the quantum of investment. Read it along with FEMA.

Usually for individual level investments the rules and compliance is easy.

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