Restrictions for Indian investors

Indian investors must exercise extra caution when investing in US-domiciled entities due to restrictions imposed by the Government of India.

The Foreign Exchange Management Act (FEMA) of 1999 restricts capital account transactions into foreign securities, which an investment into a Seed Labs deal would represent.

The Liberalized Remittance Scheme (LRS) limits Indian residents to USD 250,000 per fiscal year for foreign investments, subject to approval from the Reserve Bank of India (RBI). Where the LRS rules may not cover unlisted foreign transactions, Overseas Direct Investment (ODI) laws may be applicable.

In line with ODI laws and any other applicable laws, the investor is expected to retain their own counsel to file any India-specific disclosures and documentation, including but not limited to Form FC-GPR, UIN applications, Annual Performance Reports (APR). Seed Labs can not provide legal advice or tax counsel regarding India-specific disclosures and documentation, no do we file any such disclosures or documentation with the Government of India on your behalf or the deal vehicle's behalf.

Indian investors are expected to work with their own counsel to ensure compliance with all applicable laws.

All international investors receive annual K1s and K3 tax forms, with K2s available upon request, for every year that each deal has had taxable activity. Learn more about the extra information international investors must provide to Seed Labs here.