Financing Your India Business Through Equity Funding Options

On October 29, Business Advisory Services Senior Associate Vikas Saluja will discuss various private equity investment options in Indian businesses and their analysis from a regulatory and taxation perspective.

Investment into companies can typically be in the form of equity or debt funding - the first involves selling a portion of equity/ shares in the company while the latter involves borrowing a sum of money.

However, equity financing is often preferred as it carries no repayment obligation and provides extra working capital which can be used to expand a business. Moreover, equity funding places no additional financial burden on the company.

At the same time equity financing requires careful consideration of various laws and regulations such as compliance under the Foreign Exchange Management Act (FEMA), the Companies Act, applicability of the International Financial Reporting Standards (IFRS), and the Reserve Bank of India guidelines, among others.

Equity financing is also an important business decision as it requires giving out a percentage of the company to the investor along with sharing of profits and consultation on decisions affecting the direction of the Indian business.

Various private equity options are available to a company and it is crucial to understand the impact of each option on shareholding and control, return on investment, repatriation options, tax benefits, and security of funds.

During the presentation, Vikas will discuss:

• An Introduction to various private equity (PE) financing options
• Types of equity shares – ordinary, preference, bonus, etc
• Regulatory framework for PE investments and venture capital
• Structuring of foreign investment
• Taxation implications on revenue stream and capital repatriation
• Documentation for securing PE funding

This webinar is FREE of charge.

To register, please click here.

This Event occurred on Friday, October 29, 2021. If you were unable to attend it, you can still benefit from these resources that will help you review or discover more: