Can an American easily partner in an Indian startup?

Question

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.

tldrthelaw · Accepted Answer

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.

avinashjn · Answer

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.

tarun_anand · Answer

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

Can an American easily partner in an Indian startup?

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.

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.

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