Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to qualifying projects to meet shortfall in the capital requirement for implementation of the project.

2) Provides financial support for preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF).

3)

Promoter’s request letter addressed to the Managing Director SFAC, New Delhi on original letterhead of firm/company

2

Sanction letter of Sanctioning authority addressed to recommending branch

3

Bank’s approved Appraisal/Process note bearing signature of sanctioning authority with terms of sanction of term loan

4

Up-to-date statement of account of Term loan and Cash Credit (if sanctioned)

5

Equity Certificate:
a)C.A. certificate in case of Partnership or Proprietorship firms.
b)Form-2(PAS-3), FORM-5(SH-7) and other documents in lieu of FORM-23 filed with ROC for

Affidavit of promoters that they have not availed VCA in the past

8

Unsecured loans raised by the promoters (If any). CA Certificate to be enclosed

9

Copy of last Bank's inspection report

10

Bank’s confirmation that they will not release primary & collateral security without SFAC consent

11

Justification for margin on working capital taken in the project cost

Start up companies with a potential to grow need a certain amount of investment. Wealthy investors like to invest their capital in such businesses with a long-term growth perspective. This capital is known as venture capital.

Disadvantage to call investment is Loss of control.

its an inward capital flow

its not something being paid to you which would be considered as your income

so i see no tax implications as such

as regards the investment, whether its in venture capital form or just simple infusion of capital into a partnership firm against some stake in it and in its business, all that is a part of contract to be entered between the partners

the firm will simply be reconstituted upon your being taken as an incoming partner 

a reconstitution deed of partnership will have to be made

if you do not plan to become the partner of the firm, then there can be a simple investment contract between you and the firm setting out the investment terms, default and termination clauses, etc. So as said, that constitutes a contract between the parties

1-How much capital?

2- Is partnership firm registered with registrar of firm?

3- .Mumbai, Navi Mumbai,MIDC ,City and District?

4- Pvt. Ltd. LLP or Public?

5- Listed or independent?

We need to understand the above mentioned questions through due diligence and technical issues about your partnership firm which would get your planned business and investment opportunities to make sure you would succeed in your planned new venture and get yielded promised returns?.

Venture Capital in India governs by the SEBI[8] Act, 1992 and SEBI (Venture Capital Fund) Regulations, 1996. According to which, any company or trust proposing to carry on activity of a Venture Capital Fund shall get a grant of certificate from SEBI.

However, registration of Foreign Venture Capital Investors (FVCI) is not obligatory under the FVCI regulations. Venture Capital funds and Foreign Venture Capital Investors are also covered by Securities Contract (Regulation) Act, 1956, SEBI (Substantial Acquisition of Shares & Takeover) Regulations, 1997, SEBI (Disclosure of Investor Protection) Guidelines, 2000.

For Venture Capital Funds it is required that Memorandum of Association or Trust Deed must have main objective to carry on action of Venture Capital Fund including prohibition by Memorandum of Association & Article of Association for making an invitation to the public to subscribe to its securities

It is also mandatory that not more than 33.33% of the investible funds may be invested by way of following as stated below:-
1. Subscription to IPO[14] of a Venture Capital Undertaking (VCU)
2. Debt or debt instrument of a VCU in which VCF has already made an investment by way of equity
3. Preferential allotment of equity shares of a listed company subject to lock in period of one year
4. The equity shares or equity linked instruments of a monetarily weak company or a sick industrial company whose shares are listed.
5. SPV (special purpose vehicles) which are created by VCF for the purpose of making possible investment.

Indian Venture Capital Funds are allowed to tax payback under Section 10(23FB) of the Income Tax Act, 1961. Any income earned by an SEBI registered Venture Capital Fund (established either in the form of a trust or a company) set up to raise funds for investment in a Venture Capital Undertaking is exempt from tax

if the Venture Capital Fund is prepared to forego the tax exemptions available under Section 10(23F) of the Income Tax Act, it would be within its rights to invest in any sector.

Can you send me your company papers

We suggest you should consult a local lawyer who can examine facts based on the documents and facts.

A partnership to become a venture the  Funds should be of a minimum size of Rs. 20 crore, and that each investor should have pooled a minimum of Rs. 1 crore in the venture capital fund. 

Investors will be directly responsible for payment of taxes depending on their tax status.

Dear Sir/Madam,

You are suggested that you may issue the public notice for the same as done by the companies in the respect of shares.