Legality of Crowd Funding?
Dear Sir,
Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause.
Crowd-funding can be divided into four categories: donation crowdfunding, reward crowdfunding, peer-to-peer lending and equity crowdfunding.
Reward crowdfunding refers to solicitation of funds, wherein investors receive
some existing or future tangible reward (such as an existing or future consumer product or a membership rewards scheme) as consideration.
Donation crowdfunding denotes solicitation of funds for social, artistic, philanthropic or other purpose, and not in exchange for anything of tangible value.
Please let me know the legality of Reward based crowd funding in India. I want to start a crowdfunding website that helps businesses get funds from people. I want to know if it is legal to start something like this in India. If so please let me know under which area would the business list itself.