Click here for printer friendly page
An Update on Structuring Venture Capital and Other Investments in India29/11/2004. Source: Fenwick & West. Fred M. Greguras and S.R. Gopalan
 Many U.S.and other foreign investors are evaluating alternatives for investments into software development, business process outsourcing, drug discovery and other service companies in India, says Fenwick & West. Despite news stories about U.S. venture capitalists traveling to India to look for investments in Indian companies, both U.S.and India venture capitalists tend to make investments into a U.S. company which has a subsidiary in India for fulfillment.
An investable Indian business is likely to be restructured in this
manner. The primary structures for investing in India are:
- Investment in a U.S.company with a services fulfillment
subsidiary in India;
- Direct investment in an India company from outside India
(usually through a Mauritius subsidiary for tax reasons);
- Investment in a U.S.company that invests in a Mauritius
subsidiary that in turn invests in a service fulfillment
subsidiary in India;and
- Direct investment in an India company through a venture
capital fund registered with the Securities and Exchange
Board of India.
Click here to view the full report (pdf 106kb) You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html
Fenwick & West is a law firm providing comprehensive services to high technology clients of national and international prominence. The firm has over 300 attorneys and a network of correspondent firms in many major cities of the world. Fenwick & West has offices in Palo Alto California, San Francisco California, and Washington DC. For more information please visit www.fenwick.com
|
