How to Structure Your Startup for Cross-Border Investment
When Global Interest Meets Local Friction
You built a product global investors love. But your structure? It’s sending them away.
How Ankit Jain lost a US VC deal due to compliance failure.
Ankit Jain, founder of a thriving Healthtech startup in Pune, had it all—traction, tech, and interest from a US-based VC. His pitch wowed them, the product-market fit was solid, and it felt like funding was just a signature away.
But just days before the term sheet, the VC backed out.
Why?
Ankit’s startup wasn’t investment-ready for foreign capital. He didn’t have a compliant structure. No RBI filings. No holding entity. No FEMA guidance. The investor said, we can’t risk regulatory issues.
Months of hard work. Gone in a sentence.
Common legal and structural mistakes Indian startups make.
Most Indian founders dream of global funding. But few prepare for the real challenge:
How to structure your startup for cross-border investment.
Startups regularly make mistakes like:
Accepting foreign investment without RBI filings (like FC-GPR)
Missing FEMA compliance in SHA/SSA agreements
Maintaining messy cap tables
Ignoring holding company setup in tax-friendly regions
Overlooking DTAA benefits or ESOP global eligibility
Even if your product is global, your entity might be a legal dead end for investors.
This is why many foreign VCs or angels ghost founders after initial interest. Not because they don’t like the business—because it’s a compliance minefield
Step-by-step framework to make your startup investment ready.
Now picture this:
Ankit re-approaches investors—this time with a Singapore holding company, RBI-compliant documentation, and a clean, investment-friendly structure.
Within 30 days, he closes his round.
The magic? Strategic structuring that aligns with both Indian laws and global investor comfort.
Here’s how it works:
Set up a foreign holding company (Singapore, Delaware, or UAE)
Keep your Indian entity as an operating company
Ensure SHA, SSA, and share classes are compliant with FEMA
File FC-GPR or FC-TRS for any foreign investment
Use DTAA to reduce tax exposure
Set up a compliant ESOP pool across borders
Each step clears friction and builds investor confidence.
How Legal Suvidha helps startups become globally fundable.
At Legal Suvidha, we specialize in cross-border structuring for Indian startups.
We’ve helped 250+ founders:
Set up global holding companies in Singapore, UAE, and the US
Draft and vet FEMA-compliant investment documents
File FC-GPRs, FC-TRSs, and maintain RBI approvals
Structure cap tables for future rounds
Design global ESOPs that investors love
This isn’t just paperwork—it’s investor confidence.
Cross-border investment is no longer optional—it’s essential.
But it requires a structure that speaks the language of global compliance.
Quick Checklist: Is Your Startup Cross-Border Ready?
✅ Do you have a Singapore/Delaware/UAE holding company (if required)?
✅ Are your SHA/SSA documents FEMA-compliant?
✅ Has every foreign investment been reported via FC-GPR?
✅ Is your cap table clean and due-diligence ready?
✅ Are your tax structures aligned with DTAA?
✅ Is your ESOP plan globally compatible?
If you said no to even one… your funding is at risk.
Two choices—and one smart action to secure global capital.
You have two options right now:
Option 1: Do Nothing.
Risk losing foreign investors. Miss your funding window.
(Like Ankit almost did.)
Option 2: Contact Legal Suvidha Now.
Let our experts build a cross-border structure that attracts global capital, protects you legally, and prepares you for future rounds.
Hurry—Structuring slots are limited this month.
Founders who wait often lose weeks in back-and-forth with investors. Be ready now.
Talk to Our Compliance Team Today
Connect with our Domain Expert or reach out via WhatsApp for instant help.
📱 Phone: 8130645164
📧 Email: [email protected]
🌐 Website: www.legalsuvidha.com
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