Venture Capital Fund Registration
Venture Capital Fund Registration is necessary, according to the Companies Act, 2013. As a registered entity, the memorandum should prohibit the invitation to the public to subscribe to its securities. The director of the proposed company should not be involved in litigations connected to securities market and should be a fit and proper person, not at any time convicted of an offence involving moral turpitude or any economic offence.
Understanding Venture Capital Company
Venture capital refers to a company that helps in providing financial support through funds to small, emerging, early stage, start-up firms. Venture capital companies engage in the areas where there is high growth potential in terms of profits. In exchange for equity, these investments are made in the growing start-ups, where the venture capitalists have ownership stake. These companies take risk of finance in order to generate the outcome for these start-ups.
Venture Capital Fund Services in India
Venture Capitalist in India are an essential part of start-up ecosystem. There are a number of venture capital institutes in India. Some Financial banks have stepped into this and have their own venture capital subsidiaries. Apart from Indian investors, international companies too have settled in India as a financial institute providing investments to large business firms..
Venture Capital Fund Services in India include:
- Providing venture capital financing: the type of private equity capital provided as seed funding to early-stage, high-potential, and growth companies. Besides early stage, they also invest in growth stage start-ups across sectors in India.
- Apart from the capital, Venture Capital Fund Services in India also covers technical and managerial expertise to the table. They add value to their portfolios through Team Building, Operations, Skill Building, and Network
Process to Register as a Venture Capital Fund
- For the grant of registration, SEBI (Venture Capital Funds) Regulations, 1996 needs to be followed. An application Form A should be submitted along with other documents and fees
- The details of the investment manager, AMC activities, investment advisor, accurate description and profile of the directors, shareholding pattern, key team and other particulars.
- A statement on whether the company is registered with the SEBI or not.
- A proper disclosure of Investment strategy.
- Some particular declarations/ undertakings.
- The board then evaluates the documents and communicates with the applicant.
- The applicant on receipt of the intimation by board pays the fees, as specified.
- Grant of certificate is received in Form B.
Services of a Venture Capital Fund Registration Consultant
There are a good number of consultants available for Venture Capital Company Registration in Delhi, Mumbai and other parts of India.
Venture Capital Fund Registration Consultant’s advisory and consulting services include the following:
- Preparation and submission of the application to SEBI for grant of registration as a Venture Capital Fund under SEBI (Venture Capital Funds) Regulations, 1996.
- Advice and preparation of other necessary documents, which are submitted along with the Application to SEBI in Form A.
- Follow up with SEBI, if required , including in any delay in receiving a reply from SEBI
- Venture Capital Fund Registration Consultant provides advisory services as they are thorough about the SEBI (Venture Capital Funds) Regulations, 1996, and also help in checking the eligibility criteria and such other details which may help expedite the registration process.
FAQs related to Venture Capital Fund Registration
Q1. What Details of the Trustees/Trustee Company are required to be submitted for Venture Capital Fund Registration?
- Write up on the activities of the Trustee Company/ Profile of Trustees.
- Shareholding pattern and the write up on profile of the Directors
- State whether the Trustee Company is registered with SEBI, RBI or any other regulatory authority in any capacity along with the details of its registration.
Q2. What Details of the Investment Strategy are required to be submitted for Venture Capital Fund Registration?
- Details of the investment strategy of the fund (Reg. 12 (a)).
- Details of the investment style or pattern, preferred sectors/industries for investment, proposed corpus, the class of investors, life cycle of the fund and any other information.