Setting Up an International Holding Company
A deep-tech hardware startup in Bengaluru was raising from overseas investors who wanted to invest into a holding company in a neutral jurisdiction rather than directly into the Indian entity. The founders needed a compliant cross-border structure that respected FEMA, protected their IP, and did not jeopardise India-based R&D incentives.
A clear-eyed look at where they stood.
A deep-tech hardware startup in Bengaluru was raising from overseas investors who wanted to invest into a holding company in a neutral jurisdiction rather than directly into the Indian entity. The founders needed a compliant cross-border structure that respected FEMA, protected their IP, and did not jeopardise India-based R&D incentives.
CapEasy worked with international counsel to design the holding structure and the India–holdco relationship — advising on FEMA and ODI/FDI considerations, inter-company and IP arrangements, and the shareholding flow. We coordinated the Indian regulatory filings and ensured the structure held together across both jurisdictions.
The outcome
The startup established a compliant international holding structure that satisfied its overseas investors while keeping Indian operations and R&D incentives intact. The structure was built to support subsequent rounds without re-engineering.
This describes work CapEasy delivered in a real engagement; the client’s name is withheld to protect their confidentiality. Outcomes vary by company, sector and stage; nothing here is a promise of a similar result. CapEasy is a private consultancy and is not affiliated with any government authority.