https://www.taxtmi.com/article/detailed?id=16812 Convertible notes for foreign investors in Indian startups are debt instruments that later convert into equity, and their use requires compliance with the Companies Act, FEMA and tax rules. A startup must be DPIIT-recognised, the note must involve at least Rs. 25 lakh per investor per tranche, the instrument must convert or be repaid within 10 years, and the startup must operate in a sector eligible for 100% FDI under the automatic route. If these conditions are not met, the receipt may be treated as a deposit or a FEMA contravention. en-us Wed, 01 Jul 2026 08:51:31 +0530 Wed, 01 Jul 2026 08:51:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16812 Convertible notes for foreign investors in Indian startups are debt instruments that later convert into equity, and their use requires compliance with the Companies Act, FEMA and tax rules. A startup must be DPIIT-recognised, the note must involve at least Rs. 25 lakh per investor per tranche, the instrument must convert or be repaid within 10 years, and the startup must operate in a sector eligible for 100% FDI under the automatic route. If these conditions are not met, the receipt may be treated as a deposit or a FEMA contravention. Articles Corporate Laws / IBC / SEBI Wed, 01 Jul 2026 08:51:31 +0530 https://www.taxtmi.com/article/detailed?id=16812