As an Indian startup, can we receive foreign funding?

Yes, as an Indian startup, you can receive foreign funding. India has a number of laws and regulations in place that govern foreign investment, including the Foreign Exchange Management Act (FEMA) and the Foreign Direct Investment (FDI) policy. These laws and regulations are designed to provide a framework for the inflow of foreign capital into the country, while also protecting domestic interests.

Under the FDI policy, certain sectors of the economy are restricted for foreign investment, while others are fully open or partially open with certain conditions. For example, certain sectors such as defense, atomic energy, and some forms of retail are restricted for foreign investment, while other sectors such as manufacturing, construction, and services are fully open for foreign investment.

If your startup is operating in a sector that is fully open for foreign investment, you can receive foreign funding without any restrictions. However, if your startup is operating in a sector that is partially open, you will need to comply with certain conditions in order to receive foreign funding.

You may consult the legal advisor and check on updated government notifications to be sure.

It is also important to keep in mind that India has recently implemented certain regulations on foreign funding specially through E-commerce, its best you stay updated with any recent regulations. 

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