Call Us Now Request a Call from us

Venture Capital Company Registration

Get Started Now-
Request a call back
Secured by Norton


What is a Venture Capital Company?

Venture capital can be referred to as a company which helps in providing financial support by way of funds to small, emerging, early stage, startup firms. Venture capitalists 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 startups, where the venture capitalists have ownership stake. These companies take risk of finance in order to generate the outcome which is successful enough for the growing startups. Startups are evaluated by the venture capitalists on the basis of innovative technology, business model, strategies and urge of being successful. These companies focus on specific sectors which are running successfully and which have acquired the marketplace. The equity stake in the business depends upon the growth and profitability of the business, therefore venture capitalists are very selective in deciding where to invest. A proper evaluation of the company, in which the finance needs to be invested is done by way of well-developed business model, potential for rapid growth, impressive management team and the present scenario prevailing. Ventures are interested in companies with high growth potential as such opportunities are capable of providing financial returns and also exit after the specified time frame.

What is the procedure for venture capital registration?

The process to be followed for venture capital registration are:

  • Incorporation of the company, according to the Companies Act, 2013 with the objective to act as venture capitalists that is activity should be to carry on the business of venture capital funds. 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.
  • For the grant of registration, SEBI (Venture Capital Funds) Regulations, 1996 needs to be complied. An application Form A needs to be submitted along with the necessary documents and fees of Rs. 1,00,0000. In that, a copy of Memorandum and Articles of Association and Investment Management Agreement (if applicable).
  • Along with the application form and other documents, details relating to the investment manager, investment advisor, AMC activities, precise description and profile of the directors, shareholding pattern, key personnel/management team and any other such details as required needs to be given.
  • A statement relating to whether the company is registered with the SEBI in any capacity or not is to be disclosed.
  • A proper disclosure of Investment strategy needs to be done, specifying the investment style/pattern, proposed corpus, class of investors and life cycle of fund and other relevant information.
  • Some particular declarations such as undertaking under Regulation 11(3) of SEBI (Venture Capital Funds) Regulations, 1996, undertaking under third schedule to SEBI (Venture Capital funds) regulations, 1996, and declaration in respect of "fit and proper person" needs to be furnished.
  • On receipt of application the board evaluates the documents and after being satisfied, intimates the applicant.
  • The applicant on receipt of the intimation by board pays the fees, as specified.
  • Grant of certificate is received in Form B.
Advantages of Venture capital
High profitability

The new and innovative projects which are financed through venture capital help in achieving high profitability in the long run. The main motive of investment in growing business is to earn higher profits by taking risk. More the risk, more the profits is the key strategy of Venture capitalists.

Business expertise

A venture capital serves as a financial backing for the startups, by way of guidance and consultation. This can help in exploring and efficient implementation of business decisions, and making financial management and human resource management function more expediently. Making better decisions in this key areas help vitally for the growth of business.

Additional resources

Many a times areas like legal, tax and personnel matters, a Venture capital is helpful in providing support and most importantly support at the growth stage of the company is provided. The young company thus strives for faster growth and greater success.


Share With
Why Enterslice?
Asia Winner
Top 100 Most Innovative Companies in Asia - Red Herring
Top 25 Consultants
Forbes 30 Under 30 in American business and industry figures Lists.
Success Rate. Your Order Comes with Money Back Guarantee
Services delivered by 100+ Qualified CA and CS
Latest news
Enterslice begins operations in Hong Kong
Enterslice begins operations in Hong Kong

Hong Kong [China], May 04 (NewsVoir): Enterslice has earned a remarkable reputation for helping..

Read more
Peer to peer lending now needs NBFC registration - Interview of Narend..
Peer to peer lending now needs NBFC registration - Interview of Narend..

Apart from helping these startups raise organized funding, this announcement also means that the..

Read more
Prodigee Finance gets license from Reserve Bank of India
Prodigee Finance gets license from Reserve Bank of India

It's quite understandable that the rules and regulations of the Reserve Bank of India make it a c..

Read more
As seen in

" Enterslice use technology better than others. That saves time and money; Team enterslice is more efficient than traditional competitors, and that helps to pass on the cost advantage to its clients. The company is building a high-level transparency in legal services by optimum use of technology and process automation in consulting. I highly recommend this company. "

Nilanjan Bandyopadhyay
Nilanjan Bandyopadhyay

" Excellent advisory role by Enterslice Team. They are a trusted partners to us. Narendra and his team helped us with our pre NBFC applications and Post NBFC advisory services. "

Amit Goel
Amit Goel

" Amazing services provided by your organization. They have completed our NBFC registration order within stipulated time period of 90 days. They provide constant guidance and support in the process. Their support in building fintech software is amazing. "

Manisha Mantri
Manisha Mantri
Trusted by
Finstar Financial
Acme Solar
Opera Software