Investing in Indian and Foreign Start-up Companies provides an overview of the regulatory framework in India for direct and indirect investment through funds, in Indian and foreign start-up companies. This handbook explains, in a simple language, the incentives to investors investing in a start-up company in India, the various benefits enjoyed by a DPIIT registered start-up company, the income tax impact on Indian start-up companies and on investors at the time of investing and sale or transfer of securities. Keeping in view the foreign investments that Indian start-ups continue to attract, the trend of Indian start-up companies expanding their operations outside India and Indians investing in foreign start-ups, this handbook also examines the foreign exchange regulatory regime in India as well as the income tax consequences. The handbook elucidates the applicable regulations for issue of ESOPs, sweat equity shares and shares on a preferential basis; and the income tax consequences on the company and its employees, directors, consultants and advisors on such allotment. The year 2019 witnessed significant changes in the Income-tax law and revamping of the Foreign Direct Investment regulations in India. This 2nd edition incorporates these changes and its impact on start-ups as well. This handbook is presented in a Question and Answer format to help investors, start-up entrepreneurs and the various stakeholders understand the regulatory regime easily and use it as a reference guide. This handbook will be useful to angel investors, angel funds, general investors, entrepreneurs, start-up entities, as well as employees, advisors, and consultants of start-up companies.