We, an Indian pvt ltd startup are raising crowd fund from Kickstarter/ indiegogo
We have just incorporated a private limited company in India and will undertake music events for children aged between 5 and 15 years. In order to fund our initial activities, we plan to raise funds on foreign crowd funding sites such as Kickstarter and Indiegogo.
We will not be issuing any equity against the funds raised. We will also not assure any returns to the persons who contribute the funds. We will earmark the funds raised for certain expenses e.g. social media marketing, paying vendors for hosting the events, venue charges etc.
What are the restrictions or implications under various laws (FEMA, SEBI & Income Tax) of crowd funding from foreign sources such as Kickstarter/ indiegogo? Are we permitted to carry out the above activity and are any approvals required for this purpose?