In the startup funding process, a second important step is a post-funding compliance it means compliance after receiving funds from investors.

1)  Allotment of Shares:

Steps to be taken after receiving funds.

• Securities allotment: Within 60 days of receiving funds the company has to allot securities to the investors by passing a resolution in a board meeting.

• Filing a return of allotment with ROC: Within 30 days of allotment of securities a return of allotment needs to file with Registrar of Company (ROC).

• Content of Return: The return should contain a list of all shareholders, with their full names, addresses, percentage of shareholding allotted and other such relevant information.

2) Issue Share Certificates:

After completion of the compliance process now the company can issue share certificates to investors and this will make them shareholders of the company.

It is mandatory to complete this compliance after receiving funds. Non-compliance may attract a penalty.

So after pre-funding compliance and post-funding compliance, it is mandatory to submit funding details to the Reserve bank of India if an angel investor or venture capitalist is from out of India.