{"id":24623,"date":"2021-01-21T14:20:20","date_gmt":"2021-01-21T08:50:20","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24623"},"modified":"2021-01-21T14:20:22","modified_gmt":"2021-01-21T08:50:22","slug":"process-of-aif-registration-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/","title":{"rendered":"What is the Process of AIF Registration in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The term &#8216;alternative investment fund&#8217; (aka AIF) regarded as a vehicle established&nbsp; for raising fund from multiple investors with an end goal to invest these funds into assets for the sake of high return. In a laymen term, an AIF is regarded as an investment that differs from traditional investment avenues.&nbsp; In this blog we would brief everything about AIF registration. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#What_is_the_Meaning_of_AIF_Registration\" >What is the Meaning of AIF Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#Categories_under_which_you_can_seek_AIF_Registration\" >Categories\nunder which you can seek AIF Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#What_are_the_Eligibility_Criteria_for_AIF_Registration\" >What are the Eligibility Criteria for AIF Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#Paperwork_required_to_be_fulfilled_for_AIF_Registration\" >Paperwork required to be fulfilled for AIF Registration&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#Process_for_Registering_the_Alternative_Investment_Fund_in_India\" >Process for Registering the Alternative Investment Fund in India&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#Issuance_of_AIF_Registration_Certificate\" >Issuance of AIF Registration Certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#Fee_Structure_Regarding_the_AlF_Registration\" >Fee Structure Regarding the AlF Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#What_is_the_Validity_Period_of_AIF_registration\" >What is the Validity Period of AIF registration?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/process-of-aif-registration-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Meaning_of_AIF_Registration\"><\/span>What is the Meaning of AIF Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/alternative-investment-fund-registration\"><strong>Alternative Investment Fund Registration<\/strong><\/a> can be referred to as legal permission, which enables every investor to avail of no. of benefits, whether for getting or investing funds. AIF is a private fund that doesn&#8217;t come under the jurisdiction of any regulatory agency.<\/p>\n\n\n\n<p>It is a fund that invites investors from domestic and overseas locations to invest funds for collective benefits.&nbsp;Alternative Investment fund (AIF) does not encompass the category of funds under Securities and Exchange Board of India (<strong><em>Mutual Funds<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Mutual_fund\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>) Regulations, 1996. AIF includes private equity funds, venture capital funds, debt funds, etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Categories_under_which_you_can_seek_AIF_Registration\"><\/span>Categories\nunder which you can seek AIF Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>An applicant can seek AIF registration under three categories, which are as follows:-<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;Category \u2013 I AIF<\/h3>\n\n\n\n<p>This category deals with that category of funds that are\ninvested in a start-up or social ventures. Following are the funds that come\nunder this category: <\/p>\n\n\n\n<ul><li>Social Venture funds<\/li><li>Venture Capital Funds<\/li><li>Sme Funds<\/li><li>Infrastructure Funds<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Category \u2013 II AIF<\/h3>\n\n\n\n<p>Under this category, Alternative Investment Funds cannot\nundertake to borrow except for daily operational requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Category \u2013 III AIF<\/h3>\n\n\n\n<p>Alternative Investment Funds like hedge funds which trade with an aim to make short term returns or some other class of funds which are thoroughly accessible and for which no specific concessions are rendered by the government or other regulators. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/alternative-investment-funds-and-popular-across-the-globe\/\">What are Alternative Investment Funds and why they are becoming increasingly popular across the Globe?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Eligibility_Criteria_for_AIF_Registration\"><\/span>What are the Eligibility Criteria for AIF Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Following criteria required to be met by the applicant to avail registration for Alternative investment fund:-&nbsp;<\/strong><\/em><\/p>\n\n\n\n<ul><li>As per the statutory rights included in the company&#8217;s MOA and\nAOA, the applicant cannot invite the public to subscribe to its securities. <\/li><li>Under no circumstances, the numbers of investors for AIF cannot\nsurpass the maximum limit i.e. 1000. <\/li><li>If the applicant is a trust, then it has to submit the\nregistered trust deed drafted in the view of Registration Act, 1908.&nbsp;<\/li><li>In case the applicant is LLP, then the applicant is required to\nfurnish the partnership deed filed under the supervision of the Registrar under\nthe LLP Act, 2008.<\/li><li>Investor must belong to the Indian Territory. The individual\nwith NRI status can also apply for this registration.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Paperwork_required_to_be_fulfilled_for_AIF_Registration\"><\/span>Paperwork required to be fulfilled for AIF Registration&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>An applicant who wishes to avail of AIF registration should arrange the following documentation with exception:\u00a0&#8211;<\/strong><\/em><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Paperwork-required-to-be-fulfilled-for-AIF-Registration.png\" alt=\"Paperwork required to be fulfilled for AIF Registration \" class=\"wp-image-24641\" width=\"527\" height=\"539\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Paperwork-required-to-be-fulfilled-for-AIF-Registration.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Paperwork-required-to-be-fulfilled-for-AIF-Registration-293x300.png 293w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Paperwork-required-to-be-fulfilled-for-AIF-Registration-768x786.png 768w\" sizes=\"(max-width: 527px) 100vw, 527px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_for_Registering_the_Alternative_Investment_Fund_in_India\"><\/span>Process for Registering the Alternative Investment Fund in India&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Following are the steps related to the AIF registration. Applicants are requested to follow them in a given order.<\/strong><\/em><\/p>\n\n\n\n<p><strong>Step 1<\/strong>&nbsp;\u2013 First, the applicant needs to draft an application in\nForm A as per the provision mentioned under Securities and Exchange Board of\nIndia (AIF) Regulations, 2012. Keep in mind that a duly filed application will\ngo along with the requested documentation and fees.<\/p>\n\n\n\n<p><strong>Step 2<\/strong>&nbsp;\u2013 Upon receiving the application, within 3 weeks, the\napplicant will receive a reply from the concerned authority i.e., SEBI.&nbsp;<\/p>\n\n\n\n<p><strong>Step 3<\/strong>&nbsp;\u2013 The applicant has to go through the SEBI regulations to\ncheck the eligibility criteria.&nbsp;<\/p>\n\n\n\n<p><strong>Step 4<\/strong>&nbsp;\u2013 It is compulsory for the applicant to cite in the\ncovering letter that is approved by SEBI as a venture capital fund or not. If\nthe applicant is already registered, then he\/she needs to furnish all the\ndetails accordingly.<\/p>\n\n\n\n<p>The applicant is required to disclose their past engagement AIF\nactivities, if any. In the cover letter, the applicant has to clearly mention\nthat the application is for the registration of a new fund.<\/p>\n\n\n\n<p><strong>Step 5<\/strong>&nbsp;\u2013 As an essential part of the registration process, the\napplicant must furnish Form A duly signed &amp; stamped. A bank draft enclosing\nthe amount of registration fees should also go with the application.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issuance_of_AIF_Registration_Certificate\"><\/span>Issuance of AIF Registration Certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Security and Exchange Board of India shall consider the provisions as mentioned in the SEBI&#8217;s regulation, 2012 for the purpose of issuance of the registration.&nbsp;&nbsp;<\/li><li>After finding out that required prerequisites are met by the application, the authority i.e., SEBI, will approve the application and intimates the same with the applicant as soon as possible.&nbsp;<\/li><li>After getting the green signal from the authority, the applicant must submit the registration fees via bank.<\/li><li>As soon as the authority receives the payment regarding the registration fees, the registration certificate will be granted to the applicant.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fee_Structure_Regarding_the_AlF_Registration\"><\/span>Fee Structure Regarding the AlF Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An applicant requires to submit the payment as a registration\nfee as mentioned under SEBI regulations. The list below would render more\nclarification on that:&nbsp;<\/p>\n\n\n\n<ul><li>The registration fee related to the Category I Alternative Investment Fund is Rs. 5, 00,000.<\/li><li>The registration fee related to the Category II, Alternative Investment Fund, is Rs. 10, 00,000.<\/li><li>The registration fee related to the Category III, Alternative Investment Fund, is Rs. 15, 00,000.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Validity_Period_of_AIF_registration\"><\/span>What is the Validity Period of AIF registration?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>AIF registration certificate will continue to serve its purpose\ntill the point of existence of the business; meaning- it comes with lifetime\nvalidity.<\/p>\n\n\n\n<p><em><strong>After getting the AIF registration from the authority, the applicant has to ensure conformity with the given requirements:-<\/strong><\/em><\/p>\n\n\n\n<ul><li>AIF needs to ensure conformity with the reporting requirements as provided by SEBI.<\/li><li>Stay updated with the circulars and guidelines rolled out on the SEBI&#8217;s website to stay in the complaint.\u00a0<\/li><li>If investor should approach to SEBI for making changes in the detailed furnished to the authority<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From the aforesaid information, we can conclude that AIF registration is compulsory for investment selling to establish the business of Venture capital, Angel Funding, etc. Presently, AIF is gaining popularity in the financial market due to innumerable benefits its offers to the investors. <\/p>\n\n\n\n<p>The AIF registration process is relatively simple and straightforward, provided the applicant has the right set of documentation at their disposal. The registration holders are required to stay compliant with SEBI&#8217;s regulation to avoid conflict arising in business operation in&nbsp;future. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/growth-of-alternative-investment-funds-aif-in-an-indian-perspective\/\">Growth of Alternative Investment Funds (AIF) in an Indian Perspective<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The term &#8216;alternative investment fund&#8217; (aka AIF) regarded as a vehicle established&nbsp; for raising fund from multiple investors with an end goal to invest these funds into assets for the sake of high return. In a laymen term, an AIF is regarded as an investment that differs from traditional investment avenues.&nbsp; In this blog we [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":24626,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[160],"tags":[1453],"acf":{"service_id":"199"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":6307,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24623"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24623"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24623\/revisions"}],"predecessor-version":[{"id":24644,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24623\/revisions\/24644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24626"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}