FAQ

A tech enabled marketplace facilitating D2C fractional investments and institutional grade asset management in alternate assets.
Fractional ownership is when individuals own a percentage of asset and avail the benefit of share of the income generated by the asset and capital appreciation in the value of asset

Upcide offers opportunities in various segments - Real Assets, Impact Assets, Asset Finance & Bespoke Products. Please refer to our website to view opportunities across various asset platforms

Upcide brings you opportunities post conducting study of the following to ensure best returns to potential investors:

Tenant Financials and integrity due diligence, including background checks 

Legal Title search and validation through discrete market survey

Lease terms, asset / property and premise / office location, Lock-in Period

Yield

Potential scope of capital appreciation

Taxation in hands of SPV

Financial Model to calculate expected IRR 

Ease of exit / Re-sale for investors

Regulatory risks"


There is a separate Asset Management team that takes care of all Asset management functions, which is an affiliate of Upcide.com

We will regularly udpate new opportunities on our website and our social media handles. You can access the details of the opportunities, once you register and login in to your account at Upcide.com

You can register on the platform through Sign-Up button on our website

We require copies of the following documentation for intial KYC.

PAN Card 
Address Proof (Aadhar/Driver's License/Passport for NRI’s).
A cancelled bank cheque leaf with name printed
No, the assets are usually housed in a special purpose vehicle (“SPV”) which can authorise a designated person to complete the registration on behalf of the SPV​.
You may need to wet-sign some documents, as per regulatory requirements, for which, we will make arrangements such that the documents reach you expeditiously


Upcide DOES NOT guarantee any returns. While rental yields on most opportunities listed on the platform are known in advance, a risk that the yield will be paid with delay / not be paid; will always remain due to underlying asset, regulatory and/ or other operational risks
Your investments in assets is structured such that it is not dependent on UPCIDE.

All ownership, governance and regulatory compliance records will be stored in accessible databases and available with respective statutory authorities.

All records will always be accessible to you and therefore secure from any event that impacts Upcide, as a going concern.

Relevant and necessary Legal due diligence will be conducted by Upcide on behalf of all investors and there is no additional requirement to engage with an attorney or lawyer by individual investors​

If you still do wish to engage a legal resource, we will be happy to answer any questions they may have and provide documents that are part of the report received from independent Due Diligence Partners

The security of our platform and privacy of all your data is our utmost priority

Also, Upcide will never share your data with any third party, other than regulators, if asked for, under relevant laws, regulations and jurisdictions

For more details, please refer to our privacy policy; in case of additional queries, please feel free to reach us at info@upcide.com

Any movable or immovable asset transaction is risky, whether fractional or in whole.

Investing and owning immovable and/or movable asset through Upcide; or otherwise,  carries inherent risks and potential loss of capital; as with any other investments of similar nature

Please assess the risks in your chosen investment option at your own discretion and in case of any additional queries, we will be happy to assist with information that may help you

The terms of SPV shareholders / LLP Partnership agreement, respectively will have relevant clauses to deal with such unforeseen circumstances. Transmission of shares or partnership rights will be allowed in case of death or default by incumbent shareholder / partner, as applicable. 
We are not seeking this information to know how to call or refer to you; not the "pronouns" you use or would prefer us to use when we communicate with you. That will be good, and we will ensure we have that done forthwith. Currently, the data that we are seeking has more to do with legal and regulatory requirements and implications. Gender based attributes have impact on regulatory requirement for Partnerships and Shareholder details; as well as on expenses such as stamp duty and registration charges etc., when we invest in a property. These impact our financial models and thereby calculation of how much you earn in your hands. Having this information helps us model the expenses, regulatory charges and taxes more accurately in our investment models. You  can always opt to not provide this, in which case we will consider all data to be for a 'male' for our modelling considerations.
The minimum amount varies from asset to asset and is opportunity specific. Our endeavour is to always provide opportunities at the best possible entry value and affordable investment sizes. 

If the asset is not fully funded, and the deal is cancelled, the funds will be credited back to investors bank account

In case of fractional investments, purchase of the relevant assets will be made in a special purpose vehicle (SPV); as per guidance from legal and tax consultants. Investors shall hold share and/ or stock holding proportionate to their investment in the overall asset acquisition value. 

Typical Investment Process is as follows:

Investors to Provide Expression of Interest (EOI)
On receipt of EOI, we will reach out to you, for KYC (this will depend on deal structure, wherein in some deals you may need to provide initial down payment and in some, there may not be any requirement)
Basis EoI’s received, Upcide’s team will discuss the structure of the proposed investment with its tax and regulatory consultants, to determine the most efficient structure
Binding Term sheet, with all relevant terms, will be shared with investors who have completed EoI and KYC
On successful funding with minimum number of investors; due diligence shall be conducted
Due Diligence Reports will be shared with qualified investors (who have provided EOI and whose KYC is completed)
Upon receipt of confirmation on the Final binding Term sheet, the proposed SPV for owning the Asset will be formalized with the investors
Upon the execution of the documents, bank account details will be provided to investors for transfer of their proportionate funds, within timeline as specified in the Binding Term sheet
Post receipt of funds, the authorised signatories (s) will execute relevant transaction documents with seller 
All requisite documents, duly vetted by a Legal consultant, shall be provided to each investor upon receipt of all such documents from concerned regulators, for approval, as relevant, for records

If the investor is unable to travel, we will make all possible efforts to arrange the process online. However, incase the investor is required to travel for deal specific or regulatory reasons, or at investors own requirements, prior intimation shall be provided. 

Token amount is not applicable to all deals and opportunities.
In those cases where token amount deposit is applicable, initial token amount is paid as per EOI or at Binding Term sheet stage. 
In such cases, the same shall not be refunded unless the asset is not fully funded till the committed timeline and/ or the deal is cancelled
However, if the opportunity is over subscribed by the deal closure timeline, then initial token amount, where received, may be refunded to an investor, by allowing alternate investor to participate.

You will sign an Expression of Interest, Asset Management Agreement, Purchase Agreement and other documents depending on the structure of the SPV. 

Upcide.com charges 0.5% to 2% asset management fees. Asset Management fees includes the following services:
Invoicing 
Revenue collection and reconciliations
Tax and other regulatory compliances
Payout to SPV Investors
Coordination with all investors for queries & conflicts 
Quarterly reporting of asset performance and coordinating for audits & annual reports of various consultants

The investment lock-in period may vary with each opportunity. The same shall be mentioned in deal terms, starting with the Investment Memorandum (IM) and shall be mentioned in the relevant definitive agreements as well.  However, in most cases, resale on Upcide.com will be allowed, within 6 months of initial investment close. 

Once the asset of fully funded, investment is completed. A timeline for fund closure will be defined in the Investment Memorandum (usually 30 to 60 days).

Periodic distributions shall be made monthly / quarterly / annually to the investors depending on the structure of the deal.

The SPV shall proportionately transfer pay-out of initial capital share and/ or loan principal to designated bank accounts of SPV Investors, after dissolution / winding up of the SPV or at such other time as is advised by legal and tax consultants, aligned with regulatory norms.

Assets will have a typical lifespan of 3-5 years depending on the type & class of assets. Please refer deal specific investment memorandum for details.

There are multiple exit options :
Re-sell ownership within Upcide Network
Private sale to external third parties, subject to NOC & KYC by Upcide and original asset owner (where relevant)
Sale of Asset by the Asset holding SPV, as per pre agreed exit/ sale mechanisms, which shall be disclosed in the Investment memorandum and subsequently in the definitive agreements, where applicable.

No, asset management fee will not be charged if the asset is not generating yield, for the duration where such moratorium or failure, as the case maybe, is observed / applicable. 
However, if the asset generates yield with a delay, the asset management fees will be charged back once the receipts are realised.

The referral schemes may differ for each individual deal, however the reward for each such scheme will always be same, which is, a discount on your AMC fees.
The rewards are always discounts, either on the AMC charges on your existing or future investments; or on the charges related to hurdle rates at the time of investment exists.  Please refer the deal documents carefully for the same
Further, there are additional rewards for investments in social or environmentally sustainable projects, for which the specific details will be provided along with each deal
Yes, we recognise you publicly, if you so consent, through our social media handles, for the following: - Achieving investment and/ or referral milestones with us in any financial year - Investments in social or environmentally sustainable assets - Being successful in any auction or open market purchase transaction of any of our assets - Your annual carbon savings through your investments in environmentally sustainable assets (i.e. your impact assets portfolio)
Distributions are taxable directly in the hands of the investor as per his/her tax bracket. The indicative withholding tax under the current tax regime will be provided with each opportunity, and shall form part of the investment memorandum. 

Withholding Tax rate (TDS) applicable for various residential status holders, as per Income Tax Act, 1961: ​

Resident Indian - as per applicable laws at the time of distribution. Please consult the IM and your tax advisor to understand income and withholding tax applicable specifically to you. Our experts will be happy to answer your queries during deal specific interactions for pre-investment assessment. 
For post investment stage, the details of all taxes will be provided to you along with your distribution intimation, including any relevant Tax certificates. 

Non-resident Individual (“NRI”)  - as per applicable laws at the time of distribution. Please consult the IM and your tax advisor to understand income and withholding tax applicable specifically to you. Our experts will be happy to answer your queries during deal specific interactions for pre-investment assessment. 
For post investment stage, the details of all taxes will be provided to you along with your distribution intimation, including any relevant Tax certificates. 

*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered between India with their respective country of tax residency, subject to availability of Tax residency Certificate (“TRC”).​

Capital appreciation is subject to capital gain tax at applicable rate. The applicable tax rate would depend on the period for which the asset was held (short termvs long term). The benefit of indexation may be applicable in case of long term capital gains, the threshold of which is determined by the applicable statute and relevant rules, including rules of applicability (as these are subject to change by law)

Capital gains may not be applicable in case there is no capital gains in the hands of the investor at the time of exit, after taking benefits of indexation, where applicable and available

Yes, the Lessee will pay GST / VAT over and above the lease/ revenue share value paid periodically, in jurisdictions and on deals where such taxes are applicable

Yes, the TDS on your distributions is paid and deposited against your PAN number and can be claimed back by you during tax filing, for investments in India. For other jurisdictions, please assess deal specific Investment memorandums for further details.

TDS deducted from the SPV will be adjusted against the tax liability of the SPV, as per accounting regulations and tax laws applicable at the time of the transactions

Yes, you can transfer the transaction amount from your NRE or NRO account, as per current applicable regulations and rules

Transfer of foreign currency by a NRI is regulated by existing RBI and FEMA guidelines; please assess the same at your discretion and with help from your tax and regulatory compliance advisor

No, since NRE is a freely repatriable account, INR deposits cannot be made into an NRE account​

Distributions will be credited to your NRO account from where you can transfer it to your NRE account, please speak to your banker and/ or your tax and regulatory compliance advisor for more details specific to your situation and requirements.

Under Indian income-tax law, an NRI is required to pay tax on any Indian sourced or received income. ​

A basic exemption limit is provided under the Indian tax law​. If the income in India does not exceed the basic exemption limit, the NRI will not have to pay tax in India​

If the income in India exceeds basic exemption limit, the NRI will have to pay taxes in India as per the applicable tax rates and income slabs.

NOTE: NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered by Indian Government with their respective country of tax residency, subject to availability of Tax residency Certificate (“TRC”).​

Even if an NRI’s income in India does not exceed the basic exemption limit, taxes may be withheld as TDS (tax deducted at source)​

Such NRI can claim refund of taxes withheld by filing a tax return in India​
A TRC is a Tax Residency Certificate provided by the country where a NRI is currently residing​.

India has a Double Tax Avoidance Agreement (DTAA) with almost all major countries that helps reduce TDS rates to lower thresholds of 10-15% (depending on the provisions of the DTAA)​. However, the benefit of the reduced tax rate is only available to users who are can produce a TRC​

Please speak to your tax and regulatory compliance advisor on how you can procure a TRC for your country of tax residency​.
A resident individual can send remittances under the Liberalised Remittance Scheme (LRS). In case members of a family pool their remittances to purchase a asset, then the said asset should be in the name of all the members who make the remittances.

immovable property can be acquired outside India:
a) As per applicable FEMA Rules & RBI guidelines
b) Purchased with balances in the Resident Foreign Currency (RFC) account of the resident.
c) Purchased with remittances made under the Liberalised Remittance Scheme (LRS).
d) Jointly with a relative provided there are no outflow of funds from India.
e) By an Indian company having overseas offices, for housing its business or for residence of staff.

If you qualify as resident and ordinarily resident in India, as per the India income-tax law, your global income will be taxable in India and you will be required to report all your assets outside India (such as bank accounts, immovable property and financial interests) in your income tax return.

In case this income is also taxable in another country, you can take benefit of DTAA (Double Tax Avoidance Agreement).