AIF Cat I, II & III Registration
AIF Category I, II & III Registration
Alternative Investment Funds have become the preferred structure for private equity, VC, hedge, and structured investment strategies in India. But before accepting investor money, SEBI expects a clean fund structure, proper disclosures, and regulatory approval. Getting AIF registration right avoids delays, queries, and compliance headaches later.
What is an AIF?
A privately pooled investment vehicle regulated by SEBI that collects funds from investors and invests according to a defined strategy. It’s ideal for high-value, long-term, or specialised investments outside mutual funds and PMS.
AIF Categories Explained
Category I AIF
Focused on socially or economically beneficial sectors
Includes VC funds, angel funds, SME funds, infrastructure funds, social impact funds
Category II AIF
PE funds, debt funds, distressed asset funds
No leverage allowed except for temporary needs
Category III AIF
Hedge and public-market oriented funds
Complex trading strategies, including leverage
Who needs SEBI AIF registration?
Fund managers setting up private pooled vehicles
PE/VC firms raising domestic capital
Family office funds pooling external investors
Fintech platforms launching alternative investment products
Eligibility basics
Registered trust, LLP, or company with defined investment strategy
Fit and proper management and sponsor
Minimum corpus of ₹20 crore (₹10 crore for angel funds)
Minimum investment per investor: ₹1 crore (lower for employees/directors)
Clear compliance, governance, and reporting framework
How we assist
Fund structuring and category selection
Eligibility check and regulatory advisory
Drafting PPM, trust deed/LLP agreement, policies, and disclosures
Preparation and filing of SEBI application
Follow-ups, clarifications, and compliance setup
Post-registration reporting and regulatory support
Documents usually required
Constitution documents: trust deed/LLP agreement/MoA-AoA
Sponsor and manager details, KYC, net-worth proofs
Investment strategy, fund economics, risk management
Placement memorandum and compliance policies
Organizational chart, agreements, declarations
Our process
Understand fund strategy and target investors
Choose the right AIF structure and category
Prepare documents and supporting compliance framework
File application with SEBI and handle queries
Receive registration and help commence fund operations
Frequently Asked Questions
Generally 2 to 6 months, depending on documents and SEBI queries.
Depends on investment strategy, sector focus, and leverage requirements.
Yes, subject to FEMA rules and sector restrictions.
Yes — minimum 2.5% of corpus or ₹5 crore, whichever is lower.
No. AIF must be set up as a trust, LLP, or company.