Cardiff Services

iSafe Notes

Overview – iSAFE Notes (India Simple Agreement for Future Equity)

iSAFE Notes are an innovative financial instrument designed to help startups and investors simplify early-stage fundraising in India. Inspired by the popular SAFE (Simple Agreement for Future Equity) model used globally, iSAFE Notes provide a straightforward agreement where investors contribute capital in exchange for a future equity stake, typically converting during a priced funding round or triggering event.

 

iSAFE Notes enable startups to raise funds quickly without the complexities and delays associated with traditional equity rounds, valuations, or debt instruments. They offer investors the potential upside of equity with simpler documentation and fewer upfront negotiations. iSAFE is tailored to comply with Indian laws and regulations, ensuring legal robustness alongside startup-friendly flexibility.

 

At Cardiff Services, we assist startups and investors in drafting, negotiating, and executing iSAFE agreements, ensuring seamless compliance with Indian corporate laws and providing expert guidance throughout the fundraising journey.

Features – iSAFE Notes (India Simple Agreement for Future Equity)

  • Simple Agreement: A straightforward legal contract between investor and startup, minimizing complexity.

  • Future Equity Conversion: Investment converts into equity shares upon specified triggering events (e.g., next funding round).

  • No Immediate Valuation: Defers company valuation to future equity financing rounds, easing early-stage negotiations.

  • Flexible Terms: Customizable conversion triggers, discount rates, valuation caps, and other conditions.

  • Non-Debt Instrument: Unlike convertible notes, iSAFE is not a debt and does not accrue interest or have a maturity date.

  • Quick Fundraising: Enables faster capital infusion with reduced legal and administrative overhead.

  • Investor Protection: Provides rights and protections similar to equity shareholders upon conversion.

  • Compliance with Indian Laws: Tailored to align with Indian company and securities regulations.

  • Convertible on Trigger Events: Automatically converts into equity on events like qualified financing, acquisition, or IPO.

  • No Repayment Obligation: Since it’s not debt, no obligation to repay if company doesn’t raise further funding.

  • Founder-Friendly: Avoids dilution or complex negotiations in early stages, helping founders focus on growth.

  • Cost-Effective: Reduces legal costs compared to traditional funding agreements.

Documents Required – iSAFE Notes

  • Signed iSAFE Agreement between the company and investor(s)

  • Board Resolution approving issuance of iSAFE Notes

  • Shareholders’ Resolution (if required)

  • KYC documents of investor(s)

  • Copy of Certificate of Incorporation of the company

  • Memorandum of Association (MOA) and Articles of Association (AOA)

  • Register of Members updated (post conversion, if applicable)

  • Audited Financial Statements (if applicable)

  • Term Sheet (optional but recommended for clarity)

  • Legal Opinion (optional, for complex structures or foreign investors)

Procedure – Issuance of iSAFE Notes

  1. Preliminary Discussion & Term Sheet

    • Discuss and finalize key terms like conversion triggers, valuation cap, discount, and other clauses.

    • Prepare and agree on a term sheet (optional but recommended).

  2. Board Meeting

    • Convene board meeting to approve issuance of iSAFE Notes and terms agreed with investors.

  3. Drafting iSAFE Agreement

    • Prepare the iSAFE agreement customized to the company’s and investor’s terms.

  4. Due Diligence & KYC

    • Complete KYC of investor(s) and any required due diligence.

  5. Execution of Agreement

    • Sign the iSAFE agreement between the company and investors.

  6. Receipt of Funds

    • Investors transfer the agreed investment amount to the company’s bank account.

  7. Update Statutory Records

    • Record issuance in statutory registers, noting the iSAFE investment (no shares issued at this stage).

  8. Conversion on Trigger Event

    • Upon occurrence of agreed trigger events (e.g., next equity financing round), convert iSAFE Notes into equity shares as per agreed terms.

    • Update Register of Members, file necessary forms with RoC, and issue share certificates.

  9. Post-Conversion Compliance

    • Ensure all regulatory filings, shareholder communications, and compliance are completed after conversion.

With Cardiff Services, your iSAFE issuance process is streamlined, legally compliant, and investor-friendly.

Frequently Asked Questions

A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.

If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.

It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.

For a company name search in Cardiff, you may need:

  • Proposed company name

  • Business entity type (Ltd, LLP, Partnership, etc.)

  • Jurisdiction (Cardiff / UK)

  • Owner or shareholder details (if applicable)

  • Business description

A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.

Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms