Share Valuation for Fundraising.
Angel tax under section 56(2)(viib) of the Income-tax Act, 1961 no longer applies: the Finance (No. 2) Act, 2024 switched it off from assessment year 2025-26 for all investors, and the Income-tax Act, 2025 does not carry it forward. What still matters is pricing your share issues correctly under the Companies Act and FEMA, and closing out angel tax questions on earlier rounds.
Typically 1–3 weeks, driven by how ready your projections are and how many valuation reports the round needs.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Start-ups raising a priced round or issuing convertible instruments at a premium.
- Companies taking money from foreign investors, where FEMA pricing guidelines set a floor on the issue price.
- Companies with open assessments, notices or appeals on share premium received before the abolition.
What you receive at the end.
- 01Valuation report or reports suited to Companies Act and FEMA requirements
- 02Pricing compliance note for the round
- 03Board and shareholder resolution drafts referencing the valuation
- 04Responses to notices on earlier rounds, where relevant
Share Valuation for Fundraising, step by step.
Typically 1–3 weeks, driven by how ready your projections are and how many valuation reports the round needs.
- 1
Round review
We review the instrument, the investors' residency and the allotment route, private placement or preferential allotment, to identify which valuation rules apply.
- 2
Valuation reports
We coordinate a registered valuer's report for Companies Act purposes and, for non-resident investors, a fair value certified by a chartered accountant, SEBI-registered merchant banker or practising cost accountant.
- 3
Pricing check
We check that the issue price meets the FEMA floor for foreign investors and that conversion formulas for convertible instruments are fixed upfront, as FEMA requires.
- 4
Approvals alignment
We align board and shareholder resolutions, the offer letter and allotment filings with the valuation.
- 5
Legacy rounds
For rounds raised before the abolition, we review any open assessment, notice or appeal and prepare the valuation defence.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Term sheet or investment agreement
- Latest audited financial statements and current management accounts
- Board-approved business plan and financial projections
- Current shareholding and investor details, including residency
- Previous valuation reports, if any
- Income-tax notices or assessment orders relating to earlier share issues, if any
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Share Valuation for Fundraising.
Ready to discuss Share Valuation for Fundraising?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.