pvtltd.co

Fundraising

Company valuation services in India.

Get valuation support for fundraising, ESOP planning, and investor discussions in India with a story that is easier to defend.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from Contact usTypical timelineCompany valuation

Get valuation support for fundraising, ESOP planning, and investor discussions before a round.

What is included
  • • Structured valuation support workflow
  • • Investor conversation support
  • • ESOP and fundraising pricing support
  • • Financial and scenario review
  • • Ownership structure and assumption review
Documents required
  • • Audited financial statements
  • • Management accounts and forecasts
  • • Cap table and equity structure
  • • ESOP plan or transaction term sheet
  • • Any foreign investment or round documentation
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Section 247 of the Companies Act 2013
  • • Rule 8 of the Companies (Registered Valuers and Valuation) Rules 2017
  • • Rule 11UA of the Income-tax Rules 1962
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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Scope

Define the purpose of valuation

We confirm whether the report is needed for fundraising, ESOP pricing, FEMA reporting, or another transaction so the methodology matches the use case.

Step 2Inputs

Collect the financial and ownership inputs

The support pack starts with financial statements, forecasts, cap table details, and the transaction context that drives the valuation assumptions.

Step 3Methodology

Review the method and assumptions

We test the chosen method against the company stage and the statutory framework so the result can be explained to investors or regulators.

Step 4Delivery

Issue the defensible valuation output

The final output is a valuation package that can support the company narrative, the pricing logic, and any related filings.

AEO summary

Short answer: company valuation helps you understand and explain what the business is worth for fundraising, equity planning, and related conversations without sounding hand-wavy.

When valuation becomes necessary

Valuation is not just about finding a number. It is about being able to explain why a number is defensible when the company is raising money, issuing ESOPs, or preparing to deal with foreign investment pricing rules.

The same company can need different valuation outputs depending on the transaction, so the purpose has to be pinned down before the model is built.

  • • Fundraising needs investor-facing logic.
  • • ESOP planning needs defensible FMV support.
  • • FDI pricing needs a rule-based floor under Rule 11UA.

What a defensible report should cover

A defensible report starts with the company’s audited numbers, the ownership structure, and the assumptions used in the forecast. If the inputs are not traceable, the result is hard to defend later.

When the work is done correctly, the company can use the report across board discussions, investor negotiations, and the filing layer without changing the underlying logic.

  • • Method selection should match the transaction purpose.
  • • Assumptions should be visible and supportable.
  • • The output should align with the statutory filing trail.

Government fees

Fee breakdown

ItemFeeNotes
Valuation report filing or supporting submissionAs applicableThe statutory filing fee depends on the underlying transaction, if any, that uses the report.
No standalone government fee for the valuation report itselfNilThe valuation is a professional engagement, while government fees arise only from the connected filing.
Connected filing feeAs per MCA / FEMA scheduleApplicable where the valuation supports PAS-3, FC-GPR, ESOP, or similar compliance work.

Timeline

Typical turnaround

Typical timeline usually means a 5 working days turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

Professional valuation fees depend on scope, asset class, and whether the report must support Companies Act, FEMA, or income-tax compliance.

Related services

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Angel Tax Exemption

Exempt DPIIT-recognised startups from Section 56(2)(viib) tax on share premium.

Due Diligence Prep

Prepare a clean data room before investors run financial and legal due diligence.

FAQ

Frequently asked questions

Who is legally allowed to issue a valuation report for a private company in India?
Only a Registered Valuer registered with IBBI under the Companies (Registered Valuers and Valuation) Rules 2017 can issue a valuation report for Companies Act purposes. This covers ESOPs, preferential allotments, and amalgamations under Section 247 of the Companies Act 2013. Using an unregistered valuer for these purposes makes the report non-compliant and exposes the company to regulatory challenge.
Can the company's own CA or internal finance team sign off on the valuation?
No. Rule 8 of the Companies (Registered Valuers and Valuation) Rules 2017 requires the valuer to be independent — they cannot be an employee of the company or a related party. The valuer must hold a valid IBBI certificate of registration in the relevant asset class (securities or financial assets) and must not have a conflict of interest with the entity being valued.
What valuation standard applies when a startup issues shares to a foreign investor under FDI?
For FDI pricing under the Foreign Exchange Management Act, Rule 11UA of the Income Tax Rules is used to determine the fair market value of unlisted equity shares. The price at which shares are issued to a non-resident cannot be less than the FMV computed under Rule 11UA. Both the discounted cash flow method and the net asset value method are recognised approaches under this rule, and the methodology chosen must be documented.
Does the ESOP exercise price need to be backed by a formal valuation?
Yes. The exercise price for ESOPs in an unlisted company must be based on a fair market value determined by a SEBI-registered Merchant Banker or a Chartered Accountant as required under SEBI ICDR Regulations 2018 and related SEBI guidance. For tax purposes, perquisite value on exercise is computed under Rule 3(8) and Rule 3(9) of the Income Tax Rules using FMV on the date of exercise, making a defensible valuation important for both the company and employees.
What valuation method is typically used for a pre-revenue Indian startup?
Pre-revenue startups are commonly valued using the discounted cash flow method or the comparable transactions method, both of which are recognised under Rule 11UA of the Income Tax Rules for unlisted securities. The IBBI-registered valuer selects the method most appropriate to the company's stage and must document the rationale in the valuation report as required under the Companies (Registered Valuers and Valuation) Rules 2017. Investors and regulators expect the methodology and key assumptions to be explicitly stated and supportable.

Canonical reference: https://www.pvtltd.co/services/company-valuation

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