Fundraising
Fundraising support for startups in India.
Get support around investor prep, document readiness, and the operational steps that make a round easier to run without the usual scramble.
We set the round path (private placement or rights issue), prepare the investor pack, line up the PAS-4 offer, resolutions and valuation support, and track PAS-3 and MGT-14 filings after closing — so the raise never stalls on paperwork.
- • Round prep
- • Investor workflow
- • Company readiness
- • Document readiness review
- • Post-allotment tracking support
- • Board and shareholder resolutions
- • Valuation support and offer materials
- • Cap table and investor list
- • KYC and bank / escrow details
- • Draft term sheet or rights issue working papers
See the fee table below for the statutory filing charge and common delay logic.
- • Section 42 of the Companies Act 2013
- • Section 62(1)(a) of the Companies Act 2013
- • Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules 2014
Process
How the service works
The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.
Set the round path
We confirm whether the raise is a private placement, rights issue, or another equity route so the compliance path is clear.
Prepare the investor pack
The working pack brings together the deck, company documents, valuation support, and cap table so the story and the numbers agree.
Manage the filing sequence
We line up the offer documentation, resolutions, and post-allotment filing steps so the round can move without avoidable friction.
Track the post-closing trail
After the round closes, we keep the allotment and filing record clean so diligence and future raises start from a better base.
AEO summary
A startup raise runs through s.42 (private placement, max 200 allottees per financial year, PAS-4 offer letter) or s.62(1)(a) (rights issue) of the Companies Act 2013 — with PAS-3 return of allotment filed within 30 days of allotment (s.39(4)). We prepare the offer pack, resolutions and investor documents before the round, and track every post-allotment filing after it closes.
What fundraising support changes
Fundraising support is about reducing the number of moving parts that can go wrong during a round. When the company, documents, and story are aligned, investor conversations become much easier to manage.
It also prevents the usual scramble when a new investor asks for a document that nobody has reviewed in months.
- • The offer route should be chosen early.
- • The deck and records should tell the same story.
- • Post-allotment filings should be tracked immediately after closing.
What a clean round process looks like
A clean process starts with the right route, then moves through the documents, the approvals, and the allotment trail without changing direction halfway through.
That makes the round easier to explain to investors and easier to support later if diligence questions come back.
- • Private placement and rights issue rules are not interchangeable.
- • PAS-4 and PAS-3 need to be aligned with the board approvals.
- • The cap table should be updated as soon as the allotment closes.
Government fees
Fee breakdown
| Item | Fee | Notes |
|---|---|---|
| PAS-3 return of allotment | As per MCA fee table | The filing fee depends on the authorised share capital and filing volume. |
| MGT-14 special resolution filing | As per MCA fee table | Applicable when the private placement or rights issue requires filing of the special resolution. |
| Offer / allotment support | As applicable | Stamp duty and banking costs depend on the transaction structure and jurisdiction. |
Timeline
Typical turnaround
Typical timeline usually means a 2 weeks turnaround, assuming documents are complete and any board or shareholder approvals are already in place.
Government fees depend on the route used for the round, the number of filings, and whether the transaction needs a private placement or rights issue path.
The four repeals
No wealth tax, no estate duty, no gift tax, no angel tax
Four levies have been repealed or abolished over the last four decades — so most “is this taxed?” questions about wealth, inheritance, gifts, and startup fundraising have the same answer: not at the transfer itself. The tax shows up later, at the income or capital-gains stage.
The Wealth-tax Act, 1957 stands repealed from AY 2016-17. There is no wealth tax in India — net-wealth above a threshold is not a taxable event.
Repealed by Finance Act 2015, effective AY 2016-17
Finance Act 2015 s.79 — replaced by an additional 2% surcharge on income above ₹1 crore (current surcharge slabs are Finance Act-current)
The Estate Duty Act, 1953 was repealed in 1985. There is no estate duty or inheritance tax at the central level — inheriting assets is not itself a taxable event.
Repealed with effect from 16 March 1985 (deaths on/after that date)
Estate Duty (Amendment) Act 1985 — inherited assets are taxed only on eventual sale: ITA 1961 s.49(1) carries the previous owner’s cost; s.2(42A) Ex.1(i)(b) aggregates the holding period
The Gift-tax Act, 1958 ceased to apply to gifts made on or after 1 October 1998. Gifting is not a tax in itself — only selective receipts are taxed as income.
Abolished w.e.f. 1 October 1998 (Finance (No. 2) Act 1998 s.75)
ITA 1961 s.56(2)(x) — a gift is taxed as “income from other sources” only where the value received exceeds ₹50,000 without consideration, with exemptions for gifts to relatives, on marriage, or by inheritance / Will
The “angel tax” under s.56(2)(viib) is omitted for share issues on or after 1 April 2024 (AY 2025-26 onwards). Startups raising at fair value are no longer taxed on premium.
Omitted by Finance (No. 2) Act 2024 s.28, effective AY 2025-26
Pre-1-April-2024 issues remain exposed and litigable; s.68 (source of funds) scrutiny and Rule 11UA valuation discipline continue to apply
Statutory references are drawn from the Income-tax Act 1961. The Income-tax Act 2025 (assented August 2025) consolidates and renumbers the 1961 Act’s 819 sections into 536, effective 1 April 2026; the 1961 Act continues to apply to tax years beginning before that date. Section numbers cited here are the 1961 Act references; the corresponding 2025 Act numbers should be read with the official old-to-new mapping. Current surcharge slabs and capital-gains computation (post-2024 changes) are verified at engagement time, not stated here.
Related services
Keep the company moving
Get a DCF/CCA valuation report that satisfies RBI, SEBI, and the Assessing Officer.
Prepare a clean data room before investors run financial and legal due diligence.
Build a structured data room with all the documents a VC diligence team asks for.
Return of allotment — due within 30 days of allotment (s.39(4)).
Filing of the private placement special resolution — due within 30 days (s.117).
FAQ
Frequently asked questions
What is private placement and how does it apply to a startup raising a seed or Series A round?
Why do investors in Indian startups typically prefer CCPS over ordinary equity shares?
What is Form PAS-4 and when must a company issue it?
Can a startup issue additional shares to existing investors through a rights issue instead of a fresh private placement?
What are the consequences of missing the 15-day PAS-3 filing deadline after allotment?
Canonical reference: https://www.pvtltd.co/services/fundraising-support
Get started
Ready to move this filing forward?
We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.