Do I need a valuation report to issue shares in my startup?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerYes — even with angel tax gone, you still need a proper share valuation. It’s required for FEMA pricing when a foreign investor invests, for Companies Act compliance, and to support your share price if it’s ever questioned. A registered valuer or merchant banker report (DCF or NAV under Rule 11UA) is the usual basis.

Why valuation still matters

It justifies the price for the ROC filing, sets the floor/ceiling for foreign investment, and protects you in any future scrutiny.

Who can value it

A registered valuer or, for FEMA pricing, a merchant banker, using the Rule 11UA methods (DCF or NAV).

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.