Share valuation that satisfies both the tax authority and the RBI.
Issuance of shares by an Indian company to a non-resident must comply with the FEMA pricing guidelines the price must not be lower than the fair value determined by an internationally accepted pricing methodology certified by a Chartered Accountant, SEBI-registered Merchant Banker, or practising Cost Accountant. The same transaction is also tested under Rule 11UA of the Income Tax Rules for Section 56(2)(viib) and Section 50CA implications.
We provide independent share valuations that simultaneously satisfy FEMA pricing requirements and Income Tax Rule 11UA supported by methodology, working notes, and the certificate format required by the AD bank and RBI.
What Bizztricks Management Consulting Private Limited Offers
• FEMA pricing guideline valuation for primary issuance, secondary transfer, and buy-back
• Rule 11UA valuation under the Discounted Cash Flow (DCF) and Net Asset Value (NAV) methods
• Section 56(2)(viib) angel tax analysis for issuance to residents and DPIIT-recognised startup exemption
• Section 50CA gift tax analysis for transfer of shares at less than fair value
• Merchant banker valuation report coordination, where required by FEMA
• Valuation for ESOP grant pricing, secondary buy-back, and capital reduction
• Independent valuation report suitable for board, AD bank, and audit submission