Behind every venture funding news that you come across, if you look deeper, you will find one thing common in almost all deals - startups issue Compulsorily Convertible Preference Shares (CCPS) to investors, and not equity shares. Your instant thought could be that this must be for convertible rounds where the valuation is unknown and dependent on the next fundraise. However, this is also true for the priced rounds i.e. where the valuation is known and agreed upon. In such ca

Valuation of shares is a critical requirement in multiple business scenarios — from issuing new shares to transfer of ownership, fundraising, mergers, and regulatory compliance. However, who can value unlisted shares in India depends on the governing law applicable to the transaction, sometimes necessitating more than one valuation certificate.   This article outlines when share valuation is required under different Indian laws and who is authorized to conduct it. 1. Under th

When starting a new startup in India, one of the first and most critical decisions founders face is choosing the right legal structure - Private Limited Company (Pvt. Ltd.) or Limited Liability Partnership (LLP). Both have their own benefits and challenges and making the right decision depends on multiple factors such as tax treatment, compliance requirements, investment-readiness, and mid & long-term vision. We often get this query from startup founders, so we compiled a