Startup India DPIIT Recognition: Benefits, Eligibility & Filing Guide (2026) Quick Answer DPIIT recognition under the Startup India initiative is a formal recognition issued by the Department for Promotion of Industry and Internal Trade to eligible startups. It unlocks three major benefits: (1) Section 80IAC tax holiday — 100% income tax exemption for any 3 […]
Category Archives: Valuation
Company Valuation, Business Valuation . Startup Valuation
Virtual CFO for Indian Startups: What, Why & When You Need One Quick Answer: What Is a Virtual CFO for Startups? A Virtual CFO (vCFO) is an outsourced Chief Financial Officer who delivers strategic financial leadership to startups without the cost of a full-time C-suite hire. At Virtual Auditor, our vCFO engagements cover financial strategy, […]
Term Sheet Negotiation: Key Clauses Every Indian Startup Founder Must Understand Quick Answer: What Are the Most Important Clauses in an Indian Startup Term Sheet? The critical clauses in an Indian startup term sheet are: (1) Valuation — pre-money vs post-money and the option pool shuffle, (2) Liquidation preference — 1x non-participating is founder-friendly; participating […]
Startup Funding Stages in India: Angel to Series C — Regulations, Valuation & Compliance at Every Round Quick Answer: What Are the Funding Stages for Indian Startups? Indian startups typically progress through six funding stages: (1) Bootstrapping / Friends & Family — INR 5-50 lakhs, no institutional investors, (2) Angel Round — INR 25 lakhs […]
Financial Statement Fraud: Detection & Expert Witness Quick Answer Financial statement fraud — the intentional misrepresentation of a company’s financial position — causes the highest median loss of any fraud category. Detection requires a combination of quantitative screening (Beneish M-Score, ratio analysis, Benford’s Law), forensic transaction testing, and accounting standards analysis (Ind AS/Indian GAAP). At […]
PE/VC Due Diligence: CFE Fraud Risk Checklist Quick Answer Forensic due diligence for PE/VC investments specifically tests for fraud risk indicators that standard financial and legal due diligence misses — inflated revenue, undisclosed related parties, FEMA non-compliance, promoter integrity issues, and hidden contingent liabilities. At Virtual Auditor, forensic due diligence is led by CA V. […]
Share Transfer in Private Company: Procedure, Valuation & FEMA Rules Featured Answer: Share transfer in a private limited company is governed by Section 56 of the Companies Act, 2013 and executed through Form SH-4 (Share Transfer Deed). Unlike public companies, private companies have a restriction on transfer of shares built into their Articles of Association […]
Increase Authorised Capital: EGM Resolution & ROC Filing Under Section 61 Featured Answer: A company increases its authorised share capital under Section 61(1)(a) of the Companies Act, 2013 by passing an ordinary resolution at a general meeting (EGM or AGM), provided the Articles of Association authorise such an increase. The altered Memorandum of Association is […]
Quick Answer: Setting up a foreign subsidiary in India involves dual compliance — incorporation under the Companies Act, 2013 via MCA’s SPICe+ portal, and FDI compliance under FEMA NDI Rules, 2019 for receiving foreign investment. In sectors permitting 100% FDI under the automatic route (IT, manufacturing, consulting, e-commerce marketplace), no prior government approval is needed. […]
Quick Answer: A FEMA valuation certificate is a mandatory document under the FEMA (Non-Debt Instruments) Rules, 2019 that establishes the fair value of shares or other capital instruments being issued or transferred between residents and non-residents. It must be issued by a SEBI-registered Category I Merchant Banker, a Chartered Accountant, or an IBBI-registered valuer. At […]