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I want to give Sweat equity to one of my consultants from my private limited company. What are the compliances involved

This is possible. However, there need to be 2 valuations that should be carried out for this.

1. The company needs to be valued by a CA. This is usually done by projecting the financials of the company for 3 or 5 years and then calculating the value of the company by Discounted Cash Flow (DCF) method.

2. The economic benefit derived ou...

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