More about Valuation Certificate by CA
Frequently Asked Questions
What is Valuation Certificate? Who certifies it?
A Valuation certificate is certified by a CA. This certificate justifies the valuation you are seeking for your company. The CA will draw the financial projections for your business and comes up with a Valuation for the company using different valuation techniques. The IT department and RBI accepts that Valuation for the company.
Can we issue shares at a price lesser than that in the valuation certificate from the CA?
Yes. However, the investors will have to pay Capital Gains Income Tax on the difference of Valuation of the company and actual price paid for the share. You cannot issue the shares at lesser price than the Valuation of the company to foreigners and foreign companies.
Can we issue shares at a price higher than that in valuation certificate from the CA?
Yes. However the company has to pay Income tax on the gain it achieved in doing so.
What is the validity of Valuation Certificate?
Valuation Certificate is usually valid for 3 months from the date of issue.
Still have doubts?
Drop us a note with basic details. You will receive a call from us.