Business Valuation Services in Kochi, Kerala

It depends on the law. A chartered accountant, SEBI-registered merchant banker or practising cost accountant can value shares for FEMA. Valuations required under the Companies Act must be done by an IBBI registered valuer. For income tax, the rules specify who may value for each purpose.

Section 247 of the Companies Act, 2013 requires valuations under the Act, such as for preferential allotments and schemes of arrangement, to be done by a person registered with the Insolvency and Bankruptcy Board of India (IBBI) as a registered valuer in the relevant asset class.

Where the law requires a registered valuer's report, the report is issued by an IBBI-registered valuer for securities or financial assets. We prepare the financial analysis and coordinate the engagement so you work with one team.

Shares issued to a non-resident must be priced at not less than their fair value, worked out by an internationally accepted pricing method and certified by a chartered accountant, SEBI-registered merchant banker or practising cost accountant.

No. The tax on share premium received by closely held companies above fair market value was abolished from assessment year 2025-26. Fair market value rules still apply to transfers and receipts of shares below value.

Under the Income-tax Rules, 2026, which apply from 1 April 2026, the fair market value rules for shares and securities are in Rule 57, which replaced Rules 11UA, 11UAA and 11UAB of the 1962 Rules.

Discounted cash flow values a business by projecting the free cash flows it will generate and discounting them to today at a rate that reflects the risk of the business. It suits growing companies with reliable projections.

Net asset value takes the company's assets less its liabilities, at book value or adjusted to market values, and divides by the number of shares. It suits holding companies and asset-heavy or loss-making businesses.

Usually with DCF on the business plan, cross-checked with revenue multiples of comparable companies and the price of recent funding rounds. The projections must be realistic and documented, because investors and tax officers will test them.

There is no fixed validity period in most laws, but a valuation is made as at a specific date. Banks and investors usually expect a report dated close to the transaction, and a material change in the business needs a fresh valuation.

For income tax, transfers of unquoted shares below fair market value can create tax for both parties, although gifts from relatives are exempt for the recipient. A valuation helps fix a price that avoids unexpected tax.

For income tax, the fair market value of the shares on the exercise date is taxed as a perquisite; for unlisted companies the rules prescribe who must value the shares (a SEBI-registered merchant banker under the 1962 Rules). For accounting, the options are fair-valued using an option pricing model such as Black-Scholes.

A scheme of merger or demerger under sections 230 to 232 of the Companies Act needs a valuation report from an IBBI registered valuer to support the share exchange ratio, which is placed before the shareholders, creditors and the tribunal.

There is no fixed rate. The fee depends on the purpose, the number of reports and laws involved, the size of the business and whether a registered valuer or merchant banker must sign. We give a fixed fee in writing after understanding the transaction.

Usually not. Each law has its own method rules and signatory. The underlying analysis can be shared, but separate reports or certificates are often needed, and we prepare them so the values are consistent.