# Startup Funding, ESOP & Cap Table Services

> Startup funding support covers everything a founder needs between incorporation and a closed round: DPIIT recognition and the Section 80-IAC tax holiday, a clean cap table, founder and shareholder agreements, an ESOP pool, a defensible valuation and investor-ready financials. Angel tax under Section 56(2)(viib) no longer applies from AY 2025-26, but share issues still have FEMA, Companies Act and valuation requirements.

## Who this is for

- Founders preparing for a friends-and-family, angel or VC round
- DPIIT-recognised startups applying for the 80-IAC tax holiday
- Startups setting up or expanding an ESOP pool
- Companies issuing CCPS, CCDs or convertible notes to investors
- Founders who need a financial model or valuation for investors

## Services

- [Section 80-IAC Startup Tax Exemption](https://www.industax.com/services/startup-funding/startup-tax-exemption-80iac) — Inter-Ministerial Board certificate, the three-year tax holiday and startup tax planning
- [Angel Round Advisory](https://www.industax.com/services/startup-funding/angel-investment-advisory) — Structuring and closing angel and friends-and-family rounds
- [Seed & VC Fundraising Readiness](https://www.industax.com/services/startup-funding/fundraising-readiness) — Data room, financials, compliance clean-up and term-sheet preparation
- [Investor Due Diligence Support](https://www.industax.com/services/startup-funding/investor-due-diligence-readiness) — Handling financial, tax, legal and secretarial due diligence for your round
- [Cap Table Management](https://www.industax.com/services/startup-funding/cap-table-management) — Fully diluted cap table, dilution modelling and statutory record reconciliation
- [Founders' Agreement](https://www.industax.com/services/startup-funding/founders-agreement) — Equity split, vesting, roles, IP and exits between co-founders
- [Shareholders' Agreement & Term Sheet Review](https://www.industax.com/services/startup-funding/shareholders-agreement) — Investor rights, transfer restrictions and exit terms that work under Indian law
- [ESOP Scheme Design & Documentation](https://www.industax.com/services/startup-funding/esop-scheme-design) — ESOP pool, scheme, grant letters, approvals and employee tax
- [ESOP Valuation](https://www.industax.com/services/startup-funding/esop-valuation) — Merchant-banker FMV for perquisite tax and option fair value for accounting
- [SAFE, CCPS & Convertible Note Advisory](https://www.industax.com/services/startup-funding/safe-convertible-notes) — Choosing convertible instruments that work under Indian law
- [Startup Financial Model & Pitch Deck Financials](https://www.industax.com/services/startup-funding/startup-financial-model) — Driver-based three-statement models, unit economics and fundraising numbers
- [Startup Valuation](https://www.industax.com/services/startup-funding/startup-valuation) — Negotiation valuations and regulatory valuation reports for share issues
- [Startup Accounting & Compliance](https://www.industax.com/services/startup-funding/startup-accounting-compliance) — Books, GST, TDS, payroll, ROC and tax for early-stage companies

## FAQs

### Is angel tax still applicable in 2026?

No. The Finance (No. 2) Act, 2024 made Section 56(2)(viib) inapplicable from AY 2025-26, so share premium received from 1 April 2024 onwards is not taxed as income under that provision. Older years can still be examined in scrutiny or reassessment.

### Which startups can claim the Section 80-IAC tax holiday?

DPIIT-recognised private limited companies and LLPs incorporated before 1 April 2030 that obtain a certificate from the Inter-Ministerial Board. They can deduct 100% of profits for any three consecutive years out of their first ten.

### Do I need a registered valuer to issue shares?

Often yes. Issues to non-residents need a valuation under FEMA pricing guidelines, preferential allotments need a registered valuer under the Companies Act, and ESOP perquisite value for unlisted shares needs a merchant banker valuation. We arrange these through partner valuers.

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Canonical page: https://www.industax.com/services/startup-funding/
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.