Private placement — equity and preference shares.
Raising capital is a big step, and the paperwork can get complicated. Whether you're issuing Equity Shares to co-founders or CCPS to investors, we're your single point of contact for valuation, filings, and agreements.
Most Indian startups use CCPS, not Equity Shares, for their Seed and Pre-Series A rounds. CCPS gives investors no voting rights until conversion and priority payout if the company is sold — protecting founder control while still giving investors downside protection. Equity Shares are better suited to co-founders and team members who own the company alongside you.
Equity or CCPS — which one should you choose?
In India, most startups use CCPS for early funding rounds because it protects the founder's control.
| Feature | Equity Shares | CCPS (the investor standard) |
|---|---|---|
| Voting rights | Investors get immediate voting rights on all company matters | No voting rights until conversion to equity — keeps founders in control |
| When to use | Best for co-founders or team members who own the company with you | Best for Seed and Pre-Series A rounds with outside investors |
| Payouts | These shareholders are last to get paid if the company is sold | Priority payout — investors get their money back before equity holders |
| Future | They stay as equity shares forever | Automatically convert to Equity Shares later, usually at Series A |
What is required to start.
To stay compliant under the Companies Act, we make sure you have these five things ready before the round closes.
You can offer shares to a maximum of 200 people in a year under the private placement route.
A Registered Valuer must sign a report to fix the share price before the offer goes out.
You must open a separate bank account just to receive this investment money.
You cannot advertise the share issue on social media or in the news — it must remain private.
Your company must be up to date with its regular ROC and tax filings before the round closes.
Usually 4 to 5 weeks from start to finish.
| Valuation & approvals | 10–15 days Registered Valuer report + board/shareholder resolutions |
| Offer & getting funds | 10 days Depends on investor timelines |
| Allotment & final filings | 5–7 days PAS-3 and share certificates |
| Total time | 4–5 weeks From start to finish |
The six steps we handle for you.
Instead of you coordinating three different firms, our team manages the whole flow.
Price & terms
Our CAs do the valuation, and our lawyers draft the Shareholders Agreement (SHA) so your rights are protected.
Approvals
Our CS team prepares the board and shareholder resolutions needed to approve the new shares.
The offer
We send out the formal Offer Letter (PAS-4) to your investors and keep the official records (PAS-5).
Money transfer
You receive the funds from investors into your dedicated bank account.
Allotment
Once the money is in, we hold a board meeting within 60 days to officially allot the shares to investors.
Final paperwork
We file the Return of Allotment (PAS-3) with the ROC and hand over stamped Share Certificates.
How much does it cost?
The cost for private placement depends on the number of shareholders involved. It starts from ₹20,000, for up to 10 shareholders.
Not ready to fix a valuation yet?
Common questions about private placement.
Why do most startups issue CCPS instead of Equity Shares to investors?
+Is there a limit on how many investors we can raise from?
+Can we advertise that we're raising a round?
+How long do we have to allot shares after receiving the money?
+Does the cost change based on how many investors are in the round?
+Ready to close your funding round?
Schedule a no-obligation discovery call. We'll help you choose between Equity and CCPS, and get the paperwork moving.
Schedule a consultation Write to rohit@krprassociates.com