Company Building

Our CA who had agreed to work on stakes has demanded 12%

Sujit Singh Co-founder @ Sharedpro

February 20th, 2018

We registered a partnership firm 4 months back and now after a small amount of funding in hand we are incorporating a company but my CA who was ready to work on stakes has demanded 12% equity in the company. What shall we do?

Sunil Kumar Business Development, Finance, Co-CEO

February 21st, 2018

Contract my friend, contract is the answer. Did you agree anything in written? If no, this is going to be a lesson, and hope that you still have time to correct it.


You should bring him to the negotiation. Than offer his monthly/daily compensation for the work delivered so far. He, legally has no claim beyond it.


After this is sorted out- sign a written agreement with whatever you can offer and afford. Though, in India CAs can be hired as freelancer and the whole work can be outsourced to thousands of those accountant firm. Send me a message I can try to look.



Rahul Asanikar Cofounder of Benchmark IT Solutions

February 21st, 2018

If they are not investing money in your business, that’s way way too much. There are companies or CAs who help you get funded, they charge 2-4% of the funds you get. No equity is involved. For just advisory position which may involve finance, strategy, sales or anything else, I have seen advisors get 0.5% to 4% but that stake is acquired over many years. Not on day 1. They need to prove the value over a period of time. If they are not willing to do that, they are greedy. In fact, even cofounders should have vesting which helps the company limit their dilution if they are not performing. CAs are not even working full time. I would find a new CA.

Susan Rits Founder and CEO @Zazum (acquired) Product design, mentorship, advisor; ex-Googler, PayPal, Oracle

February 23rd, 2018

Sorry to say this is going to be typical behavior from many who become associated with your startup. There will be a lot of people with their hand out. It's a good idea to have a conversation with your cofounders about exactly how much equity to put aside for (future) employees and who qualifies as important enough to the company to get an equity stake.


Everyone else should be told, "I'm sorry, but we do not give equity for that role."

Dane Madsen Organizational and Operational Strategy Consultant

February 20th, 2018

In the US we would just get a different accountant. Is that not practical in India?

Aji Abraham Proven Tech Cofounder, open to new ventures

February 20th, 2018

In a startup with limited funding role for the CA is limited. If you were to pay him/her for the work does, it shouldn't be much . Unless the CA is adding some other key role , you wouldn't want to give any stake to somebody who is not part of the business or investor.

Sujit Singh Co-founder @ Sharedpro

February 20th, 2018

Of-course yes, but what I wanted to know is how much stake is feasible to give to any CA if we want to have a CA on an equity basis.

Sujit Singh Co-founder @ Sharedpro

February 23rd, 2018

Thanks for the insights everyone.