ESOP
An ESOP lets you reward and retain key talent with equity instead of cash. We design your ESOP pool and scheme, get the approvals and RoC filings right, and handle grant, vesting and the tax implications end to end.
Key benefits
- Attract and retain talent without burning cash
- A compliant scheme with board and shareholder approvals
- Correct RoC filing (MGT-14) and grant documentation
- Guidance on perquisite and capital-gains taxation
Documents required
- Company details and cap table
- Proposed pool size and vesting terms
- Board and shareholder details
- List of eligible employees
How it works
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1
Scheme design
We size the ESOP pool and draft the scheme — eligibility, vesting and exercise price.
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2
Approvals
Board approval followed by a special resolution (75%) of shareholders.
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3
RoC filing
Form MGT-14 filed within 30 days of the special resolution.
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4
Grant & records
Grant letters issued and the ESOP register maintained through vesting.
Frequently asked questions
Who can receive ESOPs?
Permanent employees and directors (excluding independent directors and, generally, promoters/large shareholders), including those in a holding or subsidiary company.
How are ESOPs taxed?
As a perquisite at exercise (on the discount to fair value) and as capital gains at sale. Eligible startups can defer the perquisite tax.
Do private companies need a trust?
Not necessarily — options can be granted directly. A trust route is optional and typically used for larger pools.