FROM THE NEWSROOM
Financial and Regulatory Insights
Startup Esops (Employee Stock Option Plan)
ESOPs grant ownership interest to long-term employees, rewarding their contributions to the organization's success.
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Tax Exemption
No pay income tax. Donors claim contribution tax exemptions.
No Minimum Capital Requirement
No minimum investment is required.
No Stamp Duty Payable
Exempted paying stamp duty registration.
Separate Legal Entity
Own identity credibility autonomy more.
APPLICATION PROCESS
Application Process for ESOP
Preparation and approval of ESOP Scheme
The company must prepare and approve the ESOP Scheme, and the price of the shares issued under it is also determined beforehand.
Approval from Shareholders
The shareholder's approval for the issuance of shares through ESOP will be obtained through a special resolution at the general meeting.
Dispatch of Offer Letters
The company should provide options to its employees, directors, and officers for purchasing shares under an ESOP.
Vesting of Options
The grant and vesting of options must be a minimum of one year in duration.
Exercise of options by the employees
The ESOP scheme, approved by shareholders, grants options to eligible employees, with shares being allocated as and when options are exercised, and a 'Register of Employee Stock Options' maintained.
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