Ensure MCA compliance and proper documentation today at just INR 35,399/- only.
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An Employee Stock Option Plan (ESOP) allows companies to offer equity to employees as part of their compensation. Startups and private limited companies often use ESOPs to attract, motivate, and retain talent while minimizing cash outflows. This service by Ebizfiling helps you legally create, approve, and file your ESOP plan in line with Indian company law.
(All Inclusive)
(All Inclusive)
Define ESOP goals
Draft policy
Get approvals
Issue grant letters
File with MCA & get support
Our experts help define ESOP goals and draft a compliant policy covering vesting, pricing, and eligibility criteria.
We assist in securing Board and Shareholder approvals and issue grant letters to eligible employees smoothly.
MGT-14 and PAS-3 are filed on the MCA portal. We ensure compliance and provide complete post-filing support.
Yes, registered private limited companies under Companies Act, 2013 can issue ESOPs.
Only for listed companies. Private companies follow MCA guidelines.
Yes. MGT-14 and PAS-3 must be filed for legal validity.
It’s the time employees must serve before they can exercise their ESOPs
Yes. Tax is levied at the time of exercise and again at sale. DPIIT-recognized startups get deferred taxation benefits.
No. ESOPs are only for full-time employees and directors.
Yes, upon exercise and issuance of new shares, existing ownership gets proportionately diluted.
Generally, companies grant ESOPs only after the probation period is over, but the policy can define such eligibility.
Invested ESOPs are forfeited. The employee does not receive any rights to them.
No, ESOPs are non-transferable. They can only be exercised by the employee to whom they were granted.
The company’s board determines the exercise price, which is often lower than the market value to incentivize employees.
RSUs (Restricted Stock Units) are granted as shares after a vesting period, while ESOPs are options to buy shares at a fixed price.
Yes, companies need a valuation report from a registered value to determine the fair market value for compliance and taxation purposes.
There is no legal restriction on frequency. It depends on the company’s policy and board approval.
Ensure MCA compliance and proper documentation today at just INR 35,399/- only.
Trusted by 5000+ Businesses and Managed by Expert Professionals
I’ve been using their service for over 5 years and am completely satisfied. They are cost-effective and always respond in a timely manner. I totally recommend them, especially if you’re new to the accounting and legal world.
Very good Service. The staffs are very cooperative. Particularly Nilesh is very cooperative and punctual. They deliver all the documents on time. Thank you all for your support.
Excellent Services, Best Firm as we experienced.
