ESOP Planning

Best Suited For
• Start-ups looking to hire top-talents
• Method to set-up co-founders remunerations
• Companies looking to retain top employees
• Saving cash flows for start-ups

Starting from ₹ 4,999 (All Inclusive)

    ESOP Planning

    Starting @ ₹ 4,999 (All Inclusive)

      What's Included?

      Benefits of ESOP Structure

      Increased Loyalty

      No Cash-out or Liquidity issue

      Encourages Employees

      Instills Trust and Transparency

      Retains Top Talents

      Boosts Team Morale

      Documents Required

      What Next?

      Fill the form
      Talk to BizExpert
      Submit Documents
      Sit Back & Relax
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      What is ESOP?

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      So Let's Begin?


        Owners have many options available with them while selling their company. An ESOP is an effective tool for ownership succession planning while enabling employees at the same time to share in the companys success.

        Yes, Definitely Private Limited companies also can offer ESOPs to its employees subject to certain limitation in maximum number of Shareholders.

        As per IRS, The maximum age an employer can impose to be eligible for an ESOP is 21. Moreover, he/she should be eligible for ESOP at the time of joining the company. An employer at his own discretion can restrict the eligibility to employees who serve two years of service but only if the plan is been immediately vested.

        • Permanent Employees of the Company irrespective of where he works except the employee who is a promoter i.e who holds the shares.
        • Directors of the Company whether they are whole time director or not but excludes independent directors i.e. directors who hold more than 10% shares.

        Definitely as being part of ESOPs Company, it can provide unique rewards and recognition for the work they have rendered in an organization. Also such ESOPs come with retirement benefits as well at no monetary cost to them.

        No, considering that the overall saving in liquidity and the boost to the team morale, the cost of ESOP is nothing not just intangibly but also in a tangible manner. The overall cost will be less than the interest most companies will save on the saved liquidity.

        With an ESOP, Employees are offered the right to buy a specific number of Shares of company stock at a specified price called the Grant price/ Exercise Price/ Strike Price within a specified number of years.

        The price of the stock in an ESOP is normally determined on an annual basis by a qualified valuation company.


        The Value is based on many factors considering many aspects like current and projected performances of the company, Performance of similar traded companies, The outlook for the industry it operates and geographical area within which the company is operating along with economic outlook overall.

        In normal scenario, when a company is sold, the ESOP will usually terminate and the employee- owners of ESOPs receive cash proceeds for the stock they hold. However, in some cases it may even happen that your company may be sold to a company with its own ESOP. Normally, in such a scenario, you are offered ESOPs in the shares of the new company.

        Employees will not be able to pledge the ESOP account directly as collateral.