ESOP Scheme Compliance
ESOP Scheme Compliance
Employee Stock Option Plans (ESOPs) help companies reward and retain key talent. But setting up an ESOP isn’t just about issuing options. It involves a detailed policy, valuation, board and shareholder approvals, ROC filings, and ongoing compliance as options vest and convert into shares. A well-managed ESOP keeps your cap table clean and avoids legal or tax issues later.
We help you design, implement, and maintain ESOP schemes with complete compliance under the Companies Act.
What we do
Draft ESOP Policy and Scheme
Prepare board and shareholder resolutions
Coordinate with valuers for ESOP valuation
File MGT-14 and PAS-3 as required
Maintain ESOP registers and vesting records
Assist with vesting, exercise, and share allotment process
Guide on taxation and reporting requirements
Support during audits, due diligence, and investor reviews
Why this matters
Poorly structured ESOPs create cap table confusion, disputes with employees, and compliance gaps with MCA. Clean ESOP management protects both the company and the employees, and keeps investors confident.
Frequently Asked Questions
An Employee Stock Option Plan gives employees the right to buy company shares at a future date, usually at a pre-decided exercise price.
Private companies, unlisted public companies, and listed companies can issue ESOPs subject to the Companies Act and (if applicable) SEBI regulations.
Both board and shareholder approval (via special resolution) are mandatory.
MGT-14 for approving the ESOP scheme, and PAS-3 when shares are allotted upon exercise.
ESOP policy, valuation report, option grant letters, vesting schedules, exercise documents, board and shareholder resolutions.