How Startups Should Legally Structure ESOPs in India
A complete legal guide for Indian startups on how to structure ESOPs — from approvals and valuation to grant, taxation, and compliance under Indian law.
Tag: employee ownership
Understanding Vesting, Exercise, and Lock-In: The Heart of an ESOP
Vesting, exercise, and lock-in are the three pillars of every ESOP. Understand what they mean under Indian law, how taxation applies, and how startups can manage them effectively.
Taxation of ESOPs for Startups in India
Learn how Indian startups and employees can plan ESOP taxation under the Income Tax Act, 1961 — covering perquisite tax, capital gains, and DPIIT exemptions.
Difference Between ESOP, Sweat Equity, and Phantom Stock in India: Practical Comparison for Founders, CFOs, and Compliance Teams
Equity-linked rewards are shaping how Indian startups attract and retain talent. This guide explains the key differences between ESOPs, Sweat Equity Shares, and Phantom Stock Plans — including legal framework, compliance under the Companies Act, 2013, valuation rules, and taxation impact for Indian companies in 2026.
What is an ESOP and Why Startups Use It?
An Employee Stock Option Plan (ESOP) allows employees to become co-owners in the company they help build. For startups and private companies, ESOPs are a powerful tool to attract, retain, and motivate key talent — without straining cash flow. This article explains how ESOPs work in India, their legal framework, and why they’re vital for sustainable growth.