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: Legal Compliance
ROC Delhi Order on Section 10A Penalty: What Went Wrong and Lessons for Compliance Professionals
ROC Delhi penalized Tejas Cargo India Ltd for availing a commercial loan before filing INC-20A. The case highlights Section 10A compliance requirements under the Companies Act 2013 and offers key lessons on avoiding procedural defaults in post-incorporation stages.
Legal Framework of ESOPs in India (2026 Guide)
Employee Stock Option Plans (ESOPs) in India are governed by Section 62(1)(b) of the Companies Act, 2013 and Rule 12 of the Share Capital and Debentures Rules, 2014. This guide explains how private companies must structure, approve, and file ESOPs under the MCA V3 portal in 2025. It covers board and shareholder approvals, filing forms like MGT-14 and PAS-3, and maintaining Form SH-6. The article also highlights compliance mistakes startups commonly make and how to avoid them during audits and funding rounds. Perfect for founders, CFOs, and company secretaries seeking a clear understanding of ESOP legal compliance in India.