How to setup an ESOP scheme for your Company?

Draft an ESOP Policy with terms on:

• Eligible employees
• Vesting & Cliff
• Exercise Terms & Price
• Terms on Resignation or Termination
• Fair Market Value determination

1. Approve the policy in a Board Meeting and then in a General Meeting through Special Resolution
2. Ensure the Articles of Association allow for ESOPs, and amendment of Memorandum of Association to have an unissued ESOP pool as part of Authorized Capital
3. File Form MGT-14 with the MCA for these resolutions (may need filing of SH-7 for increased authorized capital)
4. Issue Grant Letters to eligible employees
5. Maintain register of ESOPs in Form No. SH-6
6. Track the ESOPs vesting schedule, exercise and conversion in Excel or a software for it such as QAPITA OR CARTA.