ESOP — Structuring, Tax & Liquidity
Employee equity done right — pool sizing, vesting, Section 17(2) perquisite tax, the four taxable events, buyback mechanics and the year-one mistakes that quietly cost employees lakhs by year five. The full ESOP lifecycle from grant to exit.
See the ESOP serviceESOP Structuring for Indian Startups: Grant to Exit
How to design an ESOP scheme that survives — pool sizing, vesting, Section 17(2) tax, RSU vs options, and the seven mistakes founders make in year one that cost employees lakhs by year five.
Read articleESOP Pool Sizing: 10%, 15%, or 20%?
Pre-Series A pool, post-money pool, ratchet clauses and the maths that founders fight investors over. A practical framework for sizing your ESOP pool without giving away unnecessary equity.
Read articleESOP Taxation in India: Grant, Vest, Exercise, Sell
When is ESOP taxed under Section 17(2) as a perquisite, when as capital gains, and how the 2020 startup deferment works. The four taxable events, the FMV mechanics, and the planning levers that save employees lakhs.
Read articleESOP Buyback by the Company: Mechanics & Tax
Liquidity for vested employees via company-led ESOP buyback — Section 68 mechanics, valuation under Rule 11UA, the 23.296% buyback tax under Section 115QA, and the structuring choices that make or break the exercise.
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