Employee Stock Options (ESOPs) Advisory
Employee Stock Option Plans (ESOPs) are an effective way to attract, retain, and reward employees by offering them ownership in the company. ESOPs allow employees to purchase shares at a predetermined price, creating long-term wealth-building opportunities and aligning their interests with business growth.
At VPS and Associates, we assist businesses in designing, structuring, and implementing ESOPs while ensuring compliance with the Companies Act, 2013, SEBI (Share-Based Employee Benefits and Sweat Equity) Regulations, 2021, Income Tax Act, 1961, and RBI Guidelines (for foreign investments).
Ministry of Corporate Affairs (MCA) – ESOP Guidelines: https://www.mca.gov.in/
SEBI Regulations on ESOPs: https://www.sebi.gov.in/
Income Tax Rules on ESOPs: https://www.incometaxindia.gov.in/
Our ESOP Services
1. ESOP Structuring & Implementation
✔ ESOP Policy Drafting & Plan Design
✔ Types of ESOPs – Equity-Settled, Cash-Settled, Sweat Equity, RSUs
✔ Determining Eligibility Criteria & Vesting Schedule
✔ Board & Shareholder Approvals for ESOP Implementation
Know More About ESOP Structures: https://www.mca.gov.in/
2. Legal & Regulatory Compliance for ESOPs
✔ Filing ESOP Resolutions & Disclosures with MCA (MGT-14, PAS-3)
✔ Compliance with SEBI ESOP Guidelines for Listed Companies
✔ ESOP Taxation Compliance (TDS, Perquisite Tax, Capital Gains Tax)
✔ Foreign ESOP Compliance – RBI & FEMA Filings for MNCs
SEBI ESOP Regulations for Listed Companies: https://www.sebi.gov.in/
RBI Guidelines for Foreign ESOPs: https://www.rbi.org.in/
3. ESOP Valuation & Accounting
✔ Valuation of ESOPs as per IND AS 102 & IFRS 2
✔ Fair Value Calculation for ESOPs (Discounted Cash Flow, Black-Scholes Model, etc.)
✔ Financial Statement Disclosure & Accounting Treatment
✔ Impact Analysis on Balance Sheet & Profit & Loss Account
Check MCA & ICAI Guidelines on ESOP Accounting: https://www.mca.gov.in/
4. Taxation & Compliance for Employers & Employees
✔ Tax Deduction & Compliance for Employers on ESOP Expenses
✔ Tax Liability on ESOPs for Employees (Perquisite Tax, LTCG, STCG, etc.)
✔ ESOP Tax Filing & Reporting in Income Tax Returns
✔ International Taxation Considerations for Expats & NRIs
Income Tax Regulations for ESOPs: https://www.incometaxindia.gov.in/
5. ESOP Liquidity & Exit Strategy
✔ Buyback of ESOP Shares & Secondary Sale Mechanisms
✔ Exit Strategies for ESOP Holders (IPO, M&A, Delisting)
✔ Employee Payout & Share Redemption Planning
✔ Funding & Financing of ESOP Buybacks
Know More About ESOP Buybacks & Exits: https://www.mca.gov.in/
Why Choose VPS and Associates for ESOP Advisory?
End-to-End ESOP Structuring & Implementation
Legal & Tax Compliance for ESOPs & Share-Based Plans
Expert Assistance in ESOP Valuation & Financial Reporting
Smooth Execution of ESOP Buybacks & Liquidity Events
Contact Us for ESOP Advisory Services
Office Address:
VPS and Associates
8-3-988/11/1/A, 1st Floor, SBH EXTN 925,
SBH Colony Road, Hyderabad – 500045
📧 Email id : team@vpsandassociates.com
Contact us today!
☎️ Landline: 040 – 29801299
📲 Mobile no: 8886359392 / 9030931302
Implement ESOPs the Right Way – Get Expert Advice Today!
