How much equity should I set aside for an ESOP pool for employees?
Carve out roughly 10-15% for an option pool before you raise, so early hires get real ownership without diluting you unexpectedly later. In India, structure it as a formal ESOP scheme approved by shareholders and mind the perquisite tax at exercise, it's not just a spreadsheet. Reserve it early; scrambling to create a pool during a fundraise weakens your position.
Go deeper
3 resources, 3 link-checked.
📄 Article
✓ Link checkedIndiaFreeAdvanced
The official Indian government primer on structuring ESOPs for startups, a primary source on the rules that most blog posts paraphrase. Essential before you promise equity to early hires.
A practical India-specific walkthrough of equity split, vesting, and IP clauses in a co-founder agreement, from a mainstream Indian legal services provider. It covers what a US template will miss.
A detailed, clause-by-clause drafting guide with Indian legal context, including enforceability and state-wise stamp duty, that goes deeper than a generic template. Written for Indian founders specifically.
