Article · Official primer

Employee Stock Options for Startups (Startup India)

Startup India / DPIIT · startupindia.gov.in Free Advanced India

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.

  • ESOPs must be approved by at least 75% of shareholders
  • The gap between market value and exercise price is taxed as a 'perquisite'
  • ESOPs are a core tool for hiring and retaining early talent when cash is tight
Open on startupindia.gov.in ↗

It answers 2 questions

  1. How much equity should I set aside for an ESOP pool for employees?
  2. How do I compensate early employees with salary and equity in India?

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