We've incorporated a Pvt Ltd company 2 months back , in oct'2013.
I wish to go in for ESOP, so that I can pay lesser in the form of salary in the first couple of years, till the company grows.
But I hear ESOp cannot be given in the first year? Is it true?
Under the Companies Act, 1956, there is no enabling provision for issue of ESOP. For listed Companies, SEBI has promulgated regulations for the same. Since yours is a private company, ESOP can not be issued in the absence enabling provisions. But you can issue sweat equity shares as per Unlisted Companies (Issue of Sweat Equity Shares) Rules 2003. But I dont think that will serve your purpose.
Sir/ Mam
Please find attached herewith PPT regarding incorporation of Companies under the provisions of new Companies Act, 2013.
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Pranjal Jain
BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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