Overview
What is ESOP Structuring & Advisory?
ESOP Structuring & Advisory in Sri Sathya Sai District — in brief
ESOP (Employee Stock Option Plan) Structuring involves designing a legally compliant equity incentive programme for a company's employees, directors and key management personnel. Under Section 62(1)(b) of the Companies Act 2013 and SEBI (Share Based Employee Benefits) Regulations, companies must follow specific procedures for ESOP pool creation, scheme document preparation, grant, vesting and exercise. The exercise price must be determined using the Rule 11UA valuation methodology for unlisted companies. Upon exercise, the difference between FMV and exercise price is taxable as a perquisite under Section 17(2) of the Income Tax Act. For clients in Sri Sathya Sai district, Andhra Pradesh, Lorven Tax handles every step online with CA review and status updates.
Reviewed by the Lorven Tax CA team · Last updated 31 Oct 2026
- Service category
- Consultation
- Typical timeline
- 14–21 business days for scheme design, board/shareholder approval and MCA filing
- Government fee
- ₹500 for MGT-14 filing; IBBI valuer fees for Rule 11UA valuation
- Professional fee
- Starts at ₹19,999
- Process
- 100% online, CA-reviewed
- Coverage
- Sri Sathya Sai District (Sri Sathya Sai district, Andhra Pradesh)
When this becomes important
- Before funding, a loan, a tender, an audit or major vendor onboarding
- When ownership, address, business activity or filing status changes
- After a notice, mismatch, portal query or department communication
What we verify before filing
- Legal name, PAN, address and authorised signatory consistency
- Thresholds, category rules, due dates and late-fee exposure
- Supporting documents, portal access and compliance history
- GST state code
- 37
- Registrar of Companies
- Registrar of Companies, Vijayawada (jurisdiction: whole of Andhra Pradesh since 29 Oct 2018)
Benefits
Why get ESOP Structuring & Advisory?
Attract and retain top talent through equity participation without immediate cash cost
Legally compliant ESOP scheme reduces risk of SEBI/MCA scrutiny
Rule 11UA valuation sets defensible FMV for exercise price and perquisite tax calculation
Structured vesting schedules (typically 4-year with 1-year cliff) align employee incentives
ESOP trust structure provides flexibility for buybacks and secondary liquidity
Tax planning for employees
timing of exercise and sale to minimise perquisite and capital gains tax
Eligibility
Who can apply?
- 1Startups and growth-stage companies wanting to incentivise key employees
- 2Private limited companies with DPIIT recognition (special tax benefits for startup ESOPs)
- 3Companies preparing for funding rounds or public listing (pre-IPO ESOPs)
- 4Any company with employees whose retention is critical to growth
What's included in our service
- Eligibility check and structure advisory
- Document checklist and application preparation
- Government portal filing and professional follow-up
- Post-approval compliance guidance
Checklist
Documents required
Exact documents vary by case — your CA shares a precise checklist after the first review call.
Process
How ESOP structuring & advisory works
- 1
Share your documents
Send KYC, business details and the required documents. We review eligibility and flag gaps before filing.
- 2
Preparation & CA review
Our team prepares the application, declarations and supporting records in the format the portal or authority requires.
- 3
Filing & follow-up
We file and track the ARN, SRN or acknowledgement, and respond to any objection, clarification or department query.
- 4
Certificate & compliance guide
You receive the certificate, acknowledgement or report, plus a checklist for renewals and recurring compliance.
Fees & timeline
Cost and time to expect
Confirmed in writing before work starts
₹500 for MGT-14 filing; IBBI valuer fees for Rule 11UA valuation
Subject to portal processing
What you receive
ESOP Structuring & Advisory completed with clean records, documented filings and a practical compliance calendar.
FAQs
ESOP Structuring & Advisory: frequently asked questions
GST state code: 37. Registrar of Companies: Registrar of Companies, Vijayawada (jurisdiction: whole of Andhra Pradesh since 29 Oct 2018). Lorven Tax handles these state-specific steps for clients in Sri Sathya Sai district, Andhra Pradesh.
Our professional fee starts at ₹19,999; government fees are charged at actuals. Call or WhatsApp +91 94921 37975 for the exact fee for your case.
For non-DPIIT-recognised companies, perquisite tax is triggered at the time of exercise of stock options. The perquisite value is the difference between the Fair Market Value (FMV) on the date of exercise and the exercise price paid by the employee. This is included in the employee's salary income and TDS must be deducted by the employer. DPIIT-recognised startups can defer perquisite tax to the earlier of sale, 5 years from exercise, or cessation of employment.
Rule 11UA of the Income Tax Rules prescribes the method for determining Fair Market Value of shares of unlisted companies for ESOP purposes. For resident employees, FMV is determined by a merchant banker or a SEBI-registered Category I or II Alternative Investment Fund. For the ESOP exercise price and perquisite tax computation, the Rule 11UA FMV report is the gold standard. We coordinate with empanelled merchant bankers for Rule 11UA valuations.
Industry standard for Indian startups is to reserve 10–15% of the fully diluted share capital for the ESOP pool before a Series A round, and 7–10% after. The ESOP pool is created through a special resolution and prior to a funding round to avoid diluting the incoming investor. We model the optimal pool size based on your hiring plan, current cap table and investor expectations.
ESOP Structuring & Advisory typically takes 14–21 business days for scheme design, board/shareholder approval and MCA filing, subject to document readiness and government portal processing times.
Yes. We support ESOP structuring & advisory for clients in Sri Sathya Sai district, Andhra Pradesh, including document review, portal filing, professional follow-up and post-completion guidance.
Most work is completed online through phone, WhatsApp, email and secure document sharing. If an authority requires a physical step, we tell you upfront and coordinate it.