Contact Us

What is a ESOP?

Employee Stock Benefit Plan (ESOP) is a plan which gives employees ownership interest of a particular company. It gives an option of buying stock to the employees. It helps the company to keep their employees focused on the goal of the company. It gives a clear vision to the employees to understand what is best for the shareholders as they themselves are the shareholders of the company.

Process Flow

Step 1

Share requirements + documents

Share your requirements and the list of documents mentioned below.
Step 2

Drafting and sharing ESOP scheme

Our professionals will draft the Employee Stock Option Plan scheme
Step 3

Passing board resolution

A board meeting (Directors) needs to be conducted and resolution needs to be passed to Set-up the ESOP
Step 4

Approving the ESOP Scheme Shareholders Meeting

The scheme would be approved by shareholders in the meeting
Step 5

Grant Options to eligible employees

The scheme would be provided to only employees who meet the required criteria
Step 6

Exercise of options by the employees

Employees would be given choice of accepting ESOPs
Step 7

Board resolution for Allotment of shares

A resolution would be passed to brief out about allotment of shares
Step 8

Filing of e-form PAS-3

We will help in filing of e-form PAS -3 which needs to be filed within thirty days of allotment
Step 9

Issue share certificates to allottees

Then we will carry out issue of share certificate
Step 10

Sharing deliverables

We will share the ESOP Scheme , Extracts of Board Meetings and Shareholders Meeting, Filed e-Form, Challan and Share Certificates

Documents required

  • Corporate Identification Number (CIN) /name of the Company
  • Details for ESOP scheme of the Company


  • ESOP Scheme
  • Extracts of Board Meeting and Shareholders Meeting
  • Filed e-Form and Challan
  • Share Certificates

Why choose Wazzeer?

  • One platform for all your requirements

    Incorporation is just the first step. Wazzeer supports you throughout your journey as an entrepreneur. Log in to get things done efficiently. A dedicated Account Manager offers the required human touch and acts as an advisor to you.

  • Experienced professionals

    Our professionals have at least 5 years of experience and have incorporated thousands of companies among them. The rich experience ensures that the process is smooth and right in the first go.

  • Defined process

    Over the last few years, doing over 500 incorporations, we have defined every step of the process. A virtual process is in place enabling us to deliver hassle free experience for you.

  • Cost Effective

    You pay what you see in the proposal. No surprises or hidden charges.

Frequently Asked Questions

An ESOP (Employee stock ownership plan) refers to an employee benefit plan which offers employees an ownership interest in the organization.

An organisation gives ESOP to it’s employees for buying certain shares of the company at an allotted prices, which are lower than the market value. However, an employee can’t exercise ESOP until the vesting period gets over.

ESOP benefits include:

  • Provides a sense of ownership
  • Raising new equity capital.

Instead, ESOPs are most commonly used to provide a market for the shares of departing owners of successful closely held companies, to motivate and reward employees, or to take advantage of incentives to borrow money for acquiring new assets in pretax rupees.

If you leave the company after completing four years, your stock options would already be vested at the time of leaving the company.  Typically, vested stocks have two categories: non-qualified stock options (NQSOs) and incentive stock options (ISOs).

Yes, ESOPs shares can be sold in the market after taking permission from the company.

ESOPs are taxable as in the hands of employees. The value is the difference between the fair market price of the stock on the day the option is exercised and the price at which it is exercised.

An ESOP can last for five years.

When an employer offers ESOPs, they remain in a trust fund for a particular period. This period is called the vesting period. 

If an employee leaves the organisation or happens to retire before the designated vesting period. In that case, a company is required to buy back the ESOP within 60 days at a fair market value.