Step-by-Step ESOP Implementation Checklist

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Key Compliance Forms Overview

• AOA: Articles of Association document that defines a company's purpose, rules, and regulations. Must include ESOP provision.
• Form MGT-14: Amendment to AoA and special resolution filing (within 30 days).
• Form PAS-3: Filing post-allotment of shares upon ESOP exercise (within 30 days).
• Form SH-1: Issuance of share certificates.
• Form SH-6: Updating the register of ESOP options.
• Vesting Schedule: Indicates when employees receive full rights to their options (usually 4 years with 1-year cliff and monthly/quarterly vesting thereafter). </aside>

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This checklist provides a systematic guide for founders to successfully implement ESOPs in their organization while ensuring compliance with Indian regulations. Let me know if you need further details on any step!

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Please fill out this form to start the process

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Step 1: Preliminary Steps

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Step 2: Drafting the ESOP Policy

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Step 3: Board Approval

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Step 4: Shareholder Approval

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Step 5: Implementation Planning

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Step 6: Employee Communication

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Step 7: Post-Vesting

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Step 8: Regulatory Filing After Exercise

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Step 9: Post-Allotment Compliance

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Step 10: Ongoing ESOP Management

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