Company Law : Learn about ESOPs and Sweat Equity, employee benefit plans designed to incentivize employees and enhance company performance. Und...
Company Law : Explore concept of sweat equity shares, their legal framework under Companies Act, 2013, and advantages and disadvantages of using...
Company Law : his article provides a comprehensive understanding of sweat equity shares, as defined by the Companies Act, 2013, in India. It cov...
Income Tax : Explore key ESOP (Employee Stock Ownership Plan) terminology and tax implications. Understand grant dates, vesting periods, exerci...
Company Law : Learn about Sweat Equity Shares and the process of issuing them. Explore limits, valuation procedures, and steps to issue shares u...
Income Tax : How is the FBT to be valued? And when is the tax payable? The fringe benefit is to be valued at the fair market value (FMV) of th...
Income Tax : NOTIFICATION NO. 264/2007, DATED 23-10-2007 Valuation of specified security or sweat equity share being a share in the company. 40...
Income Tax : By virtue of the provision of clause (d) of sub-section (1) section 115 WB, introduced by Finance Act, 2007, an employer is liable...
SWEAT EQUITY SHARES: Sweat equity shares are the shares given to directors/employees of the any company at a discounted price or other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions to the company. Section 54 of the Companies Act 2013 specify the provisions for […]
Employees Stock Option Scheme (ESOP) and Sweat Equity Shares are two methods of issuing shares by a company to its employees and also can increase the share capital of the Company. Both ESOP and Sweat Equity Shares are issued as per the provisions of the Companies Act, 2013 and Companies (Share Capital and Debentures) Rules, […]
A Start Up in common parlance means a project undertaken by entrepreneur seeking to develop a scalable business model. The Government of India in order to streamline and promote all such brain child ideas launched an initiative called Start Up India on 16th January 2016. It intended to build a strong network nurturing all the […]
Applicable Provisions: Section 43 of Companies Act, 2013 r/w Rule 4 of Companies (Share Capital and Debentures) Rules, 2014. Section 43 enables a company to issue equity shares with differential voting rights as to dividend, voting rights, etc. and at the same time Rule 3 of 2014 Rules states that the provisions of these rules […]
What are Sweat Equity Shares? The Promoters and employees who contribute to the formation of the company may like to get compensated against their hard work (Sweat) in the form of equity either discounted price or consideration other than cash. This is what term as sweat equity. It helps the business retain its brilliant human […]
Startup: Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities. Who can be registered as Startup? Private Limited Company Registered Partnership Firm limited liability partnership (LLP) Note: […]
Beyond the accounting sheet, employees are the asset of the organisation and like any asset, your people need to be invested in. Companies offers various benefits to the workers who offer their valuable expertise in the organisation. There is a way of EQUITY COMPENSATION for the employees who give their hard work and perspire for […]
Sweat Equity Shares are Shares or Specified Securities issued at discount or for consideration other than cash to employees or directors of the company as reward their hard work or for their value addition in the progress of the company . These are generally issue in lieu of value additions and against providing Intellectual Property Rights by the employees or directors to the Company.
Section 53 of the Companies Act, 2013 prescribes that Company shall not issue shares on discount. Any shares issued by the Company at a discount shall be void. However, there are certain circumstances where Company can issue shares at a discount: ♦ Issue of Sweat Equity Shares ♦ Issue of shares to the Creditors when […]
Issue of Sweat Equity Shares In the current scenario, an employee is the key of the success of every organization and every employee deserve to be compensated for the efforts made by them to make the organization successful in the competitive market and the issue of Sweat Equity shares is the best way to compensate […]
