We want to provide equities to our employees and some consulting companies.
We are a LLP.
Can we do it? Is there any issue? Do we need to follow certain documentations for this or what will be the procedure etc.
Please help me
3 Replies
Shilpa Laharwal
(Law Firm)
(18 Points)
Replied 12 January 2016
LLP Do not have paper shares as in case of Pvt. Ltd. Co. and hence cannot issue ESOPs.
Shilpa Laharwal
(Law Firm)
(18 Points)
Replied 12 January 2016
LLP Do not have paper shares as in case of Pvt. Ltd. Co. and hence cannot issue ESOPs.
Rachana Kapadia
(DM)
(22 Points)
Replied 27 January 2017
Dear San,
I guess you are looking out for innovative mechanism / instrument through which you can give ESOP like benefits to your employees given the LLP structure. Have you considered something in line with Phantom Stocks. Given the LLP limitations, you may not be able to issue stocks, but you can certianly consider creating some rights along those lines.
I am looking for similar solution with an LLP structure. Though, I preassume there would be some taxation hurdle to this as well along with LLP act.
In case you have arrived at any structure which you could share / provide hint. It will be very helpful.
In case I come across something would love to share with you.
Regards,
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