ESOP Instruments Feasibility Study

Choose the Right Equity Instrument for Your Stage, Strategy & Stakeholders

From early-stage startups to listed entities, companies in India have multiple instruments to reward employees — ESOPs, RSUs, SARs, Phantom Shares, and more. But each comes with legal, tax, accounting, and control implications. Qapita helps you evaluate all instruments across dimensions that matter and recommends what fits best for your structure, goals, and regulatory environment.

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Recognized as a Global Leader on G2

We are ranked the best in Customer Satisfaction, Enterprise and Mid-Market.

G2 Grid® for Equity Management Software | Summer 2025

Get It Right from the Start

Set up your cap table in minutes and establish a foundation that supports every stage of your growth. Model your first fundraise and understand how investor term sheets affect dilution. Qapita makes it easy to simulate outcomes and make informed equity decisions early.

Scale and Grow

As your company grows, your equity stack gets more complex. Qapita supports it all – options, SAFEs, preferred stock, warrants – with built-in workflows for board consents, investor updates, and structured governance. Every stakeholder stays aligned.

Stay compliant and confident

From valuations to filings, Qapita ensures your equity data is audit-ready and securely accessible to the right people. Manage 409A valuations, 83(b) elections, and reporting requirements with confidence – and stay ready for diligence at any moment.

Tailored Assessment Based on Your Company Profile

We Start with Where You Are

We assess your company’s stage, growth plan, ownership structure, investor preferences, and team composition. Whether you're a private limited company with VC funding, a foreign subsidiary, or a listed company governed by SEBI, we calibrate the feasibility study to your legal and operational context.

Full Spectrum of Instruments Evaluated

From ESOPs to SARs to Phantom – We Cover It All

We help you evaluate:
‍
• ESOPs (time-based or performance-linked)
• Stock Appreciation Rights (SARs)
• Phantom Shares (cash-settled or equity-settled)
• Restricted Stock Units (RSUs)
• Convertible Grants / Bonus-linked Equity

You’ll understand how each option works, where it fits, and what to avoid.

Comparative Analysis of Legal, Tax & Compliance Impact

We Make the Trade-Offs Clear

Each instrument is assessed for:
‍
• Income tax impact for employees
• Deductibility for the company
• Compliance under Companies Act, FEMA, SEBI (if listed)
• Documentation, execution complexity, and cost

You get a side-by-side comparison to support internal alignment and decision-making.

Cash Flow & Dilution Impact Modeling

Align Instrument Choice with Your Balance Sheet

We model how each instrument affects your cap table, dilution over time, and P&L impact (e.g., IND-AS 102 for listed firms or SAR-linked payouts for unlisted companies). This ensures your chosen instrument supports your capital strategy — not hinders it.

Investor and Board Recommendation Support

Build Buy-In with Data, Not Guesswork

Qapita prepares shortlists and presentation materials that help founders, CFOs, and HR leaders pitch the chosen instrument to investors and board members. We focus on governance, fairness, and long-term value so decisions are grounded and future-proof.

Jurisdictional Feasibility (Cross-Border Teams)

Operating Globally? We’ve Got You Covered.

For companies with India + international presence, we evaluate which instrument types are permissible and practical across jurisdictions. This includes country-specific tax implications, employment law triggers, and ESOP regulatory thresholds.

ESOP Review & Health Check

Already Have a Plan? Let’s See if It Still Works

We conduct a full review of your existing ESOP/SAR/phantom share plans — examining policy structure, instrument relevance, vesting logic, pool utilization, employee adoption, and compliance exposure. We identify what’s working, what’s outdated, and where strategic or regulatory adjustments are needed. Whether it’s pre-fundraise, pre-IPO, or just time for a cleanup — Qapita helps you realign your plan to your current reality.

Testimonials

Words From Our Valued Customers

They have extensive knowledge in this space. ESOP Direct guided us step by step through the entire process. We are particularly happy with their alacrity in responding to our queries!

Edward Tirtanata

CEO & Co-Founder, Kopi Kenangan

We are glad to have found a very competent consultant in ESOP Direct. A worthy partner to work with, is what I’d say.

Manhar Kapoor,

General Counsel & Company Secretary, Eicher Motors

ESOP Direct acted as Trustees for our employee stock option scheme. I am fully convinced we have made the right choice.

Umasree Parvathy

Chief Peoples Officer, Northern Arc

They worked alongside with us during the process great example of collaborative efforts to customize an employee stock option plan from scratch.

Yeoh Chen Chow

Co-Founder, MyFave

Their meticulous study and report gave us relevant data to take an informed decision. We are glad we engaged ESOP Direct.

Shailesh Singh

Head HR, Max Life Insurance

We entrusted our complete Plan administration function to ESOP Direct.I wish ESOP Direct greater success in the coming years.

Mona Cherian

President and Group Head HR, Thomas Cook

Qapita Works With Companies Across the Globe From Seed Stage to Listing and Beyond

Choose the Right Equity Instrument for Your Growth

Get expert evaluation to align your rewards with strategy, goals, and regulatory needs.

Speak with an Expert

FAQs

Frequently Asked Questions

What Is Cap Table Management—and Why Does Your Startup Need It?

Cap Table Management involves tracking all forms of company equity ownership—founders, investors, options, warrants, SAFEs, convertible notes—accurately and in real‑time. Managing this manually in spreadsheets often leads to errors, dilution, miscalculations, and delays during fundraising or due diligence. Qapita’s platform automates equity issuance, updates transactions instantly, and ensures compliance.

How Do I Import or Migrate an Existing Cap Table into Qapita?

Seamlessly. Qapita supports full history imports or snapshot-based imports using spreadsheets for stakeholders, transactions, share classes, vesting schedules, and convertible instruments. You can map stakeholders and import rows in bulk, then publish transactions to go live when ready. Qapita handles data validation to minimize manual cleanup.

How Often Should I Update My Cap Table—and What Are Common Mistakes to Avoid?

Your cap table should be updated as soon as any significant event takes place, such as new funding rounds, option exercises, transfers, employee departures, or SAFE conversions. Outdated or inaccurate Cap Tables can lead to valuation discrepancies, legal complications, and delays during fundraising or audits. With Qapita, every change is recorded instantly and traceable, reducing typical human errors.

How much does Qapita cost?

Our pricing is designed to support your journey—from early stage to growth and beyond. We offer flexible plans for both listed and unlisted companies. No hidden fees—just unmatched transparency that helps you avoid unexpected pricing spikes. To get a tailored quote, talk to our team or request a demo.

Can Qapita Model Dilution and Equity Ownership Changes in Real Time?

Yes. Qapita lets you run real-time simulations for new funding rounds, option pool expansions, and convertible note conversions. Founders and CFOs can instantly see how ownership shifts across every round.

Choose the Right Equity Instrument for Your Stage, Strategy & Stakeholders

Recognized as a Global Leader on G2

Get It Right from the Start

Scale and Grow

Stay compliant and confident

From Agent to Lead, every role gets the tools to thrive

We Start with Where You Are

From ESOPs to SARs to Phantom – We Cover It All

We Make the Trade-Offs Clear

Align Instrument Choice with Your Balance Sheet

Build Buy-In with Data, Not Guesswork

Operating Globally? We’ve Got You Covered.

Already Have a Plan? Let’s See if It Still Works

Words From Our Valued Customers

Choose the Right Equity Instrument for Your Growth

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Save Hours Every Week

Ensure Compliance with Confidence

Scale as You Grow

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Helping You Elevate Your Equity Management

Your Comprehensive Equity Solutions

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Stay Ahead of the Curve

Frequently Asked Questions

What Is Cap Table Management—and Why Does Your Startup Need It?

How Do I Import or Migrate an Existing Cap Table into Qapita?

How Often Should I Update My Cap Table—and What Are Common Mistakes to Avoid?

How much does Qapita cost?

Can Qapita Model Dilution and Equity Ownership Changes in Real Time?

Choose the Right Equity Instrument for Your Future