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Valuation under Sweat Equity/ ESOP

ESOP and sweat equity are one of the most popular methods of attracting and motivating employees to work wholeheartedly. Companies offer ESOP to let employees become partners in the financial outcome of the organization. Sweat equity signifies the intangible benefits accrued through non-financial means in the form of employee know-how, and specific skills.

In India, ESOP is legally considered for accounting and taxation purposes. A lot of companies book compensation expense for issuing ESOPs over a vesting period based on merchant banker’s evaluation, and at the time of exercise, valuations needed for the calculation of perquisite tax payable by the employees of the organization.

At Valuation India we provide services for the valuation of sweat equity shares. We are also known as ESOP consultants in India.