Equity share to employers instead of salary. Is it possible?


I own a startup and wanted to give equity to new hired employees. We are a partnership firm with already 4 partners having a partnership deed and 25% stake each in the company. Now we want to hire employees and give them some stake from our equity. Is there a legal procedure of doing this? If yes, could you please guide us with the same?

Answers (1)


103 votes

You will have to execute two agreement, the first agreement will be between all four partners, wherein in the said agreement all the four partners will agree to give their percentage of stake to the employee.

Thereafter, you will have to execute an agreement with the employer, wherein you will have to state the equity percentage which you intend to give and other benefits .


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