At the start of the business, it might be early for a founder to discuss either Share option plan or ESOP. Most founders feel like it is only worth discussing when they have some measure of success. However, many startups start thinking and planning for it at the start to set aside shares at the start.

There is no requirement to give out the shares right away but they stay in reserve. Five to ten per cent of the company’s 100% of equity is typically put away in ESOPs for employees. 

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