{"id":113509,"date":"2023-04-18T11:42:02","date_gmt":"2023-04-18T06:12:02","guid":{"rendered":"https:\/\/legalwindow.in\/?p=113509"},"modified":"2023-04-14T11:43:46","modified_gmt":"2023-04-14T06:13:46","slug":"issue-of-sweat-equity-shares-under-companies-act","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/","title":{"rendered":"Issue of Sweat Equity Shares under Companies Act, 2013"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-113513 size-full\" title=\"Issue Of Sweat Equity Shares\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/sweat-equity-shares-.png\" alt=\"Issue Of Sweat Equity Shares\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares-.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares--600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares--300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares--1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares--768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The Issue of Sweat Equity Shares is a common practice among companies that want to incentivize their employees and retain key talent. Sweat equity shares refer to shares issued by a <\/span><span style=\"font-weight: 400;\">company<\/span><span style=\"font-weight: 400;\"> to its employees at a discounted price or for consideration other than cash. The <\/span><span style=\"font-weight: 400;\">Companies Act, 2013<\/span><span style=\"font-weight: 400;\"> regulates the issuance of sweat equity shares by companies in India. In this article, we&#8217;ll take a closer look at the issue of sweat equity shares under the Companies Act, 2013.\u00a0<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Table of Content<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#are\"><span style=\"font-weight: 400;\">What are Sweat Equity Shares?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#of\"><span style=\"font-weight: 400;\">Features of Sweat Equity Shares<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#for\"><span style=\"font-weight: 400;\">Conditions for Issuing Sweat Equity Shares<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#sweat\"><span style=\"font-weight: 400;\">Advantages of Sweat Equity Shares<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#equity\"><span style=\"font-weight: 400;\">Drawbacks of Issuing Sweat Equity Shares<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#shares\"><span style=\"font-weight: 400;\">Procedure for Issue of Sweat Equity Shares<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#in\"><span style=\"font-weight: 400;\">Important points to be kept in mind regarding the Issue of Sweat Equity Shares<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#conclusion\"><span style=\"font-weight: 400;\">Conclusion<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"are\"><b>What are Sweat Equity Shares?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Sweat equity shares are a type of equity shares issued by a company to its employees in recognition of their contribution to the company&#8217;s growth and success. Sweat equity shares are issued at a discount or for consideration other than cash. The discount on the issue of sweat equity shares cannot exceed 15% of the current market price of the shares or the price as per SEBI guidelines, whichever is higher.<\/span><\/p>\n<h2 id=\"of\"><b>Features of Sweat Equity Shares<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Sweat equity shares have the following features:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issued to employees, directors, or consultants who have contributed to the growth and development of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issued at a discounted price or for no consideration.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can only be issued after the company has been incorporated for at least one year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cannot be issued for more than 15% of the existing paid-up share capital of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cannot be issued for more than Rs. 5 crores in a financial year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cannot be transferred or sold for a period of three years from the date of issue.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Must be held for a minimum period of three years from the date of issue.<\/span><\/li>\n<\/ul>\n<h2 id=\"for\"><b>Conditions for Issuing Sweat Equity Shares<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The issue of sweat equity shares is subject to certain conditions laid down by the Companies Act, 2013, and the <\/span><span style=\"font-weight: 400;\">Securities and Exchange Board of India (SEBI)<\/span><span style=\"font-weight: 400;\"> regulations. Some of the conditions for issuing sweat equity shares are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Approval of the shareholders<\/b><span style=\"font-weight: 400;\">: The issue of sweat equity shares must be approved by the shareholders of the company by way of a special resolution passed at a general meeting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limit on issue<\/b><span style=\"font-weight: 400;\">: The total number of sweat equity shares issued by a company cannot exceed 15% of the paid-up share capital of the company at any time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lock-in period:<\/b><span style=\"font-weight: 400;\"> The sweat equity shares issued by a company must be locked-in for a minimum period of three years from the date of allotment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Valuation:<\/b><span style=\"font-weight: 400;\"> The valuation of the sweat equity shares must be done by a registered valuer as per the guidelines laid down by SEBI.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Eligibility criteria<\/b><span style=\"font-weight: 400;\">: The employees eligible for the issue of sweat equity shares must have contributed to the growth and success of the company in a significant manner.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Disclosure requirements<\/b><span style=\"font-weight: 400;\">: The Company must make adequate disclosure regarding the issue of sweat equity shares in its annual report and on its website.<\/span><\/li>\n<\/ul>\n<h2 id=\"sweat\"><b>Advantages of Sweat Equity Shares<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Sweat <a href=\"https:\/\/legalwindow.in\/equity-shares-with-differential-rights\/\" target=\"_blank\" rel=\"noopener\">equity shares<\/a> have several advantages for both the company and the employees, directors, or consultants who receive them. These advantages are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Helps in attracting and retaining talent<\/b><span style=\"font-weight: 400;\">: Sweat equity shares are a great way to attract and retain talented employees, directors, or consultants who are instrumental in the growth and development of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost-effective way of compensation<\/b><span style=\"font-weight: 400;\">: Sweat equity shares are a cost-effective way of compensating employees, directors, or consultants. They do not require cash outflow from the company and are issued at a discounted price or for no consideration.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Aligns the interests of the employees with those of the company<\/b><span style=\"font-weight: 400;\">: Sweat equity shares align the interests of the employees, directors, or consultants with those of the company. This encourages them to work towards the growth and development of the company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increases shareholder value:<\/b><span style=\"font-weight: 400;\"> Sweat equity shares increase the value of the company for its shareholders. This is because the employees, <\/span><span style=\"font-weight: 400;\">directors<\/span><span style=\"font-weight: 400;\">, or consultants who receive sweat equity shares have a vested interest in the success of the company.<\/span><\/li>\n<\/ul>\n<h2 id=\"equity\"><b>Drawbacks of Issuing Sweat Equity Shares<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The following are the drawbacks of issuing sweat equity shares:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dilution of Ownership<\/b><span style=\"font-weight: 400;\">: Issuing sweat equity shares can dilute the ownership of existing shareholders, which can affect their control over the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accounting Complexities<\/b><span style=\"font-weight: 400;\">: Issuing sweat equity shares can lead to accounting complexities, as the value of the sweat equity shares needs to be determined and recorded accurately in the company&#8217;s financial statements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Legal and Regulatory Compliance<\/b><span style=\"font-weight: 400;\">: Issuing sweat equity shares requires compliance with various legal and regulatory requirements, which can be time-consuming and expensive.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Misuse of Sweat Equity<\/b><span style=\"font-weight: 400;\">: There is a risk that sweats equity shares may be misused by employees, who may not contribute as much to the company&#8217;s growth and success as expected.<\/span><\/li>\n<\/ul>\n<h2 id=\"shares\"><b>Procedure for Issue of Sweat Equity Shares<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The procedure for the issue of sweat equity shares is as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company must pass a special resolution authorizing the issue of sweat equity shares.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company must obtain a valuation report from a registered valuer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company must make an application to the Registrar of Companies (ROC) within 30 days of the issue of sweat equity shares.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ROC must be provided with the valuation report, details of the employees to whom the shares are being issued, and the terms and conditions of the issue.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ROC will scrutinize the application and if satisfied, will approve the issue of sweat equity shares.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company must issue the sweat equity shares within 12 months of receiving approval from the ROC.<\/span><\/li>\n<\/ul>\n<h2 id=\"in\"><b>Important points to be kept in mind regarding the Issue of Sweat Equity Shares<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The following are the important to be kept in mind regarding the Issue of Sweat Equity Shares:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Eligibility Criteria: <\/b><span style=\"font-weight: 400;\">Only employees, directors or key managerial personnel who have contributed towards the growth and development of the company are eligible for the issue of sweat equity shares.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maximum Limit: <\/b><span style=\"font-weight: 400;\">The maximum limit for the issue of sweat equity shares is 15% of the paid-up share capital of the company in a year or up to Rs. 5 crores, whichever is higher.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Valuation:<\/b><span style=\"font-weight: 400;\"> The valuation of sweat equity shares should be done by a registered valuer as per the guidelines of the Securities and Exchange Board of India (SEBI).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lock-in Period<\/b><span style=\"font-weight: 400;\">: Sweat equity shares are subject to a lock-in period of three years from the date of allotment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Restrictions on Transfer<\/b><span style=\"font-weight: 400;\">: Sweat equity shares cannot be transferred, sold or pledged until the completion of the lock-in period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Disclosure Requirements:<\/b><span style=\"font-weight: 400;\"> Companies are required to disclose the details of the issue of sweat equity shares in their annual report and on their website.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Compliance:<\/b><span style=\"font-weight: 400;\"> Companies must comply with the provisions of the Companies Act, 2013 and the SEBI guidelines while issuing sweat equity shares.<\/span><\/li>\n<\/ul>\n<h2 id=\"conclusion\"><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In conclusion, the issue of sweat equity shares is a useful tool for companies to reward and retain talented employees. The issue of sweat equity shares is subject to certain conditions laid down by the Companies Act, 2013, and the<a href=\"https:\/\/www.sebi.gov.in\/sebiweb\/home\/HomeAction.do?doListing=yes&amp;sid=1&amp;ssid=3&amp;smid=0\" target=\"_blank\" rel=\"noopener\"> SEBI regulations<\/a>. The issue of sweat equity shares must be approved by the shareholders of the company, and the total number of sweat equity shares issued cannot exceed 15% of the paid-up share capital of the company at any time. The sweat equity shares issued by a company must be locked-in for a minimum period of three years from the date of allotment. The issue of sweat equity shares has several advantages for companies, such as incentivizing employees to work towards the long-term growth of the company and promoting a sense of ownership among the employees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Feel free to connect with our experts at <\/span><a href=\"https:\/\/legalwindow.in\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Legal Window<\/span><\/a><span style=\"font-weight: 400;\"> in case you face any difficulty in understanding the concept of Issue of Sweat Equity Shares under Companies Act, 2013. Our experts would be happy help assist you.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Issue of Sweat Equity Shares is a common practice among companies that want to incentivize their employees and retain key talent. Sweat equity shares refer to shares&hellip;<\/p>\n","protected":false},"author":9,"featured_media":113512,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-113509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Issue of Sweat Equity Shares under Companies Act&#187; Legal Window<\/title>\n<meta name=\"description\" content=\"This article briefly describes the Issue Of Sweat Equity Shares under Companies Act, Procedure for Issue of Sweat Equity Shares.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Issue of Sweat Equity Shares under Companies Act&#187; Legal Window\" \/>\n<meta property=\"og:description\" content=\"This article briefly describes the Issue Of Sweat Equity Shares under Companies Act, Procedure for Issue of Sweat Equity Shares.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/\" \/>\n<meta property=\"og:site_name\" content=\"Legal Window\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/legalwindow.in\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-18T06:12:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares-.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Neelansh Gupta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Neelansh Gupta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/\"},\"author\":{\"name\":\"Neelansh Gupta\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/person\\\/636f8f7ea87e1c93afc51497128728f6\"},\"headline\":\"Issue of Sweat Equity Shares under Companies Act, 2013\",\"datePublished\":\"2023-04-18T06:12:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/\"},\"wordCount\":1323,\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/sweat-equity-shares-1.png\",\"articleSection\":[\"Company Law\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/\",\"name\":\"Issue of Sweat Equity Shares under Companies Act&#187; Legal Window\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/sweat-equity-shares-1.png\",\"datePublished\":\"2023-04-18T06:12:02+00:00\",\"description\":\"This article briefly describes the Issue Of Sweat Equity Shares under Companies Act, Procedure for Issue of Sweat Equity Shares.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/sweat-equity-shares-1.png\",\"contentUrl\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/sweat-equity-shares-1.png\",\"width\":800,\"height\":800,\"caption\":\"Issue Of Sweat Equity Shares\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/issue-of-sweat-equity-shares-under-companies-act\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Issue of Sweat Equity Shares under Companies Act, 2013\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/\",\"name\":\"Legal Window\",\"description\":\"Legal Solution Provider\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#organization\",\"name\":\"LegalWindow\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/LW-Logo-2.png\",\"contentUrl\":\"https:\\\/\\\/legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/LW-Logo-2.png\",\"width\":1245,\"height\":357,\"caption\":\"LegalWindow\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/legalwindow.in\\\/\",\"https:\\\/\\\/www.instagram.com\\\/legalwindow.in\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/legal-window\\\/\",\"https:\\\/\\\/in.pinterest.com\\\/legalwindow\\\/\",\"https:\\\/\\\/www.youtube.com\\\/channel\\\/UCFtHKxaXtK4WjOe9UytbX9A\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/person\\\/636f8f7ea87e1c93afc51497128728f6\",\"name\":\"Neelansh Gupta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/3c0e5b969817948e0506ec378d99631246975a3a5c194b62b51f6920575095b3?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/3c0e5b969817948e0506ec378d99631246975a3a5c194b62b51f6920575095b3?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/3c0e5b969817948e0506ec378d99631246975a3a5c194b62b51f6920575095b3?s=96&d=mm&r=g\",\"caption\":\"Neelansh Gupta\"},\"description\":\"Neelansh Gupta is a dedicated Lawyer and professional having flair for reading &amp; writing to keep himself updated with the latest economical developments. In a short span of 2 years as a professional he has worked on projects related to Drafting, IPR &amp; Corporate laws which have given him diversity in work and a chance to blend his subject knowledge with its real time implementation, thus enhancing his skills.\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/author\\\/neelanshgupta\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Issue of Sweat Equity Shares under Companies Act&#187; Legal Window","description":"This article briefly describes the Issue Of Sweat Equity Shares under Companies Act, Procedure for Issue of Sweat Equity Shares.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/","og_locale":"en_US","og_type":"article","og_title":"Issue of Sweat Equity Shares under Companies Act&#187; Legal Window","og_description":"This article briefly describes the Issue Of Sweat Equity Shares under Companies Act, Procedure for Issue of Sweat Equity Shares.","og_url":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/","og_site_name":"Legal Window","article_publisher":"https:\/\/www.facebook.com\/legalwindow.in\/","article_published_time":"2023-04-18T06:12:02+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares-.png","type":"image\/png"}],"author":"Neelansh Gupta","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Neelansh Gupta","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/#article","isPartOf":{"@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/"},"author":{"name":"Neelansh Gupta","@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/person\/636f8f7ea87e1c93afc51497128728f6"},"headline":"Issue of Sweat Equity Shares under Companies Act, 2013","datePublished":"2023-04-18T06:12:02+00:00","mainEntityOfPage":{"@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/"},"wordCount":1323,"publisher":{"@id":"https:\/\/www.legalwindow.in\/blog\/#organization"},"image":{"@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/#primaryimage"},"thumbnailUrl":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares-1.png","articleSection":["Company Law"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/","url":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/","name":"Issue of Sweat Equity Shares under Companies Act&#187; Legal Window","isPartOf":{"@id":"https:\/\/www.legalwindow.in\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/#primaryimage"},"image":{"@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/#primaryimage"},"thumbnailUrl":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares-1.png","datePublished":"2023-04-18T06:12:02+00:00","description":"This article briefly describes the Issue Of Sweat Equity Shares under Companies Act, Procedure for Issue of Sweat Equity Shares.","breadcrumb":{"@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/#primaryimage","url":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares-1.png","contentUrl":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/sweat-equity-shares-1.png","width":800,"height":800,"caption":"Issue Of Sweat Equity Shares"},{"@type":"BreadcrumbList","@id":"https:\/\/www.legalwindow.in\/blog\/issue-of-sweat-equity-shares-under-companies-act\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.legalwindow.in\/blog\/"},{"@type":"ListItem","position":2,"name":"Issue of Sweat Equity Shares under Companies Act, 2013"}]},{"@type":"WebSite","@id":"https:\/\/www.legalwindow.in\/blog\/#website","url":"https:\/\/www.legalwindow.in\/blog\/","name":"Legal Window","description":"Legal Solution Provider","publisher":{"@id":"https:\/\/www.legalwindow.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.legalwindow.in\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.legalwindow.in\/blog\/#organization","name":"LegalWindow","url":"https:\/\/www.legalwindow.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/legalwindow.in\/blog\/wp-content\/uploads\/LW-Logo-2.png","contentUrl":"https:\/\/legalwindow.in\/blog\/wp-content\/uploads\/LW-Logo-2.png","width":1245,"height":357,"caption":"LegalWindow"},"image":{"@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/legalwindow.in\/","https:\/\/www.instagram.com\/legalwindow.in\/","https:\/\/www.linkedin.com\/company\/legal-window\/","https:\/\/in.pinterest.com\/legalwindow\/","https:\/\/www.youtube.com\/channel\/UCFtHKxaXtK4WjOe9UytbX9A"]},{"@type":"Person","@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/person\/636f8f7ea87e1c93afc51497128728f6","name":"Neelansh Gupta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/3c0e5b969817948e0506ec378d99631246975a3a5c194b62b51f6920575095b3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/3c0e5b969817948e0506ec378d99631246975a3a5c194b62b51f6920575095b3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3c0e5b969817948e0506ec378d99631246975a3a5c194b62b51f6920575095b3?s=96&d=mm&r=g","caption":"Neelansh Gupta"},"description":"Neelansh Gupta is a dedicated Lawyer and professional having flair for reading &amp; writing to keep himself updated with the latest economical developments. In a short span of 2 years as a professional he has worked on projects related to Drafting, IPR &amp; Corporate laws which have given him diversity in work and a chance to blend his subject knowledge with its real time implementation, thus enhancing his skills.","url":"https:\/\/www.legalwindow.in\/blog\/author\/neelanshgupta\/"}]}},"_links":{"self":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts\/113509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/comments?post=113509"}],"version-history":[{"count":3,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts\/113509\/revisions"}],"predecessor-version":[{"id":113514,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts\/113509\/revisions\/113514"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/media\/113512"}],"wp:attachment":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/media?parent=113509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/categories?post=113509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/tags?post=113509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}