Radha Furnishing Pvt. Ltd. a Start-up Company wants to issue sweat equity shares to its employees. Is there any provision regarding it ? Explain.

Issue of Sweat Equity Shares by Start-up Companies As per proviso to Rule 8 of the Companies (Share Capital and Debentures) Rules, 2014, a start-up company as defined in notification number G.S.R. 127(E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India, may issue sweat equity shares not exceeding 50% of its paid-up share capital upto 10 (ten) years from the date of its incorporation or registration. So, Radha Furnishing Private Limited a Start-up Company can issue sweat equity shares after considering above mentioned provisions.