Employee Share Ownership Plan

Investment capital for BC businesses

The Employee Share Ownership Program encourages employees and employers to work together to achieve the long-term success of the business. B.C.'s Employee Share Ownership Program promotes investment by employees in their company. Retiring business owners can use an employee share ownership plan to transfer ownership of their company to employees by selling shares directly to their employees. The Employee Share Ownership Program provides employees with a 20% tax credit for making investments in their employers businesses.

1. Determine employee interest in the ESOP 2. Contact the Venture Capital Tax Credit Program for guidance 3. Review sample plans and consult professional advisors 4. Work with the Venture Capital Tax Credit Program to register the ESOP plan 5. Review the ESOP plan with professional advisors 6. Prepare the Share Offering Document to offer shares to employees 7. Receive purchase funds and issue shares upon payment completion 8. Distribute investment confirmations to employee investors 9. Place shares with custodian for the 3-year hold period 10. Complete and submit the Tax Credit Application, Control Sheet, and original share certificates to the Investment Capital Branch