Implementation Process

Step 1: Investigation

• Determine employee interest
• Contact the Venture Capital Tax Credit Program
• Review the Forms and Sample Plans
• Consult your professional advisors

Step 2: Implementation

• Work with Venture Capital Tax Credit Program staff to register your ESOP plan and guide you through the process
• Review the ESOP Plan with your professional advisors

Step 3: Share Offering

• Prepare the Share Offering Document (PDF, 193 KB) to offer shares to employees
• Receive the purchase funds (cash and/or payroll deductions) and issue shares when payments are complete
• Distribute investment confirmations to the employee investors
• Place shares with custodian (3-year hold period)
• Complete and deliver the Tax Credit Application (PDF, 65 KB), Control Sheet (XLS, 34 KB), and original share certificates to the Investment Capital Branch

Step 4: Annual Reporting

• Prepare and deliver financial statements to the employee shareholders
• Complete the Annual Return (PDF, 141 KB) and forward to the Venture Capital Tax Credit Program
• Hold an annual shareholder meeting and distribute a report to shareholders