How do I set up an employee share scheme?

There are seven broad stages:

1. Identify your objectives — the design flows from what you want to achieve.
2. Choose a scheme that fits those objectives.
3. Design it, including the rights and conditions attaching to the shares and how much equity to set aside.
4. Implement it — agree a valuation with HMRC, update the Articles of Association, prepare board minutes and scheme documentation.
5. Communicate it to participants, which is vital to the plan’s success.
6. Administer it so it stays compliant.
7. Review it on an ongoing basis as the business changes.