How to create an EMI plan

Enterprise Management Incentive (EMI) is a UK government-approved, tax-advantaged share option scheme designed for small and medium-sized companies.

Following rule changes effective April 6, 2026, EMI is now available to companies with:

• Up to 500 employees (previously 250)

• Gross assets of up to £120 million (previously £30 million)

• A company options pool of up to £6 million (previously £3 million)

• Individual grants of up to £250,000 per employee (previously £120,000)

Carta allows eligible UK companies to create an EMI equity plan and download the required legal documents directly in the platform.

EMI plan creation is available to UK companies on a Grow or Scale plan that meet all of the following criteria:

• Your company is headquartered in the UK, has a UK-domiciled stakeholder, or has previously granted EMI or CSOP options

• The EMI plan creation feature has been enabled for your account

When you create an EMI plan in Carta, the following documents are automatically generated:

Option Plan Rules — the governing rules for your EMI option scheme.

Form of Option Agreement — available in three variants:

• EMI option agreement

• Unapproved option agreement (for non-employees)

• Unapproved option agreement (for non-UK employees)

Form of Exercise Agreement — available in three variants (same as above).

Section 431(1) Joint Election — HMRC joint election document.