Founders Agreement

Founders Agreement is a legal document laying down the terms and conditions that are to be the terms of operations between the founders of the company. The most important ingredients that must be present in every Founders Agreement are provisions regarding the roles and relationships of the founders, equity shares and Intellectual Property ownership.    

Provisions for confidentiality, withdrawal or removal of ownership, conflict resolution, etc., must also be included in the agreement. To ensure that the company has economic and structural growth while protecting the interests of the co-founders, it is essential to include a Founders Agreement at the stage of incorporation of the company.

Draft Founders Agreement Online
At INR 9999

What You'll Get In The Package

Inclusion

  • Introduction call for consultation with lawyer to get to know your lawyer and regarding the work that will be done together
  • Documents Checklist
  • Verification of necessary documents
  • Drafting of the agreement
  • Managing the necessary paperwork

Exclusion

  • The lawyer shall not undertake any additional work apart from the Founders Agreement
  • You may hire the lawyer in case of any additional startup related issues that you may have

Documents required for Drafting Founders Agreement

  1. Entity Registration/Incorporation Certificate
  2. IPR Documents (if any)
  3. Share-subscription Documents
  4. Company Contracts

Procedure for Drafting Founders Agreement

  1. You must hire the top Startup lawyers in your locality to help you draft the Founders Agreement tailored to meet your specific needs and circumstances.
  2. The Founders Agreement shall be drafted and sent to you for approval.
  3. The Founders Agreement shall be drafted incorporating your suggestions(if any).

Most Consulted Advocates

Extremely learned lawyer

"I consulted Advocate Bhutoria through Legistify. He is extremely learned...

A really good lawyer

"I booked a consultation with Advocate Ashutosh for my family matter....

Excellent experience with drafting

"Advocate Asha S Anand is very knowledgeable and has excellent drafting skills...

Extremely learned lawyer

"I consulted Advocate Bhutoria through Legistify. He is extremely learned...

FAQs

What are the most important points that should be added to a Co-Founders Agreement?
The most important points that are to be added in a co-founders’ agreement is as follows: 1. Business plan of the Company 2. Legal structure of the Company 3. Direction of the Company 4. Salaries that the Co-founders are expected to take 5. Roles and responsibilities 6. Operating Procedures In addition to the above, it must also contain details regarding matters of Intellectual Property, removal or withdrawal of ownership, etc.
What are the laws related to startups in India?
Startups in India should ensure compliance with all major compliances and legal requirements to ensure that legal complications and litigations are avoided in the future. The laws related to startups in India are as follows: 1. Tax Laws: Taxes have to be paid by every company at the Central, State and Local level 2. Security Laws: The company must be aware of all rules and regulations of the SEBI to be on the list of stock exchange 3. Business Finance: All laws related to the finances of the company including joint ventures, angel investors, FDI, etc., must be complied with 4. Labour Laws: The Company must ensure that all applicable labour laws are complied with. All employees, management, freelancers, contractors, etc., are treated in a manner compliant with said laws 5. Intellectual Property Laws: Any startup dealing with designs, codes or research must apply for the required trademark, patent, copyright registration to prevent identity theft or violations 6. Information Technology Laws: Any startup dealing with IT services or software must ensure that IT laws including laws for the protection of company data as well as data of the consumer 7. Contract Laws: The company must sign contracts to safeguard its rights. 8. Dispute Settlement: Provisions must be made for alternative dispute settlement including out of court settlements, arbitration, negotiation, etc.
How should a Founders Agreement be drafted?
The Founders Agreement is one of the most important documents that you need for your startup. You must take the help of the top Startup Lawyers in India to help you draft a legally sound and air-tight agreement so as to ensure that you do not get into structural or legal issues with your other co-founders in the future.
What are the essential ingredients of the Co-Founders agreement?
The most important clauses and provisions of the co-founders’ agreement is as follows: 1. Definitions: Regarding the enterprise itself and the founders as well as the growth potential of the venture must be pre-determined and defined. 2. Capital: The capital investment made by every founder as well as the future investments that they may have to make must be predetermined. 3. Ownership: The equity shares held by each founder and the role played by each of them. 4. Roles and Responsibilities: The roles and responsibilities of each of the founders must be well-defined. 5. Compensation: The salary and the reimbursement that is to be drawn by each of the founders must be well defined. 6. Exit of Founders: The circumstances and methods by which the co-founders may leave the enterprise or may be removed must be stated. 7. Dispute Resolution: The mechanism for resolution of disputes that may arise in the future. 8. Dissolution: The circumstances and mechanisms for winding up of the enterprise as well as distribution of the money, liquidated assets, etc., must also be predetermined.
Where can I find short and accurate Co-Founders Agreements for a Startup Company that is yet to be established?
Legistify has a network of expert lawyers who will help you in drafting a legally sound Co-Founders Agreement containing all necessary clauses and requirements. In addition to the Co-Founders Agreement, Legistify also helps you in meeting all the registrations and compliances for your Startup. A good Co-Founders Agreement generally covers the following: 1. Business plan of the Company 2. Legal structure of the Company 3. Direction of the Company 4. Salaries that the Co-founders are expected to take 5. Roles and responsibilities 6. Operating Procedures
What is the nature of Agreement between founders in an early start-up?
A Co-Founders Agreement is essentially a Shareholders Agreement between the co-founders of a Startup. A good Shareholders Agreement generally covers the following: 1. Shareholder names 2. Shareholder respective equity holdings 3. Class of shares 4. Share vesting (if any) 5. Rights and obligations of the shareholders 6. Voting rights 7. Drag along and tag along 8. Dividends
What qualifies as a Startup for Government Schemes?
A company or partnership may be considered to be a Startup: 1. When it has been registered or incorporated for less than 5 years 2. When it’s turnover has not increased over Rs. 25 crores in any of the financial years 3. When it’s working towards development, deployment, innovation or commercialization of a new product, process or service with the help of intellectual property or technology Further, the company should not have been formed by the reconstruction or splitting up of a pre-existing company.
Can an existing entity register itself as a Startup?
Yes, an existing entity may register itself as a Startup when it fulfills the qualifying criterion of a Startup. The criteria that it needs to meet are as follows: 1. When it has been registered or incorporated for less than 5 years 2. When it’s turnover has not increased over Rs. 25 crores in any of the financial years 3. When it’s working towards development, deployment, innovation or commercialization of a new product, process or service with the help of intellectual property or technology