Why is a founders agreement important?

A founders agreement prevents disputes by clearly defining equity ownership, vesting, roles, and exit provisions. It is essential before raising external funding as investors require it.

What is equity vesting?

Vesting means founders earn their equity over time. A typical 4-year vesting with 1-year cliff means a founder who leaves before 1 year gets no equity; after 1 year they get 25%, then monthly thereafter.

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Founders Agreement

Legally binding founders agreement defining roles, equity allocation, vesting schedules, IP assignment, and exit provisions under the Indian Contract Act 1872.

Starting from

₹7,999

Exclusive of GST

State pricing

4 days

Estimated delivery

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10,000+ Clients

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Fast Delivery

What's Included

Founders Agreement Drafting

Vesting Schedule Design

IP Assignment Clause

Execution Assistance

How It Works

Founder Discussion

Understand founder roles, equity split, vesting schedule, and key terms.

Agreement Drafting

Draft founders agreement covering: equity allocation, vesting (typically 4-year with 1-year cliff), roles and responsibilities, IP assignment, non-compete, and exit provisions.

Vesting Schedule

Design vesting schedule: standard 4-year vesting with 1-year cliff means 25% vests after 1 year, then monthly over 3 years.

IP Assignment

Include IP assignment clause ensuring all IP created by founders is assigned to the company.

Execution

Execute agreement by all founders. Stamp as per applicable state stamp duty laws.

Documents Required

Agreed equity split between foundersRequired

MOA and AOA of the companyRequired

Frequently Asked Questions

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