Founders Agreement
- Art Teacher
- London, UK
- 5-7 Hrs
Every successful startup begins with a shared vision, but as the business grows, challenges around equity, decision-making, roles, and exit rights inevitably arise—making a Founders Agreement an essential safeguard. A Founders Agreement is a legally binding contract between co-founders that clearly defines each person’s roles, responsibilities, rights, and obligations, while also setting rules for decision-making, ownership structure, and dispute resolution. For startups—whether bootstrapped with friends or backed by investors—this agreement ensures alignment between founders, prevents conflicts, and provides a strong legal foundation for future growth. At Aarthika Globcorp Solutions, we specialize in drafting comprehensive and customized Founders Agreements in India, helping entrepreneurs protect their interests, maintain harmony within the founding team, and secure long-term business stability.
- Names and personal details of all founders
- Business name and incorporation details (if applicable)
- Equity ownership structure
- Details of capital contributions (cash, assets, IP)
- Roles and responsibilities of each founder
- Intellectual property ownership clauses
- Exit clauses and buy-back provisions
- Decision-making and voting rights structure
- Dispute resolution mechanism
- Signatures of all founders and witnesses
- Discuss and Negotiate Terms
- Draft the Agreement
- Review & Revise
- Finalize and Sign
- Store Safely and get it notarized
A Founders Agreement can be signed before incorporating the company to define roles, equity, and responsibilities early on.
Yes, equity can be changed after signing but it requires mutual consent of the founders and usually a formal amendment to the agreement.
Ownership of IP created before the agreement depends on the specific terms in the agreement; generally, founders agree on IP assignment to the company or among founders.
It depends on the agreement terms; typically, founders specify whether working elsewhere is allowed or restricted to avoid conflicts of interest.
Yes, it can significantly reduce and prevent disputes by clearly defining roles, responsibilities, equity, decision-making, and conflict resolution mechanisms.
It remains valid as long as it’s replaced, amended, or the company is dissolved.