Founders' Agreement Format & Template
Business Formation · ₹449 · ~10 min · Sign in free, fill the guided form with a live preview, pay to download.
What is a Founders' Agreement?
A founders’ agreement is the contract between the co-founders of a startup. It records each founder’s role, the equity split, how shares vest over time, what happens if a founder leaves, who owns the intellectual property, and how key decisions are made.
It is best signed at the very start, before or at incorporation. Once the company is formed, the key terms are carried into a shareholders’ agreement and the company’s articles so that they bind the company too.
When to use it
- Two or more people are starting a company together.
- The founders have been working informally and want to settle equity and roles.
- Investors are approaching and ask whether founder vesting is in place.
What you'll need
Keep these details ready — the form asks for them in this order.
Company
Company / proposed company name
Founders
Founder 1 full name · Founder 1 equity · Founder 2 full name · Founder 2 equity
Roles
Roles and responsibilities of each founder · Vesting period
Terms
Effective date · City / jurisdiction
How it works
Enter the company and founders
The (proposed) company name and each founder’s equity.
Set roles and vesting
Each founder’s responsibilities and the vesting period.
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How to make it legally valid
- Signed by every founder.
- Founders’ existing work and IP assigned to the company once incorporated.
- Share issues and transfers made in compliance with the Companies Act, 2013 and reflected in the articles.
- Stamp duty where your state charges it on agreements.
Common mistakes to avoid
- An equal split by default without considering contributions and commitment.
- No vesting, so a founder who leaves early keeps full equity.
- IP left in individual founders’ names.
Ready to prepare your Founders' Agreement?
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This is a self-help template for common situations — it is not legal advice and LawMitran is not a law firm. Need help with your founders' agreement? Find a corporate law lawyer · Legal documents FAQs.