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Co-Founders Agreement In India For A Startup | Founders Agreement Simplified

What is Co-founder Agreement?

A Founders’ Agreement is an official contract that is signed between all the co-founders of a firm or startup. This document states all the responsibilities, ownership, and initial investments made by each of the founders of the company. It is advised to make a founders’ agreement at the incorporation stage of an enterprise as it will lay out the responsibilities and roles of each of the co-founders.

Now, let us look at the essentials that are a must in any founders’ agreement. They are:

  • Definition of the business
  • Details of capital raised (by founders and investors)
  • Ownership details (in the company)
  • Roles and responsibilities of each of the co-founders
  • Compensation (salary drawn by each of the co-founders)
  • Details of exit formality for founders
  • Dissolution of the firm
  • Details of dispute resolution


Unfortunately, co-founding a business isn’t too dissimilar from marriage.  You can start with all the right intentions and never imagine separating.  But it does happen.  Plan ahead.


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