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Founders Agreement

  • Clarifies roles and responsibilities among the initial founding team
  • Establishes a fair equity vesting schedule to ensure long-term commitment
  • Prevents future disputes over intellectual property ownership and rights
  • Defines clear protocols for founders departing from the startup
  • Sets expectations for capital contributions and initial funding obligations
  • Protects the startup from "dead equity" if a founder leaves early
  • Facilitates smoother due diligence during future investment rounds

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Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Overview

A Founders Agreement is an internal document executed between the co-founders of a startup. It serves as a pre-incorporation or early-stage roadmap that outlines how the business will be built and who owns what.

Startups need this agreement the moment two or more people decide to build a business together. It is critical for preventing "founder fallout," which is one of the leading causes of early-stage business failure.


Legally, this document ensures that all IP created by founders is assigned to the company. In the Indian context, it provides the necessary clarity on equity distribution and decision- making authority, covering risks related to co-founder exits and performance issues.

Why Choose Ark for Founders Agreement

Strong Foundations for Visionary Startup Teams
We draft fair agreements that align founders and protect the startup's intellectual assets.

Instant Generation

Automated workflows ensure zero wait times for your PDF export.

Vetted Templates

Updated quarterly to align with the latest regional legal standards.

Standard
  • Equity split
  • Role definitions
  • IP assignment
  • Termination terms
Get Started

FAQs

When should we sign a Founders Agreement?

Ideally at the idea stage, before incorporation or any significant work begins.

What is "Reverse Vesting"?
Who owns the code or design created before incorporation?
What happens if a founder stops contributing?
Can we change the equity split later?
Is a Founders Agreement legally binding?
Do we need this if we are friends?
What is the purpose of a Founders Agreement?
Is a Founders Agreement legally mandatory?
Does it include equity vesting clauses?

Why Partner With ARK?

A seamless blend of technology and Chartered Accountant expertise to simplify your business registration.

Comprehensive Tax Services

From GST to income tax, we ensure timely and accurate filings with end-to-end support.

Financial Strategy

We help businesses plan, grow, and manage finances effectively through customized consulting.

ARK Advisor Expert
Startup & MSME Support

Right from business registration to ROC compliance, we assist MSMEs at every stage.

Experienced CA Team

Led by Chartered Accountants with deep domain expertise and industry-specific experience.

What Our Clients Say

Discover what our satisfied clients have to say about their experience working with us

Sandeep Reddy
Founder, Retail Trading Business
" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
Anusha Sharma
Partner, Professional Services Firm
" Their team quickly identified compliance gaps and suggested actionable fixes. Reporting was crisp and easy for management to understand. "
Rohit Kulkarni
CFO, Manufacturing Unit
" We got strong process recommendations and control improvements. The audit insights genuinely helped us reduce leakage and improve discipline. "
Meghana Rao
Director, Startup
" Professional, responsive, and very transparent. They explained everything in simple terms and kept the entire process on schedule. "
Imran Khan
Owner, Hospitality Business
" The team ensured our documentation was audit-ready and supported us throughout. Great experience and strong attention to detail. "

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