Co-founders Agreement Drafting Service (Online Service) (Online Service)

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Overview

A Co-founders Agreement is a foundational document that outlines the roles, responsibilities, equity ownership, and exit strategies of the founding team. While most startups begin with a verbal “handshake,” a written agreement from Vakalatexpert.in ensures that there is no ambiguity when the stakes get high—such as during a funding round or a disagreement between partners.

​This agreement acts as a safeguard against the “Founder Dispute,” which is one of the top reasons startups fail. We help you address the “tough questions” early so you can focus on building your product.

Key Components of a Solid Co-founders Agreement

Our advocate-vetted drafts cover the “critical four” areas: Equity, Vesting, Roles, and Exits.

Equity Split & Ownership

Clearly defines what percentage of the company each founder owns.

Equity Split & Ownership

Clearly defines what percentage of the company each founder owns.

Vesting Schedule

A critical clause ensuring that founders "earn" their shares over time (typically 4 years). If a founder leaves early, they don't walk away with a huge chunk of the company

Vesting Schedule

A critical clause ensuring that founders "earn" their shares over time (typically 4 years). If a founder leaves early, they don't walk away with a huge chunk of the company

Roles & Responsibilities

Assigns specific departments (Tech, Sales, Finance) to each founder to prevent overlap and "power struggles."

Roles & Responsibilities

Assigns specific departments (Tech, Sales, Finance) to each founder to prevent overlap and "power struggles."

Decision-Making & Voting Rights

Outlines how major decisions (hiring, selling the company, taking a loan) are made—is it a majority vote or a unanimous one?

Decision-Making & Voting Rights

Outlines how major decisions (hiring, selling the company, taking a loan) are made—is it a majority vote or a unanimous one?

Intellectual Property (IP) Assignment

Ensures that all code, designs, and ideas created by the founders belong to the Company, not the individual founders.

Intellectual Property (IP) Assignment

 Ensures that all code, designs, and ideas created by the founders belong to the Company, not the individual founders.

Exit Clauses & Buy-Back Rights

What happens if a founder wants to leave, gets fired, or unfortunately passes away? This clause defines who can buy their shares and at what price.

Exit Clauses & Buy-Back Rights

What happens if a founder wants to leave, gets fired, or unfortunately passes away? This clause defines who can buy their shares and at what price.

Reverse Vesting

 Protects the startup by allowing the company to buy back unvested shares if a founder leaves before the agreed-upon period.

Reverse Vesting

Protects the startup by allowing the company to buy back unvested shares if a founder leaves before the agreed-upon period.

 

​Confidentiality & Non-Compete

Prevents a departing founder from starting a rival company or stealing the startup’s clients/employees.

​Confidentiality & Non-Compete

Prevents a departing founder from starting a rival company or stealing the startup’s clients/employees.

Why Choose Vakalatexpert.in for Your Founders' Contract?

Investor-Ready Drafts

Most VCs and Angel Investors will refuse to invest unless a solid Co-founders Agreement with Vesting Clauses is in place.

Conflict Resolution

We include "Deadlock Provisions" to resolve ties in decision-making, ensuring the business never grinds to a halt.

Neutral Third-Party Drafting

We act as professional mediators to ensure the agreement is fair to all founders, maintaining harmony in the team.

Customized for Scale

Whether you are 2 founders or 5, we tailor the management structure to suit your team’s dynamics.

Exhaustive Frequently Asked Questions (FAQs)

If a founder leaves after 3 months but owns 50% of the company, the startup becomes "uninvestable." Vesting ensures that founders only keep their full equity if they stay and contribute for the long term (e.g., 4 years).

 

Yes. As the startup grows and raises funding, this agreement is usually superseded by a Shareholders Agreement (SHA). We draft your initial agreement to be easily upgradable.

A "Cliff" is a period (usually 1 year) before any shares vest. If a founder leaves before the cliff, they get 0% equity. This protects the company from "hit-and-run" partners.

We include clauses like a "Tie-breaker" (assigning a final vote to the CEO) or "Mediation" to ensure that a disagreement doesn't freeze the company's operations.

Absolutely. When drafted under the Indian Contract Act, 1872, and properly stamped, it is a legally binding document that can be used in court or arbitration.

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Our Deliverables

Comprehensive Co-founders Agreement (Word & PDF).
Equity & Vesting Cap Table Summary.
​IP Assignment Deed for Founders.
Legal Consultation on equity structuring and cliff periods.
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