Founders Agreement

Before you register the company, build the product, or approach investors. The earlier the better — equity conversations get harder once one founder feels they have done more work than another.

Vesting means founders earn their equity over time. If a founder leaves after six months on a four-year schedule with a one-year cliff, they take no equity. This protects remaining founders and is a standard expectation of investors.

No. A Founders Agreement is typically signed before incorporation to align co-founders. Once the company is incorporated and investors come in, a formal Shareholders Agreement governs all shareholders.

The Founders Agreement should include an IP assignment clause specifying what pre-existing IP is assigned to the company. This must be resolved before a funding round.

Yes, with the consent of all parties. However, modifying equity or vesting terms after the fact is contentious — it is far easier to get these right at the start.

Yes, it is a contract governed by the Indian Contract Act, 1872. It can be enforced in court.