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Startup Founders Agreement – Importance of Legal Documents & Contracts for Companies

What is Co-Founders’ Agreement?

Document addressing relationship among startup founders by defining their rights and responsibilities.

Originally published here.

cofounder shareholder promoter agreement for startups company investment

Why is Co-Founders’ Agreement required?

To avoid legal pitfalls during early stages of startup and ensure proper understanding between cofounders, thereby reducing risk of disputes and misunderstandings.

Key Clauses of CoFounders Agreement

  • Roles and responsibilities
  • Shareholding pattern, Vesting & Lock-in period
  • Future Stock Options
  • Issuance of new shares
  • Transfer of shares – restrictions and procedure
  • Decision making process for startup operations
  • Possible exit strategy for each cofounder or shareholder

Drafting Cofounders Agreement

  • A general list of understanding between startup founders is prerequisite before drafting agreement.
  • Noting main points on company’s letterhead can be a good start.
  • Engaging startup company lawyer to formally draft the agreement is strongly advisable.


Rahul Dev, Partner at the law firm of Tech Corp Legal LLP, is a patent attorney and international technology business lawyer. Dev’s corporate law practice is aimed at integrating patents, technology laws, intellectual property rights, regulatory and security laws to provide services to Tech companies.

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About Us – Indian Patent Law Firm

We, at Tech Corp Legal LLP, an Indian law firm serving global clients and patent attorneys worldwide, provide quality patent drafting services to inventors. Along with patent support services provided by GIP Research, we offer top quality patent specification drafting services including enforceable patent claims and high quality patent illustrations.

Our team of patent attorneys and technical patent experts has comprehensive experience in executing projects pertaining to international patent drafting, patent drafting services, drafting patent claims and patent applications, software and mobile app patents, provisional and non-provisional patents, patent searches, office action responses, etc.

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Rahul Dev is a Patent Attorney & International Business Lawyer practicing Technology & Corporate Laws. He is reachable at info (at) techcorplegal (dot) com & @rdpatentlawyer on Twitter

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