Co Founder Agreement Startup Template India

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A founding contract is an official contract signed between all the co-founders of a company. This document defines all the responsibilities, ownership relationships and initial investments of each founder of the company. It is recommended to enter into a business start-up agreement during the start-up phase of a business, which defines the responsibilities and roles of each of the co-founders. A creation agreement defines the roles and responsibilities of the founding team, capital ownership and intellectual property. Using a pre-subscribed template for the co-founders` agreement, available online, can cause more damage than the money it can save. The advice of a startup documentation expert can give a critical overview of how to proceed in designing and verifying the agreement and establish an all-inclusive agreement for founders. This agreement should include another important clause regarding the limited transfer of shares of the founder. It may contain a lock-in clause that obliges the founder not to transfer his shares for a specified period before the end of his mandate. Similarly, the method of evaluating the founder`s shares should be clarified before the end of his mandate. The most critical clause of a co-founding agreement concerns the share of equity of each co-founder of the startup. This clause mentions the consideration that a founder invests in the form of monetary, experience, network and intellectual property investments. The ownership clause sets out the number of shares held by each founder, the total amount of capital invested by a co-founder and the distribution of profits between them.

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