Ask Veda

TaxClue AI · Active
Namaste! I'm Veda — TaxClue's AI compliance assistant. 🙏

Ask me anything about GST, ITR, Company registration, Trademark, FSSAI or any compliance topic. When you're ready, I'll connect you with our expert for a callback.
Share your details — our expert will call you
Powered by TaxClue · India's Trusted Compliance Platform
Agreement

Founders Agreement

A founders agreement records the equity, roles, vesting and mutual obligations among the co-founders of a startup.

FOUNDERS AGREEMENT

This Agreement is made on [Date] between [Founder A] and [Founder B]

  1. Parties. This Founders Agreement is executed between [Founder A], R/o [Address] and [Founder B], R/o [Address] (together the "Founders") in respect of [Startup / Company Name].
  2. Recitals. The Founders have jointly conceived the business and wish to record their equity, roles and mutual obligations.
  3. Equity & Consideration. The equity shall be held [__% : __%]; the agreed valuation/consideration is Rs. [Amount], effective [Effective Date].
  4. Roles & Responsibilities. Founder A shall act as [Designation] and Founder B as [Designation], each devoting full time and attention to the business.
  5. Vesting. Founder equity shall vest over [4] years with a [1-year] cliff; unvested shares of a departing Founder shall be subject to buy-back at [fair value / par].
  6. Intellectual Property & Obligations. Each Founder assigns to the Company all intellectual property created in connection with the business.
  7. Decision Making. Ordinary matters shall be decided by majority; reserved matters listed in Schedule I shall require unanimous consent.
  8. Representations & Warranties. Each Founder warrants that it is free to enter into this Agreement and is not bound by any conflicting non-compete or employment obligation.
  9. Confidentiality & Non-Compete. Each Founder shall keep business information confidential and shall not compete with the Company during the term and for [__] months thereafter.
  10. Exit / Departure. A Founder ceasing to be active shall offer their vested shares first to the continuing Founders at [fair value].
  11. Term & Termination. This Agreement continues until the Company adopts a shareholders agreement superseding it or the Founders agree in writing to terminate.
  12. Governing Law & Jurisdiction. This Agreement is governed by the laws of India and subject to the jurisdiction of courts at [City].
  13. Dispute Resolution. Disputes shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, seated at [City].

IN WITNESS WHEREOF the Founders have executed this Agreement on the date first written above.

___
[Founder A]
___
[Founder B]
___
Witness 1: [Name & Address]
___
Witness 2: [Name & Address]

Before you use it — fill in / check

  • Founder A
  • Founder B
  • Valuation/consideration
  • Effective date

How to use this template

  1. Read through and replace every [bracketed] or blank placeholder with your actual details.
  2. Delete any clause that doesn't apply and add anything specific to your situation.
  3. Click Print / Save as PDF to download, or Copy text to paste into your letterhead.
  4. Get it signed / stamped / notarised as required, and keep a copy for your records.

This is a general, editable template for convenience only — not legal advice. For anything material, have a professional review it. TaxClue isn't liable for how it's used.