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Founders Agreement with Vesting

We draft Founder Agreements with Vesting clauses to protect the company’s equity, define co-founder roles, and prevent disputes. Our agreements ensure fair ownership distribution, clear responsibilities, and long-term commitment from all founders.

6000+

Happy Clients

14+

Years Experience

Free Consultation by Expert

6000+

Happy Clients

14+

Years Experience

Overview of Founders Agreement with Vesting

A Founders Agreement outlines how co-founders will work together—covering equity, roles, IP ownership, decision-making, exit rules, and dispute resolution.
The vesting clause ensures founders earn their equity over time, preventing situations where a co-founder leaves early but keeps full ownership.

This agreement is critical for startups seeking investment, building governance, or safeguarding IP and equity.

Key Elements We Include

Equity Distribution & Vesting:
4-year vesting with 1-year cliff, milestone-based vesting, reverse vesting, or customised structures.

Roles, Responsibilities & Decision-Making:
Operational duties, board roles, reserved matters, founder authority levels.

Intellectual Property (IP) Assignment:
All IP created by founders belongs to the company, preventing future disputes.

Founder Exit & Buyback Rules:
Good leaver / bad leaver clauses, valuation mechanism, transfer restrictions.

Non-Compete & Confidentiality:
Protecting trade secrets, customer data, and business IP.

Founder Compensation & KPI Alignment:
Salary, ESOPs, incentives, performance metrics.

Why a Vesting Agreement is Essential

Without vesting, a founder leaving in the first year still holds permanent equity—crippling future fundraising and decision-making. Vesting structures prevent dead equity and ensure long-term commitment.

Why This Matters - Founders Agreement with Vesting

Protects Company Equity

Ensures founders earn equity over time, preventing early exits with large shares.

Clear Governance & Decision Framework

Reduces confusion and avoids internal disputes.

Investor-Ready Documentation

Founders Agreement with vesting is mandatory for VC/angel funding.

IP & Confidentiality Protection

Company owns all intellectual property from day one.

Smooth Founder Exits

Fair rules for valuation, buyback, and share transfer.

Customised for Startups

Tailored to sector, growth stage, and founder roles.

Registration Process of Founders Agreement with Vesting

Step 1: Founder Discussion (1–3 Days)

Understand equity expectations, responsibilities, and long-term commitments.

Step 2: Drafting Term Sheet (2–4 Days)

Prepare clear terms covering vesting, roles, exit rules, and IP protection.

Step 3: Agreement Drafting (3–7 Days)

Draft a comprehensive Founder Agreement with customised vesting structure.

Step 4: Negotiation & Revisions

Refine equity split, vesting schedule, and governance structure based on feedback.

Step 5: Signing & Implementation

Assist with signing, share allocation, and legal record updates.

Timeline: Complete drafting typically 5–10 days.

Documents Required of Founders Agreement with Vesting

Founder Details

  • PAN

  • Aadhaar/passport

  • Address proof

Company Details

  • Incorporation documents

  • Shareholding pattern

  • MOA/AOA

Founders’ Contribution Details

  • Capital contribution

  • Sweat equity contribution

  • IP ownership or prior work

Operational Information

  • Founder roles

  • Job descriptions

  • Decision-making framework

Existing Contracts (If Any)

  • ESOP policies

  • Previous founder agreements

  • Investor agreements

FAQ's on Founders Agreement with Vesting

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Helped

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14+ Years

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In this Journey of the past 14+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.We register business online and save time & paperwork.

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