A founders agreement is a legal contract between co-founders that outlines their roles, responsibilities, ownership, and investment proportion when starting a business. It’s important to have this agreement in writing rather than verbally agreed upon. All co-founders must agree to the terms when incorporating the company.
The purpose of a founders agreement is to prevent future disputes among co-founders by establishing clear guidelines and strategies for them to follow. It can also address unforeseen events, such as the death or resignation of a co-founder, which could impact the business.
| Establishing the Business Entity | The founders agreement outlines the type of business entity to be established by the co-founders, setting the direction for the company |
| Outlining Business Plans | This agreement describes the vision, mission, and goals of the entity, which helps co-founders work towards a common goal |
| Designating Roles and Responsibilities | A founders agreement assigns roles and responsibilities to each co-founder, helping avoid overlapping roles and potential conflicts |
| Structuring Ownership | The agreement specifies the structure of ownership, outlining the percentage of equity shares held by each co-founder, which helps avoid future conflicts |
| Decision Making Process | The agreement provides a procedure for handling ideological conflicts between co-founders and outlines the voting system, defining the value of votes for each founder |
| Compensation Provisions | The agreement outlines the scheme of compensation to be made in case a co-founder violates the provisions mandated, which ensures fairness among co-founders |
| Expulsion of Co-founders | The agreement provides a structure for dealing with co-founders who engage in fraudulent activities and outlines the process for reverting appropriate funds |
Drafting a founders agreement can be a complex process, but with the right guidance, it can be simplified. Here’s a step-by-step guide to help you draft a founders agreement using legal suvidha:
Step 1: Prepare the Draft: Create a comprehensive draft of the founders agreement that includes all necessary fields such as company objectives, terms and conditions for co-founders.
Step 2: Review and Revise: Once the draft is complete, review it to ensure all mandatory provisions are included and there are no ambiguous clauses.
Step 3: Add Additional Information: Add any additional information or provisions that may be necessary.
Step 4: Obtain Acknowledgement: Once the final draft is complete, ensure all co-founders acknowledge and accept the agreement.
Step 5: Notarize the Agreement: Notarize the agreement on a non-judicial stamp paper to make it legally binding.
Step 6: Obtain Signatures: Obtain signatures from all co-founders on the agreement.
Step 7: Seek Expert Guidance: Before finalizing the agreement, seek expert guidance to avoid disputes and ensure all provisions are legally sound.
1. Address proof of all co-founders
2. Identity proof of all co-founders
3. Identity proof of witnesses
4. A clear objective of the company
5. The number of equity shares of each co-founder
6. The overall percentage of shares of each co-founder
Fill out the application form & other details.
Make the payment through online mode.
We will process your application.
A mail will be send on completion.
We provide free of cost consultation and legal advice to our clients.
All our services are online no need you to travel from your place to get our services.
We are a team of more than 15+ professionals with 11 years of experience.
There are no hidden & extra charges* other than the quote/invoice we provide.
We aim that all our customers are fully satisfied with our services.
We value your time and we promise all our services are delivered on time.
In this Journey of the past 10+ 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.
Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.
Introduction The startup ecosystem thrives on innovation, yet navigating it requires meticulous planning and strategic
Mandatory Filing: Every foreign company must prepare and file financial statements within 6 months at
Form ADT-3 is a statutory document mandated by Section 140(2) of the Companies Act, 2013,
A trademark is an emblematic symbol, logo, or brand name that distinguishes one company from
Now get all the services required for your business in a single app.
Legal Suvidha has been a one-stop Compliance Provider for all start-ups and entrepreneurs.
Want to Setup your business in India? Connect with the best Online Registration, Licenses and Return filing solution providers for business across India. Since 2007, LegalSuvidha has been a one-stop shop for all startups or entrepreneurs looking for a chartered accountant, company secretary or lawyer. We have been ensuring Startups and SMEs are fully compliant with India’s legal system. Over the past 15 years, the depth of our offerings has increased and that too at affordable prices and customer satisfaction has made our standing different and we are giving a tough competition to other online facilitators of legal services in India. We have the best team for Company incorporation, Trademark Registration, Auditing, Advisory and Tax Filing for large, medium, small businesses and Startups in India.
Most of the budding entrepreneurs are in dilemma about what kind of entity to register when they start their business. Should it be a private limited company, limited liability partnership, partnership firm, one person company or a sole proprietorship? Each of these has its advantages and disadvantages. The type of entity should be chosen only after one round of consultation with our experts, as they will be in a better position to guide on the same. For example, Registering as a private limited company would be a good fit for any venture that will look for funding at a later stage. You can contact Legalsuvidha for any type of registration and advice you need for your business transactions. We assure you of great professional service at a reasonable price. You can connect with us for a free check on the Company name availability.
The importance of intellectual property is very much but most of the businesses are not aware of the same. We at LegalSuvidha simplify the process for you to register a Trademark for your brand, to get copyright for your artistic, creative ability and will also help you in patenting the process after a proper patent search patents which will ensure that you have sole rights to your creation, be it your brand, your designs or your inventions. At Legalsuvidha, we are very well equipped to handle all your IP requirements. We facilitate trademark applications in just two days, copyright registration for all your software, pictures, audio, and video content, and can connect you to patent attorneys to conduct a patent search and file your patent applications.
To do any business in India, you need a license for almost everything. Started a manufacturing business? You need a GST Registration and a Trade License. For a food business, you need an FSSAI license. In case you have employees, You need a Professional Tax registration and Shops & Establishments Act Registration. If that’s not enough, you also need to file GST Returns and Professional Tax Returns.
There is a lot of importance of legal documentation when you start your business, whether with your Investors, partners/co-directors, employees and any vendors you deal with. By getting a lawyer to draft contracts or agreements with new vendors, employees, and investors, you’re ensuring that you have all the downsides covered. At LegalSuvidha, we connect you to lawyers who will deliver complex documents, from shareholders’ agreements and founders’ agreements to terms of service/privacy policy and non-disclosure agreements, at a reasonable cost in a few days.
It’s not enough to have started a private limited company or an LLP. You need to comply with all the requirements of the Ministry of Corporate Affairs, Central Board of Indirect taxes and Central Board of direct taxes once you register your business. You need to inform them of every relevant change you make, whether it is adding a director, removing a partner or increasing authorized share capital. You also need to file annual returns and maintain your accounts. In the case of a private limited company, you even need them audited. At LegalSuvidha, we facilitate all these services completely online. This means you can engage a professional on retainer for the year and we’ll ensure that all the formalities are completed for you while you focus on your business.
We are Authorized e-return Intermediaries and have recently launched our own ITR filing platform, this will help the salaried employees and businesses to get their ITR filed within the time and at a reasonable price. Through the use of automation, the system is highly effective and will help in filing ITR in up to 10 minutes for Salaried employees. We have on-boarded the best Chartered Accountants who will provide consultation for both Salaried employees and Businesses to file proper taxes to the government of India. This will help in avoiding legal notices in the future and will also help in getting the returns processed at the earliest. We are the first in the market to launch the ITR filing facility for FY 2018-19.
Legal Suvidha © 2013-2024. All Rights Reserved.
