Founders agreement In Delhi NCR

An Agreement between founders, that outlines all the important aspect of their relationship

100% online process

Get founders agreement drafted without stepping out of your house. Email us the required documents and let us do the rest.

Company Vakil Guarantee

We take pride in our error free platform aimed on satisfying our clients, if you are still not satisfied, we refund your money.

Most efficient Registration Platform

At Company Vakil your registrations are handled by experts at every stage.

Making registrations affordable and hassle free

BUY NOW Learn more

Contact Us Now!

FOUNDER’S AGREEMEN IN DELHI NCR TOTAL COST WITH BREAKDOWN

ConsultancyFREE

Trademark Name SearchFREE

Government Fee for Individuals and startups Rs 1999.00*

TotalBuy Now Rs 1999.00**

Founders Agreement in Delhi NCR

A founder’s agreement is an official agreement between all the founding members of a firm and it determines the objectives and vision of the firm along with the roles and responsibilities of its members. It lays down the terms and conditions between the co-founders regarding the manner in which the business is to be carried. It is a written agreement clearly specifying the roles and responsibilities of its founding members. The clear specification of the roles and responsibilities of the founders at the initial stage of the start-up will help the business to avoid conflicts with respect to the share of profits, company proceeds etc. Also, a founder’s agreement lays down the objectives and vision of the company and sets up expectations and goals of all the co-founders by assigning each one of them specific roles and responsibilities.

A good founder’s agreement include definition of the business, roles and responsibilities of each of the co-founders, ownership details, details of capital raised by the founders and investors, exit strategy, company dissolution, dispute resolution, salary drawn by each of the co-founders along with some miscellaneous provisions like intellectual property rights , non-compete clauses etc. The founder’s agreement should be such that the ownership of the Intellectual Property should be assigned to the enterprise rather than an individual. If the intellectual property is assigned to individuals in the enterprise, then it will render the startup less meaningful. Therefore, one should ensure that the intellectual property is safeguarded under the business name. A founder’s agreement provides insurance to its members in case of any dissonance among its co-founders. Therefore, it is advised that a founder’s agreement should always be drafted along the lines of the business with the help of a legal team and must state all the provisions associated with the business more precisely and efficiently.

The city of Delhi NCR holds an apt location to discuss about business. The city holds a very modern developmental approach towards the business ventures made here. The young population in this city is blooming with ideas and is a perfect place to begin ventures towards startups. Apart from being a host to business, it is also a place where one witnesses a blend of traditional monuments, rich political history and an inspirational and enthusiastic youth.   

 

 

Reasons to have a Founders Agreement in Delhi NCR

Following are the reasons for co founder agreement in Delhi NCR:-

  1. Founder’s agreement helps in decision making process as it clearly outlines the roles and responsibilities of its founding members. With the help of founder’s agreement, the founders of the company can decide the, who will take major decision, who is responsible for marketing and leadership of the company etc.
  2. In founder’s agreement, the ownership strategy of the business is clearly defined.  It helps to decide the amount of share of profits that each member of the company will get.
  3. Founder’s agreement provides an action plan for a situation when any one of the member quits from the company. Further, if the member the confidential information regarding the business of the company, the other members of the company have the right to take necessary action according to the terms of the agreement.
  4. Founder’s agreement ensures that the intellectual property is assigned under the business name and not to an individual personally. Assignment of an intellectual property under the name of an individual will render the business less meaningful.
  5. Founder’s agreement helps the company to avail the offers relating to the mergers and material transactions of the company. A good founder’s agreement provides for all the necessary action that is to be taken during mergers and sales of the company.
  6. In case of closing the business, founder’s agreement provides plan for the company’s dissolution along with the distribution of share proceeds among the members of the company.
  7. The most important reason of having a founder’s agreement is that it helps to have a contingency plan for cases arising out of unpredictable situations.

 

Why do I need a Founders Agreement in Delhi NCR

Co Founders Agreement in Delhi NCR is required for the following reasons:-

  • Roles and Responsibilities

Founders Agreement clearly specifies the role and responsibilities of each member. The members are required to perform their function according to the responsibilities of the agreement. This helps to establish good business relations between the founders. 

  • Avoids Ambiguity

If the roles and responsibilities of the founders are not clearly specified, then there are chances of conflicts among them with respect to share of profits, ownership etc. Founder’s agreement helps to avoid ambiguity that might arise in future with respect to the management of the company.

  • Clear Objectives

A good founder’s agreement clearly lays down its objectives, strategy, business plan, exit strategy, founder departure, company dissolution etc.  Having a well defined objective of the business ensures elimination of loopholes and helps to run the business smoothly.

  • Identifying Prospective Risks and Complications

Founder’s agreement helps to identify prospective risks and complications associated with the business along with the supply provisions. It clarifies any doubt related to the business and helps to establish a healthy relationship by defining the roles of the founders. Therefore, it is recommended to draft a well written founder’s agreement with the help of an expert as per the requirements of the business.

  • Exit Strategy

The founder’s agreement clearly specifies the objectives, vision and exit strategy of a business. Exit strategy is necessary to avoid cases where the exit of any member from the business will lead to unbearable losses to the business.

 

Process of drafting a founders agreement in Delhi NCR

The primary requirement in drafting a co Founders agreement in Delhi NCR is that all the founding members of the company are required to sit and discuss the key areas of the company and to resolve all the issues on which there is a disagreement. Following processes are to be followed for drafting a co Founders agreement in Delhi NCR:-

  • Find a Template

After the discussion of all the issues, it is required that the founders of the company should find a template for drafting the founders agreement. Company Vakil provides various templates which one can use and combine them.

  • Fill the Particulars

Once the template is selected, the founders are required to fill the details like name of each founder, company name, and address of each founder.

  • Making the provisions

The most important step is to make a detail of all the provisions to be incorporated in the founders’ agreement. The important details include compensation, roles and responsibilities of each founder, termination clause, equity ownership, intellectual property assignment etc. It is advisable that the provisions should be made with the help of an expert or legal team to avoid any loopholes.

  • Reviewing of founders agreement

Once the founders agreement is drafted, it is required that one should visit a legal expert for the reviewing of the founders agreement. They will help to eliminate any loopholes in the agreement and gives professional touch to the agreement. 

  • Signature of co-founders

After reviewing of the agreement by the lawyer, it is necessary to bring the agreement to all the co-founders for their acceptance. The founders agreement must be signed by each and every co-founder for it to become effective.

 

Minimum Requirements for Co Founders Agreement in Delhi NCR

A Founders agreement in Delhi NCR is a legal document specifying the terms and conditions for the operation of a business. It is a written agreement clearly specifying the roles and responsibilities of its founding members. The clear specification of the roles and responsibilities of the founders at the initial stage of the start-up will help the business to avoid conflicts with respect to the share of profits, company proceeds etc. Founders agreement helps to identify prospective risks and complications associated with the business along with the supply provisions. It clarifies any doubt related to the business and helps to establish a healthy relationship by defining the roles of the founders.

A good founder’s agreement include

  1. Definition of the business
  2. Roles and Responsibilities of each of the co-founders
  3. Ownership details
  4. Details of capital raised by the founders and investors
  5. Exit strategy
  6. Company dissolution
  7. Dispute resolution
  8. Salary drawn by each of the co-founders
  9. Some miscellaneous provisions like intellectual property rights, non-compete clauses etc.

Documents Required for Founders Agreement in Delhi NCR

Following documents are required for Co Founders agreement on Delhi NCR:-

  • Articles of Incorporation                                                  

Article of Incorporation is the most important document which defines proper business structure. Not having an article of incorporation and setting up only a sole proprietorship will lead to huge income bills and legal liabilities to which the founders are personally responsible. 

  • Intellectual Property Assignment Agreement

Intellectual Property Assignment Agreement determines the ability of the startup to attract the investments. Investors and venture capitalists often go for evaluating IP portfolio’s in order to determine the amount of investment they have to make in that particular startup.

  • Bylaws

Another most important document for a business to operate with as little complications as possible is having strong bylaws. These are basically rules and regulations for the company to follow in order to resolve inner disputes, determine the rights and powers of each members and to select the leadership.

  • Operating Agreement

Operating Agreement lays down the roles and responsibilities of each founder in the company. This helps to avoid any conflict among founding parties. Operating Agreement is signed by all the founding members and it defines the relationship of the founders.

  • Non-Disclosure Agreement

Having a non-disclosure agreement helps to maintain the confidentiality of information between the parties regarding the terms and conditions for doing the business. A non-disclosure agreement specifies the kind of information to be confidential and the manner to deal with case where the confidential information has been disclosed by any one of the parties.

  • Shareholder agreement

It determines the rights of the shareholders and includes shareholders right of first refusal, right to transfer shares, shareholders power to run and manage the startup.

 

Advantages & Benefits of Founders Agreement in Delhi NCR

Following are the benefits of Founders Agreement in Delhi NCR:-

  • Outlines responsibilities and decision making process

Founder’s agreement is the agreement between the founders of the company. It clearly outlines the role and responsibilities of each of the founders and helps to run the business smoothly without any dispute related to the roles of the founders. Founders’ agreement can ease decision making and is helpful in avoiding escalation of conflicts.

  • Equity Ownership

The founder’s agreement specifies the ownership strategy of the business and should align the business success of the business with the financial success of the company. The agreement enables the founders of the company to share the profits according to the pre-decided terms of the agreement. It reduces conflicts regarding how much money each member will receive after the success of the business. 

 

  • Founder Departures

A good founder’s agreement must have an action plan for cases where the founders will leave the business and expose it which could lead to risk of dissolution of business. In that case, the company should have an agreement to take action against any such founder’s departure.

  • Ownership of Intellectual Property

The founder’s agreement should be such that the ownership of the Intellectual Property should be assigned to the enterprise rather than an individual. If the intellectual property is assigned to individuals in the enterprise, then it will render the startup less meaningful. Therefore, one should ensure that the intellectual property is safeguarded under the business name.

  • Sales/Mergers/Material Transactions

The entity or enterprise can easily avail offers like mergers or material transactions if it has clearly specified the terms and conditions for mergers and sale of the business in its founders agreement.

  • Company Dissolution

The founder’s agreement formed at the initial stage of the start-up must specify a clear plan for the dissolution of the business. Having a clearly specified business dissolution helps to avoid disputes regarding share of proceeds which will be generated due to dissolution.

TIME TAKEN in registration process

2-3 days

Founder's Agreement

Full Detail

FAQ Related to Founders Agreement in Delhi NCR

 

What is the purpose of founder’s agreement?

The purpose of the founder’s agreement is to clearly specify the roles and responsibilities of its founding members in order to achieve the objectives and targets of the company.

 

What are the essential ingredients of founder’s agreement?

A good founder’s agreement include definition of the business, roles and responsibilities of each of the co-founders, ownership details, details of capital raised by the founders and investors, exit strategy, company dissolution, dispute resolution, salary drawn by each of the co-founders along with some miscellaneous provisions like intellectual property rights , non-compete clauses etc.

 

Is it required to have founder’s agreement on a stamped paper?

Yes, it is advisable that all the terms and conditions should be on a paper duly signed and approved by each of the founding members.

 

Can founder’s agreement be signed through e-mails?

Yes, a founder’s agreement can be signed through e-mail also provided that each co-founder should send a reply accepting the terms and conditions of the founders’ agreement. However, it is advisable that a founders’ agreement should be signed on a bond paper.

 

Is it mandatory to have Founders Agreement printed on stamp or paper?

No. Founders’ agreement can be printed and signed on a bond paper also.

 

Does any legal action arises against a co-founder for breaking the terms and conditions of the founder’s agreement?

Yes, the other founding members have the right to initiate legal proceedings against the co-founders who has broken the terms of the agreement. Also, the founders can take action as per the terms of the agreement.

 

What are the things to keep in mind while drafting the founder’s agreement?

The most important thing is that the terms and conditions of the agreement must be specified clearly and precisely. It is advisable to take the help of a legal expert for drafting the founders’ agreement.

 

Why do we need a founders’ agreement?

Founder’s agreement provides the objectives and vision of the company and helps to avoid conflicts among its co-founders by clearly specifying their roles and responsibilities.

 

What are the key issues to be dealt with in founder’s agreement?

The following things must be there in a founders’ agreement:-

  • Equity Ownership
  • Outlines Roles, Responsibilities and Decision Process
  • Exit Strategy
  • Intellectual Property Ownership
  • Company Dissolution
  • Sales/Mergers/Material Transactions

OUR SERVICES ACROSS INDIA

GST registration in Mumbai, Trademark Registration in Mumbai, Private Limited Company Registration Mumbai, Limited Liability Partnership in Mumbai, One Person Company Registration in Mumbai, Copyright Registration Mumbai, Private Limited Company Registration in Delhi NCR, Private Limited Company Registration in Hyderabad, Private Limited Company Registration Bangalore, Private Limited Company Registration Kolkata, GST Registration in Hyderabad, Trademark Registration in Hyderabad, GST Registration in Kolkata, GST Registration in Bangalore, Msme Registartion in Hyderabad, Trademark Registration in Bangalore, Trademark Registration In Kolkata, MSME Registration in Delhi NCR, MSME Registration In Kolkata, MSME Registration in Bangalore , MSME Registration in Mumbai, Private Limited Company Registration in Jaipur, Trademark Registration in Delhi NCR, GST Registration in Jaipur, Trademark Registration in Jaipur, Trademark Registration Ahmedabad, Private Limited Company Registration in Ahmedabad, GST Registration in Ahmedabad, Limited Liability Partnership in Kolkata, Patent Registration in Kolkata, One Person Company Registration in Kolkata, Co-Founder's Agreement in Mumbai, Copyright Registration in Pune, Copyright Registration in Jaipur, Employment Contract in Mumbai, Employment contract in Jaipur, Employment Contract in Pune , Import Export Code in Mumbai, Founder Agreement in Pune, Founder's agreement in Jaipur, LLP Registration In Pune, GST Registration In Pune , Patent Registration In Mumbai , Terms of Service Agreement In Mumbai, IE Code Registration in Pune, IEC Registration in Jaipur, Trademark Assignment In Mumbai, Trademark Objection In Mumbai, Trademark assignment in Jaipur, Trademark Renewal in mumbai, , OPC Registration in Jaipur, Trademark Renewal In Jaipur, Terms of service agreement in Jaipur, Trademark Objection in Jaipur, MSME Registration in Jaipur, Copyright Registration in Delhi NCR, Employment Contract in Chennai, Patent registration in Hyderabad, Employment Contract in Delhi NCR, Founders Agreement in Chennai , Terms of service in Hyderabad, Founder’s Agreement in Delhi NCR, Employment contract in Banglore, Import Export Code Registration Chennai , Import Export Code In Delhi NCR, Copyright registration in Bangalore, LLP Registration in Delhi NCR, LLP Registration in Chennai, Founder agreement in Bangalore, Copyright registration in Hyderabad , OPC Registration In Chennai, IEC Code in Bangalore, Employment Contract in Hyderabad , Import Export Code registration hyderabad , Patent Registration In Chennai, OPC Registration in Bangalore, LLP registration in Hyderabad, Term of Service Agreement In Chennai , Patent registration in Bangalore, OPC Registration in Hyderabad, Trademark Status Objected In Chennai, LLP Registration in Bangalore, Trademark Assignment in hyderabad, Trademark Registration in Chennai, Trademark assignment in Bangalore, Trademark Objection in Hyderabad, Trademark objection in Bangalore, Trademark Renewal in Hyderabad, Trademark Renewal in Bangalore, Patent Registration in Delhi NCR, OPC Registration in Delhi NCR, Trademark Status Objection in Delhi NCR, Trademark Renewal in Delhi NCR, Trademark Assignment In Delhi NCR, GST Registration in Delhi NCR, Terms of Service Agreement in Delhi NCR, Terms of Service Agreement In Bangalore, LLP Registration In Jaipur, Trademark Assignment in Ahmedabad, Patent Registration In Jaipur, Copyright Registration in Ahmedabad, Trademark Renewal In Pune, Employment Contract in Ahmedabad, Trademark Registration in Pune, Founders Agreement in Ahmedabad, Trademark Assignment in Pune, LLP Registration in Ahmedabad, Terms of Service Agreement Pune, opc Registration Ahmedabad , Patent Registration in Pune, Patent Registration in Ahmedabad, OPC Registration in Pune, Terms of service in Ahmedabad, Trademark Renewal in Ahmedabad, MSME Registration in Pune, MSME Registration in Ahmedabad, Company Registration in Chennai, Trademark Assignment in Chennai, Copyright Registration In Chennai, GST Registration in Chennai