I am a first-time founder outside the big metros and my co-founder is in Bengaluru. Does where we are based change how we split equity or set up the company?
Location does not change the split: contribution, risk, and role do. What it does change is logistics. Incorporate one Indian Pvt Ltd regardless of which cities you sit in, use a single registered office, and put remote-working and decision-making terms in writing so distance does not become an excuse for one founder to drift. Do not give the metro co-founder more equity just because they are near investors. That is a status tax, not a fair split.
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✍️ Essay
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This is the canonical case for splitting close to equal, written by a YC group partner. It arms you with the exact four reasons to hand a skeptical cofounder (or your own ego): a great company takes 7 to 10 years, so who wrote the first line of code in month one is noise; more equity means more motivation; almost every startup dies, and a demotivated cofounder is how; and Seibel's blunt line that if you won't give your partner an equal share, you picked the wrong partner.
This is the practical checklist for two founders sitting in different cities: it spells out that you need just one registered office in India, a minimum of two directors and two shareholders, and at least one resident director, all filed online through SPICe+. It even links state-specific pages, so the founder outside the metro and the co-founder in Bengaluru can see that where each of you sits does not fork the incorporation.
One Indian Pvt Ltd with a single registered office covers both founders regardless of city, no second entity needed
At least one director must be an Indian resident, and the whole SPICe+ filing (PAN, TAN, GST, DIN) is done online, so no one has to relocate to incorporate
You need a minimum of two directors and two shareholders, which a two-founder team meets by default
ClearTax gives the plain-language walkthrough of the four-step process (DSC, DIN, SPICe+ name reservation, incorporation certificate) plus the address-proof documents and post-registration compliance, and it stresses the whole flow is online. Pair it with the IndiaFilings checklist so the founder understands not just the registered-office rule but the ongoing filings both co-founders share once the single company is live.
