Co-founders, team & legal
Co-founder agreements & equity
Split fairly, vest always, write it down.
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What must go into a co-founder / founders' agreement in India?
Cover equity split, vesting and leaver clauses, roles and time commitment, IP assignment to the company, decision-making and deadlock resolution, a...
How much equity should I set aside for an ESOP pool for employees?
Carve out roughly 10-15% for an option pool before you raise, so early hires get real ownership without diluting you unexpectedly later. In India, ...
Should co-founder equity be split before or after we have raised any money, and does it matter that one of us is putting in cash?
Split before you raise, when the company is worth nothing and the conversation is cheap. Cash a founder puts in is a loan or priced convertible, no...
What is the difference between issuing shares to a co-founder and giving them stock options, and which should I use in an Indian private limited company?
Co-founders should hold actual shares (subject to reverse vesting), not options. Options are for employees. In an Indian Pvt Ltd, you issue founder...
How does founder equity actually get taxed in India, and will I owe tax the moment I get my shares or when I sell?
If you subscribe to founder shares at par at incorporation, there is usually no tax event then, tax hits on sale as capital gains. The trap is gett...
Do I really need a lawyer and a formal shareholders agreement, or is a signed founders agreement on paper enough for now?
A plain founders agreement is fine at day zero to lock intent, but before you raise or hire, you need a proper shareholders agreement (SHA) drafted...
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...
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