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Co-Founder Agreements in India 2026: A Comprehensive Drafting Guide

From lawsikho.com by LawSikho Long read

Why we picked it

A detailed, clause-by-clause drafting guide with Indian legal context, including enforceability and state-wise stamp duty, that goes deeper than a generic template. Written for Indian founders specifically.

Enforceable under the Indian Contract Act only if properly executed and stamped
Must-have clauses include vesting, leaver provisions, IP assignment, and deadlock resolution
Stamp duty varies by state, so localize the document

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Answers What is vesting and why do I need a vesting schedule? What must go into a co-founder / founders' agreement in India? How much equity should I set aside for an ESOP pool for employees? What happens to equity if a co-founder leaves early? What legal setup do I need beyond incorporation (IP, contracts, compliance)? How do I compensate early employees with salary and equity in India?