Article · Long read

Co-Founder Agreement India 2026: Equity, Vesting & IP Guide

Vakilsearch · vakilsearch.com Free Intermediate India

A practical India-specific walkthrough of equity split, vesting, and IP clauses in a co-founder agreement, from a mainstream Indian legal services provider. It covers what a US template will miss.

  • Standard vesting is 4 years with a 1-year cliff, applied to every founder
  • Assign all IP to the company in writing from the start
  • Cover roles, decision-making, deadlock, and exit, not just percentages
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It answers 6 questions

  1. How should co-founders split equity fairly?
  2. What is vesting and why do I need a vesting schedule?
  3. Should I use a dynamic equity split like Slicing Pie instead of fixed percentages?
  4. What must go into a co-founder / founders' agreement in India?
  5. How much equity should I set aside for an ESOP pool for employees?
  6. What happens to equity if a co-founder leaves early?

Read with it

  1. The canonical dynamic-equity framework for fairly splitting ownership based on real contributions before funding, when nobody... slicingpie.com Tool · Framework + software + handbook Slicing Pie: Dynamic Equity Split Model & Calculator Mike Moyer
  2. A detailed, clause-by-clause drafting guide with Indian legal context, including enforceability and state-wise stamp duty, that... lawsikho.com Article · Long read Co-Founder Agreements in India 2026: A Comprehensive Drafting Guide LawSikho
  3. The definitive, data-driven book on early founding-team decisions, drawing on quantitative research covering nearly 10,000... Princeton University Press Book · ~480 pages The Founder's Dilemmas Noam Wasserman
  4. The official Indian government primer on structuring ESOPs for startups, a primary source on the rules that most blog posts... startupindia.gov.in Article · Official primer Employee Stock Options for Startups (Startup India) Startup India / DPIIT
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