Article · Long read

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

LawSikho · lawsikho.com Free Advanced India

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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It answers 6 questions

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

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  2. 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
  3. 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
  4. 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
  5. The attorney-favourite platform for clean, fundable startup paperwork, run by startup lawyers obsessed with avoiding... clerky.com Tool · Legal paperwork platform + founder handbooks Clerky: Startup Legal Paperwork & Delaware Incorporation Clerky
  6. A clear, vendor-agnostic explainer of why the Delaware C-corp is the default for high-growth, investor-backed startups and how... stripe.com/resources Article · Guide How to form a Delaware corporation (C corp), Stripe guide Stripe
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