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Free Co-Founders Agreement Template

Free Co-Founders Agreement template for Indian startups. Covers equity, vesting, and roles. Pro-grade boilerplate vetted by certified domain experts. Use it as a raw document, or automate it in Glomiq to eliminate manual copy-pasting.

Verified Compliance Document
Vetted by: Ashay Shah
GLOMIQ DRAFT
CO-FOUNDERS AGREEMENT
This Co-Founders Agreement ("Agreement") is entered into on [DATE] at [CITY], by and between [FOUNDER_1_NAME] residing at [FOUNDER_1_ADDRESS] and [FOUNDER_2_NAME] residing at [FOUNDER_2_ADDRESS] (collectively referred to as the "Founders").
1. Project Description. The Founders have agreed to collaborate on the development of a business concept currently known as "[STARTUP_NAME]" (the "Company"), which involves [BUSINESS_DESCRIPTION].
2. Equity Ownership. The Founders agree that the equity ownership of the Company shall be divided as follows:
| FOUNDER NAME | EQUITY PERCENTAGE |
|---|---|
| [FOUNDER_1_NAME] | [PERCENTAGE_1]% |
| [FOUNDER_2_NAME] | [PERCENTAGE_2]% |
3. Vesting Schedule. The Founders agree that their respective equity shares shall be subject to a vesting schedule of [VESTING_PERIOD_YEARS] years, with a [CLIFF_PERIOD_MONTHS] month cliff. If a Founder leaves the Company prior to the completion of the cliff period, all of their unvested shares shall be returned to the Company. After the cliff period, shares shall vest on a monthly pro-rata basis.
4. Roles and Responsibilities.
- [FOUNDER_1_NAME] shall serve as [TITLE_1] and shall be primarily responsible for [RESPONSIBILITIES_1].
- [FOUNDER_2_NAME] shall serve as [TITLE_2] and shall be primarily responsible for [RESPONSIBILITIES_2].
5. Decision Making. Major decisions concerning the Company, including but not limited to raising capital, incurring significant debt, or selling the Company, shall require the unanimous consent of the Founders. Day-to-day operational decisions shall be made by the Founder responsible for that specific area.
6. Intellectual Property Assignment. Each Founder hereby assigns to the Company all right, title, and interest in and to any intellectual property, inventions, designs, or code developed by the Founder in connection with the Company's business.
7. Non-Compete and Non-Solicit. During the term of their involvement with the Company and for a period of [NON_COMPETE_YEARS] year(s) thereafter, the Founders agree not to directly or indirectly engage in any business that competes with the Company, or solicit any employees or customers of the Company.
IN WITNESS WHEREOF, the Founders have executed this Agreement on the date first written above.
[FOUNDER_1_NAME]
Signature: ______________________
[FOUNDER_2_NAME]
Signature: ______________________

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Expert Drafting Guide & Clause Commentary

Compiled by Ashay Shah. Critical checkpoints before finalizing this document.

1Equity Allocation and Vesting▼
Clause Context:

Defines each founder's equity percentage and how it vests over time (typically a 4-year schedule with a 1-year cliff).

Negotiating Tip:

Include a "Double Trigger Acceleration" clause in case the startup is acquired, ensuring founder shares vest immediately upon acquisition.

2Decision Making & Board Controls▼
Clause Context:

Establishes voting thresholds for key actions (e.g., hiring, fundraising, dilution).

Negotiating Tip:

Agree on a tie-breaker mechanism (e.g., advisory board vote) to prevent deadlocks in a 50/50 split.

3IP Assignment Clause▼
Clause Context:

Crucial for future VC funding. All product code and designs created by founders belong to the startup.

Negotiating Tip:

Execute this assignment immediately upon incorporating the private limited company.

Compliance Watchouts

  • Never allocate shares without a vesting schedule; if a co-founder leaves in month 3, they should not keep 50% of the company.
  • Clearly define the intellectual property assignment to the corporate entity, not the individual founders.
A

Ashay Shah (Founder, Glomiq)

Ashay is the founder of Glomiq. He is passionate about reducing administrative overhead for Indian professionals. Prior to Glomiq, Ashay spent 6 years leading engineering and product teams building automated document infrastructure and SaaS systems.

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