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What is a Co-Founder Agreement?

A Co-Founder Agreement is a legal contract signed between all the co-founders of a startup or business. It clearly defines how the startup will be built, who will do what, how much equity each founder owns, how decisions will be made, and what happens if someone exits, disagrees, or fails to deliver.

In the early days of a startup, most founders start as friends or college mates with verbal promises. But when real money, clients, and investors get involved, things change fast, and disputes can damage the entire business. A Co-Founder Agreement protects everyone’s interests and keeps the team aligned with clarity, legality, and fairness.

At CallMyCA, we understand startup dynamics. Our team of legal professionals and CAs helps you draft a 100% customized, future-proof, and legally valid Co-Founder Agreement that keeps your vision safe and your team in sync.

4 EASY STEPS OF

Co-founder Agreement

Share Founders & Business Details
01

Share Founders & Business Details

We draft the Agreement
01

We draft the Agreement

Review & Modify
01

Review & Modify

Get Final Agreement
01

Get Final Agreement

DOCUMENTS CHECKLIST

Documents Required for Co-founder Agreement Online

BENEFITS OF REGISTERING

Registering a Co-founder Agreement offers many advantages

Protects Relationships

Even best friends can fall out when money is involved. A clear agreement avoids emotional fights and legal battles.

Prepares You for Investors

Most investors (angel/VC) ask to see a Co-Founder Agreement before investing. We help you stay ready.

Clarity on Equity and Effort

Everyone knows what they own and what they are responsible for. No confusion, no mismatch of expectations.

Prevents Early Exits from Causing Damage

With vesting and exit clauses, your startup remains stable even if someone quits.

Legally Valid in India

Drafted as per Indian laws, our agreements can be presented in court if disputes arise.

Customized for Your Startup

No templates or copy-paste. Every clause is made for your unique business idea and team.

Simple Language, Strong Clauses

Legal doesn’t have to mean complicated. Our drafts are easy to understand but legally solid.

Prepared by Startup-Savvy Legal + CA Team

We understand valuation, funding, dilution, and IP laws, and bring all that into your draft.

Delivered in Editable Format

You get the final file in Word and PDF format so you can review and reuse it.

FAQ

Frequently Asked Questions

Even with complete trust, misunderstandings happen, especially when real success or failure strikes. A Co-Founder Agreement is not about mistrust—it’s about being mature, transparent, and protecting your friendship and business from future legal or emotional fights.

If there’s no agreement, it becomes messy—he/she may claim equity, IP, or even try to compete. With a well-drafted agreement, you already have clauses like vesting, lock-in, exit rules, or buy-back to prevent future problems.

Yes. A Co-Founder Agreement is enforceable under the Indian Contract Act, 1872. It becomes even stronger if signed on stamp paper or notarized (optional).

Templates on Google may miss important clauses or not fit your startup’s needs. Our agreements are custom-drafted after understanding your structure, business, and growth plan.

Vesting means founders "earn" their equity over time (e.g., 25% per year over 4 years). This prevents someone from quitting early and still holding full equity, which can hurt the business.

Yes. We add non-compete, non-solicit, and confidentiality clauses to prevent founders from misusing business ideas or employees after leaving.

You can do it before or after company formation. Many founders prefer having this agreement signed before registering the company (LLP, Pvt Ltd, etc.).

Yes. You’ll receive the draft in editable Word format. You can update equity splits, roles, or other terms as the company evolves—or come back to us for revision support.

Usually within 3 working days after we get complete inputs. Express drafting is available on request.

Absolutely. Whether you’re funded or bootstrapped, your team clarity and legal protection matter equally. We’ve helped 100+ small founders create smooth startup journeys with this document.