Document background
The Co-Founder Equity Agreement is a vital document used when establishing a new company or formalizing the relationship between existing co-founders in India. It becomes necessary when two or more individuals join forces to start a business venture and need to clearly define their ownership stakes, responsibilities, and rights. The agreement must comply with Indian corporate law, particularly the Companies Act 2013, and typically includes detailed provisions on equity distribution, vesting schedules, roles and responsibilities, decision-making processes, intellectual property rights, and exit mechanisms. This document is particularly crucial for startups seeking future investment, as it demonstrates clear ownership structure and professional governance to potential investors.
