Founders’ Agreement Drafting · Global
Custom founders’ agreements and co-founder agreements drafted by lawyers, covering equity split, vesting, roles, decision-making, and what happens if a founder leaves. For startups worldwide. Drafted in 2 to 4 days.
Share how many founders there are, your intended equity split, and where your company is or will be incorporated. A lawyer from our team will confirm what your founders’ agreement should cover and respond with a precise quote and timeline.
Most founders’ agreements are drafted in 2 to 4 days, faster where the split and terms are already agreed.
A founders’ agreement (also called a co-founder agreement) is the contract between the people starting a company together. It sets out who owns how much, how that ownership is earned over time, who decides what, who does what, and, most importantly, what happens if one of you leaves. It is the single most valuable document an early team can put in place, and the one most often skipped in the excitement of starting.
Most founder fallouts are not really about personality. They are about expectations that were never written down: a co-founder who leaves after three months still holding a third of the company, a split that no longer reflects who is doing the work, a decision deadlock with no way to break it. A founders’ agreement written before things go wrong is what keeps a disagreement from becoming an existential dispute.
My Legal Pal drafts founders’ agreements for co-founding teams worldwide, across India, the United States, the United Kingdom, Europe, the UAE, and Australia. A founders’ agreement is the document for the relationship between co-founders. Once investors come in, you will usually need a shareholders’ agreement as well, and many teams put both in place around the time they register the company.
From the hard conversations to a signed agreement that protects every founder.
How many founders, what each brings, the intended equity split, and where the company is or will be incorporated.
We raise the issues founders avoid: vesting, what happens if someone leaves, how decisions get made, and how disputes break a deadlock.
Drafted for your team and jurisdiction, with the vesting, leaver, IP-assignment, and decision clauses that actually protect the company.
Checked for fairness between founders and for enforceability where your company is incorporated.
We explain the key terms in plain language so every founder signs understanding what they are agreeing to.
Adjusted to your feedback and delivered ready for all founders to sign.
Select the situation closest to yours. We will tell you what your founders’ agreement should cover and what comes next.
Every founders’ agreement is quoted for your team, but most fall into one of three bands. The figures below are indicative starting prices to set expectations; your exact quote depends on the number of founders, the complexity of the equity and vesting terms, and the jurisdiction. [Confirm these figures before publishing.]
| Type | Best for | From |
|---|---|---|
| Standard founders’ agreement | Two co-founders, agreed split, standard vesting and leaver terms | $199 |
| Multi-founder agreement | Three or more founders, or an unequal split needing tailored vesting and roles | $299 |
| Complex / bespoke | Cross-border teams, unusual contributions, or agreements coordinated with a shareholders’ agreement | $399+ |
Prices are indicative and quoted in US dollars for clarity; we work with founders worldwide and can quote in your currency. Most founders’ agreements are delivered in 2 to 4 days.
A strong founders’ agreement is built around the questions teams find hardest to discuss. These are the clauses that matter most.
Who owns how much, and the reasoning behind it. A clear, agreed split, recorded in writing, prevents the most common early dispute: a disagreement about what was “really” promised.
The most important protection of all. Vesting means founders earn their equity over time (commonly four years with a one-year cliff), so a co-founder who leaves early does not walk away with a large stake they never earned. Without vesting, a founder who quits after a few months can hold equity that blocks the company for years.
What each founder is responsible for and the expectation of full-time commitment. This sets the baseline against which a founder’s contribution, or departure, is measured.
How decisions get made, which decisions need unanimous agreement, and how a deadlock is broken. A two-founder company with a 50/50 split and no deadlock mechanism is one disagreement away from paralysis.
What happens to a founder’s equity if they leave, and the distinction between a “good leaver” and a “bad leaver.” This, combined with vesting, is what protects the remaining team when someone exits.
A clause assigning all founder-created IP to the company. Frequently missing, and a serious problem: if a founder leaves owning the code or the brand personally, the company has a hole at its centre that investors will find in diligence.
Obligations of confidentiality, and where enforceable, restrictions on a departing founder competing or soliciting. These must be drafted to the jurisdiction, since enforceability of non-competes varies widely.
A founders’ agreement governs the relationship between co-founders, typically at the earliest stage: equity split, vesting, roles, decision-making, and what happens if a founder leaves. A shareholders’ agreement governs the relationship between all shareholders, including investors, once they come in: share transfers, tag and drag-along rights, board composition, reserved matters, and investor protections. Early teams often start with a founders’ agreement and add a shareholders’ agreement when they raise. Many of the founders’ agreement terms, especially vesting, carry through into the later shareholders’ agreement.
Trust is exactly why you can sign one easily now. The agreement is not a sign of distrust; it is a record of what you have already agreed while you agree on it. The disputes a founders’ agreement prevents almost always arise between people who trusted each other at the start. Putting it in writing protects the relationship, it does not threaten it.
Vesting means founders earn their shares over time rather than owning them all from day one. A standard arrangement is four years with a one-year cliff: nothing vests in the first year, then equity vests monthly. Its purpose is simple and vital: if a co-founder leaves after a few months, vesting ensures they do not keep equity they never earned. Without it, an early departure can leave a large, idle stake in the company that blocks future fundraising. Almost every experienced investor will expect founder vesting to be in place.
As early as possible, ideally before or around incorporation, and certainly before any real value is built. The agreement is easiest to negotiate when there is little at stake and everyone is aligned. The longer you wait, the more there is to argue about and the harder the conversation becomes.
Yes. A pre-incorporation founders’ agreement records the team’s intentions, the split, the roles, the commitment, before the entity exists, and then carries into the company’s documents once it is registered. It is a sensible step for teams who are building before they formally incorporate.
That is precisely what the leaver and vesting provisions are for. A well-drafted agreement determines how much equity a departing founder keeps (based on what has vested), whether the company can buy back the rest, and the difference in treatment between a founder who leaves on good terms and one who does not. Deciding this in advance is far easier than negotiating it in the middle of a departure.
No. They work together. The incorporation documents create the company and its basic constitution; the founders’ agreement sets out the private arrangement between the founders. Some founders’ agreement terms are later reflected in the company’s articles or a shareholders’ agreement so they bind formally. We make sure the documents align rather than contradict.
Illustrative examples of founder situations we have helped with. Composite scenarios, shared to show the kind of work involved.
A founders’ agreement governs the relationship between co-founders at the earliest stage: equity split, vesting, roles, decision-making, and founder departures. A shareholders’ agreement governs all shareholders, including investors, once they come in: share transfers, tag and drag-along, board seats, and investor protections. Teams often start with a founders’ agreement and add a shareholders’ agreement when they raise.
Trust is why you can sign one easily now. It is not a sign of distrust; it is a record of what you have already agreed, while you agree on it. The disputes it prevents almost always arise between people who trusted each other at the start. Writing it down protects the relationship.
Vesting means founders earn shares over time rather than owning them all at once, commonly four years with a one-year cliff. If a co-founder leaves early, vesting ensures they do not keep equity they never earned, which would otherwise block future fundraising. Almost every experienced investor expects founder vesting.
As early as possible, ideally before or around incorporation and before real value is built. It is easiest to negotiate when little is at stake and everyone is aligned. The longer you wait, the harder the conversation becomes.
Yes. A pre-incorporation founders’ agreement records the split, roles, and commitment before the entity exists, then carries into the company’s documents once registered. It is a sensible step for teams building before they formally incorporate.
That is what the leaver and vesting provisions are for. A well-drafted agreement sets how much equity a departing founder keeps based on what has vested, whether the company can buy back the rest, and the difference between a good leaver and a bad leaver. Deciding this in advance is far easier than negotiating mid-departure.
No. They work together. Incorporation documents create the company; the founders’ agreement sets out the private arrangement between founders. Some terms are later reflected in the articles or a shareholders’ agreement so they bind formally. We make sure the documents align rather than contradict.
A standard two-founder agreement starts from around $199, a multi-founder or unequal-split agreement from around $299, and complex or cross-border agreements from $399, quoted precisely for your team. Most are delivered in 2 to 4 days.
Prakhar Rai is an advocate enrolled with the Bar Council of India and the founder of My Legal Pal. An alumnus of the National Law School of India University (NLSIU), Bangalore, with a Master of Business Laws, Prakhar has 10+ years of experience advising startups, technology companies, SMEs, and individual entrepreneurs across India, the UAE, the UK, and Southeast Asia.
His practice focuses on corporate and startup work, with particular depth in founder arrangements, equity and vesting structures, and the agreements that hold a founding team together. My Legal Pal’s founders’ agreement service is led by Prakhar and delivered by a team of qualified lawyers experienced in startup and corporate law.
Equity, vesting, roles, and leaver terms, drafted by lawyers for co-founders worldwide. Sign it while everyone agrees. Fixed fees, most delivered in 2 to 4 days.
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