Shareholders’ Agreement
Governance, investor rights and share transfer terms.
Startup Services
Founders’ Agreement Drafting
Agree on equity, vesting, roles, IP and exits before they become disputes. Our lawyers draft a founders’ agreement that keeps your startup investor-ready.
- 3–5 working days
- Vesting & cliff clauses
- IP assignment to company
- Two revision rounds
Why every startup needs a founders’ agreement
Co-founder disputes are one of the most common reasons early-stage startups fail. A founders’ agreement sets clear expectations from day one about who owns what, who does what and what happens if someone leaves. Investors also look for it during due diligence.
What we cover
- Equity split and how shares are held
- Vesting schedule and cliff – typically four years with a one-year cliff
- Roles, responsibilities and decision-making
- Time commitment and restrictions on other business activities
- IP assignment – everything founders create for the startup belongs to the company
- Confidentiality and non-solicitation
- Leaver provisions – good leaver and bad leaver treatment of unvested and vested shares
- Deadlock and dispute resolution, including mediation or arbitration
- Exit, transfer restrictions and tag-along/drag-along basics
When to sign it
Ideally before or immediately after incorporation, and before taking money from any investor. When investors come in, many of these terms move into a shareholders’ agreement, and your vesting terms can be aligned with an ESOP plan for the team.
Documents required for Founders’ Agreement
After you purchase, log in to My Account → My Services and upload each document below. Scanned copies or clear phone photos (PDF, JPG or PNG) are fine. Your files are stored privately and seen only by your assigned expert.
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ID proof of each founder PAN or Aadhaar Required
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Certificate of Incorporation If the company is already incorporated If applicable
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Agreed equity split and roles A short note on shareholding, responsibilities and time commitment Required
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Existing shareholding or cap table If any shares have been issued If applicable
Founders’ Agreement process with Nevo Legal
Founder consultation
We understand your team, equity and plans.
Term sheet
Key terms are summarised for all founders to agree.
Drafting
A lawyer drafts the full agreement.
Revisions
Up to two rounds of revisions with all founders.
Execution guidance
Stamp duty and signing guidance for your state.
What you get
- Lawyer-drafted founders’ agreement
- Summary of key terms
- Two rounds of revisions
- Stamping and execution guidance
Founders’ Agreement – frequently asked questions
Is a founders’ agreement legally binding?
Yes. When properly stamped and signed, it is an enforceable contract between the founders and, where it is a party, the company.
What is founder vesting?
Vesting means founders earn their shares over time. If a founder leaves early, unvested shares can be bought back, protecting the company and the remaining founders.
Do we still need it if we have a shareholders’ agreement?
If all founders and investors are covered by a shareholders’ agreement, it may include these terms. Before investment, a founders’ agreement fills that gap.
You may also need
All Startup Services services Related services
ESOP Plan
Employee stock options designed, documented and approved.
Term Sheet Review
Plain-English review of investor term sheets before you sign.
Not sure which service you need?
Speak to a Nevo Legal expert. We will understand your requirement and recommend the right legal route – no obligation.