Founders’ Agreement in Delhi
Co-founder equity split, vesting, IP assignment, and exit terms — the contract every Indian startup signs before incorporation.
Generate Founders’ Agreement for Delhi — Free First Doc⚖️ Founders’ Agreement stamp duty & registration in Delhi
- Stamp duty: 6% of consideration
- Registration fee: 1% of consideration
- Validity: Continues until superseded by a Shareholders’ Agreement post-incorporation, or until all founders exit.
- Regulator: Delhi Revenue Department
💡 Women buyers in Delhi pay 4% stamp duty (vs 6% for men). Joint registration with a female co-buyer gets 5%.
🎯 When you need a Founders’ Agreement in Delhi
- Two or more co-founders starting a company
- Locking in equity vesting before raising a seed round
- Assigning pre-incorporation IP to the company
- Defining roles (CEO/CTO/COO) and decision rights
- Drag-along, tag-along, and bad-leaver protection
❓ Frequently asked questions
Is a Founders’ Agreement legally binding in India?
Yes — it is a contract under the Indian Contract Act, 1872 and is enforceable between founders. Post-incorporation it should be ratified by the board and reflected in the Articles of Association and Shareholders’ Agreement.
What is a typical vesting schedule for Indian startups?
Four-year vesting with a one-year cliff is standard. 25% vests after 12 months, the remaining 75% monthly thereafter. Bad-leaver clauses claw back unvested (and sometimes vested) shares.
Does the Founders’ Agreement need to be on stamp paper?
Yes — execute on non-judicial stamp paper of the value prescribed by the state (typically ₹100–₹500). Notarisation adds evidentiary weight but is not mandatory.
Can a founder transfer the IP they built before incorporation?
Yes — and they must. The Founders’ Agreement should include an irrevocable IP-assignment clause under the Copyright Act, 1957 and the Patents Act, 1970 to vest all pre-incorporation IP in the company on incorporation.
What happens if a founder leaves before vesting?
Unvested shares are forfeited. Vested shares may be subject to a right-of-first-refusal or bad-leaver discount (typically face value or 25% of fair market value), depending on the agreement.
🔗 Related documents for Delhi
Partnership Deed
Two-or-more-partner firm constitution under the Indian Partnership Act, 1932 — capital, profit share, roles, and dissolution.
Non-Disclosure Agreement (NDA)
Mutual or one-way confidentiality agreement — Indian Contract Act compliant, DPDP-2023 ready, enforceable in Indian courts.
Employment Agreement
Full-time employee contract — salary, KPI, IP assignment, confidentiality, POSH, and termination, compliant with Indian labour law.
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