Starting a business in India involves navigating a complex web of legal requirements. This resource provides a comprehensive checklist of essential legal documents for Indian startups.
1. Incorporation Documents
Certificate of Incorporation
Issued by the Registrar of Companies (RoC), this is the birth certificate of your company. Keep the original safe — you will need it for bank accounts, contracts and regulatory filings.
Memorandum of Association (MoA)
Defines the company's objectives, powers and the scope of its activities. The MoA determines what your company can legally do.
Articles of Association (AoA)
Governs the internal management of the company — board meetings, voting rights, share transfers and dividend policies.
2. Founder Agreements
Founders' Agreement
Arguably the most important document for any startup. It should cover:
- Equity split and vesting schedule (typically 4 years with 1-year cliff)
- Roles and responsibilities of each founder
- Decision-making processes
- What happens if a founder leaves
- IP assignment to the company
- Non-compete and non-solicitation obligations
3. Employment and HR Documents
Employment Agreements
Every employee must have a written employment agreement covering compensation, role, confidentiality, IP assignment and termination provisions.
Employee Stock Option Plan (ESOP)
If you plan to offer equity to employees, you need a properly structured ESOP plan approved by the board and shareholders.
4. Intellectual Property Documents
IP Assignment Agreement
Ensure all IP created by founders, employees and contractors is assigned to the company. This is critical for investor due diligence.
Non-Disclosure Agreement (NDA)
Use NDAs when sharing confidential information with potential partners, investors or service providers.
5. Customer and Vendor Contracts
Terms of Service and Privacy Policy
Mandatory for any digital product or service. Must comply with the IT Act 2000, Consumer Protection Act 2019 and DPDP Act 2023.
Master Service Agreement (MSA)
A framework agreement with key vendors and customers that governs the overall relationship, with individual Statements of Work (SoW) for specific projects.
6. Investment Documents
Term Sheet
A non-binding document outlining the key terms of an investment. Negotiate carefully — many terms in the term sheet become binding in the final documents.
Shareholders' Agreement (SHA)
The most complex and important document in a funding round. Covers investor rights, anti-dilution protection, liquidation preferences, drag-along and tag-along rights.
Nyaya Siddhanta's Legal Documentation practice specialises in startup legal packages. Contact us for a comprehensive startup legal audit and documentation service.