Choose for the work you need to do together
Start with the responsibilities the venture needs: product or service delivery, sales, operations and financial discipline. A friend may be a good co-founder, but friendship alone does not show how you will handle difficult decisions, money or missed commitments. There is no universal ideal number of founders or equity split.
Work together before making long-term promises
Consider a small project with a defined outcome and review date. Agree on time, expenses, confidentiality and ownership of anything created before starting. Observe whether each person completes agreed work, raises problems early and changes their view when evidence changes.
Put important decisions in writing
Startup India’s legal guidance identifies equity ownership, initial investment and responsibilities as subjects for a co-founder agreement. Treat that as a starting point for a lawyer-led discussion, not a ready-made contract.
- Roles, expected time, compensation and how expenses are approved.
- Ownership of code, designs, brand assets and other work; treatment of earlier employer or college obligations.
- Decision rights, disagreement handling, departures and treatment of unearned or unvested ownership where applicable.
- Who may commit the business to contracts, spending or borrowing.
Keep the agreement aligned with company records
Ask a qualified lawyer and company secretary how the arrangement should be reflected in the entity’s documents and required approvals. A signed note does not replace every company-law step. Revisit responsibilities when someone’s role or time commitment changes.
Sources & further reading
Sources checked on 17 September 2026. For the latest rules and course availability, follow the official links below. The exercises are designed by PLS Foundation to help you plan your next step.