17/12/2025
Over the years, I’ve seen one pattern repeat itself across startups and small businesses in India:
👉 Founders focus on growth, sales, branding, funding
👉 But completely ignore the legal foundation of the business
And when things start going wrong —
co-founders stop contributing, partners exit, employees leave, disputes arise —
that’s when the damage shows up.
There are 5 basic documents that every business owner should have from day one:
1️⃣ Co-Founder / Shareholder Agreement
Because “trust” is not a clause.
This defines what happens if someone stops contributing, wants to exit, or disagreements arise.
2️⃣ IP Assignment Agreement
Your brand name, domain, code, designs — everything that creates value — must belong to the company, not individuals.
3️⃣ Privacy Policy
With GDPR globally and India’s DPDP Act, this is no longer optional.
You must clearly disclose how user data is collected, stored, and shared.
4️⃣ Terms of Service
This sets boundaries.
What you offer, what you don’t, and what liabilities you won’t take — especially critical for online and international businesses.
5️⃣ Employee & Vendor Agreements
People will come and go.
Your work, IP, and confidential information shouldn’t.
The biggest mistake founders make?
Thinking: “Abhi toh sab theek chal raha hai.”
Problems don’t announce themselves in advance.
Documentation is not about distrust — it’s about foresight.
Save this.
Share it with a founder who’s building fast but skipping the basics.