Essential Legal Documents Every Startup in India Needs

Startups in India need a variety of legal documents for incorporation, operations, and protecting their interests. Whether you’re forming a company, hiring your first employee, or talking to investors, the right paperwork is crucial. Here’s a comprehensive list of the legal documents every Indian startup should consider from day one:

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1. Founders’ Agreement

This is the holy grail for any startup with two or more founders.

Why you need it:
It defines the relationship between the founders—who owns what, who does what, and what happens if someone leaves.

What it should include:

• Equity split

• Roles and responsibilities

• Decision-making process

• Exit clauses

• Dispute resolution

• Vesting schedule

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2. Non-Disclosure Agreement (NDA)

Startups thrive on innovation and confidential info. NDAs protect your ideas when sharing with outsiders.

Why you need it:
To legally bind others to confidentiality.

What it should include:

• Definition of confidential information

• Duration of confidentiality

• Permitted disclosures

• Penalties for breach

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3. Employment Contracts

As soon as you start hiring, you’ll need solid legal documents outlining terms of employment.

What it should include:

• Job title and responsibilities

• Salary and benefits

• Notice period and termination

• IP rights and confidentiality clauses

• Non-compete clauses (if needed)

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4. Offer Letters

This is the initial commitment before the full employment contract.

What it should include:

• Role and job title

• Start date

• Salary breakdown

• Basic terms and conditions

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5. IP Assignment Agreement

Your startup’s value often lies in what your team creates—code, content, or design. Protect it.

Why you need it:
To transfer IP ownership from employees or freelancers to the company.

What it should include:

• Scope of assigned work

• IP rights transfer

• Moral rights waiver

• Party signatures

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6. Incorporation Documents

These foundational legal documents give your startup legal identity and structure.

What it includes (for Private Ltd Companies):

• Certificate of Incorporation

• MOA & AOA

• PAN & TAN

• DIN & DSC

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7. Shareholders’ Agreement (SHA)

This agreement governs your relationship with investors and other shareholders.

Why you need it:
To define rights, responsibilities, and equity-related terms.

What it should include:

• Shareholding pattern

• Voting rights

• Exit clauses

• Tag-along/drag-along rights

• Anti-dilution protection

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8. Term Sheet

This non-binding agreement sets the tone before formal investment documentation.

What it should include:

• Valuation

• Investment amount

• Equity offered

• Exit terms

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9. Privacy Policy

If you collect user data (via website or app), this legal document is mandatory under Indian law.

What it should include:

• What data is collected

• Purpose and storage

• Data security practices

• User rights and consent

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10. Terms and Conditions (T&C)

This sets the rules for how users interact with your product or platform.

Why you need it:
To define liability, user conduct, and dispute mechanisms.

What it should include:

• User responsibilities

• Payment/refund terms

• Limitation of liability

• Governing law

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11. Vendor Agreements

If you’re paying for services (tech, marketing, office), put it in writing.

Why you need it:
To ensure clarity in deliverables, timelines, and payments.

What it should include:

• Scope of services

• Payment structure

• Termination clauses

• Indemnity provisions

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12. Investment Agreements

Once funding is confirmed, this binding document seals the deal.

Why you need it:
To define legal rights and protect both investor and startup.

What it should include:

• Investment amount

• Equity issued

• Representations and warranties

• Exit terms

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13. Board Resolutions

These are official records of major company decisions.

What it should include:

• Title and content of the resolution

• Date of approval

• Names and signatures of board members

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14. GST Registration & Compliance

If applicable, this is a legal requirement for taxation.

What it should include:

• GSTIN Certificate

• Filing of regular GST returns

• GST-compliant invoicing

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15. Trademark Registration

While optional, registering your brand can prevent costly disputes later.

Why you need it:
To protect your logo, name, or tagline from infringement.

What it should include:

• TM application

• Class selection

• Power of attorney (if using an agent)

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Final Thoughts

Setting up a startup in India without the right legal documents is like building a house without a foundation. These documents don’t just protect you—they build credibility with investors, employees, and customers.

From incorporation documents to shareholder agreements and IP assignments, each of these legal documents plays a vital role in safeguarding your business as it grows. Start early, use reliable templates, and consult with a legal expert when needed. The cost of doing things right upfront is always less than fixing legal problems later.

Investing in proper legal documents is investing in the future of your startup.