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Startup Legal Services in India
Founders Agreements, ESOP, SHA/SSA & Term Sheet Review with Startup-Focused Lawyers Starting @ ₹5,999 Only
Fixed-Fee Legal Packages. No Hourly Billing. Direct Lawyer Access via WhatsApp. ₹200 Cr+ Funding Documented.
Founders Agreement Drafting
ESOP Scheme Design (Section 62)
SHA/SSA Drafting for Funding Rounds
Term Sheet Review & Negotiation
Convertible Note Structuring (FEMA)
DPIIT Startup India Recognition Assistance
IP Protection & Trademark Filing
NDA, Employment & IP Assignment Agreements
Cap Table Setup & Compliance Calendar
Privacy Policy & Terms of Service
Reviewed by Industry Experts & Startup Specialists.
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Why Choose Us?
Expert professional Team
Experienced startup experts in company formation and corporate law.
Fast Turnaround
Kickstart your venture with efficient company setup, generally processed within a week.
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Personal manager by your side, every step of the way and beyond.
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We assist with documentation and help you stay aligned with legal requirements.
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Need Legal Support to Protect Your Startup?
Get specialized startup legal services from IncorpX. Founders agreements, ESOP design, term sheet review, and investor documentation starting at ₹5,999. Trusted by 500+ funded startups.
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Fill the Form
Simply fill the above form to get started.
02
Call to discuss
Our team will connect with you and explain the next compliance steps.
03
Build Your Startup's Legal Foundation
End-to-end legal services that protect founders, attract investors, and set up compliance from day one.
Pricing
Simple & Transparent Pricing
MOST POPULAR
Startup Legal Services Package 2026
From ₹5,999 IncorpX professional fee for assistance
Timeline depends on the application type and authority review
Application support Professional assistance
Founders Agreement Drafting
Shareholder Agreement (SHA) Review
Equity Vesting Structure Setup
NDA & IP Assignment Templates
Employment Contract Templates
Terms of Service & Privacy Policy
DPIIT Startup India Recognition Assistance
Legal Consultation (2 Hours)
Dedicated Startup Lawyer
Priority Legal Support
*Listed amounts are IncorpX professional charges for end-to-end assistance. Government / statutory fees are charged separately at actuals.
4.9/5 based on 1000+ reviews
Transparent scope
Secure payment
Application support
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Meet IncorpX Nova
Our proprietary AI engine supports each stage of business setup, from name suggestion checks to document drafting and compliance tracking.
AI-Powered Business Name Approval Check
Auto-Generated MoA & AoA Drafts
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Premium Plan
IncorpX Prime
A comprehensive package for startups and expanding enterprises seeking a compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to help secure approval for your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
What Are Startup Legal Services? Complete Guide 2026
Startup Legal Services are specialized legal solutions designed for early-stage and growth-stage companies in India. These services cover founders agreements, ESOP scheme design under Section 62 of the Companies Act, 2013, shareholders agreement (SHA) and share subscription agreement (SSA) drafting, term sheet review, convertible note structuring under FEMA guidelines, DPIIT Startup India recognition, intellectual property protection, and ongoing compliance setup. Unlike general corporate law firms, startup lawyers focus on equity structuring, investor negotiations, and founder protection at every funding stage.
India's startup ecosystem recorded over 1,12,000 DPIIT-recognized startups as of 2026, but a significant number of early-stage companies operate without formal legal agreements. Research from Novatr and Inc42 shows that 65% of startup failures involve co-founder disputes, poor equity documentation, or investor disagreements. Getting the legal foundation right from day one is not optional; it directly impacts your ability to raise capital, retain talent through ESOPs, and exit cleanly.
Ministry of Corporate Affairs (MCA), RBI (for FEMA)
Professional Fee
Starting at ₹5,999 (IncorpX bundled package)
Turnaround Time
48 hours for first draft; 7 to 15 working days full package
Key Deliverables
Founders Agreement, ESOP Scheme, SHA/SSA, NDA, IP Assignment
DPIIT Recognition
3 to 7 working days processing, no government fee
At IncorpX, our startup legal team has served 500+ startups and documented over ₹200 crore in funding rounds. Our fixed-fee packages start at ₹5,999 with 48-hour draft delivery and direct WhatsApp access to your assigned lawyer. Whether you need a private limited company registration with investor-ready documentation, or full-stack legal support through Series A, our team handles the entire lifecycle.
Legal Framework
Startup legal services in India operate under 3 primary statutes: the Companies Act, 2013 (ESOP under Section 62, share allotment via PAS-3, board governance under Section 173), the Indian Contract Act, 1872 (founders agreements, SHA, SSA, NDAs), and FEMA, 1999 (foreign investment documentation, FC-GPR filing, convertible notes). DPIIT recognition follows Notification G.S.R. 127(E) dated 19-02-2019.
Why Do Startups Need Specialized Legal Support?
Traditional law firms charge ₹50,000+ per agreement on hourly billing, lack familiarity with startup-specific instruments like SAFEs and convertible notes, and move too slowly for fundraising timelines. Startups need legal partners who understand vesting schedules, anti-dilution mechanics, and what investors expect during due diligence.
The legal needs of a startup shift dramatically at each stage. A pre-seed company needs founders agreements and IP assignment. A seed-stage startup needs ESOP design and angel investment documentation. A Series A company needs SHA/SSA drafting, board advisory frameworks, and FEMA compliance for foreign investors. Missing any of these creates liability that compounds over time.
Startup Stage
Critical Legal Needs
Typical Cost
Pre-Seed / Ideation
Founders agreement, IP assignment, NDA, entity selection
Warning: Operating without a founders agreement exposes you to co-founder disputes that cost ₹5 lakh to ₹50 lakh in litigation. According to Inc42, co-founder conflict is among the top 3 reasons Indian startups fail. A ₹10,000 agreement today prevents ₹50 lakh disputes tomorrow.
Our Startup Legal Services in India
IncorpX covers the full spectrum of startup legal needs, from incorporation to exit. Each service is priced transparently with fixed fees:
Service
What You Get
Timeline
Starting Price
Founders Agreement
Equity split, vesting, roles, IP assignment, exit clauses, dispute resolution
3 to 5 working days
₹5,999 (bundled)
ESOP Scheme Design
Pool sizing, scheme document, grant letters, exercise procedures, MCA filings
7 to 10 working days
₹14,999 (Growth)
SHA/SSA Drafting
Investor rights, founder protections, board composition, transfer restrictions
Shareholding tracker, dilution modeling, ESOP pool management, PAS-3 filings
3 to 5 working days
₹5,999 (bundled)
Need corporate legal services beyond startup-stage? We also handle commercial contracts, regulatory filings, and M&A documentation for growth-stage companies.
Founders Agreement for Startups
A founders agreement is a legally binding contract between co-founders that defines equity ownership, vesting schedules, roles and responsibilities, intellectual property assignment, decision-making authority, and exit provisions. Governed by the Indian Contract Act, 1872, this agreement is the single most important legal document for any startup with more than one founder.
The standard vesting structure is 4-year vesting with a 1-year cliff. No shares vest during the first 12 months. After the cliff, 25% of equity vests immediately, and the remaining 75% vests monthly or quarterly over 36 months. This protects the company and remaining founders if someone leaves within the first year. Good leaver and bad leaver clauses determine whether a departing founder retains vested equity at fair value or forfeits it at par value.
Every founders agreement must include an IP assignment clause transferring all intellectual property created by founders to the company. Without this clause, a departing founder could claim ownership of code, designs, or business processes they created. Stamp duty for execution ranges from ₹200 to ₹500 depending on the state of registration. At IncorpX, founders agreement drafting is included in the starter package at ₹5,999, with first-draft delivery within 48 hours.
Founders Agreement Essentials
A complete founders agreement covers 7 critical areas: equity split and vesting schedule (4-year/1-year cliff standard), roles and full-time commitment, IP assignment to the company, non-compete and non-solicitation, decision-making and deadlock resolution, good leaver/bad leaver exit provisions, and dispute resolution mechanism. This single document prevents most co-founder conflicts.
Pro Tip: Based on our experience drafting 500+ founders agreements, the most overlooked clause is IP assignment. In 3 out of 10 startups we review during investor due diligence, founders have not assigned pre-incorporation IP (code, designs, business processes) to the company. This single gap can block a funding round. Always include IP assignment as a non-negotiable clause.
ESOP Design and Drafting for Startups
An Employee Stock Option Plan (ESOP) grants employees the right to purchase company shares at a predetermined exercise price after a vesting period. Governed by Section 62(1)(b) of the Companies Act, 2013 and Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014, ESOPs help startups attract and retain top talent when cash compensation is limited.
Most early-stage startups reserve an ESOP pool of 10% to 15% of total equity. Setting up an ESOP requires a board resolution, a special resolution with 75% shareholder approval, and filing Form PAS-3 on the MCA portal (₹200 to ₹300 filing fee) after every share allotment. The scheme document defines pool size, grant criteria, vesting schedule (typically 4 years), exercise price, and exercise window.
Tax treatment depends on the exercise timing. At exercise, the difference between fair market value (FMV) and exercise price is taxed as a perquisite under Section 17(2) of the Income Tax Act. At sale, capital gains tax applies. DPIIT-recognized startups benefit from deferred ESOP perquisite tax under Section 17(2)(vi) read with Section 191(2) of the Income Tax Act, where the tax is deferred to the earliest of: share sale, cessation of employment, or 48 months from the end of the relevant assessment year. For share issuance and allotment compliance, PAS-3 filing must happen within 30 days of allotment.
Pro Tip: Set up your ESOP scheme before making the first employee grant, not after. Retrospective ESOP setup requires additional board and shareholder resolutions and often triggers compliance scrutiny during audits. Early-stage startups should create the ESOP pool within 6 months of incorporation, even if grants are planned for later.
SHA, SSA, Term Sheet and Convertible Note Drafting
Fundraising documentation protects both founders and investors during equity rounds. The Shareholders Agreement (SHA) governs ongoing relationships between all shareholders, covering board composition, voting rights, anti-dilution protection, drag-along and tag-along rights, information rights, and exit clauses. The Share Subscription Agreement (SSA) governs the specific investment transaction, defining valuation, share class, conditions precedent, representations, and warranties.
A term sheet outlines the key commercial terms before detailed documentation begins. Founders should scrutinize 6 critical clauses: pre-money valuation, liquidation preference (1x non-participating is founder-friendly), board composition, protective provisions (investor veto rights), anti-dilution (broad-based weighted average is standard), and founder vesting acceleration on exit. IncorpX delivers term sheet analysis within 24 hours.
A convertible note is short-term debt that converts into equity at the next priced round. Governed by FEMA (Non-Debt Instruments) Rules, 2019 for foreign investors, convertible notes require a minimum 1-year tenure with conversion within 10 years. They include a valuation cap and a conversion discount (typically 15% to 25%). Convertible notes are ideal for pre-seed rounds under ₹2 crore because they defer valuation negotiation, take only 2 to 4 weeks to close, and cost ₹15,000 to ₹50,000 in legal fees versus ₹1 lakh+ for a full equity round.
For all investment rounds involving foreign investors, FC-GPR filing with the Reserve Bank of India is mandatory within 30 days of share allotment. IncorpX handles SHA/SSA drafting, FC-GPR filing, and investor due diligence support as part of our Funded package at ₹29,999.
Warning: Accepting a term sheet with a participating liquidation preference and full ratchet anti-dilution can cost founders 20% to 40% of their exit proceeds in a down-round scenario. Always have a startup lawyer review term sheets before signing. IncorpX delivers term sheet analysis within 24 hours.
IP Protection Strategy for Startups
Intellectual property is often a startup's most valuable asset. A comprehensive IP protection strategy includes IP assignment agreements (ensuring all founders, employees, and contractors assign IP rights to the company), non-disclosure agreements (NDAs) for external discussions, trademark registration for brand protection (₹4,500 for DPIIT-recognized startups, a 50% rebate on standard ₹9,000 fees), and patent filing for novel technology (80% rebate on examination fees for DPIIT startups).
File your trademark application within 30 days of incorporation. The registration process takes 8 to 12 months, but your rights are protected from the filing date onward. Every employment agreement should include an IP assignment clause and a confidentiality obligation. Contractor agreements need explicit IP ownership clauses, since Indian law defaults IP ownership to the creator unless contractually assigned.
DPIIT Startup India Recognition and Tax Benefits
DPIIT Startup India recognition under Notification G.S.R. 127(E) dated 19-02-2019 grants eligible startups significant tax benefits and regulatory advantages. Any private limited company, LLP, or partnership firm incorporated within the last 10 years, with annual turnover below ₹100 crore, working on innovation or improvement of products/processes qualifies. Registration on startupindia.gov.in is free and takes 3 to 7 working days.
Benefit
Details
Section/Rule
Income Tax Exemption
100% tax exemption for 3 consecutive years out of first 10 years from incorporation
Section 80-IAC
Angel Tax Abolished
Section 56(2)(viib) abolished via Finance (No. 2) Act, 2024
Effective AY 2025-26
Self-Certification
Self-certify under 6 labour laws and 3 environmental laws for 3 years from incorporation
DPIIT Notification
IPR Fee Rebate
80% rebate on patent filing and 50% on trademark fees
DPIIT scheme
Fast-Track Patent
Expedited patent examination for DPIIT startups
Patent Rules, 2003
Seed Fund
Up to ₹50 lakh via empanelled incubators
Seed Fund Scheme
IncorpX assists with the complete DPIIT recognition process, including application preparation, innovation description drafting, and follow-up until certificate issuance. This service is included in every startup legal package at ₹5,999.
Startup Legal Services Cost in 2026
Startup legal costs in India depend on the stage, scope, and complexity of services. IncorpX offers 3 fixed-fee packages designed for startup budgets:
Everything in Starter + ESOP scheme design, term sheet review, convertible note structuring, cap table setup, compliance calendar
₹14,999
Funded
Everything in Growth + SHA/SSA drafting, FC-GPR filing, board advisory framework, due diligence support, investor negotiation
₹29,999
Market comparison: Individual lawyer rates for equivalent services total ₹80,000 to ₹3,00,000. Traditional law firms charge ₹5,000 to ₹15,000 per hour with no cap on total fees. IncorpX's bundled approach saves startups 60% to 70% on legal costs.
Service
Market Rate
IncorpX Package Rate
You Save
Founders Agreement
₹10,000 to ₹50,000
Included in ₹5,999
Up to ₹44,000
ESOP Scheme
₹20,000 to ₹1,00,000
Included in ₹14,999
Up to ₹85,000
SHA/SSA (Seed)
₹30,000 to ₹1,00,000
Included in ₹29,999
Up to ₹70,000
Term Sheet Review
₹10,000 to ₹30,000
Included in ₹14,999
Up to ₹15,000
DPIIT Recognition
₹5,000 to ₹10,000
Included in ₹5,999
Up to ₹4,000
Pricing Transparency
Listed package amounts are IncorpX professional charges for end-to-end assistance with legal drafting, advisory, and regulatory filings. All packages include unlimited revisions and direct WhatsApp access to your assigned lawyer. Government fees (MCA Form PAS-3 at ₹200 to ₹300, stamp duty at ₹200 to ₹15,000 by state, and other statutory charges) are charged separately at actuals. No hourly billing. No hidden charges.
Pro Tip: Choose your startup legal package based on your current funding stage, not your ultimate goal. Pre-seed startups should start with the Starter package at ₹5,999 and upgrade to Growth (₹14,999) when fundraising begins. Over-investing in legal documentation before product-market fit uses limited runway that is better spent on building your product.
Step-by-Step Startup Legal Process
Our startup legal process covers 6 steps, typically completed in 7 to 15 working days. Packages start at ₹5,999 with 48-hour first-draft delivery.
Step 1: Book Free Consultation
Schedule a 30-minute discovery call with our startup lawyer. We assess your current stage (pre-seed, seed, Series A), review existing agreements, and identify immediate legal gaps. No fees for the initial consultation. Book via WhatsApp or the contact form.
Step 2: Scope and Document Review
Our legal team reviews your incorporation documents, existing agreements, cap table, and regulatory status. We identify compliance gaps and prepare a prioritized legal roadmap with clear timelines and costs for each service needed.
Step 3: Agreement Drafting and Structuring
Lawyers draft your founders agreement, ESOP scheme, SHA/SSA, or other required documents. Each draft follows Indian Contract Act, 1872 and Companies Act, 2013 requirements. First draft delivered within 48 hours of engagement for standard agreements.
Step 4: Founder Review and Negotiation Support
We walk founders through every clause, explain the implications of vesting schedules, anti-dilution provisions, liquidation preferences, and exit terms. Unlimited revisions during the review cycle. For funding rounds, we provide negotiation support and redlining.
Step 5: Execution and Filing
Final agreements are executed with proper stamp duty (₹200 to ₹15,000 depending on state). If DPIIT recognition is included, we file on startupindia.gov.in. Form PAS-3 is filed on the MCA portal for share allotments within 30 days.
Step 6: Ongoing Compliance Setup
We set up your compliance calendar covering board meetings (Section 173, minimum 4 per year with 120-day gap), annual filings (AOC-4, MGT-7), director KYC (DIR-3 KYC by September 30), and event-based filings (PAS-3 for allotments, DIR-12 for director changes). Penalty for non-compliance: ₹100 per day under the Companies Act.
Funded startups carry additional compliance obligations beyond standard annual company compliance. Missing deadlines triggers penalties ranging from ₹100 per day to ₹5 lakh per violation:
Compliance
Deadline
Form
Penalty for Non-Filing
Share Allotment Filing
Within 30 days of allotment
Form PAS-3
₹500/day (company) + ₹100/day (officer)
FC-GPR (Foreign Investment)
Within 30 days of share issuance
FC-GPR on FIRMS portal
RBI penalty up to 3x the FDI amount
Board Meetings
4 per year, max 120-day gap
Section 173
₹25,000 (company) + ₹5,000 (each director)
Annual Return
Within 60 days of AGM
Form MGT-7
₹100/day of delay
Financial Statements
Within 30 days of AGM
Form AOC-4
₹100/day (company) + ₹100/day (officer in default)
Director KYC
By September 30 annually
DIR-3 KYC
DIN deactivation + ₹5,000 reactivation
ESOP Allotment Filing
Within 30 days of exercise
Form PAS-3
₹500/day of delay
Income Tax Return
By October 31 (audit cases)
ITR-6
₹5,000 to ₹10,000 late fee
IncorpX's Growth and Funded packages include compliance calendar setup and deadline reminders. For ongoing annual compliance management, explore our annual compliance services or consider a virtual CFO for financial governance. Need a digital signature certificate (DSC) for MCA filings? We provide Class 3 DSCs starting at ₹800.
Frequently Asked Questions About Startup Legal Services in India (2026)
Startup legal services in India cover founders agreements, ESOP design under Section 62, SHA/SSA drafting, term sheet review, convertible note structuring, DPIIT Startup India recognition, IP protection, and compliance setup. These FAQs address the most common legal questions from 500+ startups we have served.
Startup legal services are professional legal solutions for early-stage companies. They cover founders agreements, ESOP design under Section 62 of the Companies Act, 2013, SHA/SSA drafting, term sheet review, DPIIT recognition, IP protection, and compliance setup. These address equity structuring and fundraising documentation specific to startup lifecycles.
A founders agreement is a legally binding contract under the Indian Contract Act, 1872 between co-founders. It defines equity ownership, vesting schedules (typically 4 years with 1-year cliff), roles, IP assignment, non-compete terms, and exit provisions like good leaver and bad leaver clauses. Stamp duty ranges from ₹200 to ₹500.
ESOP (Employee Stock Option Plan) grants employees the right to buy company shares at a predetermined price. Governed by Section 62(1)(b) of the Companies Act, 2013 and Rule 12 of Companies (Share Capital and Debentures) Rules, 2014, typical ESOP pools range from 10% to 15% of total equity for early-stage startups.
A Shareholders Agreement (SHA) governs rights between existing shareholders, covering voting, board seats, anti-dilution, and exit clauses. A Share Subscription Agreement (SSA) governs terms for new share issuance to investors. SHA protects ongoing relationships; SSA governs the investment transaction. Both are signed together during funding rounds.
A convertible note is short-term debt that converts into equity during a future funding round. Governed by FEMA (Non-Debt Instruments) Rules, 2019 for foreign investors, it requires a minimum 1-year tenure with conversion within 10 years. Convertible notes are popular for pre-seed and bridge rounds under ₹2 crore.
A cap table (capitalization table) tracks equity ownership of a startup, listing all shareholders, share classes, percentages, and dilution history. Updated after every funding round, ESOP grant, or share transfer, a clean cap table filed correctly with Form PAS-3 on MCA is critical for investor due diligence.
Vesting is a schedule under which founders or employees earn equity over time. The standard structure is 4-year vesting with a 1-year cliff, meaning no shares vest in the first year, then monthly or quarterly vesting thereafter. Vesting protects the startup if a co-founder exits early and prevents unearned equity concentration.
Liquidation preference is an investor protection clause in SHA/SSA agreements that determines payout order during a sale or winding up. A 1x non-participating liquidation preference means the investor gets their investment back first. Participating preferences let investors take both invested capital and a proportional share of remaining proceeds.
Anti-dilution protection is a SHA clause shielding investors from equity dilution in future down-rounds. Full ratchet adjusts the price to the new lower price. Weighted average (broad-based) is more founder-friendly, adjusting based on total shares outstanding. Most seed-stage deals in India use broad-based weighted average anti-dilution.
Drag-along rights let majority shareholders force minority shareholders to join a company sale at the same terms. Tag-along rights let minority shareholders join a sale initiated by majority holders. Both are standard SHA clauses under the Indian Contract Act, 1872, protecting founders and investors during exit events.
The Digital Personal Data Protection Act, 2023 requires startups processing personal data to obtain explicit consent, appoint a Data Protection Officer for significant data fiduciaries, and implement security measures. Non-compliance penalties range from ₹50 crore to ₹250 crore. All tech startups handling user data need a DPDP compliance framework.
A good leaver/bad leaver clause in a founders agreement determines equity treatment when a founder exits. A good leaver (death, disability, termination without cause) retains vested shares at fair market value. A bad leaver (resignation, breach, fraud) forfeits unvested shares and sells vested shares at par value or cost price.
Essential startup legal documents include: founders agreement, NDA, IP assignment agreement, employment contracts, privacy policy, terms of service, board resolutions, ESOP scheme, SHA/SSA (post-funding), convertible note (if applicable), and DPIIT recognition certificate. Most startups need 8 to 12 legal documents within the first year.
No. Angel tax under Section 56(2)(viib) of the Income Tax Act was abolished via the Finance (No. 2) Act, 2024, effective from Assessment Year 2025-26. Startups receiving investment above fair market value no longer face taxation on the premium. DPIIT angel tax exemption certificates are no longer required.
Define equity split and vesting schedule, assign roles, include an IP assignment clause, add non-compete and confidentiality terms, define exit and dispute resolution provisions, and execute on proper stamp paper (₹200 to ₹500 by state). At IncorpX, our startup lawyers deliver the first draft within 48 hours of engagement.
Register on startupindia.gov.in, fill the recognition form, upload your incorporation certificate and business description, then submit for review. You receive a DPIIT recognition number within 3 to 7 working days. No government fee. Entity must be under 10 years old with turnover below ₹100 crore.
Determine the ESOP pool size (10% to 15% of equity), pass board and shareholder resolutions under Section 62(1)(b) of the Companies Act, define the vesting schedule (4-year standard), set exercise price at par or fair market value, file Form PAS-3 on MCA after allotment (₹200 to ₹300 filing fee), and maintain an ESOP register per Rule 12.
SHA/SSA drafting covers: term sheet finalization, due diligence review, SHA drafting with investor rights and founder protections, SSA drafting with valuation and conditions precedent, legal review by both parties, execution on stamp paper, and filing Form PAS-3 for share allotment. FC-GPR filing with RBI is mandatory if a foreign investor is involved.
File a trademark application for your brand name/logo (₹4,500 for DPIIT-recognized startups with 50% rebate). Execute IP assignment agreements with all founders and employees. Draft NDAs for external contractors. File patents for unique technology (80% rebate for DPIIT startups). Start trademark filing within 30 days of incorporation.
Our 6-step process: (1) free 30-minute consultation to assess your stage, (2) document review and legal roadmap, (3) agreement drafting within 48 hours, (4) founder review with unlimited revisions, (5) execution with proper stamping (₹200 to ₹15,000 by state), (6) compliance calendar setup covering board meetings under Section 173 and annual ROC filings.
Agree on an initial split based on capital, IP, and time contribution. Implement 4-year vesting with a 1-year cliff to protect against early exits. Reserve 10% to 15% for an ESOP pool. Document everything in a founders agreement with good leaver/bad leaver clauses. File share allotment via Form PAS-3 on MCA and update the cap table.
The founders agreement determines outcomes. With proper vesting, unvested shares revert to the company. A good leaver retains vested shares at fair value. A bad leaver (breach, competing business) forfeits shares at par value. Without an agreement, disputes fall under the Indian Contract Act, 1872 or Companies Act, 2013 share transfer provisions, leading to costly litigation.
Costs vary by scope. At IncorpX, bundled packages start at ₹5,999. Individual market rates: founders agreement ₹10,000 to ₹50,000, ESOP scheme ₹20,000 to ₹1,00,000, SHA/SSA for seed round ₹30,000 to ₹1,00,000, and term sheet review ₹10,000 to ₹30,000. Bundled packages save up to 70% over individual costs.
A founders agreement costs ₹10,000 to ₹50,000 individually from a lawyer. At IncorpX, it is included in the startup legal package at ₹5,999. Cost depends on complexity: 2-founder agreements are simpler than 3-4 founder structures with differential vesting. State stamp duty of ₹200 to ₹500 applies additionally.
ESOP scheme design and drafting costs ₹20,000 to ₹1,00,000 in the market. IncorpX includes ESOP structuring in the Growth package at ₹14,999. Cost factors include number of employees, vesting complexity, and exercise price methodology. Additional MCA filing fee for Form PAS-3 is ₹200 to ₹300.
The startup legal package at ₹5,999 includes: founders agreement, SHA review, equity vesting structure, NDA and IP assignment templates, employment contract templates, terms of service and privacy policy, Startup India recognition assistance, 2-hour legal consultation, dedicated startup lawyer, and priority legal support. Growth (₹14,999) adds ESOP design and term sheet review.
Founders agreement drafting takes 3 to 5 working days. ESOP scheme design takes 7 to 10 working days. SHA/SSA drafting takes 10 to 15 working days. DPIIT recognition takes 3 to 7 working days. Term sheet review takes 24 to 48 hours. IncorpX delivers first drafts within 48 hours. Full package completion: 7 to 15 working days.
IncorpX offers bundled startup legal services at ₹5,999. Traditional law firms charge ₹50,000+ per agreement with hourly billing. Our advantages: fixed transparent pricing, 48-hour draft delivery, dedicated startup lawyers who understand equity and fundraising, 500+ startups served, ₹200 Cr+ funding documentation, and direct WhatsApp access to your lawyer.
Yes. IncorpX supports startups through the entire fundraising lifecycle: term sheet review within 24 hours, SHA/SSA drafting for seed and Series A rounds, convertible note structuring under FEMA guidelines, cap table cleanup, investor due diligence preparation, and FC-GPR filing for foreign investment under RBI regulations. Over ₹200 Cr in funding rounds documented.
Yes. Key pre-incorporation legal tasks: choose the right entity structure (Pvt Ltd recommended for funded startups under Section 2(68) Companies Act), draft a founders agreement, define equity split, file RUN for name reservation (₹1,000), and execute an NDA with technical co-founders. IncorpX offers free pre-incorporation consultation.
Yes. IncorpX serves startups from pre-seed through Series A and beyond. For funded startups, we handle SHA/SSA drafting, ESOP design under Section 62, FEMA compliance for foreign investors (FC-GPR filing), board advisory agreements, investor rights structuring, and DPIIT recognition assistance for tax benefits. Our Funded package starts at ₹29,999.
A founders agreement is signed pre-funding between co-founders covering equity split, vesting, roles, IP assignment, and exit. A shareholders agreement (SHA) is signed during funding rounds, adding investor rights, board composition, anti-dilution, and drag-along clauses. Both are enforceable under the Indian Contract Act, 1872.
A convertible note is debt that converts to equity later, with a valuation cap and discount (typically 15% to 25%). Equity funding gives investors shares immediately at a fixed valuation. Convertible notes are faster (2 to 4 weeks), cheaper (₹15,000 vs ₹50,000+ in legal costs), and defer valuation. Best for pre-seed rounds under ₹2 crore.
Bundled startup legal packages save 60% to 70% over individual lawyer engagements. IncorpX's package at ₹5,999 covers 10+ documents that would cost ₹80,000+ individually. Packages work best for early-stage startups needing foundational documents. For Series B+ startups with complex negotiations, dedicated engagement is more appropriate.
ESOP grants employees the option to buy shares at a predetermined price after vesting, governed by Section 62(1)(b) of the Companies Act. Sweat equity under Section 54 issues shares for non-cash consideration like know-how or IP. ESOP requires a 1-year minimum gap before first exercise. Both need shareholder approval via special resolution.
The team was very responsive and helpful. I received daily updates from the WhatsApp group, and their guidance made everything much simpler to comprehend. If you want a simple and hassle-free way to launch your business, I would highly recommend them!
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Simon Job
4.9/5
I recently used IncorpX to register my limited liability partnership, and I had an amazing experience! There were no hidden fees, and the team was helpful, quick to respond, and open. They provided thorough explanations of each step, and their services are reasonably priced without sacrificing quality. The entire process was made simple by IncorpX's professionalism, attention to detail, and sincere support. Strongly advised!
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Jay R
4.8/5
The experience was flawless; the team completed each task with care and always responded quickly. Throughout the process, I never felt stuck. We would especially like to thank Saksham and Sriram for making everything run so smoothly! The IncorpX team offers extremely competitive pricing; anyone just starting out should definitely get in touch with them.
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Mohammed Affan
4.9/5
I'm really grateful to the wonderful team at IncorpX for helping bring my co-founder's and my dream to life. The whole process was super smooth - fast service, great support, and no hassles at all. I'd highly recommend IncorpX to any new entrepreneur or founder looking to register their company. Excited to continue working with them in the long run. Thank you, IncorpX!
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Riyom Taipodia
4.6/5
One of the best agency I have ever experienced. Team members are very friendly as if we know each other from before and came communicate and share easily. My work has been done in a very short period and I am so happy. Thank you so much.
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Ayyappa Swamy
5/5
Highly recommend... IncorpX services regarding incorporation of our company and roc filing and all are very impressive.. the team IncorpX is polite and friendly. Our Lands Time pvt ltd has incorporated through IncorpX... And thanks to IncorpX team..
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Ramesh Babu
4.9/5
Trouble free service, Rendering good co-operation for company incorporation. Trust worthy team to have better knowledge.
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Pravesh Kudesia
5/5
IncorpX is providing best service... And user experience! Thank You IncorpX Team
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Balaji Gutte
4.9/5
I recently got my Private Limited Company incorporated through IncorpX, and the experience was seamless! The team was professional, supportive, and quick to respond throughout the process. Highly recommend IncorpX for a smooth and stress-free company registration experience.
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Dia
5/5
I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!
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