Key Documents Every Startup Should Include

1. Non-Disclosure Agreement (NDA)

• Description: Protects confidential information shared with employees, contractors, or other third parties.
• Example: Prevents disclosure of trade secrets, business plans, or customer lists.

2. Co-Founders Agreement

• Description: Defines the rights, responsibilities, and ownership stake of each co-founder in the startup.
• Example: Outlines profit-sharing, decision-making processes, and dispute resolution mechanisms.

3. Memorandum of Association (MOA)

• Description: A document filed with the Registrar of Companies (ROC) that specifies the company's objectives, authorized share capital, and liability of members.
• Example: Defines the core business activities and the maximum amount of capital the company can raise.

4. Articles of Association (AOA)

• Description: Internal rules and regulations governing the company's operations, including meetings, voting rights, and director appointments.
• Example: Establishes procedures for conducting shareholder meetings and electing board members.

5. Shareholder Agreement

• Description: A contract between the company and its shareholders that details ownership rights, transfer restrictions, and dividend payouts.
• Example: May specify limitations on selling shares or outline procedures for resolving shareholder disputes.

6. Employment Agreements

• Description: Formal contracts outlining the terms and conditions of employment for staff members.
• Example: Includes details on salary, benefits, vacation time, and intellectual property rights.

7. Service Level Agreements (SLAs)

• Description: Agreements with vendors or service providers that define performance expectations and service level guarantees.
• Example: Ensures reliable service delivery from third-party providers crucial to your operations.

8. Website Terms of Use and Privacy Policy

• Description: Legal documents outlining the rules and regulations governing user interaction with your website or app.
• Example: Provides information on data collection practices and user rights related to their personal information.

9. Intellectual Property (IP) Agreements

• Assignment of Invention Agreement: Clearly defines ownership of inventions created by employees or contractors during their work for the startup.
• Software License Agreement: Governs the licensing of software developed by the startup or the use of third-party software.

10. Investment Agreements

• Term Sheet: An outline of the key terms for an investment deal, including amount, valuation, and investor rights.
• Share Purchase Agreement: Formalizes the sale and purchase of company shares between the startup and an investor.
• Subscription Agreement: Outlines the terms for investors to subscribe for new shares issued by the startup.

11. Operational Agreements

• Non-Compete Agreement: Restricts employees or contractors from working for competitors for a specified period after leaving the company.
• Independent Contractor Agreement: Clearly defines the relationship with independent contractors and protects the startup's intellectual property.
• Non-Solicitation Agreement: Prevents employees or contractors from soliciting the startup's customers or employees for a certain period.

12. Regulatory Compliance Policies

• Data Privacy Policy: Defines how the startup collects, stores, and uses user data, complying with regulations like the Indian Personal Data Protection Bill (PDP Bill).
• Information Security Policy: Establishes safeguards to protect the startup's data and systems from cyberattacks.
• Environmental Policy: Outlines the startup's commitment to environmental sustainability, if relevant to its operations.

13. Additional Considerations

• Dispute Resolution Clause: Incorporates a preferred method for resolving disputes within agreements, such as arbitration or mediation.
• Website Accessibility Policy: Ensures your website or app is accessible to users with disabilities.

The author is from a CA and IIM Ahmedabad background. He runs 2 service businesses - a) BetaFin Partners specialising into Valuation and CA Firm Compliance b) CAJobPortal.com, specialising into Exec Search for CA/CS/CMA