How can I legally become a partner of a startup company.


My seniors have a startup and they want me to develop there app for them. I think i can help them and i also want to be partners with them for some equity as they can't yet pay me. So, what steps i can take to partner with them and be legally safe.

Answers (4)


111 votes

you need to have a share transfer agreement with the company and get it registered, the agreement must cite out exact conditions for share transfer and consideration in form of equity is a valid consideration.


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75 votes

You need to enter into an equity based assignment contract wherein you will ask for partnership in against your professional expertise being passed on to the start up. Further there are lots of other checks, if and but which you need to disclose and get an idea over the same from a lawyer before going any step ahead with your plan.

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317 votes

Hello,

You can ask for formal joining in a meeting of all partners, this should be done in parity with partnership deed.Also, you will require to have a look at payment mode and mechanism for the services/expertise you will be rendering.Get in touch for details

163 votes

you need to enter into a shareholders agreement which will specify your shareholding percentage and the number of shares you will be given. to secure you, the shareholders agreement will need a clause to state that your shareholding will be maintained at 'x'% even if further shares are issued. you can also be asked to be put on the board of directors so that you are part of the decision making process.

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