Document background
The Founders Collaboration Agreement is a vital legal document used when two or more individuals or entities come together to establish a business venture in Pakistan. It should be implemented at the earliest stages of business formation, ideally before or during company incorporation. This agreement is particularly crucial in the Pakistani business environment, where clear documentation of founder relationships can prevent future disputes and ensure smooth business operations. The document addresses key aspects such as equity distribution, roles and responsibilities, decision-making processes, intellectual property rights, and exit provisions, all while ensuring compliance with Pakistani legal requirements including the Companies Act 2017 and Contract Act 1872. It serves as a foundational document that helps establish clear expectations and protections for all founding members while providing a framework for future growth and potential investment.
