Document background
The Pre-Incorporation Founders Agreement is a critical document used when two or more individuals plan to establish a business venture in Canada but haven't yet proceeded with formal incorporation. It serves as a binding contract that governs the relationship between founders during the pre-incorporation phase, protecting all parties' interests and clearly defining their rights and obligations. This agreement typically becomes necessary when founders are ready to commit to a business venture but need time to finalize business plans, secure funding, or complete other preliminary steps before incorporation. The document addresses crucial aspects such as ownership allocation, intellectual property rights, confidentiality obligations, and decision-making protocols, while ensuring compliance with Canadian federal and provincial regulations. It provides a solid foundation for the future company and helps prevent potential disputes by clearly documenting all founders' understanding and commitments before significant resources are invested.
