Document background
The Pre-Incorporation Founders Agreement is a critical document used in Indonesia when two or more individuals plan to establish a business venture together but haven't yet formally incorporated the company. This agreement is particularly important in the Indonesian business context as it provides legal protection and clarity during the pre-incorporation phase, ensuring compliance with Law No. 40 of 2007 on Limited Liability Companies. The document typically addresses key aspects such as ownership distribution, capital commitments, roles and responsibilities, intellectual property rights, and confidentiality obligations. It serves as a roadmap for the formal incorporation process while protecting the interests of all founding members during the crucial early stages of business formation. The agreement becomes especially vital when dealing with technology startups, foreign investment considerations, or complex ownership structures.
