tiktok���˰�

A Founders Agreement is a binding contract that startup co-founders create to establish their rights, responsibilities, and ownership stakes in their new venture. In Saudi Arabia, this crucial document aligns with the Companies Law and typically covers equity distribution, decision-making authority, and each founder's role in the company's operations.

Beyond basic ownership terms, a solid Founders Agreement addresses intellectual property rights, exit procedures, and dispute resolution mechanisms under Kingdom regulations. It protects all parties by clearly defining what happens if a founder leaves, how profits will be shared, and sets governance rules - making it an essential foundation for any new Saudi business partnership.

Create your Founders Agreement right when you start planning your business venture in Saudi Arabia - before any money changes hands or work begins. This timing is crucial because early-stage discussions are smoother, and founders can focus on their shared vision rather than potential conflicts.

Key moments that trigger the need include: bringing on new co-founders, securing initial funding, developing intellectual property, or starting operations under the Kingdom's Companies Law. Getting this agreement in place early prevents costly disputes about ownership, decision-making rights, and profit sharing that often emerge as startups grow and attract investment.

• Cofounder Agreement: Basic agreement covering essential terms like equity splits, roles, and decision-making rights - ideal for most Saudi startups
• Co Founder Vesting Agreement: Focuses on gradual ownership rights over time, protecting the company if founders leave early
• Founder Employment Agreement: Combines founder rights with employment terms, suitable when founders take active management roles under Saudi labor laws

• Co-Founders: Primary parties who sign and are bound by the Founders Agreement, including tech developers, business strategists, and investors bringing different skills to the startup
• Legal Counsel: Saudi-licensed attorneys who draft and review agreements to ensure compliance with local corporate and investment laws
• Business Advisors: Help structure equity arrangements and operational terms aligned with Saudi market practices
• Company Secretary: Maintains official records and ensures the agreement aligns with corporate governance requirements
• Investment Partners: Early-stage investors who often review these agreements before committing capital to Saudi startups

• Business Details: Gather each founder's full legal name, contact information, and proposed roles in the company
• Ownership Structure: Define equity percentages, vesting schedules, and capital contribution amounts in Saudi Riyals
• Company Information: Prepare proposed business name, activities, and registration type under Saudi Companies Law
• Decision Framework: List key decisions requiring unanimous consent versus majority approval
• Exit Planning: Outline procedures for share transfers, founder departures, and company sale scenarios
• Document Generation: Use our platform to create a customized, legally-compliant agreement that includes all essential elements

• Party Details: Full legal names, contact information, and national ID numbers of all founders per Saudi documentation requirements
• Ownership Structure: Clear statement of equity distribution, capital contributions, and profit-sharing arrangements
• Management Rights: Detailed voting procedures and decision-making thresholds aligned with Saudi Companies Law
• IP Assignment: Clear transfer of intellectual property rights to the company
• Exit Provisions: Share transfer restrictions, right of first refusal, and founder departure procedures
• Dispute Resolution: Saudi court jurisdiction or approved alternative dispute resolution methods
• Governing Law: Explicit reference to Saudi Arabian law as the governing framework

A Founders Agreement differs significantly from a Business Acquisition Agreement in the Saudi business context. While both are crucial legal documents, they serve distinct purposes and apply at different stages of a company's lifecycle.

• Timing and Purpose: Founders Agreements establish initial relationships between co-founders at startup, while Business Acquisition Agreements facilitate the purchase of an existing business
• Scope of Terms: Founders Agreements focus on equity distribution, roles, and decision-making rights among founders. Business Acquisition Agreements cover asset valuation, transfer terms, and liability assumptions
• Parties Involved: Founders Agreements bind co-founders creating a new venture. Business Acquisition Agreements involve buyers and sellers of established businesses
• Legal Framework: Founders Agreements align with Saudi startup regulations and Companies Law provisions for new entities, while Business Acquisition Agreements follow merger and acquisition regulations