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Employment

Co-Founder Equity Split Calculator Guide

January 24, 20266 min read
Co-Founder Equity Split Calculator Guide

What is a Co-Founder Equity Calculator?

A co-founder equity calculator is a tool used by early-stage startups to determine a fair percentage split of company shares among founders based on their contributions, capital invested, and future roles.

Why You Need an Equity Split Calculator

Deciding how to split equity is one of the hardest conversations for new founders. Using a co founder equity calculator removes emotion from the process and relies on objective metrics like IP contribution, initial capital, and time commitment.

Key Factors in Startup Equity Split

  • Idea vs Execution: Ideas are cheap. The founder executing the vision usually deserves a larger slice.
  • Capital Contribution: Who is putting in the initial seed money?
  • Vesting Schedules: Never split equity without a vesting schedule (typically 4 years with a 1-year cliff).

Calculate Your Split Now

Try our free startup equity calculator to get a baseline for your founders agreement.

Use Free Equity Calculator →

Frequently Asked Questions

Are non-compete clauses valid in India?

Under Section 27 of the Indian Contract Act, 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business is void. This means post-employment non-competes are generally unenforceable in India. According to Section 10 of the Indian Contract Act 1872, agreements are enforceable only when executed with the free consent of parties competent to contract, for a lawful consideration, and with a lawful object.

What is the standard notice period in India?

Typically, notice periods range from 30 to 90 days. For employees on probation, it's often shorter (15-30 days). This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.

Can an employer reduce my salary during the contract term?

Generally, no. A unilateral reduction in salary without a corresponding amendment signed by the employee can be challenged as a breach of contract. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.

Are electronic signatures legally valid in Indian contracts?

Yes. Under Section 10A of the Information Technology Act 2000, electronic contracts and digital signatures are legally recognized and enforceable. However, certain documents like negotiable instruments, power of attorney, trust deeds, and wills cannot be executed electronically.

Frequently Asked Questions

Are non-compete clauses valid in India?

Under Section 27 of the Indian Contract Act, 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business is void. This means post-employment non-competes are generally unenforceable in India. According to Section 10 of the Indian Contract Act 1872, agreements are enforceable only when executed with the free consent of parties competent to contract, for a lawful consideration, and with a lawful object.

What is the standard notice period in India?

Typically, notice periods range from 30 to 90 days. For employees on probation, it's often shorter (15-30 days). This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.

Can an employer reduce my salary during the contract term?

Generally, no. A unilateral reduction in salary without a corresponding amendment signed by the employee can be challenged as a breach of contract. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.

Frequently Asked Questions

Are non-compete clauses valid in India?

Under Section 27 of the Indian Contract Act, 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business is void. This means post-employment non-competes are generally unenforceable in India. According to Section 10 of the Indian Contract Act 1872, agreements are enforceable only when executed with the free consent of parties competent to contract, for a lawful consideration, and with a lawful object.

What is the standard notice period in India?

Typically, notice periods range from 30 to 90 days. For employees on probation, it's often shorter (15-30 days). This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.

Can an employer reduce my salary during the contract term?

Generally, no. A unilateral reduction in salary without a corresponding amendment signed by the employee can be challenged as a breach of contract. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.