The StartupLab : Compliance | Tech | Funding

Protect Your Startup With a Strong Shareholders Agreement

Once investors come on board, handshake deals aren’t enough.
We help startups draft legally robust, investor-ready Shareholders Agreements (SHA) that protect everyone’s rights and prevent future disputes.

Our team has structured 100+ SHA agreements accepted by VCs, angels, and accelerators across India.

Get My SHA Drafted

Why a Shareholders Agreement Is Critical

Founders often skip SHAs — until disputes arise.
A well-drafted SHA helps you:

  • Prevent conflicts between founders and investors
  • Define clear governance and decision-making rules
  • Protect minority and majority shareholder rights
  • Ensure smooth exits and share transfers
  • Build trust during investor due diligence

Without an SHA, even minor disagreements can turn into costly legal battles.

What We Include in Your Shareholders Agreement

We cover every major clause investors expect and founders must protect:

  • Ownership & Capital Structure – Shares held, future funding terms
  • Voting & Decision-Making Rights – Board structure, reserved matters
  • Transfer Restrictions – Right of First Refusal (ROFR), pre-emptive rights
  • Exit Clauses – Drag-along, tag-along, and buyout mechanisms
  • Dividend & Profit Sharing Policy – Returns and reinvestment rules
  • Dispute Resolution Clauses – Arbitration, governing law, jurisdiction
  • Confidentiality & Non-Compete Clauses

Your agreement will be clear, enforceable, and legally compliant under Indian corporate law.

Our 3-Step SHA Drafting Process

We make it fast, founder-friendly, and investor-acceptable:

1. Consultation & Term Sheet Review

UnderstandUnderstand the deal and key terms your funding deal, cap table, and objectives.

2. SHA Drafting by Experts

Create a legally compliant, balanced agreement

3.Review & Finalization

Iterate based on founder and investor feedback

Timeline: 7–10 working days
Deliverables: Word + PDF Shareholders Agreement (ready to sign)

Why Choose The Startup Lab

  • 200+ SHAs drafted for funded Indian startups
  • Trusted by VCs, angels, and accelerators
  • Founder-friendly while meeting investor expectations
  • Reviewed by top-tier legal counsels
  • Accepted in diligence, funding, and M&A deals

We protect your interests while helping deals close faster.

Benefits of a Shareholders Agreement

  • Aligns founders, investors, and stakeholders
  • Avoids conflicts and legal disputes
  • Builds investor trust during due diligence
  • Clarifies exit options and transfer rules
  • Makes governance smooth and predictable

Common Objections (And Our Solutions)

“We already have a founders agreement.”
That only covers co-founders. An SHA is required once outside investors join.

“Investors will draft it — why do we need our own?”
Having your own version gives you negotiation leverage to ensure fairness.

“It’s too early for an SHA.”
You need one as soon as you issue shares to anyone outside the founding team.

FAQs About Shareholders Agreements

A founders agreement governs the founding team before funding. An SHA includes all shareholders (founders + investors) post-funding.
Yes, it is a binding legal contract if properly executed on stamp paper or e-stamp.
Immediately after finalizing your term sheet with investors.
Yes, we can include special clauses for minority rights and veto powers.

Yes, through an amendment signed by all shareholders.

Yes — it’s one of the first documents checked by investors and legal counsels.

Protect Your Rights Before You Raise Funds

We’ll draft a strong, investor-ready SHA that safeguards your interests and satisfies investors.

Get My SHA Drafted

Launch login modal Launch register modal