Document background
The Founder Collaboration Agreement serves as a foundational document for entrepreneurs establishing a business venture in Pakistan. It becomes necessary when two or more individuals decide to start a business together and need to formalize their relationship, responsibilities, and expectations. This agreement is particularly crucial in the Pakistani business context, where clear documentation of founder relationships helps prevent future disputes and ensures compliance with local corporate laws. The document typically includes provisions for equity distribution, intellectual property rights, decision-making processes, and exit mechanisms, all aligned with Pakistani legal requirements. It provides a framework for both protecting individual interests and fostering successful collaboration, while ensuring compliance with relevant Pakistani legislation such as the Companies Act 2017 and Contract Act 1872.
