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Founders Agreement Template: A Ready Contract Certified by a Licensed Saudi Lawyer
- Category
- Formation and governance
- Language
- Arabic + English
- Format
- Editable DOCX
CERTIFICATION RECORD
This template was prepared and reviewed by a licensed Saudi lawyer and is kept current as the Kingdom's regulations change.
Where an Arabic and an English text exist, the Arabic text prevails
A founders agreement that governs equity, roles, vesting, and exit, drafted for the Saudi context and bilingual.
What most threatens startups is not the market but disputes between founders when there is no written agreement. A founders agreement documents what the partners agreed at the start: the equity split, each founder's role and responsibilities, how decisions are made, vesting of equity over time, and what happens if one of them leaves the project. Sighaty template F-01 is written for the Saudi context, and it addresses these points clearly before they turn into a dispute that wrecks the project. The template is bilingual with the Arabic text prevailing on any difference, so you sign it with your partners while you are in agreement rather than postponing it until a dispute arises.
Get the Founders Agreement TemplateF-01What this agreement is and when you need it
A founders agreement governs the relationship between the partners of a startup before or at its formation, and sets what each founder owns, contributes, and is entitled to. Every group starting a project together needs it, especially when contributions vary between money, time, and expertise. A written agreement made in a time of harmony protects everyone later, because it settles in advance the questions that are hard to settle during a dispute.
- Partners starting a startup together with differing contributions.
- Setting equity and roles before or with formal incorporation.
- Organizing vesting and exit before any dispute occurs.
What the smart-fill asks and what you receive
The smart-fill asks about the founders, the equity split, each founder's contribution in money or work, roles and responsibilities, the decision-making mechanism, the vesting schedule, and the terms for exit and transfer of equity. You describe your agreement in your own words, and we draft it into coherent, clear clauses.
Within minutes you receive a formatted bilingual Word document, ready for the founders' signatures and editable before approval. You get an agreement that settles equity, roles, and exit in writing, instead of verbal understandings that evaporate at the project's first real test.
Why a lawyer-certified template beats a free download
A free founders agreement is usually copied from a different legal environment, and it may ignore decisive concepts such as vesting, the exit mechanism, or handling a founder's default, or it may not align with the company's later articles of association. The Sighaty template is certified by a licensed Saudi lawyer, drafted for the local context, and updated with the regulations. A sound agreement from the start is far cheaper than a founders' dispute that halts the entire project.
Frequently asked questions
What is the difference between a founders agreement and the articles of association?
A founders agreement governs the personal relationship between the partners and details such as vesting, roles, and exit, and it often precedes incorporation. The articles of association are the statutory document by which the company is officially registered. The two are complementary, and it is advisable that the founders agreement align with the articles when they are prepared.
What is vesting and why does it matter?
Vesting means a founder earns their equity gradually over time or upon meeting milestones, rather than owning it fully at once. Its importance is that it protects the project if a founder leaves early, so they do not keep a large stake without continuing contribution. The template lets you set the vesting schedule to fit your agreement.
When should the founders agreement be signed?
It is best signed as early as possible, at the project's start and before assets accumulate or expectations diverge. Postponing until a dispute appears makes agreement harder because each party negotiates from their own interest. Signing early while you are in agreement preserves both the project and the relationship.
The content is general guidance, not legal advice; consult a licensed lawyer for your specific case.