Document background
The Cofounder Agreement is a fundamental document used when establishing a new business venture or formalizing an existing partnership in Saudi Arabia. It serves as the cornerstone of the founding team's legal relationship, particularly crucial in the context of Saudi Arabia's evolving business landscape under Vision 2030. This document is essential when two or more individuals or entities come together to establish a business, requiring careful consideration of both Shariah compliance and modern commercial practices. The agreement typically covers critical areas such as equity structure, capital contributions, management rights, profit sharing, and exit mechanisms, while ensuring alignment with Saudi Arabian companies law and regulatory requirements. It's particularly important for startups and new ventures seeking to establish clear governance frameworks and protect all parties' interests from the outset.
