Document background
The Pre-Incorporation Founders Agreement is a crucial document used in the Philippines when two or more individuals or entities plan to establish a business together but haven't yet formally incorporated the company. This agreement is particularly important in the Philippine business context as it establishes clear guidelines and protections during the vulnerable pre-incorporation phase. It addresses key aspects such as initial capital contributions, equity distribution, intellectual property rights, and founder responsibilities, all while ensuring compliance with Philippine corporate laws, particularly the Revised Corporation Code. The document helps prevent future disputes by clearly documenting all founders' expectations and commitments before significant resources are invested in the venture. It's especially vital given the Philippine legal requirement for proper documentation of pre-incorporation arrangements and the need to protect all parties' interests during the business formation phase.
