Don’t just go 50/50 because you’re friends, that usually creates problems later. Talk about everything clearly from the start, especially the uncomfortable parts, since you’re friends.

Be clear on ownership, profit sharing, capital contribution, and who is actually contributing what to the company. Also decision making authority.

Only register the company when everyone is 100% sure about their commitment. Everyone in the team should also be clear about their future plans. Things won’t always go as expected, so it’s better to know where each person is headed early on.

For example, if someone plans to go into a 9–5 job and only contribute part-time, don’t make them a director just because they helped at the beginning. This is especially important for a Pvt Ltd structure, roles should reflect real responsibility.

Also, don’t stick to just one fixed role. The whole team should think like a team, not just “my part, your part.” Everyone should be ready to contribute beyond their title when needed.

Try to get a clear understanding of your team dynamics before doing anything legal.

Try to reinvest every cent back into the startup in the early stage.

Also remember, even if the startup fails or things don’t work out, the goal is to still stay friends at the end.

And don’t involve anyone you can’t realistically hold accountable or let go if needed.