Legal points for the design of the startup's shareholding structure

A well-designed equity structure is the foundation for startup governance stability, balancing control rights, incentives, and future financing needs.

Equity allocation within the founding team is the first step. It is recommended that founders clarify the equity allocation plan early to avoid disputes after the company develops.

Option pool design is an important tool for attracting and retaining talent. It is recommended to reserve an option pool of 10%-20% during the seed or angel round for subsequent employee equity incentives.

The design of voting rights is key to safeguarding the founder's control. This can be achieved through concerted action agreements, dual-class share structures, or voting rights entrustment, ensuring that the founder has sufficient say in major corporate decisions.