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Free letter template · Word

Offer Letter Format for Startup

A startup offer letter is a simple, friendly but legally sound offer that early-stage companies send to their first engineers, marketers, operations and founding team hires. It keeps salary and joining terms clear, flags any proposed ESOP grant, allows role flexibility as the company grows, and secures IP and confidentiality from day one.

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Preview of the letter

[Highlighted] = fill in
[Company Logo][Company Name]

OFFER LETTER

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Candidate Name]
[Candidate Address]

Subject: Offer to Join [Company Name] as [Designation]

Dear [Candidate Name],

We are excited to invite you to join [Company Name] as [Designation]. As one of our early team members, you will play a key role in building [Product / Business]. You will report to [Reporting Manager] and your proposed start date is [Date of Joining].

1. Your Role

Your initial focus will be [Key Priorities]. As a growing startup, our needs will change quickly; you may be asked to take on related responsibilities beyond your core role, and your title and scope will be reviewed as the company grows.

2. Compensation

  • Annual CTC: ₹[CTC] (fixed), paid monthly after statutory deductions.
  • Performance bonus: up to ₹[Amount] based on company and individual goals (delete if not applicable).
  • ESOP: We propose to grant you [Number] stock options under the [Company Name] ESOP Plan, vesting over [Vesting Period] with a [Cliff Period] cliff, subject to board approval and a separate grant letter.
  • Benefits: health insurance, PF and other benefits as per company policy and applicable law.

3. Work Arrangement

You will work [From Office / Hybrid / Remote] with base location [Work Location]. The company will provide a laptop and the tools needed for your work.

4. Confidentiality and Ownership

You will sign our Confidentiality and Invention Assignment Agreement on joining. Everything you create for the company, including code, designs, content, brand assets and business ideas, will belong to [Company Name]. Our investor information, financials, product plans and customer data must remain confidential during and after your employment. You confirm you are not bound by any agreement that prevents you from joining.

5. Probation and Notice

Probation will be [Probation Period] months with a [Notice Period] notice period during probation and [Notice Period] after confirmation. This offer is subject to verification of your documents (PAN, Aadhaar – last 4 digits / masked copy, education and experience).

Please sign and return this letter by [Date]. We cannot wait to build with you.

Cheers,

For [Company Name]
[Founder Name]
Founder and CEO
Accepted by
[Candidate Name]
Date: [Date]

What this template includes

  • Role with an honest note that responsibilities may evolve
  • Cash CTC and whether a performance bonus exists
  • Proposed ESOP grant referenced to the ESOP plan and vesting
  • IP assignment and confidentiality, crucial for a young company's core asset
  • Work arrangement: remote, hybrid or office
  • Short, clear probation and notice terms

When to use it

  • Hiring your first 5 to 50 employees after incorporation
  • Making an offer that mixes cash salary with ESOPs
  • Hiring a remote or hybrid employee in another city
  • Converting a freelancer or intern into a full-time employee

How to customise this template

  1. 1Replace the role description with the real first-90-day priorities
  2. 2Insert the ESOP number and vesting summary only if the plan is approved
  3. 3Edit the work arrangement and equipment terms
  4. 4Add PF and ESI lines once you cross the applicable thresholds or register voluntarily
  5. 5Keep the tone personal but retain the legal clauses

HR tips

  • Register under Shops and Establishments and statutory schemes as soon as you hire
  • Do not oversell ESOP value; explain that options have value only if the company succeeds
  • Get IP assignment signed before code or brand work begins
  • Put any salary deferral or revision promise in writing

This template is a starting point. Review ESOP, IP and employment terms against applicable labour and company laws, your ESOP plan and with a legal adviser where needed.

For HR & hiring managers

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Frequently asked questions

Do startups need to give PF to employees?+

PF registration becomes mandatory once you reach the employee threshold under the law, and you can also register voluntarily earlier. Check current applicability with your payroll adviser.

How do I mention ESOPs in a startup offer letter?+

State the proposed number of options, that they vest per the ESOP plan, and that the formal grant letter will follow after board approval.

Can a startup offer letter have a shorter notice period?+

Yes. Many startups use 30 days. Choose a period both sides can manage and apply it consistently.

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