What makes an offer letter 'good' vs just adequate?

An adequate offer letter states the role and salary. A good one protects the company: IP stays with the company from day one, confidentiality survives employment, exits are governed by clearly defined notice periods, and the employment type is framed correctly for Indian law. The difference only shows up when something goes wrong — which is exactly when it matters.

Why can't I just use a template I find online?

Most offer letter templates online are either copied from US companies (where employment law is very different) or are so generic they omit the clauses that matter most in India. Common gaps: no IP assignment, post-employment non-competes that are void under Section 27 of the Indian Contract Act, and no distinction between intern and employee framing. Using such a template feels fine — until a labour audit or exit dispute reveals the gaps.

Is Firmly's offer letter the same for every company?

The legal structure is consistent — because the Indian law it's built for is consistent. But each offer letter carries your company's name, logo, address, and signatory, and every clause is configurable: notice periods, probation duration, non-solicitation cooling-off, working hours, and more. You can also add fully custom sections. The result is a document that looks and reads like it was written for your company.

How does Firmly compare to hiring a lawyer to draft the offer letter?

For a standard hire, Firmly's templates cover the same ground a lawyer would — at a fraction of the time and cost. For unusual situations (a senior executive with complex equity terms, a foreign national, an advisory agreement with unusual IP carve-outs), having a lawyer review the final document is still worth it. Firmly handles the standard 95%; a lawyer reviews the unusual 5%.

Does the candidate need to do anything special to sign?

No. The candidate receives the PDF by email and signs it directly — no app, no account, no friction. They sign and reply; you get the signed copy back.

Is Firmly's offer letter enough — or is a lawyer still needed?

For standard startup hires — full-time employees, interns, and contractors — Firmly's templates cover the same ground a lawyer would, at a fraction of the time and cost. Bring in a lawyer for unusual equity structures, executive packages with significant variable pay, or if the candidate's own counsel is reviewing the document.

India-specific

What the best Indian startup offer letter actually looks like.

Most offer letters do the bare minimum. The best ones protect you — IP ownership, clean exits, enforceable confidentiality — without needing a lawyer on retainer to write each one.

Quick answer

The best Indian startup offer letter includes IP assignment under the Copyright Act, enforceable confidentiality, correct employment-type framing, and clearly defined notice periods. It avoids post-employment non-competes (void under Section 27 ICA) and US-style at-will termination. Firmly's templates are lawyer-reviewed for Indian law.

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The standard to aim for

What separates a great Indian startup offer letter from a risky one?

India-specific legal clauses

IP assignment under the Copyright Act, probation under Standing Orders, non-solicitation that courts uphold, and POSH + DPDP Act compliance. Not copied from a US template.

Correct employment-type framing

Full-time, intern, and contractor offers require different legal language. Misclassifying an intern as an employee can trigger backdated PF, ESI, and labour liability. The best offer letters are precise about what the engagement actually is.

Complete compensation picture

Fixed pay, variable, joining bonus, and — for startups — ESOP grant with vesting schedule and cliff. Candidates evaluate the full package. Leave out the equity and you're comparing apples to oranges.

Clear termination mechanics

Probation period, notice during probation, and post-confirmation notice. Without this, exits become disputes. Indian courts expect a defined notice mechanism — 'at-will' language doesn't hold.

Confidentiality that survives exit

A confidentiality clause that ends on the last day is worthless. The best offer letters extend confidentiality obligations post-employment — your roadmap and customer list stay protected after they leave.

Professional presentation

Company logo, signatory name and title, clean formatting. A well-designed offer letter signals that the company is serious — important when you're competing against larger, more established employers.

How options compare

How does Firmly compare to generic templates and AI-generated offer letters?

Criterion	Generic Word template	AI-generated (ChatGPT etc.)	Firmly
Built for Indian law	No: US-origin clauses	No: Jurisdictionally wrong	Yes: Reviewed for Indian law
IP assignment under the Copyright Act	No: Usually missing	No: Often missing	Yes: Built in
Non-compete handling (void under Section 27 ICA)	No: Includes unenforceable non-compete	No: Includes unenforceable non-compete	Yes: Uses non-solicit + confidentiality instead
POSH + DPDP Act 2023 clauses	No: Not included	No: No awareness	Yes: Both included
Separate templates per employment type	No: One generic doc	No: One generic doc	Yes: Full-time, intern, contractor
Email delivery + candidate signing	No: Manual	No: Not supported	Yes: Built in

How it works

From blank page to signed offer in under 3 minutes.

Set up your company

Name, logo, address, signatory — once. Saved for every document after.

Enter the candidate's details

Name, role, compensation, start date, employment type. Takes about 60 seconds.

Pick your clauses

Toggle NDA, IP assignment, POSH, DPDP, probation, and more. Add custom sections if needed.

Draft and send

Preview the letter, make any edits, and email the PDF. The candidate signs and replies. Done.

FAQ

Common questions

: An adequate offer letter states the role and salary. A good one protects the company: IP stays with the company from day one, confidentiality survives employment, exits are governed by clearly defined notice periods, and the employment type is framed correctly for Indian law. The difference only shows up when something goes wrong — which is exactly when it matters.
: Most offer letter templates online are either copied from US companies (where employment law is very different) or are so generic they omit the clauses that matter most in India. Common gaps: no IP assignment, post-employment non-competes that are void under Section 27 of the Indian Contract Act, and no distinction between intern and employee framing. Using such a template feels fine — until a labour audit or exit dispute reveals the gaps.
: The legal structure is consistent — because the Indian law it's built for is consistent. But each offer letter carries your company's name, logo, address, and signatory, and every clause is configurable: notice periods, probation duration, non-solicitation cooling-off, working hours, and more. You can also add fully custom sections. The result is a document that looks and reads like it was written for your company.
: For a standard hire, Firmly's templates cover the same ground a lawyer would — at a fraction of the time and cost. For unusual situations (a senior executive with complex equity terms, a foreign national, an advisory agreement with unusual IP carve-outs), having a lawyer review the final document is still worth it. Firmly handles the standard 95%; a lawyer reviews the unusual 5%.
: No. The candidate receives the PDF by email and signs it directly — no app, no account, no friction. They sign and reply; you get the signed copy back.
: For standard startup hires — full-time employees, interns, and contractors — Firmly's templates cover the same ground a lawyer would, at a fraction of the time and cost. Bring in a lawyer for unusual equity structures, executive packages with significant variable pay, or if the candidate's own counsel is reviewing the document.

Last updated: May 8, 2026

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