Free template · 2025

Internship offer letter for Indian startups.

Most internship letters miss the IP clause — and that one missing line has caused real problems during funding rounds. Here's what your letter actually needs.

Quick answer

An internship offer letter in India should clearly state it's an internship (not employment), include stipend in INR, duration with end date, IP assignment of any work created, confidentiality, and learning objectives. Without an IP clause, work produced during the internship legally belongs to the intern — which has caused real problems during funding diligence.

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Why does an internship offer letter need to be in writing?

Your intern might own their code
Indian copyright law says the creator owns the work — unless it's assigned in writing. No IP clause = your intern legally owns whatever they built.
Investors will ask for it
During due diligence, investors check how you handled early IP. A missing internship agreement for someone who built a core feature is a red flag.
It protects both sides
The intern knows what they're signing up for. You know what you're getting. Disputes come from unclear expectations — a letter removes that.

What to include

What must every internship offer letter include?

1
Say clearly it's an internship, not a job
Write one line: "This internship does not constitute employment." Without this, an intern can later argue they were an informal employee — and claim PF, gratuity, or severance.
2
Exact start and end date
Fix the duration upfront. If you need to extend, send a one-line amendment letter. Open-ended internships create ambiguity about when the engagement ends.
3
Stipend amount (even if it's zero)
State the monthly stipend clearly. If there's no stipend, say that too. Silence here leads to disputes. Also clarify if reimbursements (travel, internet) are separate.
4
IP assignment — the one most startups skip
Under Indian copyright law, the person who creates something owns it — unless they assign it in writing. Your intern could legally own the code they wrote for you. Add: "All work created during this internship belongs to [Company]."
5
Confidentiality clause
The intern will see your product, your code, maybe your customers. A confidentiality clause means they can't take that information elsewhere — during or after the internship.
6
How either side can exit early
Things change. The intern might get a PPO, you might pivot. Specify: either side can end with 7 days' notice. Clean exits prevent awkward situations.

Sample language

What do the key internship offer letter clauses look like?

Nature of engagement

"This engagement is an internship and does not constitute employment. The intern will not be entitled to any employment benefits including provident fund, gratuity, or statutory entitlements."

IP assignment

"All work product, code, designs, and other output created by the intern during the internship period shall be the exclusive property of [Company]. The intern assigns all rights in such output to the company."

Confidentiality

"The intern agrees to keep all company information confidential during and for 2 years after the internship ends. This includes product details, customer data, code, and internal communications."

What to avoid

What internship offer letter mistakes cause problems later?

✗
No IP clause — the most expensive mistake
If an intern writes code, designs a UI, or creates any content without a written IP assignment, they technically own it. This has caused real problems during investor due diligence. Fix: add one sentence assigning all work to the company.
✗
Using an employment offer letter template for interns
An employment offer letter mentions PF, ESI, Standing Orders — things that don't apply to interns. Using one can make the internship look like employment. A labour auditor can then say: "This was an employee." That creates backdated PF liability.
✗
Confidentiality that expires with the internship
Many templates say confidentiality lasts 'during the internship.' After the intern leaves, they can share everything? Make the confidentiality obligation survive the internship — typically 2 years after it ends.
✗
No offer expiry date
You send an offer. The intern goes quiet for 3 weeks, then says yes. But you've already filled the spot. Without an expiry date (e.g., 'accept by [date]'), you're in a grey zone.
✗
Promises made on WhatsApp, not in the letter
If you promised a full-time role after the internship, a laptop, or a certificate — put it in the letter. Verbal promises over chat screenshots have led to actual disputes.

Related guides

How to write an offer letter→Employee offer letter→Contractor agreement→

FAQ

Common questions

Yes. A signed offer letter is a contract under the Indian Contract Act, 1872. Once both parties sign, it's binding. Internships aren't covered by most labor laws, which is actually why having a written agreement matters more — without it, there's no baseline.

For most internships at early-stage startups — yes. A signed letter with the right clauses (IP, confidentiality, nature of engagement) is sufficient protection. You don't need a professionally drafted legal agreement for every intern. Where you do need more: interns in deeply technical roles handling trade secrets, or interns from companies you might later have disputes with.

No. Stamp duty is not required for internship letters in most Indian states. Notarization is also not required. A signed letter on company letterhead is enough.

There's no Indian law that forces startups to pay interns a stipend. But if you promise one, you're legally obligated to pay it. If there's no stipend, state that clearly in the letter.

Yes — with small customizations per person (name, role, stipend, dates). Firmly lets you save a template and generate individual letters in under a minute.

Same process. Add a line about whether this is part of a college placement program. Some colleges want their own MOU — ask your intern before sending the letter.

This is a real risk if the letter doesn't clearly define the internship nature. The longer an engagement, the higher the risk of reclassification. A proper letter with an 'internship, not employment' clause is your main defense.

Unpaid internships are legal in India. There's no minimum stipend law. But document it properly — an unsigned or verbal unpaid arrangement is harder to defend if a dispute arises.

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