quesLegal recourse for forming a business partnership

I am planning to start a business with my friends who happened to be brothers. Right now my would-be partner (the Elder brother) is working in India and my other would be partner (the younger brother) is working in Saudi Arabia.

How do we set up a partnership agreement, share wise? Should an NRI be a working partner or we have to treat him as an investor? If an investor, what percentage of profit will we have to share with him? Who can be a managing director? What should we include in partnership agreement? What other legal issues do I need to consider when starting a business?

  • ansYou have not mentioned as to who is contributing funds for the business. Shares would depend upon the contribution made by each partner. In addition, please note that if your brothers are working in some organisation, then they cannot take an active interest in your business. The percentage of the shares of your partners in profit would again depend upon their financial contribution and whether they are taking active part in the business or not.

    Get an agreement drafted by lawyer.

    It would be better to form a private limited company or an LLP in which the liability of investors would be limited to the shares held. You would have to sit with some lawyer to share your concerns and legal issues to protect everyone's interest. Unfortunately, you question is very wide therefore, we would recommend you get in touch with a corporate lawyer.

  • Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Corporate Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
  • Related Articles

Consult best Corporate lawyers in India

Similar questions

We have a website where we discover dancers for corporate events. We are strictly not…
I want to open a web hosting reseller and domain reseller business in India. I…

This notice is issued to you without prejudice to any other rights of the company…

Steps involved in splitting brands into 3 directors and closing a Pvt LTD company

Corporate Lawyers in India

Advocate Ayantika Mondal

 Experience: 8 years

Dr. Sudhir Ravindran

 Experience: 18 years

Advocate Sunil Dalal

  New Friends Colony
 Experience: 20 years

Advocate Ujwal Phasate

  Kukde Lay Out
 Experience: 8 years

View all >>

Quick Consult

Get 15 Minutes of Expert Legal Advice on Phone right now

Ask a Free Question

Post a Question online and get free advice from multiple lawyers by email

Find a Lawyer

Easily find and book private consults with top lawyers in India

Get Fee Estimate

Receive multiple quotations for your legal requirement instantly