Business partnership with a friend

if it is in the name of vivek then you need to check whether that firm is proprietorship concern or a partnership???

you better create a new partnership firm so that the understanding between your brother and vivek are covered in it. since the first company/firm is run by vivek and his father, i doubt your brother will get any power in that firm as he would be working as a manger only and all the decision making power shall rest in vivek and his father's hand only.

in that firm, your brother would not even have the authority to sign the cheque and do the bank transaction.

Therefore, in the interest of your borhter it is advisable to form a new firm and do the business. by creating a partneship deed.

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

Dear Mr Dalmia

Thank you for your response, really appreciate the same.

Just one last query I have. Vivek says that whatever money Abhishek invests in that company, it will reflect in his company's account statement/balance sheet. Do such transactions matter anything or do they have any significance when it comes to resolving disputes/making claims?

Anticipating your response.

Warms Regards

Transactions might be reflecting. but incase of dispute how your brother shall provie about partnership???? viviek could show those amount as advance or friendly  loan. Then how your brother will tackle it?????

without partnership deed and a seperate firm, your brother will have no right in the business affair as well as in bank transactions.

Regards,

Advocate Rohit Dalmia

9324538481

In other words, if u are investing without being partner legally, you would loose share in net worth of company (Capital + profits), what  legally u  can claim  at the best  would be  your  money  (as a  third party loan)

Thank you all for your valuable inputs.

Regards