hello

the correct word is not a partner but as a shareholder. Private Limited Company is a separate legal entity registered under the Companies Act, 2013. The Directors and Shareholders of a Private Limited Company are not personally liable for the liabilities of the Company. Shareholders have limited liability and are liable only to the extent of their share capital. A minimum of two persons is required to start a Private Limited Company. Foreigners are allowed to invest in a Private Limited Company under the Automatic Approval route in most sectors. Ownership can be transferred by way of share transfer. The existence of a Private Limited Company is not dependent on the Directors or Shareholders. Could be dissolved only voluntarily or by Regulatory Authorities. Private Limited Company profits are taxed at 30% plus surcharge and cess as applicable. Board and General Meetings must be conducted periodically. Private Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies each year. Income Tax Return must also be filed for the Private Limited Company.

regards

1) check whether the company accounts are duly audited and whether company is regularly filing its income tax returns

2) whether company is filing its annual return with ROC

3) check whether company has mortgaged any of its properties

4) check whether there is any legL proceedings pending against the company

5) do not become a partner without carrying on due diligence

Sir in private limited company there is no partner there are shareholders and they can be nominated as directors.

So before being part of company check it's balance sheet authorised share capital assets liabilities and debt.

Further what kind of movable and.immovable property it has and loan on same.

Check manual returns with IT and ROC and further check if the company has entered into agreement with third party check such agreements.

1. In a pvt. ltd company there is no scope to join as partner but may be as a Director.

2 . So if you are joining as as Director then find out whether you would be an active Director or a Sleeping Director.

3. if it is a sleeping Director then you do not have much concern but f you are entrusted with day to day activity of the Company then do note that you can be prosecuted for any acts done by the company in an illegal manner under both civil and criminal law.

4. So check well before the actual activity of the company and do not sign on any dotted line without verifying its content.

New partner can introduce with existing partnership firm .For new partner ,supplementary amendment deep is required for addition the new partner .as par law given below

Indian Partnership Act, 1932

CHAPTER V : INCOMING AND OUTGOING PARTNERS

31. Introduction of a partner

1-Subject to contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners.

2-Subject to the provisions of section 30, a person who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he became a partner.

Hi

Since you intend to join as an investor in an existing private limited company (The word partner is associated with partnership firms, where as in private limited company ownership is restricted to the extent of share holding of directors), you should exercise absolute care and diligence on the following

1) Check with Registrar of companies (www.mca.gov.in)

a) whether the company has been filing their annual balance sheets,

b) Whether the company has any mortgages, loans that are recorded in registrar of companies

c) What is the present share holding pattern and who are the major share holders.

2) Also check with your auditor

a) to ascertain the actual financial status of private limited company (assets, liabilities, cash flow, unsecured creditors, unsecured debtors) by analysing the balance sheet of the company for last 3/5 years,

3) Also since you will joining the company as an investor , you need to be aware of the new share holding ratio of the promoters, subsequent to your investment. Unless you are aware of the new share holding ratio and your share holding thereof , you will not be able to be aware of whether you are a minority share holder or a majority share holder(your auditor/lawyer, can help you with these computations)

4) Also check with the existing directors of the company on whether you will be appointed as a board of director( better to have a board seat, if your investment is more than 10% of paid up capital of the company)

5)Also please check the exit terms- Assuming you wish to take back your money, then how will the company/ present promoters permit you to with draw the money (whether present promoters will buy out your shares or will opt for an IPO etc).

6) In general, whenever a new investor proposes investment in a private limited company, parties enter in to an agreement called "Term Sheet" where parties outline all the details of investment, ownership control, day to day management, bank account operations, exit's etc. So ideally, you should invest only if all of the terms as mentioned above are agreed upon between the parties (term sheet) and parties affix their signature thereof.

7) Finally-Please check whether your investment in the company is going to be invested for expansion of business of company or whether you are paying money for exit of any of the present promoters/director's. In an ideal scenario, your investment should be used for expansion of business of company rather than paying a promoter ( probably a premium) who wants to exit the company per se.

Hope this information is useful.

Hi, a partnership deed has to be made and also you should be aware about the financial structure and existing liabilities of the company

Hello,

A deed for introducing you as a partner has to be made.

If the partnership is registered then the deed has to be registered with the registrar office also.

Regards

Dear Client,

There are no partners in company but in partnership. You can be shareholder after buying and holds shares in a company having a share capital and name is entered on the register of members.

1. You can join as a partner in a partnership firm only and not in a Pvt. Ltd. Company.

2. In a pvt. ltd. company, you can buy the shares and become a director subject to the consent of other share holders and subject to the provisions mentioned in the Article of Association and Memorandum of Association.

3. You are required to check all the documents of the said company before buying its shares.

4. If it is a partnership company, then you shall have to exemine the conditions mentioned in the partnership deed of the said partnership firm of which you want to be a partner.

5. Financial position of the firm/company is requyired to be examined before investing money therein.

First of all you have to see the business potential of the partnership firm before you join and you have to see the accounts of the firm along with the Goodwill of the firm which you have to pay along with the capital to the partners to include your self as partner you have to see the partnership deed is changed and registered according to the discussion and the capital sharing.

You have to movie look in the detail your obligations and privileges in the partnership firm as the liability of the member of partnership firm is unlimited.

In terms of Section 31 of the Indian Partnership Act, 1932, a new person can be introduced as a partner into a firm with the consent of all the existing partners subject to the execution of a fresh Partnership Deed. At the time of execution of fresh partnership deed presence of all the existing partners along with the new partner and witnesses is essential. All the partners are required to carry the original copy of their respective Permanent Account Number (PAN) as well as residence proofs.