A memorandum of understanding can be signed between you and your friend and the same will have a legal sanctity also.

Regards

If he wants to be a partner in your venture then register a partnership agreement with him based upon the share percentage as you decide. Lay down all the terms and conditions and register the partnership agreement.

The partnership agreement should spell out all the details and future problems ie disagreements that may arise. That is why lawyers make partnership agreements based upon your kind of business you needs and requirements and then it has to be registered. A dispute settlement mechanism must also be clearly stated in the agreement.

If an agreement is prepared then rights of both the parties will be taken care of. If any party defaults then other party will have the leverage to enforce the right.

Please form Partnership firm and prepare partnership deed .Next step is to get Partnership firm and deed registered with the Registrar of Firm for legal sanctity and enforcement as per Indian Partnership Act 1932.

You can enter into MOU with your friend regarding  his share in business on account of investments made by him 

2) in the event of breach of terms of MOU your friend can sue you to recover investments made by him 

Your friend can sue you to recover the investments made by him in the event of breach of contract 

1. A profit sharing agreement can be executed in this scenario.

2. The agreement will serve as the charter of rights and liabilities of both parties, and thus in case of breach of contractual obligations by one party the aggrieved party can go to court to recover the sum due with damages.

1. You and your friend may make an partnership agreement and form partnership firm deciding your share to run the particular business. 

In my opinion forming a partnership firm in this situation is best way forward though you and your friend may also enter into memoredum of understanding .

Yes MOU can be used legally to recover the shares value.

You can execute a mou for the same and register it was

A MOU haa legal enforceability and thus in case of violation he can recover the amount. 

You can enter into a partnership deed  and can start this company as a partnership firm.

In the partnership deed you can include the clauses that may suit your circumstances including the sharing of the revenue and other issues. 

The mode and quantum of sharing of ad revenue also can be made a clause in the agreement.

Get the partnership deed registered to have it recognised legally.

The partnership deed duly registered shall give the legal validity of the conditions agreed between you both.

The clauses therein can be enforced by either of the aggrieved party through court of law in case of any dispute at a later stage.

- As per Section 10 of the Indian Contract Act , all agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void.

- Hence, if you dont wanted to run the business in the name of company , then you can enter into an agreement i.e MOU with your friend after narrating all the  possibilities in details for the profit /loss sharing of the business. 

- MOU is a statement of understanding between two or more parties which when made has no enforcibility in the eyes of law , as such an agreement has no intention to create a legal bond between such persons. 

- But , when an MOU has been made as per section 10 of the Indian contract Act, then it is a valid agreement.

- Further , no stamp duty is required on MOU, except if the MOU for an agreement to purchase immovable property worth more than Rs. 100/- , then it is mandatory to be registered and stamped .

- And further , you can also enter into a Partnership agreement/deed as well, but the registration of partnership deed is mandatory as per law. 

- Yes, in all the cases , whether you enter into MOU or partnership deed, he will have his right to claim legally in case non payment as per the agreement. 

1. Both of you can execute a registered "Revenue Sharing Agreement" with proper strategic clauses, terms & conditions relating to revenue sharing, termination clauses, time limitations etc....  This would be legally valid and would also be required for both's income tax purposes.

you both can execute MOU, the Memorandum of Understanding (MoU) is a written document which describes the terms of an agreement. 

he can file recovery suit against you. 

1. You may send document their he may sign and notarize same outside India and send copy back for your record.

Yes

Agreement may be signed digitally by both the parties. 

Regards

Yes you can enter into an agreement as desired by you.

But you should chalk out the process of tackling the legal complications, if any, that may arise due to any dispute between you two at a later stage, because being a NRI, you may not be able to take any effective legal action against him to recover the money if he is not responding or not visiting the country for a long time.

Partnership Deed is still possible. 

Partner living abroad may get his her authentic consent on deed before Indian Embassy officials and despatch it to India for registration with Registrars Firm by partner living in India. 

It does not bar your fiend from carrying on business in India 

deed of partnership or MOU can be entered into 

1. There is no bar in executing any Agreement with an NRI, provided the agreement is stamp duty paid and registered.

2. An MOU has no legally enforceable value.

You can execute a contract with him even if he is a NRI.

Yes you can. You have to mention all the details and taxes have to be paid.

Yes he can but the said mou needs to be registered and attested the said embassy for authenticity

Dear Questionnaire

There are two alternative to  solve your query is either enter into a partnership agreement or simple agreement to borrow money in consideration to share revenue profit of firm .

In the partnership firm , every partner is considered as agent of another partner and acts of each partner binds other partners . So there is always a risk factor of acts of another partner when specially that partner is not present and constantly in touch with each other. Moreover each partner in equally responsible for the profit and loss of the partnership firm . Due to these restrictions of the firm , it may not be proper way for you or your NRI friend as well.

One can enter into an legal agreement with another to borrow money  and pay consideration for time value of money by way of share in profit of firm in place of interest .This is specially provided in the illustration to section 6 of Partnership Act , 1932.

 So it is proper to enter into an agreement to borrow money any consideration by of sharing certain percentage of profit of revenue. This will facilitate to avoid all the restriction of partnership while providing for sharing of profit of firm . Care will be taken to provide consideration in case of no profit in particular year, either certain percentage of interest or specifically provide that no consideration be given in case there is no profit in a particular year    . One has to provide jurisdiction clause also in the agreement so as avoid confusion in case of its enforcement of agreement. There is no restriction for NRI for  enforcement of this agreement in India . 

- Since, your friend is outside India, hence a contract , whether MOU or partnership cannot be entered .

- Your friend should execute a SPA/GPA ,in favour of any relative or friend in India , to enter into an agreement with you on his behalf . 

- If you dont want to register partnership deed , then better option is MOU. 

1. You can make a simple agreement with your friend regarding investment of fund in your website and share from revenue you recieved through ads on your site. 

2. You can also execute a partnership deed with your friend and register your partnership firm.

3. Yes your friend can legally enforce the MoU or agreement Against you if your refuse to share profits with him. 

4. Yes you enter into an agreement with your friend even if he is NRI.