The land belongs to the company although he is a major shareholder. But he still needs the approval of the other shareholders as the land is owned not by your father but by the company.

He cannot start a new business on land that belongs to the company unless the company leases that land to you and your father subject to certain terms and conditions.

Since land is owned by the company to start business on said land resolution has to be passed by board of directors to permit carrying on any business on said land 

If you prepare share holding agreement with them means all partners of the company than there will be no issue in it.

It will be proper share holder and you can acquire a certain percentage shares in the company. It will be legally and binding on them.

Do let me know if want share holding agreement draft in your favor, so I can draft it accordingly. I have experience with my USA, UK, Europe and Canada based clients in this regards.

Company will not have partners. Please elaborate your query accurately

if it is a partnership firm where your father has majour share.. get the resolution of all the partners for doing the business you are proposing to avoid any complications and that holds good for all purposes.

Your father can very well start another business but to utilise the company's land, your father has to enter into a lease agreement with the company for the purpose of this proposed business on the company's land.

A resolution to be passed by the directors/partners to lease out company property on rental basis.

Your father is just a partner in that company hence he has to obtain the proper permission from the company to start his business on the company's land.

According to Section 14 of the Indian Partnership Act, 1932, depending upon the contract between the partners, the property of the firm includes all the property which was originally brought into the stock of the firm, or acquired through purchase or some other means. It also includes all the rights and interests which are associated with such property. Such property should have been acquired by or for the firm, or for the purposes and in course of the business of the firm.

One of the imperative liabilities upon the partners in a partnership is to use the firm’s property exclusively for conducting partnership business. The partners may agree with variance but such disagreement must be endorsed by a specific agreement to that effect.

According to Section 48(b)(iv), if there is any remaining assets even after applying the said assets in accordance with the provisions in clauses (i), (ii) & (iii) of Section 48(b), then such asset shall be distributed among the partners in the same proportion in which they were entitled to profit sharing. 

Therefore you may ask your father to peruse the partnership deed once again fully and properly before taking any decision in haste.

If the company is partnership all partners have to give their consent for your joining the partnership. The partnership deed has to be amended accordingly.

Dear Sir,

1) First, your father will have to get consent of all board members to let the land of the company be used for your and your fathers business through lease deed.

2) If you and your father are going to start a business in partnership, partnership deed will have to be executed.

Thank you

- Since, the said land is in the name of company, then approval from other shareholders are mandatory .

- Hence, a resolution dully passed by the board of director and shareholders  is needed for starting a business in company's land.

- Otherwise, partners have right to raise objection for the same. 

Yes, there are legal formalities that need to be followed because:

• selling or leasing of company’s property to a related party (i.e. entity owned by you and your father) would fall under related party transaction under Section 188 of the Companies Act, 2013.
• Any contract or arrangement with a related party in connection to the above transaction will require consent of the Board of Directors and compliance of conditions as prescribed under Rule 15 of the Companies (Meeting of Board and Its Powers) Second Amendment Rules, 2019. Therefore, a board resolution or/and shareholder resolution has to be passed, accordingly.
  
• Also, since the company is leasing out there would be GST implication as well.

Dear Querist

Yes, his partners may create problems and object to your inclusion in the company.

it will be better for you, in case of the partnership firm run by your father and other partners then you should enter as a partner.

in the case of a company, you should enter the company as a director.

Without the above option, you should not invest money in the business of your father.

Feel Free to Call

Dear Sir,

First take consent of partners. If you are not NRI then you need no special permissions                                          

1. The land in question belongs to a Company wherein your father is the major share holder.

2. He wants to start a Company with you separately on the land of the earlier Company.

3. Your Company shall have to pay rent for using the land of the earlier Company for doing your business therefrom.

4. Moreover, that Company's Board of Directors shall have to pass a resolution agreeing to let you start business on their land by paying rent.