Legal Question in Business Law in India

Hi, One of our family friends has recently started a management consultancy business. They do not own a flat in Mumbai and hence they are using our flat as the registered address of their company. Its LLP registered with the MCA. We have given authorization to use our address as the registered address for their company. The question is do our friend or his company get any legal bounding on our flat? If the company gets into some financial problem, will our flat be taken for any legal actions? Our flat is on loan and we are currently paying EMI. Will there be any impact.
We have not signed for any surety or guarantor for any loan. Can he do this without our knowledge, just because his company's registered address is our flat? He has opened his current account for the company with our address. Kindly clarify?
Regards

Asked on 3/02/16, 9:55 pm

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03.03.2016

Dear Sir / Madam,

Repeat query. Already answered.

The monetary arrangement or Agreement that you have with the family friend determines the risk you face.

http://www.speakingtree.in/slideshow/life-lessons-we-can-learn-from-fear/important-lessons-from-fear

Regards,

Answered on 3/02/16, 10:31 pm

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