Legal Question in Business Law in India

is it possible to crate a business partner in a proprietorship firm, if yes then how to make an agreement with those business partner...

Exam:- Company name X and company has two wings, now Y and Z will taking care those two wings. Here I want to know X how to make an agreement with Y and Z as business partner ?


Asked on 3/25/14, 10:25 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

25.03.2014

Dear Sir / Madam,

Although it is not possible to admit partners in the sole proprietorship concern X, the sole proprietor of X can admit Y and Z as business associates for each of the business wings / branches (with different geographical control and jurisdiction) I mean if X is presently based in and controlling the business in Kolkata, he can appoint Y as his business associate in charge of Delhi and Z as his business associate in charge of Chennai. A Memorandum of Understanding (MOU) can be drawn up detailing and spelling out all the terms and conditions of X's business association and business relationship with Y and Z respectively.

Regards,

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Answered on 3/25/14, 10:50 am


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