I’m into small consulting business, recently got an offer from a Big Pvt Ltd company whereby under company formation rules they proposed to form a separate DIVISION under its Pvt Ltd company (Parent co) and i will independently handle my business in name of this Division while passing on part of profit to them. This company has 4 Directors and i will not be on board. This division will have a separate bank account that will be controlled by me. I m considering this engagement however want to know what legal precautions to be taken :-
so that this company will not be able to steal my client contracts as this Pvt Ltd co will have no role to play in operations of this Division.
So that i can freely move out of this association say after a year and there should be no legal hurdles in exiting without paying any costs for exit.
After reading the facts mentioned by you, I think this is nothing but an Amalgamation of two companies. However i would request you to let me know more details about your transaction so that i can provide you with the details legal advise as this would the most important decision in your life to get along with this Big company.
Adv Bharat, this is a business association where two parties are collaborating for mutual benefits. However while getting into such association we want to have a proper legal framework so that we will not be used later. Thats my question , request panelists to provide me solution. I could have consulted a local lawyer but thought this forum can help....thanks