Can a pvt. ltd. company have a partner with zero investment?

Business Strategist

Can a Pvt. Ltd. company have a partner with zero investment and zero work in the company?

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Yes,but it has to be mentioned in partnership deed his share i.e.0% investment his rights and liabilities etc .contact advocate and take his valuable opinion.


Online Legal Service

This quote itself gives an insight that the Partner in the company can held a Partnership if he brings in some investment. The investment can also be in sake of name, i.e. goodwill.

Also, a Partner with no work is like a fish without flesh. To make the business profitable and competing in the market, there is no discount in the hard work that needs to put in by every promoter or partner. However, there is a possibility where the partner is added for sake of name and the majority decision and management work is to be done by other active partners.

Although with no work, the partner/ Shareholder will be liable up to the amount of investment he /she has made in the company.

A shareholder can become a non-executive director i.e. the director who is not involved in day to day activities of the company. Mainly the Non-executive directors work in the interest of the stakeholders. Mostly they are involved into the key areas of the company like providing expertise knowledge, defining and drafting of company’s policy, decision making etc.

In any way one must need to work for the company whether directly or indirectly.

Practicing Lawyer

A private limited company never has a partner. It can have only shareholders. A shareholder has to subscribe at least one share of Rs. 1.00 face value. So a shareholder can not be with zero investment. A shareholder does not do any work in the company unless he holds any other position. 

Please do not be confused with partner & shareholder. Both are separate & have separate legal status. 

Reply Mumbai : 9820174108

Originally posted by : John Miller
Can a Pvt. Ltd. company have a partner with zero investment and zero work in the company?


1. WHAT business purposes would it serve to have a "ZERO LIABILITY" partner in a Co.  Apprehensively the Co. is looking to swindle itself or is looking to circumvent provisions of the various laws.

Keep Smiling .... Hemant Agarwal 


yes i do agree with the clarification pointed by the learned expert Mr kumar sharma  please give clarity on it 




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