Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Ks Singh jiii (Partner)     14 November 2011

Law firm registration

Dear Firends

I am an Advocate and starting a Law firm with 2 other Lawyers friends very soon. The Property is owned by A solely and A has invited B and C to start law firm but the B and C are not bringing any capital with them though they are getting only the knowledge. Now as the share of A is little bit higher than B and C as Building, Capital and Misc. Expennses are borne by A only. Now as we are registering an LLP firm which has every partners have limited Liability. I am confused that what would be Ideal Profit Sharing Ratio between the 3 or more Partners considering the Above mentioned example.

 

Regards



Learning

 12 Replies

adv. rajeev ( rajoo ) (practicing advocate)     14 November 2011

according to the staus calculate the percentage of the investment or capital brought to the firm.

Ks Singh jiii (Partner)     14 November 2011

Dear Rajeev This is the only thing they are not bringing any Investment or capital in the firm. Only A is the persin who is doing everything

rahul saxena (advocate)     14 November 2011

dear karan, as you are the only man who is bringing capital, try to distribute expanses and profit as per merit of case with pre difined lowest and highest cap.

Shailesh Kr. Shah (Advocate)     15 November 2011

can i know that what is the property.

Rajesh Hazra (Mediator Mediation Counsel)     15 November 2011

As already rightly advised let them be the sleeping partners as they do not have any stake at the LLP firm.

prakash panjabi (proprietor)     15 November 2011

The two other proposed partners heing lawyers will be actively involved in firm. Therefore they cannot be sleeping partners. It will be ideal to claim rent on property and expenses before sharing if profit (if in equal ratio) or to allot higher profit ratio to partner bringing in capital.

Rajesh Hazra (Mediator Mediation Counsel)     16 November 2011

You may execute a seperate agreement or underatanding with the other partners based upon profit sharing depending upon the business they bring in the firm.

v vedanarayanan (advocate)     22 November 2011

Dear allot salary or percentage mode for sleeping partners.. v.vedanarayanan,Advocate, chennai High court

v vedanarayanan (advocate)     22 November 2011

Dear allot salary or percentage mode for sleeping partners.. v.vedanarayanan,Advocate, chennai High court

nickimia (HR)     23 November 2011

Thanks for sharing a useful information.

Indiana Car Accident Lawyers

Latha chennai (Advocate/Trade Mark Attorney)     28 November 2011

If You have an Idea of Giving your property for office purpose, please maitain that seperately. Fix a Rent for that and see to that u collect the rent every month (even in case u do not have any income that particular month).Secondly do not have any emotional Involvement  with your partners.Friendship and partnership must be treated seperately.All the expenditure occured on establishing the firm must be kept as a whole account.(Furnitures Books etc etc) as soon as your practise picks up ,slowly you have to deduct the amount from their share.Why i am telling this is ....My own experience .Make each and every partner to feel the pain of accountability  towards the Firm.

Ks Singh jiii (Partner)     29 November 2011

 

Dear FRIENDS

Thanks a lot for all your help now please let me prapose the Agreement in front of you guys and give me your valuable comments

I will be obliged

3 PARTNERS

Partner A ----- CHAIRPERSON AND MANAGING PARTNER
PARTNER B------ SENIOR PARTNER
PARTNER C----- SENIOR PARTNER

* NO RENT WILL BE SHARD FOR THE OFFICE SPACE
* NO FURNISHING AND DEVELOPMENT COST WILL BE CHARGED

RATIO OF THE PARTNERS FOR PROFIT AND LOSS SHARING

A      B     C
40:  30:  30= 100%

Out of which 5% will be deposited by A as the social corporate Responsibility towards an NGO which will be created by the fir itself.

The partner will be sharing the expenses of the Office boy, receptionist, expenditure in any case like gifting, Internet exp,electricity and other Misc expenses.etc equally 

No Private practice will be allowed by any of the person. Partner will be abide by the Terms and Condition.
Incentives will be given by the Firm (A) if any kind of work is brought to the firm extraordinarily.
 

Firm is planning to work PAN India Network basis. In future foreign collaboration can might take place.

No work will be forwarded to any other Lawyer but we can take legal opinion but in the end we should try it own.

ORGANIZATIONAL STRUCTURE

Managing Partner
      !!!                                   !!!!
Sr. Partner                    Sr. Partner

Partner( Future)             Partner(Future)
Associate                         Associate

The LLP agreement will be prepared by the partner A to rest of the partners. Partner  A will be holding Rights and other statutory Compliance for LLP Firm.




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