• To start online business

What if I granted some amount of money to two persons to start online business and profit shared between 3of us. Will it be problem for me as me a government servant. What kind of stamp papers should I and them sign for agreement what are the precautions I should take.
Asked 5 years ago in Business Law

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32 Answers

If you are a government servant who can not indulge in any other trade or commerce.  If you do and the same is brought to light disciplinary action can be initiated against you leading to suspension or even dismissal from service depending upon rules and regulations of your department. 

So take the risk accordingly. 

However there is no restraint in lending money without share of profit which you can do by way of promissory note. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

1. You cannot he a partner on documents therefore other person may cheat you. You may give friendly loan and take Loan amount back but legally cannot seek profit. In case you are investing make any of your family member as partner in firm otherwise in case of complaint there may be DIsciplinary action against you. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

During course of govt service you cannot be partner in business 

 

if you advance them money to carry on business they would not return your money 

 

if you issue them legal notice for recovery of your share of profits or return of money advanced as loan they may threaten to complain to authorities that you are carrying on business during course of your employment 

Ajay Sethi
Advocate, Mumbai
99826 Answers
8148 Consultations

You cannot sell t shorts online as you are government servant 

 

you may lose your job if authorities come to know that you are carrying on online business 

Ajay Sethi
Advocate, Mumbai
99826 Answers
8148 Consultations

If you are a government servant then except discharging your public function as per your service condition you can not even give private tuition. So forget selling T shirts. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

You need to sign the agreement for online sale with the said party. 

Prashant Nayak
Advocate, Mumbai
34549 Answers
249 Consultations

1. You may print any design till point it is not derogatory offensive or against any other religion. In case it hurts other religions their may be complaint FIR against you.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Yes, can start online business as sleeping partners. and not active partner on the papers it should mentioned it.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1. Since you are a government servant you cannot participate in any profit making activity.

2. If the factum of you selling tshirts is brought to the notice of the competent govt then disciplinary proceedings can be commenced against you, leading to a possible termination.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

You can print anything but that should not hurt the sentiments of people.

Get a registered agreement done for profit sharing

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

If it is proved that you have earned money from the publication of book then you are liable to face disciplinary proceedings.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

As per partnership act., sleeping partner who do not look into business  just make the investment and at the end of the year takes the profit.

 

Regarding book is published if still now nobody has taken any action from your Department where you work than withdraw  that book published online on your name.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Hi,it is advisable to form a partnership deed and get it registered..You can become the sleeping partner in the said partnership deed

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

You can be an author of book 

 

you can be sleeping partner ie partner who does not take active part in running of business 

 

 

Ajay Sethi
Advocate, Mumbai
99826 Answers
8148 Consultations

If you have published book for profit aime body may complaint against same.

Sleeping partner is one who just invest money and is not involved in managing business.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

If you were not the writer and didn't take prio permission from your superior then disciplinary proceedings can be initiated.  Sleeping partner is no excuse. 

If you have an acumen  or knack for business then quit your job and run business. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

It's not unless you abide with all the taxation the other cyber rules applicable. Agreement is for your personal assurance and security of financial interest. 

Prashant Nayak
Advocate, Mumbai
34549 Answers
249 Consultations

i am aware about the earlier query you had posted 

ignoring that i am replying to your present query since it seems that this time you have been careful about the choice of your words while posting your query

first of all you need to check your employment contract with the government to ascertain the exact kind of restrictions against the employee having his own business

it is only after studying your contract can further advise be feasible to be given

if at all the business is permitted where you invest certain money with 2 persons who will be actively engaged in the business but will share profits with you, then a normal agreement reducing the agreed terms between the parties have to be made on a 100 rs stamp paper and it has to be notorised

as to the kind of t-shirts you wish to sell, if you print provocative images on your t-shirts then not only the buyer but also you as the seller or your organisation which is selling these t-shirts will come in legal trouble if there is any complaint made to that effect for spreading enmity and inducing people into extremism

sleeping partner is the one who is not actively engaged in the day to day affairs of the business being run by the partnership

Yusuf Rampurawala
Advocate, Mumbai
7901 Answers
79 Consultations

Hello,

  1. It would be advisable for you to remain an investor and seek profit to the proportion of your investment. Draw up an agreement or get them to issue you undertaking on the Company letter heads acknowledging your contribution and the share of profits to be shared with you unconditionally.
  2. Your printing pictures of religious extremists on T- shirts for a profit is not a bad idea;however it can attract the ire of many as what and whom you hold a religious extremist may come under attack. Besides, if you are looking to earn profit, controversies should be best avoided.
  3. Publishing a book online is not punishable unless the contents are offensive and somebody complains about it. A sleeping partner is a person who provides some of the capital for a business but who does not take an active part in managing the business.

S J Mathew
Advocate, Mumbai
3619 Answers
175 Consultations

- Legally , you may face problem in your job , if entered into any contract/agreement with other persons for making sharing of profits.

- The main agenda is that , being a government employee , you cannot do any other work for profit i.e earning from other sources.

- Book publishing is not a problem , and further you may get easily permission of your department for the same, and hence it not come under the business tag like book selling for profit.

- Better , do the business in the name of any relative , to whom you are having trust , and supervise the said business . 

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

I would advice you to enter into a partnership firm business by preparing partnership deed and make  any adult family member of your family as partner.Get the firm register with Registrars of firm.

Sleeping partner has no active role in the business  but a government employee is barred to get engaged in any other employment or business during the period of employment with a particular department or body owned and operated by the Government State or Central. 

You may oversee the operations of partnership business, No harm but can't be on records. 

Hence appoint some family members as partner and oversee the business of partnership firm while working with the Government departments, No harm.

You can't do anything which attracts people their attention as religious hurt.

Please refrain from printing any material which may hurt anyone with religion issues. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Get the same done through your wife or through some family member. You will have to get an MoU drafted and the same will be signed by all the parties 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Sleeping partner: In a partnership, a partner who owns a share in the company's equity, but does not take part in management.

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

A sleeping partner is a partner who only reaps the profit without any active participation.

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

It would be advisable that you do not get involved directly into the proposed business.

You may invest the money through your spouse or any close relative with the other partners and share the profits as per the partnership agreement among yourselves. 

You are a government employee hence you should always bear the same in your mind.

T Kalaiselvan
Advocate, Vellore
90028 Answers
2497 Consultations

Your products or proposed designs should not hurt anyone' sentiments.

There is nothing wrong in selling the T shirts with the photos of your God  or any person held in high esteem.

 

T Kalaiselvan
Advocate, Vellore
90028 Answers
2497 Consultations

If the book contains offend able matter or contents and if reported or a complaint made to police by any affected person then proper legal action under criminal law may be initiated by police on the basis of the complaint lodged agaisnt yo for this offend able material.

 

T Kalaiselvan
Advocate, Vellore
90028 Answers
2497 Consultations

first of all you can provide the loan but you cannot be there holder in craft that you can take the interest of the loan you provided to the company as individual.

The business undertaken by the venture cannot divide its profit into a person who is in full time employment with government this is a illegal and this may create problem in your job as well.

Increase your publishing any book online it is not a punishable offence how are you have to take permission from your department in this regard so that you can publish the book and sell it and any online portal you have to complete the GST and other provisions relating to the sale of the book

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

1. You cannot start business while you are employed with any govt department even if you are doing it as a sleeping partner. 

2. If you are lending money then you should take promissory note and post dated cheques from borrowers.

3. Make your family member a partner in that business so that you can officially claim profits.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

You cannot be a partner in any business being a government servant. You can be suspended and terminated. You may make your wife a partner.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Cases may be filed against you for hurting religious sentiments of other religions.

Be far away from any controversy.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

You may publish a book. That is not business. Sleeping partner is one does not take part in day to day affairs of the partnership firm.

 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

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