• Transferring a website ownership

Mr. X was running a website in his own name later he formed his own Pvt. Ltd.company in which he is also director and majority shareholder. The company has its own websites and running fine. 

Now he wants to transfer ownership of earlier website to his company. 

1) Does this require buy & sell agreement between X and his company? 
2) Should the agreement be registered or just in plain paper?
3) Is there any requirement of company resolution?
4) Should X sell website in Free of cost or charge some price to company? How much he can charge?

Thank you..
Asked 2 years ago in Business Law from Kolkata, West Bengal
1. No transfer is gong to happen here. Only the PVT. LTD.Company will start usin the website in it name for which he needs to register the trademark of the website in its name.
2.NA
3.Yes for applying trademark of the website.
4. NA.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
1. The query is unclear,

2. Domain name is a property which is owned by registereing with Domain Name Server by paying annual rent and also one time fee,

3. 'X' has a domain name & with that domain name a commercial website has been uploaded which is fetching revenue to X. The line of service has not been told,

4. Now if X wants to pass on the ownership of his Domain Name alongwith the website to the Company, he has to decide whether he will sell it to the Company or gift it & based on such decision next step can be taken,

5. If he sells his domain name alongwith the website the sale proceed can be taken from the company or can be pumped in to the Company in the from of equity. Just a notarised agreement for it will do,

6. The ownership recorded with the Domain Name Server shal have to be changed accordingly,

7. The same applies for gifting the website,

8. However, what is not understood is when the Company is already having a website, what will it do with another website which earned revenue for X?

9. Will the Company also provide same online service which X used to provide through his website? Does the website of X and the website of the ompany provide/conduct same type of service/business? If yes, then what is the use of having two websites for the company doing the same job? 

10. How personal liability will arise in that website business to pass on to the Company needs to be informed for proper advice in this regard, 

11. The above answer has been given considering that the ownership of the website will be transferred alongwith its online business and not just the ownership of the idle domain name will be transferred to resell it to someoneelse later on.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
1) it is better you enter into written agreement for sale of your website to the company . 

2) it should be executed on stamp paper need not be registered . 

3)for purchase of website company should pass a resolution .

4)since website was generating revenue you should determine annual revenue less running expenses and multiply it by 3. 

5) your website traffic statistics, financial figures will help you in determining value for your website
Ajay Sethi
Advocate, Mumbai
23383 Answers
1228 Consultations
5.0 on 5.0
1.execute agreement on Rs.100/-stamp paper for sale of old website to co.

2. co.must pass resolution for said purchase of old site.

3.the company will protect him from any personal liability arising in future.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0
The company can simply acquire the right of user of the website by a deed of assignment.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
Hello,
I would advise that you make a written agreement for sale of the website to the company.

Preferably use a Rs.500/- Stamp Paper issued in the name of the company and even if the agreement is not registered it would be alright.

The company needs to pass a resolution for the purpose of purchasing the website from the individual.

The price is something that you can determine so that a consideration is shown in the agreement.
S J Mathew
Advocate, Mumbai
1954 Answers
66 Consultations
5.0 on 5.0
1. Website cannot be transferred. It is rather the domain name which X can transfer to the company. Transfer may be through sale or gift, in both events an unregistered agreement on a stamp paper of denomination of Rs.100 should be entered into between X and the company for the transition of domain name from X to company. 

2. The company should pass a resolution to purchase or accept the gift of the domain name. The resolution has to precede the making of an agreement between X and company.

3. The terms and conditions included in the agreement should include that the website heretofore owned by X, is now owned by the company.

4. Thereafter, X can contact the company managing domain names to transfer the ownership from him to the new company.

5. The content of the new website may need to be changed in the light of the new information; however, you can not change the domain name.

6. Website designers can also make changes in such a way that the website traffic could be diverted to the new domain names in case you want to change the webaddress too.

7. Once the domain name is transferred the company alone will be liable for all the actions emanating out of the information posted on the website.
Ashish Davessar
Advocate, Jaipur
18256 Answers
450 Consultations
5.0 on 5.0
From your query, I understand that (1) you want to transfer ownership of the website to the company, and (2) your website can carry on its business as it is doing today, but with change of ownership.
If that be so, it is a simple matter of transferring the ownership of the website from yourself to the company; and for doing so, you and the company need to enter into an agreement for such transfer; the agreement needs to be on stamp papers and notarized. A company board resolution is necessary to authorize the purchase.
Ideally, transfer from you to the company ought to be for a consideration.
Prabhat Shroff
Advocate, Kolkata
141 Answers
39 Consultations
3.8 on 5.0
Dear Querist
My opinion on your queries are as under:
1) Does this require buy & sell agreement between X and his company?
Opinion: Yes it should be executed for future security.
 
2) Should the agreement be registered or just in plain paper?
Opinion: Registered will be better, there is no value if the agreement is on plain paper before the Court of law.

3) Is there any requirement of company resolution?
Opinion: No, It is proprietorship, so no need for any resolution.
 
4) Should X sell website in Free of cost or charge some price to company? How much he can charge?
Opinion: Its depend on the terms and conditions, it may be free due to love and affection and it may be charged. How much,,,,,,,,, its depend on him.
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0

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