Huge funds and company registration issues
I was contacted by a mutual friend who wants to start a production house in Goa. conditions are as follows
our background : i am a Goa'n doing business; he is a Non Goa'n working in a private company
issue:
1) it will be a company registered in my name as a sole proprietary and he clearly said he wont be doing a partnership.
2) a third party investor will be putting in a huge amount of cash in this business (50lakh+)
3) loss and profit will be shared as 30% each and 40% to the investor.
my questions are
1) will i face any financial, legal, tax related issues.
2) what if i come to know that the third party cash is a black money floated into our business.
3) What if the business face loss and the whole burden is put on me by the partner who is not a legal partner.
4) in such situation will my existing business, my existing property be sealed by the bank/police/govt or any individual.
what is the best way to deal with this?
a) don't do it
b) do it
c) do it with certain terms and conditions.
i would really appreciate an elaborated answer point wise clearing each point.
Thanking you in anticipation
warm regards