Apni Law Staff asked 3 years ago
Hey! My three buddies and I were planning to start a business together, but I’m facing some financial troubles and might join next year. We spoke with an auditor, and he said that if I come in later, I can only invest 12% for a 25% share. He mentioned something about yearly depreciation. So, my questions are:
1. Is this information from the auditor accurate?
2. If my friends start the company, can I still join them later with an equal share if they agree?
Best Answer
Apni Law Staff answered 3 years ago
The auditor’s information about the 12% investment for a 25% share likely relates to the valuation of the business after its first year of operation, taking into account depreciation. However, as per Indian law, you can join a partnership at any time with the consent of existing partners, including an equal share if they agree.
Please login or Register to submit your answer
