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  • #987473
    Si13
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    Hi everybody.

    I’m starting a small business and am looking to create a partnership agreement. I’ve looked around a bit and can’t find much information as to whether a foreigner on a student visa is able to enter into an agreement.

    Does anyone know the deal here? I’m an Australian citizen but my potential business partner is on a student visa. What is the best course of action?

    #1162893
    MissSassy
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    • Total posts: 1,255
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    The first thing I would suggest is to get a lawyer involved. http://www.legalvision.com.au are also members here, contact them for help in creating the agreement.

    It is a company that I can highly recommend as they have specialists in all areas to help.

    A partnership is never easy and the more preparation you do in the beginning the easier it will be for you both long term. Worrying about the Visa may be the least of your concerns if you don’t get the agreement right in the first place.

    #1162894
    StevenMelbourne
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    • Total posts: 47
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    Depending on the nature and complexity of your business you may or may not need a partnership agreement. If you are setting up a company with a constitution and shareholders agreement then this is implied you are in a partnership.

    Any person here legally can enter into agreements – e.g. international students can still buy a phone contract with Telstra or Vodafone. However, if his or her VISA is no longer valid once he or she is no longer a student then this may be of an issue to you.

    Cheers,
    Steven

    #1162895
    Dave Gillen – Former FS Concierge
    Keymaster
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    Hi Si13,

    I have no idea, but a warm welcome to Flying Solo!

    Hope to see you around the place. :)

    Dave

    #1162896
    @JamesIrving
    Member
    • Total posts: 3
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    It is possible to download generic legal documents from websites at a reasonable cost.One website that I use that has a great range of documents is DocDownload: http://docdownload.com.au/

    Can someone who doesn’t have any legal training get a legal agreement right? It depends. It’s like any other work that requires skill. And what is the correct cost/benefit analysis? Is it paying a lawyer to draft a contract versus downloading one off the internet, or paying a lawyer to draft the contract versus the cost of a future dispute that might ruin your business?

    Like anything else, once you understand the value of what you are paying for, spending money on legal services becomes worthwhile. If you don’t understand the value, it will feel like a waste of money.

    #1162897
    affgar
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    • Total posts: 123
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    I would be very cautious about starting a partnership with an overseas student or non permanent resident.

    If the going gets tough they could just up & leave with no responsibility or legal obligation so to speak.

    I would look at trying to work together as an informal partnership. Offer them a commission based incentive opportunity.

    If you both have good will & faith in each other then a legal document stating a partnership is not that essential. Obviously you would hold the main cards & would have your name on most documents anyway because you are a permanent resident. You have more to lose by setting everything up.

    Though having said all that … make everything as clear as possible & write up your own agreement so you know that you are both on the same page.

    If you are wanting them to contribute to start up costs equally it will make things harder & more complex.

    #1162898
    Alex (LegalVision)
    Member
    • Total posts: 52
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    Hi there,

    I work at LegalVision and we have specialist lawyers who can help you to solve your specific questions with regards to creating a partnership agreement. If you want to get in touch, feel free to give us a all on 1300 544 755.

    It’s important to note that in a partnership, each partner is legally responsible for any losses and liabilities racked up by the other partners (including superannuation and tax obligations). To overcome this, you may want to consider structuring as a company. The most important benefit of the company structure is that it is a legal entity which is separate to its shareholders and directors. This means if the company goes insolvent, the directors are not personally liable for the company’s debts.

    Feel free to get in touch if you have any more questions!

    Cheers,

    Nikita
    LegalVision
    [email protected]
    http://www.legalvision.com.au

    #1162899
    Bizbo
    Member
    • Total posts: 12
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    Greg from Mawcons Consulting (forum member) would be of great benefit here. Just read a few of his blogs and learnt a lot just through that. I’d suggest getting in touch with him as he knows all the ins and outs of these kinds of things.

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