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  • #990773
    Chris8787
    Member
    • Total posts: 3
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    Hi,

    I am going to join an already existing business which has been running for a couple of years. There are already 2 directors and this is a registered business overseas.
    They want me to join in the partnership as a director to set things up in Australia.

    The questions that I have mainly are:

    How do I legally set all of this up?
    What are the risks and implications?
    Should I get contracts to be signed by all the directors?

    Any other advice you can think of would be much appreciated.

    I look forward to hearing back from you.

    Regards,

    Chris

    #1178509
    NickKaro
    Member
    • Total posts: 226
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    Chris

    This all depends on the commercial deal. Do you get a stake in the overseas venture? If so, will the AU arm be owned by the overseas partnership/company/limited partnership?

    Depending on what the overseas arm of the business is worth, you may want a piece of that, or alternatively if the deal is for you to run and grow the Australian arm only, you may want to own most of the shares/units in the AU arm with a minor stake by the overseas parties. Alternatively you can own it outright and pay a royalty or licence fee back to the overseas parties.

    Setting it up will depend on the structure and the answers to the above questions.

    As you can see, there are a number of variables at play here.

    Therefore, whilst I cannot give you specific advice on all the implications via this forum, I would strongly suggest you arrange a meeting with a professional who has experience in business structuring, ideally with international exposure (such as myself).

    There are many complexities from a legal and tax perspective that you should work through before going too far down the road.

    Regards
    Nick

    #1178510
    Dave Gillen – Former FS Concierge
    Keymaster
    • Total posts: 2,566
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    Hi Chris,

    I just want to add a welcome to the forums! Best of luck with your new venture and we hope to see you around. :)

    Dave

    #1178511
    Chris8787
    Member
    • Total posts: 3
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    Hi nick,

    Thank you very much for getting back to me.
    I do not get a stake in the global business but I will have a 33% stake in the australian arm. 80% of their global bookings are from Australia that’s why there is this requirement to have a partner locally to grow and manage the business.

    Do you think it’s fair for me to get an increased stake down the line if I can reach a certain turnover or should I start on 50% stake and explain that I will be required to do more than the other partners?

    At the moment it has been running for two years and they have already built it up themselves to this position and they have a flow of enquiries but with my local management this can increase exponentially.

    Thanks again and I look forward to your reply.

    Thanks,

    NickKaro, post: 207897 wrote:
    Chris

    This all depends on the commercial deal. Do you get a stake in the overseas venture? If so, will the AU arm be owned by the overseas partnership/company/limited partnership?

    Depending on what the overseas arm of the business is worth, you may want a piece of that, or alternatively if the deal is for you to run and grow the Australian arm only, you may want to own most of the shares/units in the AU arm with a minor stake by the overseas parties. Alternatively you can own it outright and pay a royalty or licence fee back to the overseas parties.

    Setting it up will depend on the structure and the answers to the above questions.

    As you can see, there are a number of variables at play here.

    Therefore, whilst I cannot give you specific advice on all the implications via this forum, I would strongly suggest you arrange a meeting with a professional who has experience in business structuring, ideally with international exposure (such as myself).

    There are many complexities from a legal and tax perspective that you should work through before going too far down the road.

    Regards
    Nick

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