Rent Agreement of new company

This query is : Resolved

Quick Summary

When incorporating a new company, you can draft a rent agreement where the tenant is an LLP represented by a partner. This is legally valid even if the LLP is intended to be a shareholder in the new company. The LLP can enter into such contracts under Indian law, provided it's executed by an authorised partner.

shinu

shinu (Querist)
Follow

08 November 2025 We are incorporating a new company,so need to draft a rent agreement for a proposed company.but the tenant is LLp represented by a partner.since Llp is being proposed to be the shareholder of the proposed company..is it possible to draft a rent agreement between llp and landlord..pls guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

08 November 2025 Yes, it is entirely possible and legally valid to draft a rent agreement between an LLP (Limited Liability Partnership), represented by one of its partners, and a landlord, even if the LLP is proposed to be a shareholder of the new company. The LLP can act as a tenant as long as the agreement is executed by an authorized partner on its behalf, and the LLP has the legal capacity to enter into contracts, which it does under Indian law.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

09 November 2025 Good luck...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now