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I spent 4 years developing an App. Recently I started a Proprietary Limited company (I'm in Australia). Me and my wife are the only directors.

Before getting share holders into the company, is it legal to make a IP transfer contract between myself and my own ltd company? Specifically, the contract will set a sale price of $800,000 for the App to the company, which is payable in small monthly installments to me (the creator). The ownership is transferred in percentage relative to the ammount paid over time.

My intention is to protect myself. If I'm fired from the Company, I'm compensated for my original work.

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Yes it is perfectly legal.

Good luck finding investors for a such an indebted company, though. (Not disclosing the contract to potential inverstors would be illegal.)

  • Thanks, yeah may be hard. But how else can I protect myself? – user1034912 Aug 30 '19 at 10:59
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    @user1034912 Keep some shares (50%+1) so that you can have a say who is employed and how profits are distributed. – Greendrake Aug 30 '19 at 11:01

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