Need bussiness advice (Corporate Law)

This query is : Open

rahul

( Author )
04 June 2012

I need clarification on my previous query.

Q: i want to lend money to my friend for stock trading. In return i want 50 % profit as interest. he is ready for any contract.

Is there any legal complications ?

How will be tax structure?

Suppose he gets profit of 50,000

he get 25000 and i get 25000.

On how much he need to pay tax and on how much i need to pay?

Please clarify...

What if i follow the above process as proprietory. Please provide me clarity on this.