Business deed in a proprietorship firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2018 I am running an industry in sole proprietorship, with the help of my cousin.He offered me rupees twenty lakhs to purchase new machinery. We would like to make a business deed which defines the profit sharing, his capital investment etc for a period of five years. Is it possible to do so & if yes how can we write it & what should we do to register the deed ?
Please reply experts...

Thanks & Regards

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

03 August 2018 Sole proprietorship no need to draft business deed, if you are paying any commission etc you can pay by deducting. TDS, Share of profit you can pay outside the records from your income same will not reflected in your records.

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)
Follow

03 August 2018 Yes you can create your industry may be partnership firm with proper deed mentioning share % and it will be registered because if any legal issue come in future only register partnership is valid and if you are not willing to create a business in partnership, it should be that's is received funds should be considered as unsecured loan and interest for that unsecured loan to be paid with proper promissory note

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