Investment in sole proprietorship business

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student
106 Points Posted on 15 February 2020

Hi,

 

Please suggest ways in which I can invest money in a sole proprietorship business run by one of my friend.

 

Thanks

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On 15 February 2020 at 00:59 Report
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Quick Summary
If you wish to invest money in a friend's sole proprietorship business, you cannot become a partner as it's a single-person entity. Instead, you can provide a loan with agreed interest or salary, or contribute funds under mutual terms without formal partnership. This ensures the business remains a sole proprietorship while you receive a return on your investment.

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151 Points Posted on 15 February 2020
If you invest money you will become a partner... partnership need not be registered compulsarily.. so u can invest and agree on salary or profit.. Sole proprietor means a single person entity.. if there are partners it will become a partnership..
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On 15 February 2020 at 03:09
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banglore
1496 Points Posted on 15 February 2020
Sole proprietorship is a single person entity and hence others can't invest there. However you can give loan to them, on which interest can be paid to you and salary can be paid as per salary agreement
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On 15 February 2020 at 09:20
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17269 Points Posted on 16 February 2020
You can put in money in any manner under mutual terms. After all you are giving mere finance to your friend and nothing else. You can give interest free also.
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On 16 February 2020 at 20:26

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