Urgent please...help

Others 605 views 4 replies

Am a new partner (working partner)  to the Firm...I have paid Goodwill of the firm to other partner ..Now we are considering expansion of our business and need huge investment ...But I cannot provide the same from my pocket ..So,Some friends will Invest for me with condition that the profit would be paid for that....

Now my question is how much should I pay to the investers as profit....?

Should I retain certain percentage of profit while paying to the investors as a portion of the goodwiill of the firm and the effort that I maid to earn that profit?

Because they are not Involving in the activities of the firm ...I already paid Goodwill to other partner which is not paid by them to me?

 

Please give detailed clarification regarding the percentage to be retained by me...

 

Thanking You,,, 

Replies (4)

please reply

Thy shall become partern of your firm as "Partner in profit only" as one of the type of partner as per Partnership Act. Distribution of profit can be made unanimoulsy among you and should be expressed under deed of partnership. Usually distribution of profit as a ratio of capital would be ok. Mentioned whether loss will be shared or not. Best option is all of you should share profit and all working partern should get remuneration apart from profit.

I cannot make them partners ..they are only investors to my business (as u said only for profit) coz i cant bring enough fund...

my question is should i pay full ie,100% profit for the amount invested by them as return to them or a portion to be retained by me from their profits as I took the effort to earn better profit for them also I given the goodwill of the firm when i was admitted as a partner  ...(they have not paid for goodwill)

So,how much % should i retain from their profit like 20% to me and remaining 80% to them...

Is my claim genuine?

Please clarify

Thanks for ur reply

All your questions would have to solve mutually between you and the person giving you fund. I gave you an advice to make partner for profit only. Otherwise you will be borrower and can pay interest on borrowed fund as per market rate or any rate which decide between you. Goodwill will not be subject matter if doing so.


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