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Investment in sole proprietorship business

divyanshu yadav (student) (106 Points)

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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3 Replies

Atif Khan (151 Points)
Replied 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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sujith kumar dasa (banglore) (1496 Points)
Replied 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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Kapadia Pravin (17259 Points)
Replied 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.