Money borrowed from friend for particular business?
salman khan
(Querist) 14 November 2013
This query is : Resolved
can any individual is entitle to give money to somebody in order to avail the some profit from the business?
Situation:
my friend is going to start some business and he required Rs.5 Lac. at what condition from whom he eligible to get finance.
one of his friend is ready to give the amount but he confused about surety of amount.
Please go through the matter.
Thanking you
Devajyoti Barman
(Expert) 14 November 2013
The creditor may get Promissory Note executed from the borrower.
Dr J C Vashista
(Expert) 15 November 2013
Money Landing Act prohibits such transaction
V R SHROFF
(Expert) 15 November 2013
Profit sharing in business means + Partnership, with sleeping partner, Prt in profit only.
u can execute Prt Deed , showing your investment and ur share in profit only.
U need not involve in business.
salman khan
(Querist) 18 November 2013
Shroff Sir advised always be unique, and elaborated in few words, thank you shroff sir and other Expert also,
once more thing i would like to ask what amount of Stamp paper is to be used for partnership deed where investment is of Rs.50000/- for five months-Mumbai-Maharashtra.
Rajendra K Goyal
(Expert) 19 November 2013
Stamp duty differs from State to State, You have to confirm locally.
If you are investing for five months only, better Take PDC or pro-note with payment receipt.
