Regarding investing in a sole proprietorship firm
2 years ago
Whether writing a deed and investing in a sole proprietorship firm is advisable?! What’s the power of deed written
Ankur Goel @ Complete Law Shield
Responded 2 years ago
A.Investment or loan ?
Investment means you want share then it will not remain sole proprietorship firm.
Investment means you want share then it will not remain sole proprietorship firm.
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A.Hi,
If you still want to invest in a sole-proprietorship business, you should give a loan with a high-interest rate and also take security or collateral after proper verification. In such cases, a written agreement is required to avoid any legal complications or losses in the future.
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If you still want to invest in a sole-proprietorship business, you should give a loan with a high-interest rate and also take security or collateral after proper verification. In such cases, a written agreement is required to avoid any legal complications or losses in the future.
If you find this answer helpful, please rate my answer. Thank You.
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A.Proprietorship form of business is a very risky kind of business as everything moves with and around the proprietor. In anything untoward happens with the sole proprietor the business goes kaboom. So, you need to take that risk as there will be no second line of defense to take over the charges.
Yes any kind of deed is good enough legally as far as investment is concerned and terms and conditions are drafted properly.
Yes any kind of deed is good enough legally as far as investment is concerned and terms and conditions are drafted properly.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
The sole-proprietorship model is adopted in small business requiring small capital and has a small market. So it will not be advisable to invest in such business where the sole proprietor is responsible for all activities and controls. The profitability of the business will depend on his capabilities and is a risky investment area. Returns from the business are also small. However, if one still wants to invest in the sole-proprietorship business, the loan may be given to the proprietor at interest against first charge on some tangible security. In the case of a start-up, a written agreement to secure investment is advisable.
If you like my answer, please rate me.
The sole-proprietorship model is adopted in small business requiring small capital and has a small market. So it will not be advisable to invest in such business where the sole proprietor is responsible for all activities and controls. The profitability of the business will depend on his capabilities and is a risky investment area. Returns from the business are also small. However, if one still wants to invest in the sole-proprietorship business, the loan may be given to the proprietor at interest against first charge on some tangible security. In the case of a start-up, a written agreement to secure investment is advisable.
If you like my answer, please rate me.
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