Partnership and Profit sharing
Hummad subscriber Posts: 2 Member
edited September 2017 in Business Planning
I'm working on a project of management consultancy with my friend in Dubai. I'm going to invest almost 100% of the capital in the business. My friend, based in Dubai, is willing to become partner solely on the basis that he has a huge list of companies (about 600) that he's been serving during his previous employment which he's confident he will bring to our business (since his other company is closing), run the business and draw a monthly working allowance (salary) as well. Can he really become a partner in profit sharing? If so, what percentage of profit sharing should be? I'm based in the UK and I'll be looking after some of the tasks related to international affairs, like sorting out certification and accreditation with professional bodies in the UK etc.
Sign In or Register to comment.
Here is a good article about pros and cons related to profit sharing:
I had a partner once. I had knowledge and experience and he had... AN IDEA (I was young and stupid). He promissed he will work hard to gain experience but he didn't. Since then I am sceptical to all those partnerships where one of partners offers something uncertain. You will be risking your money and work hard not to lose it and the partner risks almost nothing - and cares less. That's how I see it.
In partnership , a partner can or cannot invest financially. It all depends on the agreement. But partners are a certain percentage of owner of that company. Need not be equal in every case.