I am planning to enter into partnership with few of my friends. How do we go ahead with partnership agreement?

What should be the P/L ratio and remuneration for each partner?

The situation is as follow:

All 3 partners are bringing equal capital, however 2 partners have exisitng clients from their existing business.

Posted 1 year, 10 months ago by Bada Mouth


It depends upon the kind of business you are looking at & also the personal capabilities of partners. The ideal can be, the partner who brings more business can take more ratio & or salary.

Posted 1 year, 10 months ago by Mukesh Jain CA


I think more Profit and Loss ratio can be agreed but salary should not be in favour of partner bringing more business. At initial stage, the remuneration should be same since remuneration will be paid for the work done and how can you decide before starting the business, which partner will do more work!!

Posted 1 year, 10 months ago by Bada Mouth


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