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I gona start a small buisness with my friend, I gona invest and also work. While his part is just working .
I dont know how to divide the partnership and profit of the company. So can you please suggest me some links about this
or any ideas?.

See under section 13(b) of Indian Partnership Act, if the deed is silent the profit and loss will be divided equally irrespective of the capital contribution. Now one way is to keep the profit equal but charge Interest on capital. But under section 13(c), such interest will be paid if and only if partnership makes profit. So in case of loss there is no interest pad. Another method is to bifurcate the capital in two portion. Show a small portion as capital and rest as Partner Advance. Under section 13(d), maximum 6% interest is allowed here. But is paid in profit or loss. If any more problem contact us through website mentioned below.
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