What is a quiet partner?
The silent partner is a business partner who does not have public involvement with the company he is involved. The quiet partner usually has nothing to do with the daily inspection of the company. It can also be referred to as a simply investor or as a shareholder.
These types of partners generally own part of the business. This means that they are entitled to a share in the profit they do. The percentage of profits that a silent partner is entitled to the conditions of partnership agreement.
There are several reasons why one may want to be a quiet partner. Perhaps he will want to invest capital in a new business to gain the benefits of growth of this business, but may not really want to drive a company. There are many other advantages that you are a quiet investor who can also make this form of business ownership for some.
Some individuals may want to become silent partners because they want to maintain a their wealth secrets or because they do not want to be considered a source of money for perspectiveThe entrepreneur. In other words, these people may want to invest in companies, but they don't want others to know they have money for it. By being silent, they are able to invest without becoming known as rich, so they are not prone to others who ask them to support businesses.
In other cases, quiet partners may want to invest in a new or growing company, but they may not want others to know that they do so, because public knowledge of their involvement in the beginning could interfere with their long -term business model. For example, a software company may want to purchase a stake in the emerging technology company in the hope that it can ultimately integrate new technology into its existing software series. If competitors knew that a software company was a partner in the emerging technology company, it could eliminate competitors in terms ofabout future business plans.
Having a quiet partner can be beneficial for other partners within the company. Named or well -known partners of the company will receive an influx of capital from a quiet investor, but maintain everyday control of the company. In fact, named partners take all public decisions, but have another person with whom they could share the risk.