selling a business
What kind of document is required to make and sign by both parties, if someone is selling a restaurant business. Place is on rent.
A MOU or Agreement or sale agreement or any other document?
Thanks, more
A MOU or Agreement or sale agreement or any other document?
Thanks, more
Viewed by 155
License, MOU or Agreement or sale agreement or other way like Partnership (Sleeping Partner), Joint venture etc. There are various methods, to see what is targeted. more
Sep 26
First you need draw a list of documents required for transfer of business from one entity to another along with bed and baggage. 1. The basic understanding between the buyer and seller in the form of MoU. 2. Registered Deed Copy of Proprietorship/Partnership/Pvt or Public Ltd. 3. At least three years audited accounts of the Entity duly signed by CA, clearly indicating the assets and liabilities, along with the names and addresses of creditors and debtors for a minimum of 3 years. 4. List of fixed assets like furniture and fixtures along with its evaluation report. 5. Any insurance papers indicating the rate of premium and the maturity date, and any liabilities towards insurance. 6. Copy of the Bank/s Pass Book/s updated entries. 7. Permission of the concerned authorities to sell the entity, 8. Income Tax Registration Papers along with permission to sell and transfer the Entity in the name of the buyer. 9. If registered as a private or public company, then the permission of the Registrar of Companies of the Region. 10.Name/s and address/es of the Management/Partners/Promoters of the Entity with full details of their shareholding along with clear consent to sell the Entity. The listed documents are the minimum that one requires when selling off a business entity. more
Sep 22
Check list is correctly given. But it is not full solution, since premsies is rental. more
Sep 23
Sheriji buying and selling a real estate along with the running business is a very complicated deal. For your information, the highest number of legal cases going on in courts all over India are pertaining to Real Estate deals only. People spend lakhs and crores of rupees while buying and selling the real estate property but they either ignore to appoint a Lawyer or dont intend to pay the fees of Lawyer. If the deal goes off well without any foul play from either side then its ok. But if there is any foul play from any of the party to the deal then the person who pays money or the person who' s property is stuck because of non payment from the buyer, either of the parties to the deal suffer till the time some amicable settlement is not arrived at or till the time one of the party doesnt win the case. It takes years to resolve the issue through the court. I always advise my clients to follow the principle or proverb of Prevention is better than cure. Sherryji one more important aspect of the deal you have mentioned is that the property in question is already on rent. So that means already there is a third party interest created in the deal even before you buy the property. Last but not the least you have not specified which state the property is situated in. What are the documents held by the owner of the property, what is the rental agreement signed between the owner and the existing tenant. There are different kinds of rent agreements and sale deeds. Different states have different laws pertaining to sale and purchase of property. I have seen many frauds happening in real estate deals in my earlier career in Finance and now in Legal Career as well. My sincere advice to you is, go and appoint a capable and sinere lawyer to complete the deal. He or she will charge you their professional fees but atleast you can do the deal with peace of mind. If you want you can mail me the details on advsheregar@gmail.com more
Sep 22
First write a Partnership Deed with the existing owner of business and then write a retirement Deed for the existing owner to retire so that the same Business entity will be owned by you as the contining partner (as a Proprietor if you are single person) more
Sep 22
Depending upon the constitution of your business viz. Proprietorship, Partnership, Private/Public Limited company- the documentation will vary. more
Sep 22
