Format Of Business Transfer Agreement In India

Another reason why companies are restructured by Slump Sale is that Slump Sale`s restructurings only result in a stamp duty on real estate. Slump Sale increases performance after integration; the sale contributes to the strategic investment; and by Slump Sale, the company can benefit from tax and regulatory advantages related to the activity. In this document, the form filler can enter the relevant identification details, for example. B if the parties are individuals or companies, as well as their respective addresses and contact details. The form filler also gives the main features of the agreement between the parties, including dispute resolution and current legislation, and, of course, all relevant details regarding the transfer of the business. The buyer agreed to acquire “Sitarganj Business” as a continuation with all assets and liabilities on the basis of Slump-Sale, under the conditions set out in the transfer contract. This clause implies the separation of one or more companies on the part of the seller and the liquidation of these companies relocated to the buyer. The parties must necessarily be natural persons and no artificial person can conclude such an agreement. Even a non-resident is not allowed to do business in India without having a place of business in the country. Therefore, in order for a non-resident to initiate a slump sale or even an asset purchase, they must first set up an Indian company and then use it to initiate an asset transfer. In order to carry out a sale or transfer of business in the context of the slump sale, a commercial transfer agreement is concluded between the parties, under which the entire commercial enterprise is transferred to the buyer on a commercial basis, that is, the transaction is transferred to a current state. A business transfer contract gives an overview of the nature of the transaction, the conditions of sale and the detailed transfer, the assurances and guarantees of the seller and the buyer, the conditions precedent, etc.

A business transfer agreement lists the assets, liabilities, contracts, capital, taxes, intellectual property and other provisions that are discussed in detail below.