Business Transfer Advisory
On several occasions, one business entity might have to transfer its assets or liabilities to another business entity. The transfer could be on account of business reorganization, transfers from a holding entity to a newly established subsidiary, regular business acquisitions, or cross-border restructuring. Such transactions would warrant the execution of a Business Transfer Agreement that would contain details of the assets and/or liabilities being transferred, the terms of such transfer, the consideration involved, and any restrictions placed on the buyer.
The business transfer agreement must be properly executed. Improper execution of the agreement would result in disputes between the parties & exposure to tax consequences.
We can help you with the following:
- Strategizing the transaction, i.e., analyzing if the business transfer is indeed the best method under the present conditions or if other options are more favourable,
- Assistance in preparing the Business Transfer Agreement
- Tax planning, including computation of capital gains tax or business profits, as the case may be,
- Analyzing the impact of the GST laws and providing assistance in the transfer of input credit
- Obtaining clearance, where necessary, under Sec. 281 of the Income Tax Act.
- Recording the transactions accurately as per the accounting standards adopted by the seller and buyer.
- Adequately stamping the agreement under the respective State Stamp Acts,
- Reporting, where necessary, to statutory authorities like the Ministry of Corporate Affairs.
Frequently Asked Questions
Wider Expertise
Specialized services cover multi-functional environments and thus require a team of experts from various processes to come together to provide a comprehensive solution to your needs.
Dedicated Service
This service suite is aimed at removing the burden of finance and business structuring from organizations. Hence, a service provider who can lend a dedicated team of experts that can take care of the business with minimal to no resources or time from the clients should be the target.
Reliability
Since the service provider is managing the overall process of the above-mentioned service, the provider must be reliable in terms of experience, expertise, confidentiality, credibility, and ownership.