India provides multifold benefits to business people, which makes many potential investors focus on this country. First, it gives a vast customer base by being the second most populated nation in the world. The Indian economy is known today as one of the fastest-growing in the globe. This has happened mainly after the economic liberalization steps India took two decades back. Another advantage of this country is its well-formed infrastructure and a booming economy. A large portion of the Indian population comprises young people, giving investors a readily available skilled workforce. Indian brains are known worldwide for their talents, knowledge, and performance throughout the globe. The government schemes are investor-friendly, making the job of doing business in India an easy proposition. The costs of running a business are also meagre.
Make Selling your Company Easy with these five steps.
Determine the business worth:
Here are three different ways through which you can determine the value of your Company:
- Market Analysis: To find out the company value, compare your business with your competitors. You can also find out the value of a company which has been recently sold. This will help you determine the price of your Company.
- Calculating the business’s net worth: Find out the difference of assets (tangible and intangible) and liabilities.
- Estimate the return of investment: Use your business’s net profit to work out your business’s value.
Get professionals brokers to find a good deal:
A reliable business broker, accountant, or lawyer can help you find suitable buyers in the market. Business brokers are actively involved in selling and buying a business in the market. Their contact sphere can help you find the right buyer. They have experience with legalities, government regulations. Hence, they can also provide the best advice on business profitability, market conditions, ascertaining market trends. All this makes the process of selling your business more straightforward and more comfortable. However, you must do the background check and find out the professional’s credentials to ensure they’re trustworthy before using their services.
Settling all the tax and legal issues of the Company:
Selling a business attracts a taxable amount, which you cannot ignore. If you don’t consider this in advance, more than half of the purchase amount may end up going into taxes. Hence, with proper planning, you can minimize this to a great extent.
First, try to ascertain if the amount of tax that you need to pay will depend on the money earned from sale is considered as capital gain or income. The profit generated from selling the business is taxed at capital gain tax rates.
Prepare an agreement while selling your business:
Always remember, paperwork is a crucial part of any business. Hence, make a contract regarding selling a business. You can hire a legal advisor who can draft a business sale contract. You can get the legalities checked by a solicitor so that there is no false statement included. A solicitor also ensures that crucial points are included in the contract, such as:
- Transferring assets and liabilities
- Entitlement of employees
- Legal obligation if any issue arises in future.
Transfer your business and close the deal:
Once all the above steps are done, transferring your business is the final step of business selling. Here, you will entirely hand over your business to a new owner, which includes:
- Statement of tax returns, activity statements, and instalment notices
- Cancel your company name and business number. If not, transfer the name to the new owner.
Looking to sell or buy business in India, Easy Buy Sell Business for sale centre will help you reach potential customers. To sell a business in India, register an account with Easy Buy Sell Business and start posting your Indian business for sale to expose potential buyers to contact you directly. This is a free business for sale ads listing platform and no fees involved.