The easiest way to ensure that you have the right to assert that the transaction is void is to work closely with one of Smith and Partners` commercial lawyers who have experience in managing these transactions. Ideally, you should contact us before negotiating a contract and definitively before signing the sales contract. Yes. Until you transfer the transaction to the buyer on the execution date, you must remain the property of the business and ensure that it continues. There are three important considerations you need to consider when selling your business as an ongoing business. It is important to ensure that you: this comprehensive business sale agreement contains provisions that specifically address the business value of the business, business portfolios, leases, business assets, GST (Goods and Services Tax), company name, trade restrictions, employees, stamp duty, dispute resolution and much more. Fifth, an agreement to sell a fixed asset to the lessee alone does not constitute an assignment of a continuance, as it is considered a transfer of a capital asset, since the income activity (i.e. the leasing business) ceases when the tenant becomes the owner of the fixed property. We ensure that the business used to purchase the business, whether a person, trust or business, is registered at the time of invoicing or can be registered with the GST (what the law calls „delivery“). We can also assist in the development of the necessary clauses to ensure that the intention of the buyer and seller is clearly recorded, in addition to the standard clause of the ADLS document that registers the contract. In the fourth case, the seller may retain assets that are not necessary for the exercise of the activity and it is therefore possible to divest part of an existing business as long as this sold part can be operated alone as an income-generating activity.
First, the definition of a `seller` derives from Article 1 of the Law on turnover tax and includes not only a person already registered as such, but also a person who is subject to registration but who has not yet applied for registration. Therefore, if a buyer is not registered as a seller at the time of conclusion of the relevant sales contract, it would be desirable for the contract to provide for zero VAT, but provided that the buyer is a seller registered on the date of entry into force. And for a seller, there should always be a clause in your contract that states that if the IRS doesn`t consider your sale to be an ongoing business, you can ask the buyer to pay the GST at any time. Third, if the asset or business sold can only be carried on as a business (i.e., a dormant activity), it is not an income activity, as it must be a real or current activity or operation. Second, the entity must be a pursuit-oriented enterprise within the meaning of point (i) of the qualification in section 11(1)(e) and meet the criteria set out in paragraphs 4 to 6. A simple sale of z.B. agricultural land is considered to be the provision of capital and not necessarily an agricultural holding. .