suppose.. X ( individual ) and Y ( individual ) having their own proprietory business.
They are approached by Z ( individual ) to sell his hotel business ( proprietor ) to them ( No business in Hotel since last 4 yrs.. no I.T./ Vat returns etc... )
X and Y decide to buy with each having 50 % Share..
What are the procedures to be followed and what documents required ??
Should X & Y form Partnership Firm or Pvt. Company or LLP ??
Also as Z ( business closed ) not having any I.T.documents ( capital A/c , Bal.Sheet ...etc ) if X & Y buy the Hotel from Z .... Can they operate it as new entity with new name & accounts....
Is it possible that - X pays 50 % to Z & Y pays 50 % to Z and they internally sign an MOU of sharing profits ..in that case who will be the owner of hotel.
CAclubindia
