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Simple Investment Agreement India

12.4.2021

While legal advice is of the utmost importance to ensure that any investment contract goes overboard, you still need to know what is being asked of you in order to decide whether such provisions are acceptable or not. A frequent request from an investor is an investment option – essentially a percentage of shares available in exchange for investments. 1. You have to make many legal bases for an investment of Rs.25 Lakhs in a start-up. 3. You must enter into a detailed agreement specifying all the necessary clauses, i.e. profit sharing, decision-making power, power to review documents/registrations, no change of management without your written consent, secure restitution, withdrawal procedure of the amount invested, etc. You can reach an agreement with all the terms of your deal by taking care of your interests and needs. Any agreement on this matter may be reviewed by an expert prior to signing and legal advice must be available, including the need to record the facts. Whether you are an investor who wants to invest money in a start-up or an entrepreneur trying to invest financing in your project, it is important that you understand the terms of any investment. 2) There is no need to register the investment agreement 4.

It will be wise for you to register the above agreement in order to avoid future legal problems in this regard. 2. In India, scanning is still in the preludes for which it will be wise for you to execute and record the agreement by manually signing before the registrar. Simple investments without a profit and loss structure do not constitute a business risk. However, you can protect your interests, buy shares of the company with the investment money and become its director to ensure the return. Under Indian law, a written signature is not necessarily required for a valid contract – contracts are generally valid when legally qualified parties enter into an agreement, whether they accept verbally, electronically or in a physical paper document. The Information Technology Act, 2000, expressly confirms that contracts cannot be refused because they are concluded electronically. In order to prove a valid contract, parties sometimes have to present evidence in court. Leading solutions for digital transaction management can provide authorized electronic records under Section 65B of the Evidence Act, 1872, to support the existence, authenticity and valid acceptance of a contract. It is not necessary that this agreement must be registered, but for security, you can register ter.stamp duty will be minimal, based on the amount mentioned lawyers are now available to answer your questions.

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