Whenever I am on different Forum,I get a question from seasoned Entrepreneurs about Land investment on company name.Here I am addressing some of the questions.
1.Can IT Company invest in land?
Answer:
- Any company can invest in Residential NA,Industrial NA plots.
- But If company wants to buy agriculture land then Memorandum Of Article(MOA)should include scope of buying agriculture plot
2.Which Type of plot should company buy?
Answer:
- If its for end use of company as commercial building,it should be commercial Non Agriculture plot.
- If it for investment then it should be Residential Non agriculture plot.It has following benefits:
- You can get loan for buying plot
- Residential NA plot is mortgageable
- It can be used for construction:house,training centre or guest house for company
- Construction on residential Plot can give rental income
- It makes company balance sheet stronger on asset side
3.How can company use land investment for employee satisfaction or engagement?
Answer:
- Company can Buy residential NA plot on company name and make balance Sheet stronger.
- Senior Employees have Performance Linked Incentive or Bonus which can be adjusted against plot down payment and rest amount employee can pay and plot can be transferred on his name.
- Everyone has dream to have land on name,that dream of employee you fulfil.
Akashwani Radio episode on the same topic in Marathi:https://www.youtube.com/watch?v=acdCu377A5k
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