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:

  1. You can get loan for buying plot
  2. Residential NA plot is mortgageable
  3. It can be used for construction:house,training centre or guest house for company
  4. Construction on residential Plot can give rental income
  5. 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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