Agreement for collaboration of business

738 votes

1: Do I need to get the agreement on company letter head or stamp paper

A: First page on Stamp paper of 100/500 any will do rest pages you can take on companies letter head

2: If I need to go with Stamp paper then which value(100,200) stamp paper should I go with

A: Both 100/500 will do

3: Does this agreement needs to be registered/Notarized

A: Reg. Notary will be good option in case if not possible company seal will do.

4: In case of fraud non registered/non notarized stamp paper agreement can be considered as a proof in legal proceedings.

A: Yes you will have stand

5: there are lot of terms and conditions, so I am planning to mention title, and agreement parties on stamp paper and rest on the plain/bond paper.

A: Yes see the answer to 1 st question....

LawRato LawRato

885 votes

For business transaction it is always advisable to execute registered deed of agreement / Memorandum of understanding etc..so that it will be legal / valid proof of agreement between parties. for registration 500 stamp paper + registration charges will be applicable..

Advocate Sharad Malode LawRato

936 votes

Yes, You can make an Agreement on stamp paper amounted to Rs.500 Non-Judicial Stamp Paper under the title of MOU and for the security purpose yo have to register the documents before the concerned Sub-Registrar within your jurisdiction then your side become safe.hope you get your answer. thanking you.

Advocate Ashish Kachave LawRato

982 votes

You can make a standard agreement in nature of sub-contract / dealership / franchisee depending upon your business model. You can use the same standard agreement with different persons from different cities who will be working as your sub-contractors / sub-dealers / franchisees etc. Answer your questions are as follows:

1. Commercial agreement requires payment of stamp duty as per the Stamp Act in Maharashtra. Stamp paper is only one of the modes of payment of stamp duties to the government. Stamp duty can also be paid through franking and other modes.

2. Depending upon the nature of your agreement when it is finalised it can attract stamp fee as per its nature, however, if by your agreement happens to fall under Art 5 (h) (B) of the Act then duty will be only Rs 100.

3. There should be no problem in notarising this agreement, however, due to commercial compulsions if even notarising it is also not possible then it is ok too.

4. Some agreements need to be compulsorily registered while some need not be registered. Yours does not seem to require compulsory registration therefore on payment of sufficient stamp duty it should be admissible in the court as evidence.

5. Yes that would be ok too.

LawRato LawRato