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Buy and Sell Businesses in India – A Simple Guide for 2025

Introduction

In India, the way people buy and sell businesses has changed a lot in the last few years. Earlier, only big investors and very rich business people were able to do it. The process used to take months, and there were too many middlemen involved. But now, with digital platforms, better technology, and professional help, even small business owners, entrepreneurs, and startups can take part in this system.

Today, you don’t always need to spend years building a company from zero. Many people prefer to buy a business that is already running, or on the other hand, sell their business when they want to exit or start something new. This is why the idea of buy and sell businesses in India is becoming more common and more important in 2025.

In this blog, we will look at:

  • Why buying and selling businesses is important in India today
  • How digital platforms and experts make the process easy
  • The main steps in buying and selling a business
  • Challenges you should know about
  • Future trends in 2025 and beyond

Why People Buy and Sell Businesses in India

There are many reasons why someone may want to buy or sell a business.

Reasons to Buy a Business

  1. Save time – Instead of starting from scratch, you can buy a business that already has customers, products, and systems.
  2. Lower risk – An existing business usually has data, sales, and history that you can check before investing.
  3. Growth opportunity – Buying a business can help you expand into new markets quickly.

Reasons to Sell a Business

  1. Exit plan – Some business owners want to retire or shift to a new idea. Selling gives them the money and freedom to move on.
  2. Financial needs – Owners may sell to manage debts or personal goals.
  3. Partnerships and mergers – Sometimes selling is part of a larger deal to join with another company.

As India’s economy grows, both sides — buyers and sellers — are becoming more active. This is why the market to buy and sell business in India is expected to expand in 2025.

How Digital Platforms Changed the Process

Earlier, business transfers were handled mostly through personal networks, brokers, or word of mouth. This made the process slow, unclear, and risky. Many small businesses didn’t even know where to find serious buyers.

Now, digital platforms and professional services have made things easier. With these tools, you can:

  • List your business online for buyers to see
  • Access verified buyer and seller databases
  • Use technology like AI to match the right deal
  • Get professional help for documents, legal work, and compliance

This shift is making the buy and sell business process in India much faster and safer than before.

The Steps in Buying and Selling a Business

Even though technology helps, the process still needs careful steps. Here’s a simple breakdown:

1. Preparing the Business

For sellers, preparation is very important. This means:

  • Getting all documents ready (licenses, financial reports, taxes)
  • Valuing the business to know the right selling price
  • Cleaning up legal or operational issues

2. Finding Buyers or Sellers

Platforms and networks help connect both sides. Technology filters out non-serious leads and brings only genuine people to the table.

3. Due Diligence

This is a detailed check before the deal. Buyers will verify:

  • Financial records
  • Legal standing
  • Debts or risks
  • Growth potential

This step protects both sides from fraud or hidden problems.

4. Agreement and Valuation

After due diligence, both parties agree on the final price and terms. Professionals usually help here to make sure the deal is fair and legal.

5. Closing the Sale

This step includes signing contracts, making payments, and transferring ownership. Platforms and expert firms make sure everything follows the law, including tax rules.

Why Professional Help Matters in 2025

By 2025, compliance and due diligence will become even more important in India. Buyers and sellers don’t just want a quick deal anymore; they want safety and full guidance. Professional experts give:

  • Fair valuation so that sellers don’t underprice their business
  • Legal checks so that buyers don’t get into trouble later
  • Tax advice to handle GST, capital gains, and stamp duty
  • Document management so the transfer is smooth

This kind of support makes buying and selling businesses not only faster but also much safer.

Challenges in Buying and Selling Businesses in India

While things are improving, there are still some challenges:

  1. Lack of awareness – Many small businesses don’t know that digital platforms can help them sell.
  2. Unclear valuation – Some owners expect too high a price, while buyers may not see the real value.
  3. Legal hurdles – Without expert help, paperwork and compliance can delay deals.
  4. Trust issues – Buyers fear hidden debts, and sellers fear fake buyers.

The good news is that professional services and better technology are reducing these challenges day by day.

Future of Buying and Selling Businesses in India (2025 and Beyond)

India’s startup ecosystem and MSME growth are creating a strong market for buying and selling businesses. The next few years will bring:

  1. More AI tools – Platforms will use artificial intelligence to quickly match buyers and sellers, predict business value, and filter serious leads.
  2. Blockchain adoption – This technology will make transactions transparent and tamper-proof, giving more trust to both sides.
  3. Rise of foreign investors – Global buyers are showing strong interest in Indian businesses, especially in IT, e-commerce, and manufacturing.
  4. Faster compliance systems – Digital government systems for tax and business registration will make processes quic
  5. Professional consulting firms – More businesses will prefer expert-guided transactions to avoid risk.

This means that buying and selling businesses in India will become as normal as buying property or shares.

 

Tips for Buyers and Sellers

If you are planning to buy or sell business in India, here are some simple tips:

  • Do your homework – Always check financial and legal details carefully.
  • Think long term – Don’t just look at today’s profit. Think about future growth.
  • Be transparent – Sellers should share correct information. Buyers should ask the right questions.
  • Take expert advice – Professional help saves time and prevents mistakes.
  • Understand taxes – Business transfers may involve GST, capital gains tax, and stamp duty. Plan for this in advance.

Conclusion

The way people buy and sell businesses in India is changing very fast. Digital tools, professional consulting, and new laws are making the process smoother and safer. In 2025 and beyond, this trend will only grow as more entrepreneurs, small business owners, and investors use these systems.

For sellers, it is a chance to exit smoothly and get fair value. For buyers, it is an opportunity to expand quickly without starting from zero. With the right preparation, due diligence, and expert support, buying and selling businesses in India can be a simple, secure, and profitable journey.

Whether it is a café, a small manufacturing unit, or a technology startup, the future of business transfers in India looks bright. With increasing digitization and global interest, the coming years will make it easier than ever to buy and sell business successfully.

FAQs

1. How can I buy a business in India?

You can buy a business in India by checking listings on trusted platforms, doing due diligence, agreeing on fair value, and completing legal paperwork. Taking help from experts makes the process easier.

2. Why do people sell their businesses in India?

Owners sell their businesses for many reasons like retirement, starting a new project, financial needs, or joining with another company.

3. Is buying a business safer than starting a new one?

Yes, buying a business can be safer because it already has customers, sales, and systems. But you should always check financial and legal records before buying.

4. What are the main risks in buying a business?

The risks include hidden debts, unclear valuation, or legal issues. That’s why due diligence and professional guidance are very important.

5. What taxes apply when buying or selling a business in India?

Business transfers may involve GST, capital gains tax, and stamp duty. It’s best to consult professionals to handle tax compliance correctly.

TAX

File your pending income tax returns this December 2022

Why you should file your pending income tax returns this month itself i.e. December 2022?

First, let us have a look at due dates for income tax returns. Section 139 of the Income Tax Act governs the same.

The most relevant ones are as follows:

No. Type of assessee Due date (after the end of financial year)
1 Non- Audit cases 31-July
2 Where Audit is required under the Income tax or any other Law 31-Oct
3 Where Audit is to be done under Section 92E 30-Nov

The above dates as per Section 139(1).

You can still file belated returns under Section 139 (4). Belated returns are income tax returns filed after the prescribed due dates.

Earlier one could file belated returns by March but this year one can file only upto December.  This year, the present month i.e. December 2022 is actually the last month to file belated income tax returns for Financial Year 2021-22. (unless the Government declares an extension).

This is because of a change in Section 139 (4) –

Earlier the section read:

“Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

The amended section reads as follows:

“Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the [return for any previous year at any time before three months prior to] the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.”

 

Conclusion: Hence for financial year 2021-22 i.e for the relevant assessment year 2022-23, the last month of filing income tax returns is December 2022.

Yes, the same is the case with the revised returns.

Tax payer may revise their returns if they discover any omission or wrong statement(s) therein. Section 139 (5) governs this process to file belated returns.

Earlier the section read:

If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time prior to the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

 

The amended section reads as follows:

If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before three months prior to the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Conclusion: Thus tax payers can revise their income tax returns only upt December 31, 2022 for the Financial Year 21-22 (relevant to Assessment year 22-23)

Conclusion: Hence file all your pending income tax returns by 31 December itself. Also revise all returns with errors by 31 December.

To file your pending income tax returns this December or in case of any queries, email to info@entrecap.in. Read more about income tax returns here.

Latest assignments

Changing Objects of a One Person Company

  1. The assignment was to alter and add certain business objects of a One Person Company in midst of Covid pandemic because of sudden business opportunities.
  2. Challenge was to have it done in record time because of available opportunity.
  3. Further challenge was to ensure its completion during pandemic because of limited availability of government officers to approve the forms.
  4. Entrecap Business Services took on the assignment and ensured its completion within the time limits laid down by the client.
  5. Assignment included Board resolutions, drafting of altered Memorandum of Association, resolutions to be passed in General Meeting including explanatory statement, filing Form MGT -14 with required attachments and ensuring its passage by Registrar of Companies.
Latest assignments

Urgent Admission cum retirement of Partner in LLP

Team Entrecap undertook an assignment for sudden admission cum retirement of partners in a LLP. The challenge was that the deed had to be executed before March 31, 2021 so as to reflect the names of new partners in balance sheet ending March 31, 2021.

Team Entrecap undertook the following:

  1. Acquiring digital signature of the incoming partner in few hours
  2.  Acquiring Director Identification Number (DIN) of the incoming partner a mere day prior to 31 March by arranging the documents
  3.   Arranging for stamp papers prior to 31 March in the name of the partners.
  4. Filing the forms with the Registrar of Company even though there was lockdown in April, May and June 2021.
  5. Completing the process by follow up in time to complete the bank procedures for change in partners.

 

Challenge was complicated by urgency of the process and covid lockdown during second wave. However Corporate Compliance Team of Entrecap Business Services successfully completed the same.