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Real Estate development,or property development is a multifaceted business encompassing activities that range from the renovation and release of existing.

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Presentation on theme: "Real Estate development,or property development is a multifaceted business encompassing activities that range from the renovation and release of existing."— Presentation transcript:

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3 Real Estate development,or property development is a multifaceted business encompassing activities that range from the renovation and release of existing buildings to the purchase of raw land and the sale of improved land or parcels to the others.

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6  Today everyone, as per one’s capacity aspires to invest in REAL ESTATE - Why?  Because there is no scope for losses in this sector as the  LAND IS LIMITED, unless o (A) You are not a real term investor (looking for short term gains) o (B) The person with whom you are dealing is not genuine  To mean with, this sector is said to be risk free.  The quantum of profit can be enormous ( not in percentages but manifolds)

7  Where the Growth Potential of Investment is  HIGH  SURE SHOT  QUICK  VATAMAN in the vicinity of DHOLERA SIR – India’s MEGA CITY (double the size of Delhi & six times that of Shanghai) the Dream project of Shri Narendra Modi IS THE ANSWER

8  PARTNER in LAND DEVLOPMENT  JIVAN REKHA PROJECTS VATAMAN LLP provides an opportunity to become a partner in their land development project to earn handsome profits with Limited liability.

9 Limited Liability Partnership (LLP) Limited Liability Partnership (LLP) is a new corporate structure that combines the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost. In other words, it is an alternative corporate business vehicle that provides the benefits of limited liability of a company, but allows its members the flexibility of organising their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.

10  LLP is governed by the provisions of the Limited Liability Partnership Act 2008, the salient features of which are as follows: -Limited Liability Partnership Act 2008  The LLP shall be a body corporate and a legal entity separate from its partners.  The LLP will have perpetual succession.  The LLP will be a separate legal entity, liable to the full extent of its assets, with the liability of the partners being limited to their agreed contribution in the LLP which may be of tangible or intangible nature.

11  The Central Government has powers to investigate the affairs of an LLP, if required, by appointment of competent Inspector for the purpose.  The Indian Partnership Act, 1932 shall not be applicable to Limited Liability Partnerships.

12 Why LLP ?  Renowned form of business: Though the concept of Limited Liability Partnership has been recently introduced in India but it is very known concept in other countries of the world.  Body Corporate: Just like a Company, LLP is also body corporate, which means it has its own existence as compared to partnership.  Liability: A LLP exists as a separate legal entity from your personal life. Both LLP and person, who own it, are separate entities and both functions separately. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not the owner.

13 Why LLP ?  Easy Transferable Ownership: It is easy to become a Partner or leave the LLP or otherwise it is easier to transfer the ownership in accordance with the terms of the LLP Agreement.  Separate Property: A LLP as legal entity is capable of owning its funds and other properties. The LLP is the real person in which all the property is vested and by which it is controlled, managed and disposed off.  Raising Money: Financing a small business like sole proprietorship or partnership can be difficult at times. A LLP being a regulated entity like company can attract finance from PE Investors, financial institutions etc.

14 Why LLP ?  Taxation: Another main benefit of incorporation is the taxation of a LLP. LLP are taxed at a lower rate as compared to Company. Moreover, LLP are also not subject to Dividend Distribution Tax as compared to company, so there will not be any tax while you distribute profit to your partners.  Compliances: As compared to a private company, the number of compliances are on lesser side in case of LLP.

15  24 kms. From DHOLERA & 60 kms.from AHMEDABAD  Existing 6 Lane HIGHWAY (Property Highway touch)  Proposed VATAMAN METRO STATION (within 1 km.)  Proposed 10 Lane EXPRESS WAY (within 1 km.)

16  DHOLERA SEPCIAL INVESTMENT REGION City Twice the size of DELHI & Six times that of SHANGHAI Upcoming Developments  2 nd Largest Airport of Aisa  World’s Largest Manmade SWEET WATER RESERVIOR  Six lane EXPRESS WAY from Delhi to Mumbai via Dholera (DMIC Project)  SEA PORT between Dholera & Bhavnagar  METRO TRAIN from Ahmedabad To Dholera Via VATAMAN.

17 JIVANREKHA PROJECTS VATAMAN LLP BIGHASQ YRD /BIGHA TOTAL SQ YARD PLOT SIZE (SQ YRD)TOTAL PLOT 50193696800100968 SALES VALUECASHCREDIT (72 MONTHS) 1 plot300000388800 COST OF PROJECTUOMUNITSCOST PER UNITTOTAL Cost of NA LandBigha5015,00,000 750,00,000 Cost of Plot Development and Other costSq Yrd96800500 484,00,000 Marketing Expenses25% Capital Contribution Per Partner Unit 1,50,000 Total no. Of Partner Units500 Profit Sharing Ratio of the Partner Unit0.20% Return On Capital Employed133.37% Effective Rate of Taxation 12 %

18 ParticularsAmount Capital Contribution per partner unit 1,50,000 Distribution of profit by way of : Interest on Capital 24,000 Remuneration to partner 1,20,000 Profit 80,000 Total Earning of Partner (before tax) 2,24,000 Tax on Profit 24,000 Total Earnings of Partner (after tax) 2,00,000 Return on Capital Employed 133.37 %

19 Public CompanyLLP Effective Taxation48.50 %approx. 12 % Total Profit per Partner Unit 2,24,000 Carry Home Amount 1,15,360 2,00,000 Net Saving of 84,640/- Just by Tax Planning. HENCE LLP

20  SHRI VIJAY PAREKH Palanpur (Gujarat)  SHRI CHIRAG PAREKH Ahmedabad (Gujarat)  SHRI ANANT MAHESHWARI Surat (Gujarat)

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