There is a third option forming an AOP:
It is a highly flexible agreement, and easy to create, not many conditions.
all kind of rules can be fixed as per our interest,
Only disadvantage is that , it will be taxed at 30%
considering that there will be only rental income in this trust --
(i.e) (That is) (Some buildings will be constructed for rental income)
(and) (some buildings will be constructed for our own use)
The taxable income will be negligible after expenses.
AGREEMENT OF ASSOCIATION OF PERSONS
This Agreement of Association of Persons executed on this _____th day of August 2011 by and between.
1. Mr.
2. Mr.
3. Mr.
WITNESSESS Whereas the above named parties have decided to form an ASSOCIATION OF PERSONS (AOP) w.e.f. 12th august 2014 for sale and purchase of tribal artisan
hadncicrafts AND Whereas it is necessary to reduce into writing the terms and conditions for the above AOP known as ____________________________________AND ASSOCIATES;
We the parties aforesaid do hereby of our freewill and consent agree to and conform as under:
1. That the above named Parties has decided to form an AOP known as ____________AND ASSOCIATES for carrying on the business of ___________________ (ex.sale and purchase of tribal artisan handicrafts) in the name of AOP with its Principal place of business at:___________________________________________________________________.
2. That the AOP shall run the business of sale & purchase of tribal artisan handciacrafts
in the name of AOP i.e. _____________ AND ASSOCIATES. The business activities may be extended to other transaction with the mutual consent of all the parties.
3. That the financial year of the firm shall be from 1st April to 31st March every year.
4. That the duration of the AOP shall be at will.
5. That a bank A/c shall be opened in any Scheduled or Co-operative Bank or Banks as the parties may decide in joint name of the parties and/or in the name of AOP and the same shall be operated jointly and/or severally by all the parties as decided among them.
6. That all the parties have a right to look after day-to-day work and activities of business.
7. That all of the parties have an authority to look after and manage the business of AOP fruitfully in the interest of AOP, borrow Money, take loans form Bank or parties, to sign document, to enter into any business contracts and so other activities which required for smooth running of the AOP with the greatest interest of the business activities carried over by the said AOP i.e. ______________________ AND ASSOCIATES.
8. That all or any one of the parties shall sign any agreement, document etc. as and when require on behalf of the AOP.
9. That at the end of the year the profit or loss of the A.O.P. shall be distributed among the members in the ratio of capital standing to the credit in the individual member's capital account of AOP as on the last day of the year. In witness whereof we the parties have signed this Agreement of Association of Person on this ____th day of January 2010 at ___________in the presence of the following witness. Witness: Members of AOP 1. 1. 2. 2. 3. 3.