A business can be sold in two ways, either through the sale of break-ins or through the sale of assets. In the case of an asset sale, a buyer can benefit, since he buys only the rights and liabilities he has collected and eliminates other rights and liabilities that are not necessary to allow him to make a profit. The purchase of assets determines the activities that will be part of the transfer of ownership. The buyer usually benefits from a sale/purchase of assets. However, from the seller`s point of view, sale by sale of business is preferable, since capital gains taxes are paid at a low value relative to the acquisition of assets. There are several opportunities for corporate restructuring, i.e. through a demerger, merger, share acquisition regime, but these processes are complex and require various authorizations from NCLT for future processing and are costly. However, the transfer of businesses through economic activity is less tedious, less costly and more simplified than the aforementioned restructuring mechanisms. Break and enter through a business transfer contract requires much less compliance and confusion within the buyer and seller when passing on businesses or businesses.

In India, the term „break and enter” and „business transmission” is used in a synonymous manner and refers to the transfer of an entire business on the basis of an ongoing business on the basis of a lump sum consideration from the buyer. Slump Sale may be considered to be the sale or transfer of one or more businesses of a business for a lump sum, the assets and liabilities of that entity/s being transferred to the recipient entity without the values being allocated to each asset and liability in such a sale/transfer. Once completed and signed by all parties, this business transfer agreement constitutes a binding agreement between the parties, which allows them to conclude agreements to transfer the transaction. As soon as the incentive clause in the contract is established, the operational clauses of the contract begin. This clause describes the nature, amount, currency of payment and payment method submitted by the buyer to the seller when the business is transferred. Such a clause may be – If conditions are included in the agreement, these conditions must be met for the transaction to continue. If this is not the case, either party (or, in some cases, both parties) may have the right to withdraw from the agreement. In order for an entire business to be transferred, a method of break and enter is done through a business transfer contract.

Another reason why businesses are restructured by the sale of burglaries is that restructurings due to the sale of break-ins only attract stamp taxes on real estate. Burglary and sale will increase performance after integration; Sales contributes to strategic investments and by selling burglaries, the company can benefit from tax and regulatory benefits related to the transaction. This clause involves the abandonment of one or more commercial enterprises on the seller`s side and the liquidation of them by the buyer`s businesses. The parties must necessarily be natural persons and no artificial person can enter into such an agreement. Even a non-resident is not allowed to do transactions in India without having a head office in the country. Therefore, in order for a non-resident to initiate a sale of burglaries or even asset acquisitions, he must first create an Indian unit and then use that Indian unit to initiate a business transmission.