Registration of association in tamilnadu
Parthasarathy
(Querist) 24 June 2013
This query is : Resolved
Hello,
I'm working in one of the reputed companies in India.
I'm interested in doing trade in capital market and would like to give my advice to my friends and want the trade to be done thru’ me so that I can enjoy the commission.
Now, I don’t want to reflect the profit/loss against my PAN card (Individual) which I need to submit the income to my company.
As my friend suggested, I can form as an association and do trade in association name instead of my individual name.
I need clarity on following queries:
• Will a single person sufficient to form an association?
• Can I include my brother as joint signatory in association?
• Can I have the procedure and list of documents required?
• I’m currently residing at Salem however I would like to have my association address in Chennai (have valid address and ID proof)
I would like to need your advice on this.
Guest
(Expert) 24 June 2013
1. Association shall consists of 2 or more members. But for your nature of activity, you can start either a Sole Proprietorship/Partnership concern/Pvt Ltd., Association (common cause) is not applicable to this.
2. In case of any entity, joint signatory for operations is permitted.
3. Since you want to establish the business in Chennai and have a local address proof, it is accepted.
4. For any such business, you need the set of Rules and Regulations, parameters, Constitutional set-up, Liabilities and Responsibilities, Internal / External Management Systems shall be drafted suitably and get them registered. It makes your business safe and binding the third parties as well. Only an advocate can guide you properly. You cannot simply follow ready made formats. (Self medication is dangerous).
prabhakar singh
(Expert) 24 June 2013
• Will a single person sufficient to form an association?
NO!NO!NO!
• Can I include my brother as joint signatory in association?
POSSIBLE! POSSIBLE!
• Can I have the procedure and list of documents required?
OF WHAT?OF WHAT? OF WHAT?
• I’m currently residing at Salem however I would like to have my association address in Chennai (have valid address and ID proof)
YOU MUST EITHER OWN OR MUST HAVE LEASED PREMISES IN NAME OF ASSOCIATION TO BE REGISTERED.
THIS WAS ALL ABOUT ANSWERS TO YOUR QUERY.
NOW READ MY COMMENTS:
FRANKLY SPEAKING YOU ARE NOT CLEAR TO YOURSELF HENCE UNABLE TO RAISE A PROPER QUERY.
BUSINESS IS DONE IN 3 FORMS:
1.PROPRIETORSHIP(that is by one individual)
2.PARTNERSHIP(the existence of at least two or more)
3.COMPANY(the existence of at least two or more)
4.IN CASE OF ASSOCIATIONS NEED WOULD BE OF 7 AND IT WOULD NOT BE A VENTURE FOR PROFIT.
5.COMPANY U/S 25 CAN ALSIO BE FORMED FOR THIS NON PROFIT ORIENTED PURPOSE.
6.THEN COMES THE TRUST,PUBLIC OR PRIVATE,WHERE ALSO THE BENEFICIARIES ARE DIFFERENT,INDIVIDUALS OR PUBLIC.
7.THEN COMES THE CO-OPERATIVE SOCIETIES AND THEY TOO REQUIRE 7 MEMBERS AT LEAST UNDER ALL STATE LAWS.
8.I WOULD NOT LIKE TO TRADE THROUGH A GENTLEMAN WHO DOES NOT KNOW EVEN ABCD OF THE STOCK MARKET PROCEDURE,THOUGH THIS IS THE ONLY THING I AM DOING AFTER MY RETIREMENT FROM LEGAL PROFESSION WHICH OF COURSE IS VERY TIRING IF YOU PRACTICE IN CIVIL SIDE FOR WHICH REWARD IS VERY LESS COMPARING LABOR.
9.DAY TRADING IS SUCH A HARD NUT WHICH EVEN FEARS YOUNGS TO HAVE BROKEN TEETH.I DO NOT CARE AS MANY ARE BROKEN ALREADY.
Rajendra K Goyal
(Expert) 25 June 2013
Agree with the views of experts. You should contact a local lawyer. Further, Will you be able to hide your working from your company and whether your company would make available sufficient time for your business?
Raj Kumar Makkad
(Expert) 26 June 2013
You have rightly been advised by the experts.
Parthasarathy
(Querist) 27 June 2013
Thanks to Gurunarayana rao and Prabhakar singh! It gives me an idea for my long term plan.
Besides, the trade in capital market is not an intraday and I just don’t want to waste my time and money. Usually I do 5-6 trades in a year which gives me higher returns than bank deposit, just watching news will do on this.
