Starting a business
Guest
(Querist) 02 June 2014
This query is : Resolved
Hi,
I am a stock trader working as a freelancer. I trade in futures and derivatives, commodities and currency and currently have a turnover of approximately 12 crores per annum. I want to register my business. I plan to employ a few people to help me in the market research in the future. I also have plans to trade in foreign markets in the future.
Should I start a sole proprietorship company or a private limited company? Is it advisable to register through a lawyer or one of the many online registration firms who register a private ltd company for around 15K?
Thank you.
Joseph
R.V.RAO
(Expert) 02 June 2014
As the annual turn over exceeds Rs. one crore, it attracts compulsory tax audit.
maintaining books of accounts are necessary.
since your turnover exceeds Rs.one crore P.A, you cannot opt for presumptive taxation.
as rates of income tax are above 30% plus edu.cess for firms and companies(and there is no basic tax exemption limit) and due to cumbersome legal and statutory formalities of formation of same and as the annual compliances and cost of periodical compliances which are high, in such set up,opt for sole trader form of business.
The individual(sole trader) tax rates are in progressive slabs, with a basic tax exemption limit and various tax saving incentives,highest slab being 30% for income above Rs ten lakhs P.A.
Dr J C Vashista
(Expert) 02 June 2014
I agree with the expert advise of Mr. R V Rao with respect to tax benefits/ levy.
I will add to it when you "have a turnover of approximately 12 crores per annum" it is advised to engage/employ few advocates to take care of all of such legal cases/ problems/ procedural matters in a professional manner.
Basically this forum is performing social service for the needy persons advising public free of cost, which is not meant for the persons like you who are earning "approximately 12 crores per annum".
R.V.RAO
(Expert) 02 June 2014
thanks to sri Dr.j.c.Vashistaji, whose advice to author of the query is worth considering in right earnest.
Anirudh
(Expert) 02 June 2014
While agreeing with the overall view of Dr.Vashista that persons having commercial interests should engage professionals for advice instead of approaching forums like LCI, I just want to clarify that the querist's turnover is stated to be 12 crore per annum, but not his income.
Income may be much much less as his brokerage will be in less than a fraction of a percentage of the turnover.
Devajyoti Barman
(Expert) 02 June 2014
commercial query.
author can afford fees for advocate.
V R SHROFF
(Expert) 02 June 2014
CONTACT BHAVESH :09821509338
R.K Nanda
(Expert) 02 June 2014
consult local lawyer.
P. Venu
(Expert) 02 June 2014
Should we take a such a hard position if the queries are commercial and the queriest can afford lawyers fees? Law is a vast ocean and no one can claim to be an expert in the real sense of the time. Our knowledge cannot but be limited. We gain a lot from the answers given by other experts in their area of specialization.
I have no hesitation in admitting that I have gained much insight of little known aspects of practical law from the wise answers given by the learned experts of the calibre of Shri R.V.Rao.
H.M.Patnaik
(Expert) 02 June 2014
The learned Experts have given their point of view with reference to the Query raised in this post .
To add a little more, I would like to state that there is nothing wrong to take assistance of online regn. firms charging 15K for regn. of a Company so far as the Promoter is well aware of his business needs and have exposure to relevant laws of the land . In absence of the above for all first generation businessman , I would advise to get in touch with a experienced Lawyer or C.A. of his locality and discuss his requirement across the table to take the right decision in this regard.
T. Kalaiselvan, Advocate
(Expert) 02 June 2014
I agree to the views and advises rendered by expert Mr. H.M. Patnaik in this regard. The author may follow this expert's advise if he is really intended to go for expansion of his business as per his proposal.
R.V.RAO
(Expert) 03 June 2014
sri venu ji thank you very much for your kind words. I admire your rare quality of humility.
but am afraid that i may not deserve to be of the calibre of an expert, as you rightly observed that every subject is an ocean and to claim expertise there in is audacity.
i feel a lot to be learned from other colleagues and seniors in the profession,and in fact from every ardent enthusiast of any subject.
Guest
(Expert) 03 June 2014
The Nature of Business what you have mentioned you could Register as Sub Broker of any Broker Registered with SEBI.Registering as Broker directly depends on your Budget.Sub Broker could be individual also.For Future Plans as mentioned you could become a Sub Broker of a Broker Firm authorized by MCX,NSE and BSE.If you want to be a Private Ltd firm then consult a near by Company Secretary who could help you better than a Lawyer and would be helpful in future also.Other Registration Agencies will not be guiding you in any manner in future once their job is over.Consulting a Company Secreatary now it self will be reasonable on Fees aspect as well as helpful to you in Long Run.As Rightly advised by Mr.Anirudh your actual Income or Profit would be only a Very small portion of the Turn Over and TDS also applicable for which already you should be having a CA. Best Wishes
