I am in the process of registering a Pvt Ltd. company for my online business. We sell web development and search engine marketing services. We are also getting service tax and IEC code done.
I am not familiar with legal terms so I would be very grateful for a simple explanation.
I am 99% Share holder of the company. Also director.
The lawyer has said to me that after registration is done and we open a bank account, put 1 lakh rupees in the bank account as paid up capital to make a share certificate.
So far it's okay.
Now lets say for example that we earn 50 lakh rupees profit this year.
How can I spend that money personally? How do I pay myself an arbitrary amount? If it just sits in the company's bank account will it be taxed?
Also, if I decide to shut down the company, how will I being the 99% share holder, get the total amount in the bank account? This is my most important question. And will it be taxed twice? i.e company pays tax once and then I pay tax also.
