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best form of company (Prorietership/Partnership/LLP/Limited)

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Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2010 Which is the best form of company (Prorietership/Partnership/LLP/Limited Company) to do software Service business with a foreign company ?

From following point of view
1) TAX
2) Ease of operation
3) Any special provision for STPI/SEZ

Thanks.

Rasesh

Rasesh (Expert)
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17 March 2010 From tax point of view, LLP would be a better option. Since the company get remuneration at the same time, there is no MAT or DDT on LLP. A company form of business has MAT and DDT which are two deterrents. The LLP has a corporate structure which can own assets seperately and have an independent identity.

From ease of operations point of view too LLP would be preferred. Compliances of ROC are limited in LLP, while other compliances will remain the same.

Proprietorship and Partnership cannot be thought off since they are preferred only when the operations are small.

For STPI/SEZ, LLP or Company will not make any difference.

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