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Business by illiterate
CLIENT is reluctant to do business in his own name as a proprietor.HE WANTS TO OPEN PROPRIETORSHIP ON HIS MOTHER NAME as a respect point of view.He also want to do business as a software develper.Can he start business on the name of his mother as a proprietor who is illiterate? FURTHER CAN HIS MOTHER GIVE HIM WORK AS A FREELANCER OR BY APPOINTING HIM MANAGER? BUSINESS IS EXPORT OF IT SERVICES.
Replies (9)
IS IT LEGALLY VALID?
a person can start proprietorship business of any name of his choice.
He can carry on business in name of her mother and he himself can be proprietor of the business.
He can carry on business in name of her mother and he himself can be proprietor of the business.
no need of mother to hire him as a manager
but he has to use his own pan and all the luck documents.
but he has to use his own pan and all the luck documents.
*luck-kyc documents.
Situation is different here.He wants to use her mother kyc.She would be sole proprietor and only owner of business.Is it legal to run software business by illiterate?
yes a person can hire a competent person to run a business. in such case mother can hire son as manager of the business and he can do software business.however income derived will be taxable in the hands of mother and he claim his salary from the proprietor firm as manager.
he cn start business in the name of mother. let mother be proprietor. he can join as manager or chief technology officer. if he is a software engineer u can always argue in ur favor else debatable...chq signing authority wil be mother. he can also sign based on power of attorney.
if mother wants to give work as freelancer, it wil be 2 different business activity. mother will be merely a commission agent and son wil be actual freelancer...it's not illegal. u can go ahead
Thanks to all for guidance
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