We are in the process of formation of a LLP with Partners funds, as per the following terms:
Activity: We will do online trading in commodities and use the profits as follows:
We will supply them free grocery items (Water, milk, eggs, food grains, fruits & vegetables etc) every month, to a certain extent, in lieu of the returns for their investment, in proportion to their investments. We will also pay them interest @ 5% PA in advance, every year, for their investments, plus a share in the annual net profits, if any, at the end of the year.
- My question is whether we would require GST or/& FSSAI registrations? Actually we would not be selling the products either to our partners or any outside customers, so practically it is not a sale, so why would the above registrations be mandatory/
- Second query is, does this arrangement violate any laws of India, like SEBI/NBFC/ or any others?
- Can we assure fixed returns to our partners @ 12% PA? And is it against any law to assure fixed returns to the partners above 12% PA?
- As LLP has no limit to the number of partners which can be admitted, hence I am preferring this format, but is it right, or any other format is better, if we want to have unlimited partners, say 1000 or more?
- If anyone would like to become our consulting CA on very affordable basis, please do get in touch. Thanking all in advance.
CAclubindia
