Investment and Trading as Individual or Firm..?

Hi All Club Mates,

 

After getting experience in share trading and small invesment, currently I am planning to start investing and trading on large within next couple of months.

I am thinking to put in money on multiple options like: long term in shares, also mutual funds; would also involve in Trading in equities, etc.

 

Now my concern is, would it be good idea to just get a demat/trading account in my personal name or use a firm name to operate. I was thinking to start with a firm name. But, is there any problem in operating as proprietorship?

Secondly, is there any tax benefit in operating as proprietorship firm (just in Investment & Trading purpose).

 

Thanks in Advance,

Regards,

Jayesh

Replies (3)

You can not open demat / trading in proprietorship firm name, 

porprietorship firm is assessed in individual PAN, so its always advised to open demat / trading accounts in name of individual only. 

all such capital gains and trading activity would be accounted in personal PAN, and would be taxed accordingly. 

Okey... 

Thanks for the kind advice.

Is it a good idea to start a Private Ltd. Co. for the purpose of investing ? Is there any tax benefit ?

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