Hello Seniors,
I want to register a company. Shall I go for LLP or a Pvt. Ltd. Company based on the following factors:
1. Nature of Business; Share Broking
2. Yearly Profit: 60 lacs and above
I came to know from one CA that if I have income more than 40 lacs/pa, I can only register for Pvt. Ltd Company and not LLP.
Please guide.
Thanks,
John.
| Originally posted by : Tribhuvan Aditya Singh | ||
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according to me you should incorporate LLP as it is easier & cheaper to incorporate and also very less compliances have to be followed as compared to pvt. ltd co. |  |
Thanks Tribhuvan,
The CA I met he wanted me to register for Pvt. Ltd. Company. The reason could be that he is looking for his benefit for yearly audits and monthly involvements. The business model example I have attached in an image.
I am looking for least compliance. Also let me know if I open an LLP, can I employ people. If yes, can I adjust the salaries, rent, bills, etc against total revenue to extract net taxable income. Also can I show my family memebers as employees drawing salaries.
Many Thanks, John.
least compliance will be in case of LLP only, if you need to decide between LLP and pvt. ltd. company. employment of salary and deduction of expenses incurred for arriving at net taxable income is available to everyone engaged in business, so need to worry for that.
yes, you can show as salary paid to your family members but then they will have to declare this income in their income tax return.
| Originally posted by : Tribhuvan Aditya Singh | ||
|
till date i havent come across any such prov.... according to me there is no such prov. if there is any, then ask your CA to quote relevant sec. so that even i can gather some knowledge. | |
Agree..... The forty lacs limits is the criteria above which the accounts of the LLP are to be audited......
CAclubindia
