Hi,
I need your expert advice on the below subject.
I am living in Tamil Nadu, Tirunelveli and I am planning to start a company/firm (i dont know whats the difference between a company and a firm). And I am going to employ 4 freelancers/employees under my company/firm. I am the only owner and I dont have any other owner. I planned to run this business in a commercial rented place.
The nature of the business is software consulting and services. Most of my clients probably outside India and all the payment will be done via PayPal or direct Bank Transfer.
I am expecting my annual earnings would be less than Rs. 6,00,000/- and I may pay Rs. 3,00,000/- as annual Salary for my employees and office rent etc... My net profit for a year would be approximatey Rs. 3,00,000/-
Questions:
1. What type of registration do I need to do for this type of business? Some one is saying that I need to open a LLP, some one is saying for Sole Properietor. Got confused.
2. I belive since I am the only owner I need to go for Sole properietor. When i approach the bank to open a corporate account in the name of my business they asked for several documents like certificate, Sales tax certificate etc...
3. In the above scenario what type of income tax do I need to pay? And how to calculate that?
I realy need your advice.
Regards
Malai
CAclubindia
