Hi
I do day trading with my own personal funds and I am interested in setting it up as a business. I am planning to hire a person to help me and have other expenses such as internet, computer equipment, brokerage, salaries, rent etc.
My questions are as follows
1.Can I register day trading as a sole proprietorship business?
2. Should a demat or trading account be opened in the sole proprietorship name or can it be in the name of individual itself? (When I asked my broker, he said I can open trading account only in an individual account name or in the name of company and the bank account has to be in that name. So if I create a sole proprietorship, and if my demat accountdaccount is in the name of individual, can I claim brokerage paid as business expenses to sole proprietorship.)
3.What should I mention as the nature of business when asked for formation of business?
4. Do I need to get any licenses for setting up day trading as a business? I have rented a place to do my day trading operations. (I am from Tamil Nadu)
Thank you
Sreeram
CAclubindia
