January 27, 2012 5:52 pm
I trade in share market casually. Now I am planning to do it regularly. Am I liable to do this trading by forming a proprietory company, as I wont provide service to anybody outsider other than myself?
Dear Tukar, what’s the main source of earning for you? if you are a salaried person, first check with your employer that are you eligible to run a co. or business or not.
By the way, as far as I know, you may trade a lot under your own name & show the income as your business income & in this case, you may claim the benefits that you want to claim.
Dear Tukar, may I know the reason/logic of opting to trade via a proprietory Co.?
Yes. There are some tax advantages.
Also I can show trading as a business (earning profits or losses), which could give me status as a professional. This will help provide some benefits liable for typical businessmen.
In my individual capacity as a trader, I only earn money, not the status.
No, you can just trade all by yourself without forming any company … However if you form a company , there might be some tax advantages … I am not sure on that though
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