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
Your email address will not be published. Required fields are marked *
Please subscribe me to your Email Newsletters
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Download Our FREE Ebook!
Available only for first 100 people today
New here? Create an account