F&O trade as Pvt. Ltd

Hey @sachinsp15

The private limited company is assumed to have many tax advantages. There are some industry-specific advantages, but taxes are to be paid at a flat rate of 25% or 30 % on profits (as applicable), also Minimum Alternate Tax (MAT) applies here.

Moreover, To pay taxes on 22% there are so many conditions u/s 115BAA which should be complied and the company cannot claim so many deductions here which are generally allowed.

Furthermore, To incorporate the company having the main objective of trading you need to get an NBFC license from RBI. Also, there are so many years around compliances that needs to be followed for every PLC.

Talking about the tax holiday scheme for startups, there also company needs to satisfy the eligibility criteria for claiming this benefit and also obtain certification from the Inter-Ministerial Board setup for eligible purposes of a company.

If you can manage to pass through all those conditions, then only it would be wise to trade in the F&O segment as a registered Pvt. Ltd. Company.

Hope this helps!