I tried to register an LLP firm for equity investments and trading, but it got rejected due with rejected reason “The name and the objects are NBFC in nature which is impermissible for an LLP”. So please amend the name and the objects suitably’. Does this mean we can’t open an LLP for equity investment and trading purpose? Any reserve words we should not use in firm name?
Can anyone guide on this matter, and or provide contract of someone who can help me in LLP in firm registration for equity investment and trading purpose?
I opened a LLP for trading this january in Bangalore . First time it got rejected because of the same reason , like name was misleading.
There are set of words we should not use like “fund management” , “capital management” etc…
Its better if you go through a proper CA who have expereince in this. If you want i can refer you to the CA who did it for me ( spent 15k overall ).
Hi @VelmuruganSengottai
can one person open LLP or it needs to have at least two partners ?
also, is it challenging to open demant account with any broker , lets say zerodha for such firm or its well established and easy process ?
one person cannot open LLP , we need atleast 2 people …
i didnt open demat account with LLP because i opened LLP for exclusively trading in bank nifty ( we decided to open only a trading account ) …
if you know a CA who is experienced in opening LLP firm , then the process is simple …
basically we need to have a DIN , then regitser for LLP , open a current account and then sybmit all the docs to broker
Can anybody here tell what is the advantage of forming a LLP vs trading as an individual ?
If there is an advantage can a sole proprietorship be a substitute for a trading with me as owner and few(5 to 10) employees trading for me.
My future plan is to open a trading place at my home office with me as the sole owner and few employees as traders, managing my own money.
you can start a one person company or sole propritorship , you can get more info in net about the diffeences .
i am away for some work , cant explain now in detail
@VelmuruganSengottai If I start a LLP with the objective of buying selling shares, can it be declared as capital gains tax(10/15%) or does it have to be compulsorily taxed as business income(~30%).
Intraday/options will have to be declared as business income. But will buying delivery based share buying/selling also compulsorily be business income?
I am replying because this is an important question and many people are interested in this. The short answer is if you are doing any kind of business activity which involves “making money from money”, like lending, investing, buying-selling of stocks comes in the purview of NBFC. Even if you are doing it with your own money and not taking public money to do it (investing/trading), you will still have to register as NBFC with RBI which is not an easy process. You must have principal business activity as above and minimum capital investment of 2 crores.
This is what I have learned through RBI website and other online resources. May be a better learned CA can help you more.