Suppose me and my friend develop trading systems together. What is the best way to split profits in a legal way. We have no plans to give stock advice to others or collect funds from others. Can anyone share the most easiest way with minimal compliance headache?
You can simply to 50/50 split after all charges.
how do you report it for tax purpose. Also can we trade in any one individuals account and share profit among each or show it as a fees to other guy for system development?
I think you need to register your firm and declare income that way.
Better thing would be to form a partnership entity and trade. You can approach any CA, they should able to guide you.
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make a firm register it open bank account in that firm name and then trading account in that name simple
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Open 2 different accounts with 2 different brokers.