Tax on Pvt ltd company as compared to individual

Taxation
22

RBI has the list of approved NBFC here. But it says the list is till march 31st 2024
https://rbi.org.in/Scripts/BS_NBFCList.aspx

23

Yes, I heard they applied for NBFC registration but withdrew the application. In that case, it is a private limited company that is doing investments if I understand. If we could figure out how, it would generate more insight.

Meher, you could also check “Rakesh Jhunjhunwala And Associates” - which had a stake in Nazara Technologies.

Ironically, as I read on Nazara, I noticed that the promoter used an LLP to sell his stake to a wealth management LLP, and they held on until the IPO for a good exit!

So it seems using LLPs as an investment vehicle are being done, the details of which would help us clear up a lot of things on how it is possible.

24

From what I understand there are two parts to the RBI guidelines, the two tests to be fulfilled are:

  1. if the company’s financial assets constitute more than 50 percent of the total assets AND
  2. If the company’s income from financial assets constitute more than 50 percent of the gross income.

Also, what I understood through some research is that 1) The RBI Act specifically applies to private limited companies, referencing the Companies Act (2013) and not the Partnership Act (1932) or the LLP Act (2008).

I think you mentioned somewhere that doing trading via a partnership was fine (though not really efficient), but as you said LLP is the grey area.

I really wish the govt introduced the concept of LLC as investment vehicles, or allowed for LLPs to be investment vehicles. This for some reason is not what the RBI wants I believe, why I don’t know.