I want to form my own LLP with my capital for trading.
Which registrations are must if I form my own LLP and trade and invest in shares with my own capital?
Regards
Atul
I want to form my own LLP with my capital for trading.
Which registrations are must if I form my own LLP and trade and invest in shares with my own capital?
Regards
Atul
Do check out the below links to find more about registration related to LLP. We’ve had extensive discussions on this topic in various threads
thanks, I will definitely check this!
Thanks for prompt reply!
First of all, let me tell you that you cannot register an LLP with the objective of trading or investing in shares, even with your own capital, as such activities are considered financial in nature and fall under the purview of NBFCs (Non-Banking Financial Companies).
The Ministry of Corporate Affairs (MCA) and RBI regulations do not permit LLPs to engage in financial services, including stock trading, investing, or portfolio management. Therefore, registering an LLP for this purpose will likely be rejected.
If you wish to trade or invest using your own funds, the more appropriate route is to register a Private Limited Company. This structure is legally allowed to carry out share trading and investing activities, provided you use only your own funds and do not take money from the public or third parties. In such cases, NBFC registration is not required, but your company must clearly state in its Memorandum of Association (MoA) that the activity is for managing surplus funds and not providing financial services.
Additionally, you’ll need company registration with the MCA, a PAN, a current account, and a trading account with a broker in the company’s name. GST registration is not necessary unless you’re providing other taxable services. Avoid LLP for trading; opt for a company structure instead for hassle-free carrying out trading or investing in shares with your own capital. If you are seeking professional assistance, consider consulting professionals like Setindiabiz or a reputable firm in your area.