Which type of company is good for a option seller

Good day everyone ,

It would be of great help if any experience trader help me out in this as I am totally confused in setting up a firm just to carry the option selling.

Reasons :
My last 3 years profit are 3L/ annum , 5L/ annum , 9L/ annum with capital 10L, 15L , 30 L
This year I am increasing my capital to 50-60 L and expecting a profit of 12-18 lacs

last year I paid heavy tax as with only my salary i am in 30% tax now I want to reduce the tax at least on trading account .

  1. Is it advisable to set up a firm / any other workable alternative with out involving family
  2. if it is advisable what kind of firm should i set up ( LLP / sole proprietary / limited / unlimited )
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Seems one hell of a trader you are!

I am sure, @Jason_Castelino would help you!

Probably others also!

But can you help others by saying/explaining …how you do all this!

So that we can enjoy a great pie from your profits! (Not by taking a part but by creating the pie with same recipe)


I am still skeptical of you & your statement!

This is herculean task to do!

If you are reaping this much profits, why wouldn’t it make sense to consult with CA or investment advisor, rather than a random forum with strangers!

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@Srivishnu_S I consulted CA , hehe pls dont mock i know 5L,9L are peanuts , still I want to reduce the tax outgo in a very much possible legal way .

BTW CA will not tell you which type of company to create , thats why if any experience trader is there who undergone similar cycle and don’t want reinvent the whole cycle myself.

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Ah seems, money is subjective!

Handling…nah…trading with this much money is quite risky for me!

For me this are not peanuts :peanuts: :hushed:

I am student, I won’t even come under any tax bracket :joy::rofl: well you are at 30% bracket :hushed:

Maybe for a working professional this maybe peanuts!

But still raking up this much profits & handling all those money in options is quite a herculian task per se!

I don’t know that… sorry!

I am not that, probably someone in forum may help you!

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Not advisable. Continue as an individual.
Below income of 50 lakhs, it hardly makes any sense to form a partnership firm.
LLP and private limited companies are not allowed to trade in stock market. (Not getting into details)

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Makes me wonder why banks give us loans at 9-12%

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@Jason_Castelino Thanks for kind reply , I am a salaried person my package is around 25LPA , on top of it i am assuming this year profit would be around 12-18 LPA .

my tax outgo will be huge . Any other alternative to reduce the tax.

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It’s huge because of your huge income. Only way to reduce it is to not earn that money. :sweat_smile:

Don’t worry about 30 percent taxes when you can still enjoy with the remaining 70 percent. If you consider 30 percent to be huge, don’t you think 70 is enough for yourself.

I know you didn’t ask me for all this. Sadly there isn’t a legal way in which you can avoid paying taxes.


Did u try Presumptive Taxation?


Haha :joy: True that .

But if i start a company and trade options in that I don’t have to pay any tax and completely legal .

I think One person company will do .

But before starting i want to know from experienced folks anything i need to take care before or after starting it .

Will keep it simple. You can’t incorporate a private limited company with an object clause as trading.
You need NBFC license.
There are a lot of posts here on forum about the same. I suggest you to go through them.

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@Jason_Castelino can you share the link pls it would be of great help .

Coz i follow PR sundar and itsjegan both of them opened companies just to trade .

I have watched couple of videos that he has posted. Most of the things he says are wrong. Even today somebody posted the videos. So much wrong information is there.

That’s why always consult a professional. When you get stuff free on the internet, you do not know how right it is.

Arey. Just google It. And I will tell you what will happen. You will get convinced with links which says you can form a company. Because a person reads what he wants to.
No CS or CA will say you can form a company for trading. The online sites which form companies for 5k may say you can form one.

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Try this link

You can see various topics regarding this…just scroll :upside_down_face:


You can google also.

But this search will probably has tailored answers.

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