Hello fellow Rodinhoods,
I am in the process of setting up my technology consulting business. Initially it is just me and for the same reason I am thinking of setting it up on the Solo Proprietor model instead of a Pvt Ltd company (prefer easy setup and maintenance for now). I have a few questions which I’d like to ask :
a) Going forward, like in the next 9-12 months (FY16-17), I hope to hire more people. Can I postpone the Pvt Ltd model till then, or should I go for it now ? Any advantages for each approach.
b) I would be rendering my services to US based technology start-ups and would get payed in US$. My research says – a current account is all I would need (Sole proprietor model). Is it true ?
c) Is service tax registration mandatory considering the turnover is expected to be greater than INR 9L. I read somewhere that it is not required in case of services being exported, but the sources are not very reliable. Please let me know about this as well.
d) Is hiring a CA recommended or can things be managed by self.
Thank you.
Regards,
Gagan
asha chaudhry
hi gagan,
pls add your twitter handle at the end – it helps me mention you while tweeting 🙂
you might want to reach out to ramanuj with some of your queries – https://www.therodinhoods.com/forum/topics/ask-ramanuj-about-business-laws-how-to-make-money-by-selling-onli
Gagan Bindra
hi asha,
it is @gaganbindra. I’m new here, still learning. 🙂
thanks for the link to ramanuj. I’ll touch base with him.
sandeep varma
Hey Gagan,
Your questions are quite generic at this point in time. Discussing them in the context of your objectives with a suitable advisor would help you get pertinent/ to-the-point inputs.
Below are responses to your queries:
a) Several factors would determine the incorporation structure that best meets your objectives. Whilst its best to discuss this with a legal advisor, this link should help you get started: https://www.nextbigwhat.com/company-incorporation-pvt-ltd-vs-llp-opc-297/
b) It would be an EEFC account, more information on which is available on https://rbi.org.in/Scripts/FAQView.aspx?Id=21.
c) Service tax is levied only when services are provided and received within India. Consequently, services exported from India are not liable to be taxed.
One can register for service tax at any time (i.e. after its incorporation, in the case of a legal entity), but registration is mandatory as soon as the entity’s income achieves the threshold of Rs. 9 lakhs per annum.
d) Its always advisable to seek advice from folks who know how to navigate the fields of Finance and Law.
Gagan Bindra
Hi Sandeep,
Thanks for your feedback. I agree, questions are generic – hope to be more specific with time.