26 September 2016
dear sir
I want to register a construction company in single director or owner please suggest me which one is best for operating and without hesitation headache tax properties and other benefits of company what is best for register
one person company or proprietorship company which is best.?
26 September 2016
The followings are major points which you need to analyse to take the decision 1. Liability: A sole proprietorship suffers from “unlimited liability” which means that if the business incurs losses the assets of not only the company, but also the owner, may be used to pay off this debt. An OPC, on the other hand, is a separate legal entity and hence the owner has a limited liability in case the business suffers a loss. 2. Succession: For the purposes of succession In the case of sole proprietorship, succession can only take place through an execution of a Last Testament and Will, which may or may not be challenged in a court of Law. An OPC needs to have a nominee designated by its member. The nominee should also be a natural born citizen and resident of India. The nominee shall, in the event of the death of the member, become a member of the company and shall be responsible for the running of the company. 3.Taxation: Taxation process is different for a sole proprietorship as the income of the company is treated as the income of the individual who is the owner and he is taxed accordingly (As per Slab Method). An OPC, by the virtue of being registered as a Private Limited Company, shall be subject to taxes accordingly. There is no separate tax bracket for an OPC and it shall be taxed in line with the provisions of the Income Tax Act for the Pvt. Ltd. Company. 4.Compliance: A sole proprietorship will only need to get its accounts audited under the provisions of Section 44 AB of the Income Tax Act, i.e., in the event that its turnover crosses the specified threshold. An OPC has to file Annual Returns and meet other compliances of a Private Limited Company and would also have to get its accounts audited in the same manner. 5.Conversion: A sole proprietorship, may remain one no matter what its revenues are but in case of An OPC must convert itself into a private or public limited company the moment it has an average turnover of over Rs. 2 crore for three years or a paid-up share capital of over Rs. 50 lakh. By considering above points you can easily take your decision. Thanks.
26 September 2016
thank you sir
please can you clear taxes for sole proprietorship and OPC
and liability differences between OPC and sole proprietorship
26 September 2016
In Sole Proprietory Your Income tax is according to Individual Slab Rate that is (10% to 30% Respectively) whereas, in OPC the rate of tax is 30% Flat. Thanks.
26 September 2016
i am a civil engineer i want to start a construction company in my town, i have 5 years experience in construction field, and i confused to how to start with out any botheration in future that's why i requesting you please suggest me what and how to start & operate a construction company fluently without any problem any risk, please suggest me. Thanks & Regards
26 September 2016
For My Opinion Proprietory is the best option and as you have great 5 years experience in this field so you will get success in your career. For any further detail information you can contact me. Thanks.
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