anula

hi, is there a minimum amount that my indian company is expected to earn each year? (i am british)
Also, is there a tax free allowance, or does everyone, earning any amount get taxed on everything?

hemingway

AFAIK (having been told this by our advocate & not a chartered accountant) & I hope Veritas1 will correct me if I am wrong: a private limited company is under no obligation to commence commercial trading. The company must however hold an annual board meeting & file various annual returns as required by the ministry of corporate affairs (MCA). You can visit the MCA website & check that your accounts are being submitted etc if you are paying a professional to submit the necessary returns for you.

As for income tax, do you have a PAN card?

Are income tax returns being submitted on your behalf as a director of the company?

If your company is not "trading" - how could you be earning anything from it?

No earnings must (?) equal nothing to pay. . . . . .

H.

chrisjolly

They have changed the regulations and many of our friends who had an Indian Company mainly for visa purposes have sold. We went into the FRO in Goa and the Ministry in Dehli and they both said the turn over must be 1 crore a year at least. They may be lenient the first year but unlike the UK where you can have a non trading or dormant company it is not possible any more. One friend couldnt give his company away as no-one wanted it. You need a good accountant and Company secretary but unless you are regularly trading then sell it.