Hello @TaxQnA team,
My wife and I, who are NRI/OCI persons, want to invest in mutual funds, stocks, etc through a company or LLP whichever is better option. The only business activity will be to invest our own money for investing.
I have a few questions for you and hope you can help me with this to decide which is a better option, LLP or a private limited company. I read somewhere that for investing it can only be done through NBFC is the main business activitiy is financing, is it correct?
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As I learned, at least one director should reside in India for a private limited company. We can meet this condition by making one of my parents a residing director in India. Then, which do you suggest, an LLP or a private limited company?
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The current investment will be from our personal funds in an Indian bank account. Is that possible?
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Can we repatriate the money in future if we need to do the same? How can we do it, if possible?
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What is the taxation on either an LLP or a private limited company?
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I learned that there is no corporate tax for LLPs, and partners are taxed individually.
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How does it work out as our main tax jurisdiction will be Netherlands where we have our job as well and we need to declare our global income. There is a double taxation treaty so I assume we dont need to pay income tax on our income in the Netherlands, is that correct?
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But we do need to pay wealth tax in the Netherlands for our global wealth. So is the proceeds considered as individual under LLP?
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Do we need to pay both corporate tax on top of short-term or long-term capital gains in the case of a private limited company?
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Can we get any benefits or tax deductions as either an LLP or a private limited company?