Can we start LLP/PLC company for doing investment in shares/ mutual funds as NRI/OCP person?

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?

  1. 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?

  2. The current investment will be from our personal funds in an Indian bank account. Is that possible?

  3. Can we repatriate the money in future if we need to do the same? How can we do it, if possible?

  4. What is the taxation on either an LLP or a private limited company?

  5. I learned that there is no corporate tax for LLPs, and partners are taxed individually.

  6. 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?

  7. But we do need to pay wealth tax in the Netherlands for our global wealth. So is the proceeds considered as individual under LLP?

  8. 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?

  9. Can we get any benefits or tax deductions as either an LLP or a private limited company?