Taxation while being salaried and starting my private ltd company

Hi, I am a salaried person and had little side income from the various platforms through Paypal as payout and Adsense mainly… now I want to scale my side income by starting my own company with friends and family & eventually hire some folks. I plan to do diversified online business through websites monetization and experiments to trial & error see where it goes also might do traditional business ( offline ) as my mom is interested in it.

I want to what things should I keep in my mind and what should be the ideal process or framework.

how would my taxation and legalities look like after this? I read that director of a company cannot file individual it. also companies taxation would it be a presumptive tax on an early smaller stage?

Thanks
AK

@Aishwarya_Shah can you help with this?

Hey @Aakash

Few things to keep in mind while incorporating a Private Limited Company are as under:

  1. There should be at least 2 directors and 2 members
  2. Both directors/ members need to have a DSC (Digital Signature Certificate)
  3. Application for name reservation is to be done first, once its approved, 5 forms need to be filed which consist of the information regarding the directors, the proposed company, etc.
  4. Certification from a practicing CA/CS/CMA/Advocate is required

Quicko takes care of all these procedures. You can learn more here:

Taxation: A director can file ITR as an individual, but they can not opt for ITR-1. About presumptive taxation, you can opt for the same as long as your turnover is up to Rs 2 crore and declare at least 8% of the turnover as profit (in case of non-digital transactions) and at least 6% of the turnover as profit (in case of digital transactions).

Compliances after incorporation: Certain mandatory annual compliances are to be made every year by a company. You can read about them in detail here:

Hope this helps!