Hr, Recruitment, Staffing, Resourcing
Recruitment/talent Acquisition, Career Counselling
Human Resource

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear Cite HR Members.
Request you to pls help me with this query.
Can we register a consultancy business as a Trust/ Society and later change it into Private limited company?
What are the advantages of proprietorship over trust and society? Do we have any tax exemption in case of Trust and Society?

From India, Hyderabad
Dear SAsmitha!!!
My best advice to you is to register your firm as a small scale industrial firm , the advantages are 1. you will be exempted from VAT for 6 years, 2. you can get subsidary of 20% on your electricity bill and several other advantages are there if you register it as a small scale industry . if you wish to getmore details regarding this reply with you contact number and mail id. my gtalk id is sweetadithiyan , you can even come for a online chat

From India, Madurai
Hello Sasmita,
First & foremost, pl get your facts right.
The very 'word' of Consultancy automatically attracts Services Tax & not VAT, etc--so Dr. Karthik's advice becomes impractical.
Also, you haven't mentioned the reasons why you prefer the step you mentioned. If you can give these details, maybe the Forum members can advise you better with full information about your plans.
Also, pl confirm if any Chartered Accountant is involved in this effort of yours.

From India, Hyderabad
The purpose of asking this question was based on the suggestion given to me by a staff at Labour office. I checked with him regarding proprietorship registration and he suggested me to go for a trust as he says we get tax exemption upto 1 crore in case of a Trust. But I am not quite sure if we can run consulting business under a trust because as far my knowledge goes trust gets tax exemption in case its non-profitable and i dont think consulting business comes under non-profitable organization
From India, Hyderabad
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™