Should I register my tourism office?

[love]

AOA

I wanted to start a office of tourism. for that i need licence. Should I register my company? or I can get the license without registering it.

Also a very basic question[I] if i run office it will be a company or just an office.

Plz help.
All your suggestions are welcome. waiting...thanx in advance

[accountant1]

if you want to start as a Private limted companey or public then you have to register it with SECP

[love]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by accountant1</i>
<br />if you want to start as a Private limted companey or public then you have to register it with SECP
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Thanx bro for your reply. What If I am a single owner of the company i.e, Sole Proprietorship. I have heard that Sole Proprietorship companies dont need to register.
waiting..

[accountant1]

if YOU WANT name of Private Limited with your companey For example Love private limited
then you have to register it with secp ,, otherwise you can open any small companey without registeration

[love]

again here..Can you tell me the difference b/w partnership and privated limited firm..
waiting

[love]

bro, i need more help. like sole proprietorship, partnership also dont need registration as far as i dont need the name of private limited or public limited. am i right?
thanx

[kamranACA]

Dear,

It is not a primary question that which company you should get registered and what sort of set-up you would need to run the business.

Just visit the tourism department and ask their requirements for granting license to operate this business. Once you get the list of requirements, then it would be easier to focus on the set-up/structure you may need. I can advise you the best structure that would suit your conditions in this matter, if you can list down the requirements for grating the license.

Incorporating the business as a private limited or public limited company is subject to fullfilment of so many corporate and taxation requirements which you can curtail down by simply starting with as sole proprietor or partner in a partnership or upto the maximum, by incorporating a small company or single member company, if it would be feasible in the circumstances.

For instance, taxation rate for private limited and limited companies from the year 2007 would be 35 percent while the tax rate for indvidual sole proprietor is much lower as it is applied depending upon income level which ranges form 0.5 percent to maximum of 25 percent in case the hieghest income slab of above 1,300,000 Rupees. The tax rate for small company is 20 percent on taxable income without any slabs.

Further, the audit and filing requirements would be lesser if you do not incorporate a company. Moreover, requirements like withholding of taxes, social security and employees' oldage benefits etc (depending upon staff number) would also be less irritating though not completely ruled out.

The major demerits of working as sole proprietor or partnership are the narrower legal status as a legal business entity and the unlimited liability of the owners/subscribers. Owner will have to be the central man without any representation of an artificial judicial person. However, even in companies, there are so many requirement for directors and in many cases they have to provide personal guarantees.

Hope you would now better concentrate on the licencing requirements.

I would be available to you for clarifications that you may need while you would proceed in setting up the business.

Thanks.

Kamran.

[love]

Thanks alot for your mail. I have the requirements. I have decided not to go for private limited or Public limited. I am going to start business in partnership. so one of their requirement is in case of partnership a copy of partnership deed and certificate of registration duly verified by the registrar of firm and other is a balance sheet showing assets and liabilites duly verified by a firm of chartered accontant.
Now my question is that if I am just starting my business then how can I make a balance sheet[?] because I think it becomes at the end of the year.
Thanx in advance for your reply...

[Abdur.Rehman]

For the purpose of fulfilling the requirements of another institution, like banks, or government institutions, u can make a balance sheet on any date...
Like most of the banks ask companies of an audited balance sheet before granting a loan. Its not that the companies wait till year end. They make a balance sheet from the start of their financial year upto the date at which they make it.
But the auditor will specify in his report that, it is a special purpose audit.
So, u shud incorporate a partnership ASAP, continue one month of operations. Make a profit/loss account for that one month and balance sheet at the end of that month and submit it...

[kamranACA]

Dear,

The clarification provided by Abdur.Rehman is of importance to you.

The financial statements as per IAS 1 include following components

Balance sheet
Profit and loss account
Cash flow statement
Statement of changes in equity

The last two are needed for listed companies or for subsidiaries of listed companies.

Whenever financial statments are prepared, profit and loss account shows the financial results and is based upon a specified period i.e. for a month, quarter, half year or year.

Balance sheet does not show the financial results, it infact shows the financial position and is focussed to a speceific date. The financial position on any specific date.

So, even if you have not performed your business for a single day, you can prepare Balance Sheet (but you cannot prepare profit and loss account as no business is conducted).

In case u have not performed the business transaction and there is no profit and loss account, you can even then prepare the balance sheet by showing the assets and liabilities/capital injected by you on any specific date.

Such balance sheet will show, on asset side any Cash in hand, cash at bank, any fixed asset acquired by you or injected by you as part of capital, any other asset as inventories, unconsumed stationary and refundable paymanets to goverment. Partnerships can even show deferred cost as an asset that is not allowed to companies after change in Companies ordinance.

On liabilities side, such balance sheet will show first of all your capital that is a notional figure. Capital might have been injected on asset side as cash or any other asset. Apart from capital, there could be some liability against any asset purchased or invetories acquired/purchased etc. Any liability towards govermental agencies can also appear on balance sheet if it exists.

These all assets and liabilities have nothing to do with the preparation of profit and loss account.

However, such balance sheet will not show any amount of accumulated surplus/deficit as no business has been yet conducted.

You can get such balance sheet prepared and audited by CAs based upon your record and actual balances appearing in your cash book and general ledger and can submit to the relevant authorities.

Hope the matter is clarified.

Best regards.

Kamran.

[love]

Dear All,
Special thanks to all "accountant1", Kamaran and Abdur Rahman, With the help of you guys I have cleared most of my concepts. Now I am in the process of registring my business. I will let you know if I need anything more to ask from you.

Thanks and Regards