03-06-2007, 04:33 PM
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.
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.
