You cannot carry on trading in shares during office hours
2) carry on trading in name of family member like your spouse or parents
What options available to trade in stock market
We are 2 partners who want to invest some money and start trading in stock market. We don't want to do it from personal accounts as we are already into some job and doing trading through personal account can amount to tax based on our salary brackets. What options are available? Should we form a LLP or some partnership entrity and open a trading account on companies name and start trading? Suggest best options
Asked 10 months ago in Business Law
4 Answers
A partnership firm can engage in share trading. Legal considerations include compliance with securities laws, disclosure requirements, and adherence to partnership agreement terms governing trading activities.
partnership firm can invest in shares market but cannot hold shares in partnership firm's name. Partnership firm can't be a share holder for any company.
a demat account can be opened on the name of LLP or a register company.
Dear client,
For your trading endeavor in India, you might think about setting up a Private Limited Company or a Limited Liability Partnership (LLP). By segregating personal assets from corporate responsibilities, both alternatives offer minimal responsibility. Small firms often choose an LLP because it offers flexibility and fewer regulatory requirements. On the other hand, a Private Limited Company offers a more formal structure that facilitates funding and business growth. The Limited Liability Partnership Act, 2008 governs LLPs in India, whereas the Companies Act, 2013 regulates private limited companies. Following the guidelines set forth by the Securities and Exchange Board of India (SEBI) is necessary in order to open a trading account in the name of the organization.
Hope this helps you.
Yes LLP is option
