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Anyone with a private limited company? I had a cou...
# random
m
Anyone with a private limited company? I had a couple of questions regarding opening a corporate/current account + other related tax paperwork.....
s
I can connect you with my CA who does this. Trustworthy person. Let me know if that will help
m
Already have a CA 😀 Was just looking for perspective from a business owner's point of view (specifically Pvt Ltd company since the number of compliances are too damn high).
But thanks though. Will revert back on this.
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p
@magnificent-solstice-42554 I looked at opening a pvt ltd a while back and just did not look worth it at-least till certain thresholds were reached. Feel free to DM me with any questions that you have
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a
Check out Razorpay's X. Or Open Bank.
m
Taking a look....
n
DO NOT EVER, and I mean EVER setup a Private Limited in India. Stick to LLP.
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p
@numerous-zoo-23860 any specific reasons. I liked how LLP's are structured, however a lot of people have told me to use Pvt Ltd at scale rather than a LLP and I never understood their reasoning
m
Folks, please take the LLP vs Pvt Ltd conversation to another thread. Let's leave this thread for replies to my original question and not sidetrack it. Thanks!
c
I concur. Ask yourself thrice before opening a Pvt. Ltd.
It is not business-friendly at all. I'm suffering and to make matters worse, closing a Pvt. Ltd. is more difficult than opening it. It is ridiculous.
If your goal is to just open a bank account and you're the sole owner, go for proprietorship. It is a much better option. Still let me know if you had any specific queries regarding Pvt. Ltd.
m
@cold-river-54395: Thanks, I'll DM you the questions.
a
You need a super CA also you got to become cognizant of all compliances because you are held responsible if any of them are left unmet. I have run a pvt ltd and closed it too. Let me know if I can help.
f
@cold-river-54395 By proprietorship, did you mean something like this - https://cleartax.in/s/sole-proprietorship? Didn’t know about it. Thanks for the information.
c
Yep exactly. That makes things so much easier. Separate PAN not required either.
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l
@magnificent-solstice-42554 Have opened one and closed one in the past. Just opened another one last month. Happy to answer any queries. DM me
c
Hey @loud-glass-33663, is that bank account or Pvt. Ltd. you're talking about closing? If it's the latter, I'd like to know more about it.
l
@cold-river-54395 It is a Pvt. Ltd. (I thought the original query was about Pvt Ltd companies). Apologies if my reply was confusing.
c
I think it was both. I've been struggling with Pvt. Ltd. regulations. I've read about closing it (https://cleartax.in/s/winding-up-private-limited-company) and I found the process discouraging. Is it as tedious as it seems?
a
Instead of closing it, you can sell the company to your CA. If it has losses, it will help them save taxes and they might even pay you some money for that. And they will take care of shutting it down.
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c
Interesting
l
Yeah. So a couple of folks had approached us to buy the company. (Didn’t want to mention this here) - but for some projects, they give it to companies who have been in business for X number of years - but unfortunately, as we were not showing any transactions in the company, it didn’t work out. But that is something to keep in mind - if you are deciding to shut down, let you CA / CS know as early as you can and they can help connect you with someone who would buy the “goodwill” of the company.
But great point with @acceptable-flag-71699 on the company being sold to someone showing losses. That makes sense.
We had closed it quite a while earlier - before all the company scams started in India - even then it was painful. If you want to close it immediately, then it is painful - you needed to actually file a petition in the High Court, etc. We went with the other option as suggested by our CA - the Fasttrack route - in which you don’t show any money coming in / out for a year (we waited two years) and then you can file it in one of the schemes that the govt launches every 2-3 years (maybe it is more frequent now). But everything was handled by the CA. Except visiting him a few times (2 - 3 max) and paying about 15-20K in total, we did not have to do anything else.
c
These are great insights @loud-glass-33663. Thanks a lot.
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l
@cold-river-54395 I also recently closed an LLP (it turns out I close more businesses than I start). Though my partner did all the work for LLP closing - I just signed some forms, I felt the process for LLP closing was more fuzzy than the Pvt Ltd company closure. if you are deciding between the two and don’t mind the extra 10-15K that you may need to pay for compliance with a Pvt Ltd, more CAs and CS firms understand Pvt Ltd better - because it has been around for long and ambiguities are more clear on that front. With regards to LLPs, you may still find different answers when you ask different CAs - hence with my latest venture, I have dived into a Pvt Ltd again. It is a little tedious with everyone (banks, etc) being super careful - but no major hiccups so far atleast. (though we are just 3 months in. 🤞 )
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c
CAs having a better understanding of Pvt. Ltd. is a great point. That's probably why we don't see more LLPs even for small businesses.
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