Legal Question in Business Law in India

propritorship legality
what are the basic requirements to operate a proprietor firm.
for a mumbai based entertainment industry production house what legalities to be followed.
can we utilise the fund invested in the firm for another sector apart from entertainment, if so then taxation on earned profit or loss will be counted in which way?

Asked on 4/20/09, 9:57 am

6 Answers from Attorneys

Sumit Mehta S 'n' S Law Offices

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Re: propritorship legality

a proprietorship needs very few legal formalities and the funds of the proprietorship can be used as per the wishes of the propritor and the profits gained from the other sector shall be added into the proprietor's P&L account.taxes will be levied accordingly

Answered on 4/21/09, 6:07 am

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Sumit Mehta S 'n' S Law Offices

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Re: propritorship legality

Answered on 4/21/09, 6:08 am

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Sumit Mehta S 'n' S Law Offices

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Re: propritorship legality

Answered on 4/21/09, 6:08 am

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Aniruddha Pawse Aniruddha.P.Pawse Advocates

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Re: propritorship legality

you can contact the local solicitor's office

Answered on 4/21/09, 2:05 am

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Pranav Desai PD Legal & Associates

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Re: propritorship legality

Yes, you can utilise the funds for another sector. The profit earned from that sector will be clubbed in your current business income and you would be taxed accordingly. Unless, you want to draw a separate P&L account for the same.

Answered on 4/21/09, 2:22 am

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