one person company prototype software
I am ready to develop a humanoid robot prototype. My idea is to set up a one person company, for simplicity. As per form inc-29, “Main division of industrial activity of the company”, will be : Research and Development (73). I will be the sole director and employee. The motors, cameras etc. purchased will be put down as expenses in the R&D a/c. So will expenses of software development. When the prototype is finished, I then plan to sell the company by a 100% stock sale. Therefore the company will need to be converted to a private limited company, because the total cost would be well in excess of Rs.50 lakhs. Along the way the company will not have any significant income.
Does the above plan have any weaknesses or faults?
The software is the core of the prototype. Does it need to be dealt with in any specific way? Do I need to pay myself a salary for software development?
There is no weakness. Please keep in mind that you can convert one person company into private limited company only after 2 years from the date of incorporation of OPC.
LTCG or STCG on sale of shares is required to be paid at the time of sale of Shares.