when u go for seperate Legal Entity

[avnsstp]

Hi,

All I have a requirement like the company has different subsidiary's and they have regestered seperately in one country. So in this shall we go for different le's or single le is enough.

Advanced thanks and regards,
Avnsstp

[C-MOON]

if ur company has started operations in other country and the functional currency of that country is different from this country set of books will change so u have to add that SOB in a separate LE otherwise LEs are advised to be as minimum as possible.

[anusha_rao]

hi
what is legal entity?it allows you track TIN.one answer is clear.
another one is if the sector is different you can have a different legal entity within a country as the tax structure varies.
regards
rao
apps senior consultant
chennai
india

[anusha_rao]

hi
regarding legal entity i want to be clear,if TATA is having different subsidiary companies,you can have different legal entities
regards
rao
apps consultant

[murali95]

HI,

Generally you will go for different legal entity if the taxing requirements differs.
for example if you have business operations in US as well as in India
siince both the taxing requirements and the Govering laws as different
you will go for different L.E....

Others suggestions are always welcome...

Thanks,
Murali.

[jakkasumankumar]

hi,
seperate Legal Entity is to be maintained when the company is filing the tax returns seperately for it. Normally every company will file seperate returns depending on the sectors.
for eg: if a company is having a business of Telecommunications, Manufacturing of medicines. as the sectors are different, they have to file seperate tax returns for each business. In that case, it is necessary to create seperate legal entities.

Suman

[avnsstp]

HI,

Thanks for giving prompt reply so finally when company has regetered seperately and it needs to file the tax seperately eventhough they have under the same companies act then we have to go for seperate legal entity. I hope this is conclusiton. Still is there any clarifications plz reply as early as possible

Thanks and regards,
Avnsstp