The term personal investment company (PIC) refers to individuals who raise money to invest as a group. People work in partnership with the company. The shares and profit ratio depend upon the investment which means more investment results in more profit.
A few questions arise here
- Why people prefer an investment system instead of their own business
- How they can start a personal investment company
Many business ideas come across in your mind when you think to start your business. You can open your own company or can start your business with investment or can make a profit by investing a reasonable amount with investment companies or in stock exchange directly or through a middleman.
Some people prefer an investment idea because they don’t have enough money for starting a new business and many people get benefits from it. People with less investment also get profit. It means now business is not only for rich people but mediocre can also start their business by investing their money in the form of a group.
Advantages of Personal Investment Company
- The tax rate is just 19% which is deducted from your account based on account inflation.
- You can make your family investment company.
- You invest the money of others with you instead of investing their money with others.
- You can do investment in the form of money, property, investment funds, and shares.
- Generally, profitable income is tax-free
- Your company can get tax relief if you pay pension funds with your profit that you get on the investment.
- PIC has importance for traders. Traders lent their profits in the form of investment just for fund retirement purposes. So that they concentrate on their trading.
- If a person can’t afford his own business he/she can invest some of his money in PIC. If he/she needed some money in his hard time PIC gives him/her without any tax and at the retirement time of the investor PIC divides the profit that this company has made with that person’s investment.
How to start a Personal Investment Company?
There are different steps to start a personal investment company
Name of the Company
Give a good name to your company. Before giving the name you should satisfy that no other company has this name that you are giving to your company.
The first thing you must have is a business plan. This business plan must involve 2 main points, one is the estimation of budget, risks, and challenges that you may think that you will face and the second point is all the details about the business. Your investors must have know-how about your business that can be presented with profitability ratios, and about their invested money like where you are investing their money, and what type of business you are going to start with their money.
Incorporate your company by contacting the secretary of your state. Receive the application that you needed for it. Write the article related to the incorporation company and submit it with the application and that you will receive from the secretary of your state in the US. It can only be done after paying a fee to your state as the fee is different in every state of the US.
Hire the Lawyer to legally register your Company
It is better to have a lawyer to register your company with SEC (security and exchange commission) and IARD (investment advisor registration depository). You can’t do all this legal work alone so your lawyer will help you to register your company.
Collection and Investment of Money
You cannot start your PIC without money. All business can be funded by you alone if you have sufficient amount in your bank. Otherwise, you may need to raise funds from investors and get their trust on your company. The more trust you get – the more investment you can raise. You can to vanish their fear of being scammed.
Things you must have
Licenses: series 7, 63 and 65
Finance or business-related degree (it’s optional)
Just by following the process, you can easily register and start your own PIC with and without investors. One can easily run different business operations once it is legally started. Businesses need to put effort into making it successful to multiply their investment with profits.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.