Registering a company in Bangalore, India’s vibrant IT hub and start-up hotspot, offers entrepreneurs an array of opportunities in a business-friendly environment. With its access to a highly qualified workforce and advanced infrastructure, the city attracts entrepreneurs from various domains. Starting a business can be a thrilling journey, and choosing the right business structure is a critical first step. In Bangalore, registering as a Private Limited Company is a popular choice for entrepreneurs due to its numerous benefits, including limited liability, perpetual succession, and more.
Scope of Company Registration in Bangalore
Bengaluru, with a population of over 10 million people, is one of the fastest-growing cities in India. It is a prominent IT hub that offers various opportunities to entrepreneurs from different parts of the country.
One of the main advantages of setting up a business in Bengaluru is access to a highly qualified workforce composed mostly of tech-savvy professionals. The city also boasts of advanced infrastructure and business-friendly laws, which create a conducive economic environment for start-ups.
In addition, Bengaluru hosts world-renowned tech companies such as Amazon, Google, and Microsoft, demonstrating the city’s global appeal.
Moreover, Bengaluru is a well-established start-up hotspot that has been attracting new talent from across the country for years. All these factors indicate that the potential for company registration in Bengaluru is enormous.
Bangalore’s cutting-edge infrastructure and favourable business laws form a sustainable economic framework for start-ups. Moreover, it is home to world-class tech companies luring fresh talent across the country and a well-known start-up epicentre. There is immense scope for new company registration in Bangalore.
What are the Different Types of Company Registration in Bangalore?
Private Limited Company: Private Ltd. Company is a separate legal entity and features limited liability protection for its shareholders. It can have at least two and at most 200 shareholders. Private limited companies are more complicated to set up and manage but offer more credibility, access to capital, and growth opportunities.
One-Person Company (OPC): A one-person company (OPC) is a kind of private limited company that has only one owner. It has the benefits of both a sole proprietorship and a private limited company, such as limited liability protection and easy management.
Public Limited Company: A public limited company (PLC) is a type of corporate structure that can sell its shares to the public through an IPO. It needs at least seven shareholders to start and has to follow more rules and regulations than other business structures.
Section 8 Company: A non-profit company (NPC) is a company that works for a good cause, such as charity, education, religion, or social welfare. It can get some tax breaks and benefits from the government.
LLP (Limited Liability Partnership): An LLP is a business structure that has the benefits of both a partnership and a private limited company. It protects the partners from being personally liable for the debts of the business and has fewer rules and regulations to follow than a
Documents Required for Company Registration Procedure in Bangalore
- PAN or Permanent Account Number Card details of all the prospective Directors and Shareholders
- Aadhaar Card details of all the Directors and Shareholders
- Proof of identity and address, such as Bank Statement or Electricity Bill of all the potential Directors and Shareholders
- Proof of company address such as Electricity Bill or Water Bill or Phone Bill
- Rental Agreement or Lease Agreement if the company premises are rented or leased
- Driving License or Passport or Voter ID card of the Directors or Shareholders.
Requirements for Company Registration in Bangalore
- The company must have a unique name, i.e. not similar to an already registered company name or trademark.
- The company must have the minimum directors (One director for OPC, two for a private company and three for a public company).
- Foreign nationals can be directors of the company, but at least one director must be an Indian citizen.
- All the directors must have a Director Identification Number (DIN).
- The company must have the minimum members (One member for OPC, two for a private company and seven for a public company).
- All the directors and shareholders must have a Digital Signature Certificate (DSC) to sign documents and forms.
- The company must have a registered office address in Bangalore.
- The company must prepare its Memorandum of Association (MOA) and Articles of Association (AOA).
Registration of Company in Bangalore
Digital Signature Certificate (DSC)
The first step involves obtaining Digital Signature Certificates for the proposed directors of the company. DSC is essential for electronically signing the documents required for company registration.
Director Identification Number (DIN)
Each director needs a unique identification number called DIN. It’s obtained by applying online with the Ministry of Corporate Affairs (MCA).
Name Approval
Selecting a unique name for your company is crucial. You’ll need to apply with the MCA for name approval, ensuring it’s not similar to any existing company names or trademarks.
Incorporation Documents Submission
Once the name is approved, the next step is to prepare and submit the incorporation documents, including the Memorandum of Association (MoA) and Articles of Association (AoA), along with the address proof of the registered office, and other necessary declarations.
Application for PAN and TAN
Along with the incorporation process, you’ll also need to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your company.
Incorporation Certificate
After reviewing your application and documents, the MCA will issue a Certificate of Incorporation, officially recognising your business as a Private Limited Company. This certificate includes your company’s Corporate Identity Number (CIN).
Opening a Bank Account
With the Certificate of Incorporation, PAN, and other relevant documents, you can open a corporate bank account for your company
FAQs
Benefits of Registering a Private Limited Company in Bangalore?
- Limited Liability: Shareholders are only liable to the extent of their share capital, protecting personal assets.
- Perpetual Succession: The company continues to exist, regardless of changes in ownership or management.
- Separate Legal Entity: The company operates as a separate legal entity, providing credibility and professionalism.
- Equity Raising: Easier to raise capital through the sale of shares.
- Tax Advantages: Potential tax benefits and deductions that could be more favourable than other business structures.
What is the limit of one person's company?
If you have a small company with a turnover of less than Rs. 2 Crores and capital of up to Rs. 50 Lac, you can choose to register it as a one-person company (OPC). An OPC is a type of company that can have more than one director but only one shareholder.