Are you looking to register a company in Bangalore? In this read, we’ll reveal the most reputable company registration service provider. We’ll also go over the fundamentals of forming a business entity there.
Types of Company Registration In Bangalore: Overview
If you are looking for a registration of company in Bangalore? There are many options for it. However, leveraging the services of anyone and everyone will just not serve your purpose. You need to have a service provider who is accustomed to the constantly evolving types of company registration In bangalore procedures.
Besides that, you will require the assistance of knowledgeable experts to guide you through the process of registering your company under the appropriate category.
If you are looking for the best legal and compliance provider in Bangalore, Vakilsearch is the ultimate solution. Vakilsearch is India’s largest professional legal tech platform, equipped to handle any and all legal formalities involved in the registration of company in Bangalore process with ease and finesse. Furthermore, it is not without reason that Vakilsearch registers 10% of all Indian companies i.e. one every 9 minutes!
What Is the Company Registration Process?
A company is incorporated through Simplified Proforma for Incorporating Company electronically (SPICe+) with the Ministry of Corporate Affairs (MCA). SPICe+ is an integrated online form. It is cost-effective and saves time while registering a business in India. Additionally, this form is divided into two parts, which must be undertaken to complete the process of company incorporation.
Part A: Reserve the name of your company.
Part B: Includes different applications which includes all the other parts of company registration.
- Incorporation
- Director Identification Number allotment
- PAN/TAN
- EPFO registration
- ESIC registration
- Profession Tax registration (Maharashtra and Karnataka)
- Allotment of GSTIN and
- Opening of bank account for the company
Company Registration in Bangalore
You can get registration of company in Bangalore with 4-steps. You will need to obtain:
- A Digital Signature Certificate Online (DSC)
- A Director Identification Number (DIN)
- Registration on the Ministry of Corporate Affairs (MCA) Portal to check for name availability
- Certificate of Incorporation
Types of Business Structures
As per Company Law, these types of business entities are recognised:
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One Person Company (OPC)
As per Section 2(62) of the Companies Act, a One Person Company is a company with only one member i.e. founder. Further, the founder must not intend to bring in any additional capital from external sources to raise funds.
Early-stage businessmen prefer to register OPCs. It is an organised sector version of a sole proprietorship. An OPC can eventually be converted into a traditional private limited company and hence it’s a natural first step for budding solo entrepreneurs. Additionally, the liability of the member will be limited in this business structure.
Moreover, OPCs are in a way Private Limited Company as per Section 2(68) of the Companies Act, 2013. Likewise, they have the advantage of various exemptions and carry lesser compliance responsibility.
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Limited Liability Partnership (LLP)
An LLP is a legal entity in which each partner’s liability is limited to the amount invested in the partnership. Furthermore, no partner is liable for the liability of another partner. Members benefit from the flexibility of a partnership firm as well as the limited liability of a company. It is ideal for service-oriented businesses with low capital requirements.
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Private Limited Company
A Private Limited Company is formed by a small group of individuals with high aspirations for expansion. It finds legal banking in Section 2(68) of the Companies Act 2013.
It is a separate legal entity from its shareholders, according to the provisions of the Companies Act. It should have a minimum paid-up capital of ₹1 lakh. Similarly, the minimum number of members it must have is two and the maximum number is 200. Furthermore, each member can be a company employee.
A private limited company’s shares cannot be traded openly in the market nor can be transferred without any restrictions.
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Public Limited Company
A public limited company is a legal entity formed under Company Law. These are the high-turnover businesses for whom regular audits are required. To raise funds, a public limited company can issue shares to the general public. Through an IPO it can become a publicly-traded company. Furthermore, a PLC must maintain public transparency regarding its financial position.
Sole proprietorships, partnership firm, and Hindu Undivided Families are other types of business entities (HUF). Though they are not covered by company law.
Benefits of Company Registration
A company incorporation license makes a company trustworthy and enhances its credibility. For example, most people will prefer the One Person Company instead of a proprietorship business because it derives its authority under the sanction of the MCA. Additionally, the following are the benefits offered to registered companies:
- Goodwill
- Protection against a personal obligation
- Easy bank credits
- Higher fundraising ability
- Protection of the business entity’s assets
- Enhanced opportunities to grow and expand at large scales
- Greater stability
How to Choose a Business Structure?
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Initial Capital
Be aware of the setup and compliance costs before company registration. Further, to avoid hassles at the beginning, it’s better to start as an OPC instead of a full-fledged private limited company.
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Number of Partners/Owners
How many people are ready to invest the required initial capital in the business? The number of partners/owners of the business plays an important role in choosing the type of business entity. For example, if you want to have 10,000 shareholders, you cannot opt to incorporate a private limited company.
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Liability of the Business
How much liability are you willing to accept – limited liability or unlimited liability? For example, liability is unlimited in the case of a HUF, sole proprietorship, or partnership. The risk to members’ personal assets is high in this case because members are obligated to pay for any and all defaults or losses in the business.
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Plans to Raise Money from Investors
Since it is not possible to raise funds for an unregistered business. Analyse your future funding requirements and consider how you will meet them.
The Takeaway
With Vakilsearch, you can register your company online in a few simple steps. Besides that, Vakilsearch is well-known for its user-friendly online platform, which allows you to obtain company registration services from the comfort of your own home.
- Further, the dedicated representatives of Vakilsearch will be in constant touch with you right from the start.
- Our team will also verify your documents for validity and apply o for DSC, DIN, and check for the name availability on your behalf.
- Further, our seasoned experts will then draft and file the documents required (MoA & AoA) for company registration.
- Additionally, post-application, our team will also do the necessary coordination with the authorities for expediting your application.
You just need to sit back & relax! As Vakilsearch will ensure you receive your types of company registration In bangalore certificate within just a fortnight.
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