Bangalore’s industries encompass a variety of heavy and light manufacturing, as well as high-tech service sectors. Industries like automobiles, mining, steel production, and cement making are common in Bangalore while IT services such as telecommunications, aerospace industry, biotechnology research & development (B&R), banking, and financial institutions also thrive in the city. Due to the availability of a highly skilled workforce, favourable economic framework, and easy accessibility to cutting-edge infrastructure, it is known as a start-up headquarters in India. Hence, Bangalore is a popular choice for private limited company registration amongst new entrepreneurs since it is home to many world-class tech companies and the fastest-growing city in India. In this article, we will discuss everything you need to know about Private Limited Company Registration in Bangalore, from how to register a company in Bangalore, to the documents needed for new company registration in Bangalore, and everything else.
Why go for Company Registration in Bangalore?
For founders, it is important to conduct extensive research and analysis of the competitive landscape and the different types of business structures available before choosing private limited company registration in Bangalore. While the Ministry of Corporate Affairs (MCA) governs the process for company registration process Bangalore, one can go for Private Limited Company Registration in Bangalore (Pvt Ltd), One Person Company registration in Bangalore (OPC), Limited Liability Partnership (LLP), or Public Limited Company depending upon the suitable structure and future business plan. OPC registration or LLP registration will be ideal structures for a close group of people with minimal external contribution. Whereas Pvt Ltd is considered most favorable due to features like ease in raising/borrowing funds from outsiders, accessibility to foreign parties, limited liability of owners, and clarity in management and ownership. Let’s take a look at the process, fees, and requirements for company registration in Banglore.
Requirements for Company Registration in Bangalore
Private Limited Company Registration in Bangalore is completely online and paperless. The following are the requirements for new company registration in Bangalore:
- The proposed company must have a minimum of 2 directors. And at least one director must be a permanent resident of India.
- A minimum of 2 shareholders is a must.
- The proposed company needs to have a registered office address in Bangalore.
- The authorized capital of INR. 1,00,000 is a must. (Pro Tip: There is no limit on paid-up capital however it is advisable to keep the paid-up capital more than the face value of shares of the company.)
- The company must have a unique name.
Process for Private Limited Company Registration in Bangalore
You must be wondering how to register a company in Bangalore. For new company registration in Bangalore, forms are filed online through the MCA portal. The Central Registration Center (CRC) processes them after submission. Following are the steps for Company Registration in Bangalore:
- Apply for the Digital Signature Certificate (DSC) of all Directors and shareholders,
- Apply for Name Reservation of the proposed company in RUN (SPICe+ Part A form). You need to register on the MCA website first to be able to access the form.
- Drafting and filling of web forms i.e, Part B of the SPICe+ form for company incorporation, Agile Pro, SPICe+AOA(Article of Association), SPICe+MOA (Memorandum of Association).
- Payment of company registration fees and stamp duty on the MCA portal for further processing of an application.
Please keep in mind that all the documents required for Company Registration in Bangalore should be recent and not older than 2 months at the time of private limited company registration. Below is the list of documents necessary to register a new company in Bangalore:
In the case of a director/shareholder who is an Indian National:
- Self-Attested copies of PAN and Aadhar of all the directors and shareholders
- Self-Attested Proof of Identity i.e, Voter ID/Passport/Driving License
- Passport size photograph
- Self-Attested Address Proof i.e, Mobile Bill/Telephone Bill/Electricity Bill/Latest Bank Account Statement not older than 2 months
In the case of a director/shareholder who is a Foreign National:
Notarized and apostilled proofs should be provided in the case of a foreign director/shareholder:
- Passport size photograph
- Proof of nationality i.e, a copy of a passport
- Address proof i.e, Driving License/Bank Statement/utility bill
Documents for Registered Office
- Business address proof i.e, Electricity Bill/Telephone Bill/Water Bill/Gas Bill
- Copy of Rent Agreement in case of rented property
- No objection Certificate from the owner of the Property
- Self-attested copies not older than 2 months
There are 2 types of pvt ltd company registration govt fees. Stamp duty is the first one which is based on authorized capital and the state of the company registration. And another one is MCA form filing fees which are as per slab based on authorized capital. Government fees start from INR. 2,020 for a private limited company with a minimum authorized share capital of INR. 1,00,000 in Bangalore. In case someone wants to apply for a particular name for a proposed company, fees of INR. 1,000 is applicable for RUN form filing. All the government fees are paid online on the MCA portal.
Benefits of company registration
Registering a company comes with several benefits, elevating its legal status, credibility, and overall operational effectiveness. Key advantages include:
- Establishing Legal Identity: Affording the business a distinct legal identity, shielding the personal assets of its owners.
- Building Credibility and Trust: Enhancing credibility among stakeholders, cultivating trust and confidence.
- Limited Liability Protection: Additionally, company owners get to enjoy the benefits of Limited liability. Limited liability insulates them from personal financial risks.
- Facilitating Access to Funding: Streamlining access to investments and loans by enhancing transparency.
- Ensuring Perpetual Succession: Securing business continuity, even amid changes in ownership.
- Availing Tax Advantages: Offering eligibility for tax benefits, leading to reduced overall tax liabilities.
- Simplifying Ownership Transfer: Allowing for smooth transfer of shares, ensuring seamless transitions.
- Amplifying Market Presence: Empowering participation in tenders, contracts, and diverse business activities.
- Boosting Employee Attraction and Retention: Increasing appeal to job seekers, aiding in talent attraction and retention.
- Providing Legal Safeguards: Shielding business name, logos, and intellectual property from unauthorized use.
Subsidiary Company Registration in Bangalore
Foreign Direct Investments (FDI) are instrumental to the economic growth and development of any country. Keeping the same in mind the Indian government allows NRIs and foreign nationals to invest in India by permitting 100% FDI through automatic routes in most industries. We see offshore offices of many MNCs in Bangalore due to the same reason. Some of the benefits of registering a subsidiary in Bangalore, be it a wholly owned subsidiary or otherwise, are permanent establishment in a resource-rich environment, easy and online registration process for Private Limited Company Registration in Bangalore, strategic control over operations, and expansion with limited liability. NRIs or Foreign Nationals can register a new subsidiary private limited company following the same process as mentioned above in no time.
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In summary, Bangalore’s thriving industries, encompassing traditional manufacturing and high-tech sectors, make it a prime location for entrepreneurs. Opting for Private Limited Company Registration in Bangalore offers numerous advantages, given the city’s economic prowess, skilled workforce, and technological infrastructure. Private Limited Company structure is preferred for its benefits such as ease in fundraising, limited liability, and clear ownership structures. Foreign investors can also capitalize on Bangalore’s appeal by registering a subsidiary, leveraging strategic control and limited liability. Choosing Private Limited Company Registration in Bangalore aligns businesses with the city’s economic dynamism, providing a solid foundation for growth and success in this rapidly developing hub.