Private Limited Company Registration in Bangalore, Karnataka – advantages, process, fees

 

 

If you are planning to setup a private limited company in Bangalore, Karnataka, here we have provided all the requirements laid by Registrar of companies (RoC) along with step by step process for registration of private limited company in Bangalore, Karnataka including fees, capital requirements, documents required, requirement of minimum number of members and directors, process for registration of name, etc.

 

Many startups begin their venture without any proper documentation or company registration. This leads to confusion in addition to a lot of risk of increased liability. Entrepreneurs tend to create a format structure of incorporation of private limited company in Bangalore, Karnataka in order to capitalize on various advantages.

 

Advantages of incorporation of the Private Limited Company in Bangalore, Karnataka

 

Independent Legal entity for Business Continuity

Private limited company is an independent legal entity; separate from its promoter, shareholders or members. Typical purpose of registration of a Private Limited company is continuity of business till eternity. Irrespective of the life of people incorporating a private limited company, it continues to operate through the generations.

 

Easier to raise capital by roping in more shareholders

The Private Limited Company registration or incorporation is the most popular and useful form of business structure among the startups, small and medium size business. The basic purpose with such companies remains the easy introduction of non related people or entities as shareholders as such providing capital to the business without any hassles or personal guarantees. Raising of funds from known associates, other family members is more streamlined. The business, being in the form of a separate legal entity, allows the Company easy access  to borrowed funds from banks and financial institutions

 

Limited Liability of promoters and other shareholders

The Private Limited company incorporation also decreases the risk of liabilities of the shareholders or members of the company, in case of an unfortunate incident of a default, to the extent of capital provided/contributed. This means that the personal assets of any member or shareholders remain untouched.

 

Corporate governance and reputation

Another advantage of having a Private Limited Company is that it reaffirms its legitimacy and attracts talented employees. It is generally believed by the people that private limited companies, being regulated by Ministry of Corporate Affairs (MCA), will have higher corporate governance as compared to other unregistered structures. This also leads to better perception in the job markets and helps in attracting better talent.

 

Trustworthiness

Companies Act, 2013 mandates the registration of Private Limited Companies in Bangalore, Karnataka with the Registrar of companies (ROC). It is possible to check or access the details of any registered private limited on the MCA (Ministry of Corporate affairs) website http://www.mca.gov.in/. Details of Directors and Assets of Company given as security for borrowed funds, documents like Financial Statements, Annual Returns etc of the company are also available on the same website. This creates a transparency for other people investing in the company or even dealing with the company.

 

Dissolution

An underrated advantage of registering as a Private Limited Company in a systematic and planned manner is that it becomes possible to dissolve the same company in a hassle free manner if and when the need arises.

 

Advantages of registration of the Private Limited Company in Bangalore, Karnataka

If you are planning to start a business or startup by incorporation or registration of a private limited company in Bangalore in the state of Karnataka, the registration of such private limited company will be with Registrar of Companies, Bangalore office i.e. RoC – Bangalore. All private limited companies within Bangalore or any other part of the state of Karnataka, is required to be registered with RoC Bangalore.

 

The state of Karnataka is among the leading technology hub in India. It is the leader in IT and ITeS sector investments and exports to other parts of world. It is preferred destination for investment industries like automobile, food  processing, electronics, textiles and heavy machinery. It is the proven epicenter for research and innovation with more than 400 R&D centers. Karnataka is well connected across India and abroad with its extensive road and rail network along with  two international airports. The coastline of Karnataka is more than 300KM with 13 ports including a major port of Mangaluru. The Bengaluru – Mumbai Economic Corridor along with Chennai – Bengaluru Industrial Corridor  has pushed the further economic development of state.

 

Karnataka is among the leading exporter of merchandise in India. It contributes around 5% of total exports of India amounting to about USD 17.4 billion. Karnataka also witnessed a huge inflow of investments form FDI with more than USD 40 billion investments in last 20 odd years. The Pavagada Solar Park with an installed capacity of 2000 MW is the largest solar power generation capacity in the country. The total installed power capacity in the state stands at 28,400 MW.

 

Not only this, as per the latest report by World Bank, Karnataka ranked 17th out of 36 states in terms of ease of doing business. Although, the entire process of registration of private limited company in Bangalore, karnataka is  online however for any queries or clarification, one can visit RoC regional office at Bangalore with address given below

 

Registrar Of Companies (ROC Bangalore)

Ministry of Corporate Affairs (MCA)

Address : ‘E’ Wing, 2nd Floor, Kendriya Sadana, Kormangala, Banglore-560034

Phone: 080-25633105 (Direct), 080-25537449/25633104  Fax: 080-25538531

Email : roc.bangalore@mca.gov.in

 

 

Documents required for registration of Private Limited Company in Bangalore, Karnataka

 

Mandatory documents required for individuals aspiring to become the company’s Directors and Promoter shareholders (Indian nationals)

Clear and self attested scanned copies of:

  1. PAN Card
  2. Identification proof issued by GoI – Aadhaar, Voters’ ID or passport or driver’s license
  3. Six months Bank statement with current address
  4. Utility bills either mobile or gas or electricity with current address
  5. Latest Passport size photograph
  6. Specimen signature – Director’s signature on a blank white paper

 

Mandatory documents required from Individuals aspiring to become the company’s Directors and Promoter shareholders (NRIs)

Clear and self attested scanned copies of:

  1. PAN Card
  2. Identification proof issued by GoI – Aadhaar, Voters’ ID or passport or driver’s license
  3. Six months Bank statement with current address
  4. Utility bills either mobile or gas or electricity with current address
  5. Latest Passport size photograph
  6. Specimen signature – Director’s signature on a blank white paper

 

Proofs for office address for registered office of a private limited company in Bangalore, Karnataka

Clear and scanned copies of:

  1. Latest water bill or electricity bill
  2. Notarised rental agreement in English
  3. Receipt of the latest rent paid
  4. In case of owned property – Sale deed or property deed
  5. NoC from the property owner stating no objection to use property as registered office by company

 

Note:    In case, the director is residing outside India, then the attached supporting documents should be attested by the Consulate of the Indian Embassy and/or Foreign public notary. For complete details, refer to NRI documentation section

 

Here are few issues in documents that lead to rejections while registering a Private Limited Company in Bangalore, Karnataka

 

Name on the PAN – It is commonly seen that name on PAN is not correct. Although, while linking Aadhaar and PAN, lots of anomalies were resolved. However, one need to be double check that name on PAN should be same as we are filing in the company documents. Also a care should be taken that all other proofs that are given should have the same spelling of name as in PAN card.

 

Utility bills should be latest –Any utility bills enclosed for address proof or otherwise should be latest month. At max not older than 3 months. Older bills may led to rejection of application by Registrar of Companies (RoC).

 

No Objection Certificate form Office owner –In case the private limited company is looking to use any premises as their registered office, the no objection certificate (NOC) from the owner of premises is a must. Even if the premises owner is the director or the promoter shareholder in the company, even then the NOC needs to be given.

 

 

Step by Step Procedure for Registration of Private Limited Company in Bangalore, Karnataka

 

The minimum prerequisites for registering a Private Limited Company in Bangalore, Karnataka are as follows

 

  • Minimum of 2 shareholders are required for incorporation of Private Limited company in Bangalore, Karnataka
  • Minimum of 2 directors are required for incorporation of Private Limited company in Bangalore, Karnataka
  • DIN for all the concerned directors
  • Minimum share capital worth Rs. 1 lakh.
  • At least one of the promoters should be a resident of India.

 

Let us understand the step by step process for registration of Private Limited Company in Bangalore, Karnataka

 

STEP 1 : Application of DSC and DPIN

 

The foremost step for all the promoters or would be Directors of a Private Limited Company is to apply for the Digital Signature Certificate and DPIN. The digital signature is an online signature used for the purpose of filing of eforms with Ministry of Corporate Affairs (MCA).

 

  • DIN for 2 Directors

DIN or Director Identification Number is a registration of Directors with Registrar of Companies. Similar to PAN or Aadhaar, it is the mandatory registration required for becoming Director in any Private Limited Company in Bangalore, Karnataka.

 

  • DSC for 2 Directors (Digital Signatures)

DSC or Digital Signature Certificate are the signatures of director that enables to sign any document in the digital form. All documents that are now filed with RoC or MCA are filed online. To file any such documents on behalf of any private limited company in Bangalore, Karnataka, one need to sign digitally, using this DSC.

 

If the directors already have obtained both the DSC and DIN, then they can easily skip to the next step.

 

 

STEP 2 : Filing the Name for the Private Limited Company in Bangalore, Karnataka

The application for the name involves sending 3 different options for your company’s name (of your choice) to the MCA, of which one will be selected. The options of names you send in should be unique and suggestive of the company’s characteristic features.

 

The name of a company is of utmost importance as it sets the tone for your company and forms the first impression of your organisation amongst your customers, business associates and all stakeholders. Which is why you have to make sure you select 3 thoughtful unique options for the name of your company.

 

●        A simple and short name is preferable – You should always go for names that are easy to pronounce as well as easy to remember. Yet the name should be remarkable enough so that it creates a positive imprint of the company in people’s minds.

  • Should be thoughtful and meaningful – You should ensure that the name of the company is not unrelated to the business or lacking meaning. It should fit the company’s branding and reflect the brand values very well.
  • A completely new and unique name is necessary – It goes without saying that you cannot have a name that is already the name of an existing trademark or registered company. of your company should not be identical to an existing company or trademark.
  • A fixed Suffix – The name of the company should always end with the suffix “Private Ltd.” in case of a Private Limited Company.

Offensive/illegal names should be avoided at all costs – You have to ensure that the name of your company doesn’t go against the law. It should not be abusive or against the customs and beliefs of any religion or community to avoid all controversies and legal troubles.

 

STEP 3 : The submission of MOA & AOA

Once the name is approved by the MCA (Ministry of Corporate Affairs), the next step is to draft a “Memorandum of Association” and the “Articles of Association”. Both the MOA and AOA will be filed with the MCA and the “Digital Signature Certificates (DSC)”, as it is mandatory to have those attached with both.

 

Memorandum of Association

Memorandum of Association (MoA) represents the charter of any private limited company in Bangalore, Karnataka. Being a legal document which is prepared while the incorporation and registration of a private limited company, it defines the precise relationship with shareholders and the main objectives along with other objectives for which the company has been formed. Any private limited company can undertake only those activities as mentioned in the object clause of in the Memorandum of Association.

 

Articles of Association

Article of Association ( AoA ) specifies the regulations on basis of which the company will be managed. It not only lay down the duties, rights and powers of management that will manage the company. It may be considered as the subsidiary to the Memorandum of Association (MoA). Articles of Association (AoA) articulates the guidelines that should be followed to achieve the objectives of the company laid down on object clause. Objectives of AoA is bring clarity in the functioning of the company and how the private limited company will interact with its various atakeholders. It primarily contains information related to share capital, transfer of shares, voting rights of the shareholders, the appointment of directors, accounts, an audit of the company etc.

 

Step 4 : Apply for forming a Private Limited Company in Bangalore, Karnataka

Once the name is approved as per step 2, the members or promoters of the company need to apply for registration of private limited company within 20 days of name approval by filing required forms. The drafted memorandum and articles of association as per Step3, needs to be submitted along with the required forms. Also, the Memorandum and the Articles of Association is required to be signed by all the subscribers along with mention of details like father’s name, occupation, address and the number of shares subscribed. This also requires to be witnessed by minimum of one person.

It is important to note that date of signing of Memorandum of Association and Articles of Association should be after the date of stamping, else may lead to rejection by RoC.

To apply for the incorporation of Private Limited Company in Bangalore, Karnataka, you need to login the MCA portal at https://mca.gov.in . The duly filled forms along with all relevant attachments is now ready for submission and can be submitted on MCA portal.

STEP 5 : Receiving the Incorporation Certificate of Private Limited Company

Normally, after the submission of form, it takes around 3 – 5 days to form a Private Limited Company in Bangalore, Karnataka and obtain the Incorporation Certificate. This Incorporation certification is nothing but a proof of the fact that the private limited company has been created in India following all government mandates. It will also contain the CIN number i.e. Corporate Identification Number also referred to as CIN. CIN is a unique identification number, assigned to the company formed under Companies Act 2013, by the ROC (Registrar of Companies) in various states under the MCA (Ministry of Corporate Affairs).

 

Steps to be taken after incorporation of the Private Limited Company in Bangalore, Karnataka

 

  1. Applying for PAN and TAN for the company (within 30 days).
  2. Filing of form INC-22 regarding details about permanent registered office of the company (within 30 days).
  3. Opening of Bank Account after passing a resolution in first board meeting of the company. The documents required for opening a current account for a company are as follows:
  • Certificate of Incorporation of the Company
  • Copies of Company Incorporation documents such as Memorandum and Articles of Association of the Company.
  • Permanent Account Number (PAN) of the Company
  • Board Resolution of Opening and operation of bank Account
  • KYC details for Directors and Shareholders of the Company
  • Initial deposit amount in form of cheque as a capital from shareholders
  1. Infusion of Initial Capital by the Subscribers of Memorandum
  2. Initiating the Books of Accounts for the company
  3. Appointment of First Auditors by Company by board of Director till the conclusion of first AGM.
  4. Registration under Shop and Establishment Act with local authorities.
  5. Applying for Trade License
  6. Professional Tax Registration for Employer & Employee
  7. Issue of Share Certificate to the Shareholders or Subscribers of MOA
  8. Apply for Certificate of Commencement of Business within 180 days of incorporation
  9. Goods and Services Tax (GST) Registration
  10. Trademark Registration

Fees and other charges for registration of Private Limited Company in Bangalore, Karnataka

 

Digital Signature Certificate Cost of

·         Rs. 1250 to Rs.2000 per signatory for the period of 2/3 years

DIN Registration Cost to Register a director for private limited Company

  • DIN Application Fee i.e is 500 Rupees per DIN
  • Stamp Paper for Affidavit charges 20 Rupees per DIN
  • Notary Charges – 50 Rupees per DIN
  • Professional Fee which is charged by Chartered Accountant for Certifying your Application.

Fee for Name Approval for Private Limited Company in Bangalore, Karnataka

  • 1000 per application

Fees for Filing form for incorporation of the private limited Company in Bangalore, Karnataka with RoC

The fees for registration of a private limited company depends upon the Authorised capital of the company.

Sr. No Particulars Calculation Amount is Rs.
1 DIN for 2 Directors Rs. 500 per DIN 1000.00
2 DSC considering 2 directors Rs. 1500 per DSC 3000.00
3 Company name approval Rs. 1000 per application 1,000.00
4 Stamp Papers and notary charges depends on number of affidavit, certification and declarations 500 (approx if requirement is for 2 directors)
5 Company Registration
I Filling of form INC 7 300.00
II MOA 2000.00
III AOA 300.00
IV Form INC 22 300.00
V Form DIR 12 300.00
Total  3,200.00
6 Stamp Duty Charges for MOA, AOA and Form INC 7 (cost varies from state to state) 700 Avg.
Total Government Cost of Company Registration 9,400.00

Note : The charges may vary from state to state. It is only to give an idea about the charges and levies required other than professional charges.

Why Seedup.in

All in all, it is not much of a hassle to get a private limited company registered in Bangalore, Karnataka if you know the complete process. Seedup.in helps you professionally and to not only simplify the process but also guide you with clauses and tips that helps you incorporation of the company think of the long term objectives. Our professionals walk along with the startup and pave the smooth path for successful funding and growth of the company.

 

 

 

 

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