Private limited company Registration in Bangalore
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Private limited company registration is one of the most common business registrations among Bangalore’s small, medium, and large businesses. When choosing a business structure, new businesses and those with higher growth goals frequently opt for private company registration.
A private company with two or more active members and a maximum of fifty is registered. A private company registration must restrict a member’s ability to transfer their shares and have a minimum paid-up capital of Re.1 or any higher amount that may be prescribed at any time.
A public invitation to subscribe for share capital is not issued by a private company registration. The private ltd company registration in Bangalore must include the word “Private Limited” in its name.
The ability to enter into contracts in its name, freedom from public or governmental interference, the absence of the requirement to publish a prospectus, and a distinct legal existence from its members are among the benefits of this kind of corporation.
Additionally, the Start-up India Scheme of the Indian government grants registration benefits to Private Company registrations.
Eligibility
Private limited company registration in Bangalore requires,
- Minimum 2 shareholders
- Minimum 2 directors. At least one must be the Indian resident
- The minimum authorized capital of more than 10k
- DSC for 2 promoters
- DIN of all Directors
- DSC of director and shareholder.
Management of Pvt ltd companies
Shareholders in public limited companies are more numerous; as a result, the decision-making process is difficult.
Private limited companies do not face these issues. Furthermore, with fewer short-term objectives, management can concentrate on long-term objectives and advantages. As a result, their knowledge of the company grows.
Facts and Myths about Private limited company
The process of starting a new business can be overwhelming. Numerous decisions must be made by the entrepreneur. The company’s success is largely determined by its structure, legal identity, capacity for expansion, and other aspects.
To avoid potential dangers and pitfalls, it is essential to take into account all of these factors. Despite the numerous advantages a Pvt ltd company that has Private limited company registration in Bangalore provides to businesses, there are numerous misconceptions regarding this entity.
But don’t worry; we’ve put together this list to dispel any misconceptions or myths that are keeping you from forming a Private Limited Company.
Anyone can register a Private limited company
Most of the time, this is true. However, the Companies Act of 2013 places some restrictions on who can serve as a director. Also, it can have Private limited company registration in Bangalore.
Any company name can be used
No. When choosing your name, you have some leeway, but there are some rules and restrictions that need to be taken into consideration. Also, you can’t register a name that is similar to a registered trademark or a company name.
A private limited company can have registration at only commercial places
It is incorrect for many business owners to believe that Private Limited Companies cannot be registered in residential or rented locations.
You can show either your own home or a rented one at the company’s registered office address.
Providing that the company paints or affixes its name and registered office address in legible letters outside of each office or location where it conducts business.
To become a Private Limited Company, a Venture must have a certain turnover or sales level.
This is false; a Pvt ltd company can be formed from the ground up and can have Private limited company registration in Bangalore. Moreover, the venture is not obligated to have sales or turnover even after forming a Private Limited Company.
Registering and maintaining a Private Limited Company takes time and money.
Quite the opposite. If all the necessary paperwork is in order, the process of incorporating a private limited company takes less than three business days.
Additionally, it was believed that having Private limited company registration in Bangalore would be extremely costly due to the Rs. 1 lakh paid-up capital requirement.
Since that requirement no longer applies, the process of incorporating a company is also cost-effective. Naturally, running a business can come with ongoing expenses. These will vary in size depending on the kind of business.
In addition, Shoplegal can assist you in getting Private limited company registration in Bangalore in a hassle-free and cost-effective manner.
Shares in the company must be owned by the company’s directors.
While a director directs, controls, or manages the company’s affairs, shareholders invest in the business.
Majority of Pvt ltd companies that have Private limited company registration in Bangalore have shareholders and directors who are the same person. However, not all directors are required to hold shares in the business.
After registration, changes in Private limited companies are tough
Once more, this is not the case. One of the most adaptable business structures available to start-ups and entrepreneurs is the private limited company.
Even after having Private limited company registration in Bangalore; following the law, you can modify its capital, shareholding, directorship, business scope, office address, and other aspects as necessary.
Shareholders’ and Directors’ meetings are necessary at regular intervals
Yes, there should be at least four board meetings per year, with no more than 120 days between meetings.
Additionally, every Pvt ltd company having Private limited company registration in Bangalore must hold an Annual General Meeting annually. In the interim between the annual shareholder meetings, an extraordinary general meeting can be called to address urgent issues.
All of the aforementioned meetings are only for business purposes and can be held in the normal course of business. Meetings for a Private Limited Company’s legal compliance maintenance are not difficult or time-consuming.
As a result, the choice of a Pvt ltd company having Private limited company registration in Bangalore as a means of conducting business should not be hindered by any meeting, whether it is a Board Meeting, an Annual General Meeting, or an Extra Ordinary General Meeting.
A Private limited company is not ideal for Start-up
On the other hand, a private limited company’s structure is advantageous for new businesses.
The features of a Pvt ltd company that can get Private limited company registration in Bangalore are better suited to start-ups because they make the business more sustainable, even though this myth probably originated as a result of higher costs and requirements for compliance.
In addition, investors prefer this business structure over a partnership or sole proprietorship for seed funding.
Shareholders and investments in other Private Limited Companies are prohibited for Private Limited Companies.
A business is regarded as an “artificial person.” As a result, once it is established, it will be able to purchase shares of another Pvt ltd company that can also get Private limited company registration in Bangalore.
It is difficult to sell the Private Limited Company and transfer shares.
The securities of a company can be freely transferred, despite some restrictions imposed by the Articles on the transfer of shares in a Pvt ltd company that can get Private limited company registration in Bangalore; making it simpler to subscribe, change ownership, or leave the company
Because the personal assets of the owners are separate, there is no confusion regarding the division of cash because everyone will receive the amount that is proportional to the shares they hold. The shares and the book of accounts made it simple to determine the value of the company.
In contrast, the credibility of Pvt ltd Company which has Private limited company registration in Bangalore is higher than that of any other business structure, making it easier to sell the company.
Maintaining an internal legal team to ensure compliance with the law costs money.
This isn’t reality, Pvt ltd Company that has Private limited company registration in Bangalore requires extremely insignificant compliance of yearly roc filings, bookkeeping and duty filings.
These services are available to you at a low cost. We take care of all of your compliance requirements, allowing you to concentrate on expanding your business.
Registration process
Private limited company registration in Bangalore follows the steps below.
Document collection and a straightforward checklist will be provided by a compliance manager to you. For verification, you must complete that checklist and submit it along with your documents.
Your documents will be checked by our team of experts before the process moves on. Throughout the process, the compliance manager assigned to you will keep you informed of the progress of Private limited company registration in Bangalore.
Name Approval – Once your documents and checklist have been submitted, we will apply your digital signature and then approve your name of Pvt ltd Company that can have Private limited company registration in Bangalore. You have the option of up to two names.
Names ought to be original and evocative of the business of the Company. We will proceed with Part A of the SPICe Plus form to apply for a name for your private limited company.
Registration: The Memorandum of Association (MOA) and Articles of Association (AOA) will be drafted by us. Along with the subscription statement, we will submit the incorporation documents to the MCA via part B of a form called “SPICe Plus (SPICe +).”
When the forms are submitted for Private limited company registration in Bangalore, MCA typically approves them within 4-5 days and issues an Incorporation Certificate to the CIN. PAN and TAN are allotted simultaneously. After that, you can move on to opening your company bank account.
Amazing features of Private limited company
A company having Private limited company registration in Bangalore has the following amazing features.
Limited liability
- In a private limited company, only a small number of shareholders or members are liable.
- It signifies that shareholders will not be required to sell their assets in exchange for payment if the business experiences a loss in any circumstance.
- Only the amount of the subscribed shares or the guaranteed amount they have agreed to pay will be liable for repayment.
Perpetual succession
In legal terms, the company that has Private limited company registration in Bangalore will continue to exist even if one or more of its members become bankrupt or die. This is known as perpetual succession. The existence of the business will never end.
Types of Private Limited Companies
The liabilities of its members can determine the types of private limited companies: Also it can have Private limited company registration in Bangalore.
Limited by shares
The members’ liability is limited to the unpaid portion of their shareholdings to the company in this instance.
Limited by guarantee
The members guarantee to pay a certain amount if the business is wound up caps the liability.
Unlimited liability
Members’ assets can be sold when the company is wound up due to their unlimited liability.
Conclusion
The future of a business is heavily influenced by the structure it chooses. Before making this choice, you need to make sure that you take into account every facet of your business.
A Pvt ltd company that has Private limited company registration in Bangalore, like other business structures, has advantages and disadvantages, but it offers more safety and certainty than any other structure.
Because its credibility is higher than that of the other structures, it is organized and capable of obtaining bank loans, attracting investors, and raising funds.
Therefore, before settling on a business structure for the incorporation of a company, one should not ignore this structure because of some of the myths and regulations which surround it. Instead, they should make an educated decision.
