Since industrialization is a component of industrial development in India, company registration holds a significant amount of significance. Although the idea of registering a company seems ideal for expanding and diversifying a business, the most ambiguous question is how to register a company in India.
Before responding to the aforementioned inquiry, let’s examine the number of registered and operating businesses in India.
In September 2022, the launch of version 3 of the new MCA portal coincided with a general decrease in new registrations of 6.42 per cent compared to the previous month. The portal’s system flaws could be to blame for the decline, according to several industry experts. Company secretaries in a variety of cities were seeking exemption from late fees for delayed filing due to errors on the new portal, despite the government’s assertion that the portal was operational.
But before we get into that, let’s talk about a fact about company registration: the process for registering a company varies depending on the type of company, like a private limited company, a public limited company, an OPC, an LLP, and others.
Types of Companies
Here are some types of Companies.
Private limited companies
A private limited company is one whose Article of Association (AoA) prohibits the public from subscribing to the same and limits the transfer of shares, as stated in Section 2 (68) of the Companies Act of 2013. In a nutshell, it is a privately held company that typically belongs to non-governmental organizations.
Benefits
- After getting Company registration in Bangalore, because of their limited liability, its members are protected from having to pay more than the nominal value of their shares.
- A private limited company does not require any minimum capital to be established.
- A private limited company will continue to exist even in the event of bankruptcy, member death, or other unforeseen circumstances due to perpetual succession.
- Allow promoters to raise equity funds from private equity firms, the stock exchange, and other sources.
- As a distinct legal entity, the company with Company registration in Bangalore and its members are not subject to the same liability.
Requirements
There must be at least two members and two directors for Company registration in Bangalore.
- Shareholders and directors might be the same thing.
- India-based residents are required for at least one director.
- You’ll need a Director Identification Number (DIN) for Company registration in Bangalore.
- There will be a need for a Digital Signature Certificate (DSC).
Public limited company
A public limited company is defined by the Companies Act of 2013 as one that permits the public to purchase shares. In addition, an individual can acquire their stock privately or through trade.
Benefits
- The unsystematic risk is dispersed when shares are transferred or sold to the public.
- Enables it to raise capital by making a significant portion of its share available to the general public.
- Because limited liability is one of its advantages after getting Company registration in Bangalore, do not impose debt on its members.
- Compared to a private limited company, loans are easier to obtain.
Requirements
- There must be at least three directors for a public limited company to be formed.
- Digital Identification Number (DIN) for Directors is necessary for Company registration in Bangalore.
- At least one director must sign a Digital Signature Certificate (DSC).
- MoA and AoA documents, such as DIR -12, INC-7, and INC-22, are required for Company registration in Bangalore.
- An application that identifies the primary goal of the company.
OPC
According to Section 2 (62) of the Companies Act of 2013, an OPC is a business form with a single member. Additionally, a single promoter has complete control over the company under this model.
Benefits
- A company with Company registration in Bangalore has the same rights as a person because it is a separate legal entity: it can enter into a contract, sue or be sued, etc.
- As a result, perpetual succession will continue to exist even if its members become bankrupt or die.
- Ideal for the incorporation of a small company.
- With a Company registration in Bangalore, companies are simple to manage and give you complete control.
- Provide the company with tax flexibility.
Requirements
- The Article of Association (AoA) and Memorandum of Association (MoA) of the company.
- Director’s DIN is necessary for Company registration in Bangalore.
- e-MoA and e-AoA, if neither is available as PDFs.
- Certification issued by a professional to demonstrate compliance and conformity
- Forms INC-9 and DIR-2 contain the director’s declaration and consent.
- In the event of a member or director’s death, a nominee must be chosen.
Partnership firm registration
It is a type of business structure in which two or more people have agreed to work together to control or manage a business following a partnership deed that is registered or not registered. It can get Company registration in Bangalore.
Benefits
- The online self-assessment process is simple to begin.
- There is no need to keep a complete record of corporate tax, which makes managing a partnership firm simple.
- In contrast to a sole proprietorship, partners in a partnership firm can share losses and burdens.
- The consolidation and activity of an organization firm are conservative as accomplices pool their assets.
Requirements
- An affidavit stating that the partnership deed was intended.
- At least two companions are necessary for Company registration in Bangalore.
- Identity and address verification
- For Company registration in Bangalore Deed of partnership is mandatory.
LLP
It is essentially a type of partnership in which some or all partners have limited liability according to jurisdiction and was established under the Limited Liability Partnership Act of 2008. As a result, it has characteristics of both a partnership firm and a corporation.
Benefits
- Because it includes less extensive legal and procedural requirements, flexibility
- Perpetual succession means that a partner’s death or bankruptcy does not affect its existence.
- Transferring ownership is simple and doesn’t take long.
- After having Company registration in Bangalore, the business can be treated like a person, so it can be sued or sued, etc.
- An agreement governs its organization and management.
- Provide professional and technical assistance.
Requirements
- At least two partners will be required for LLP incorporation.
- To meet capital requirements, each partner must agree to contribute to Company registration in Bangalore.
- One designated partner must be a resident of India in the case of non-resident Indians or foreign nationals.
- DSC of all partners who have been chosen.
- There is no minimum required capital for Company registration in Bangalore.
Nidhi Company
A non-banking financial company (NBFC) known as National Initiative, for Developing and Harnessing Innovations (NIDHI) lends or deposits money to its members. The NIDHI Company is governed by RBI (Reserve Bank of India) guidelines and is registered under the Companies Act of 2013.
Benefits
- There are few or no legal requirements for the incorporation of NIDHI.
- When Company registration in Bangalore is done, works following RBI guidelines, establishing credibility and trustworthiness.
- It is a type of NBFC, as defined by the NIDHI Rule of 2014 that lends money only to its members and accepts deposits, thereby lowering the risk of loan default.
- Net-possessed subsidizing framework and that implies that the proprietor will put away cash to build something very similar.
Requirement
- NIDHI’s incorporation requires at least seven members.
- The Nidhi company incorporation minimum capital requirement is 5 lakh.
- Directors’ DIN is their director identification number is necessary for Company registration in Bangalore.
- Not authorized to issue shares of preference.
As a result, you’ve learned about the main kinds of businesses that exist based on different needs and offer different benefits to their owner or partner. In addition, the Producer Company and the Insurance Company are included in the registration of companies and firms.
Let’s start with how to get Company registration in Bangalore before moving on to a more general procedure for doing so.
Reservation of the Company’s name
Reserving the company’s name is the first and most important step in the process of Company registration in Bangalore.
There are two options available:
- RUN and SPICe. On the Ministry of Corporate Affairs website, there is a web form called RUN, or Reserve Unique Name, where applicants can check to see if their new business name is available and then apply for a name they like.
- The applicants are required to adhere to all naming convention guidelines and provide two names in preferential order.
- A company name is reserved for 20 days after MCA approval, during which time the applicant must complete all remaining registration requirements.
- MCA checks three important factors for approving the name of the company
- No other business, whether public or private, should be using the same name.
- The name ought not to offend.
- The name should not suggest that it is associated with the government.
- Another way to finalize the name is to fill out the Spice-32 form. However, you can only select one option, and if it is rejected, you will need to redo all of the paperwork.
Additionally, the applicant must select the company’s directors. At least two names of the directors for a private limited company must be provided.
Procuring DSC
The next thing you need to do is get a Digital Signature Certificate for your private limited company after the MCA has approved and registered the name.
A digital signature certificate is a type of digital key that contains the registered signatory’s name, address, email address, and phone number as well as the authority that issued the certificate. It is necessary for Company registration in Bangalore.
A registered company’s authorized signatory can electronically verify their identity and sign documents with a digital signature. The Digital Signature Certificate is a requirement for e-Filing.
Applying for DIN
- A registered company’s Director Identification Number, or DIN, is a one-of-a-kind identification number.
- The corporate documents can only be submitted on Registrar Form No.-DIR-3 after DIN has been approved.
- It is important to keep in mind that the company’s name approval process can be filed before applying for a DIN.
Writing MOA
- The Memorandum of Association, or MoA, must be in the form specified in Tables A, B, C, D, and E of Schedule-I, as required by Section 4(6) of the Companies Act of 2013.
- It will bring to light all of the fundamental details about the business, its stakeholders, directors, and the connections between them and the business.
- This document provides additional information, including the company’s objective, associated liabilities, operating state, and more.
Writing AOA
The document known as the Articles of Association, or AoA, specifies the purpose of the company, how its business will operate, how its Directors have been appointed, and other details.
Application of Incorporation of Company
- According to Section 7 of the Companies Act 2013, the applicant must apply to the registrar whose jurisdiction the company’s address is located once all of these documents have been prepared and completed.
- The application for Company registration in Bangalore can be made using e-Structure SPICe joined by SPICe MOA and AOA.
- The Registrar of Companies issues a Certificate of Incorporation as proof of the company’s existence following the completion of the necessary procedures.
Conclusion
Since it is impossible for a layperson to be familiar with all of the requirements for various businesses, Earnlogic has assembled a team of corporate compliance specialists to handle certification requirements.
Your registration will be handled by one of our knowledgeable consultants, who will coordinate with officials and meet your expectations within your timeframe.
Therefore, rather than researching how to register a company in India, get in touch with our professionals and register your business right away.
