File your ITR Hassle-Free and Maximise your Refunds
Trusted by 1 Million+ Users
4.8 Star User Rating
Authorized by Tax Department
Registering a company in Bangalore, India's vibrant IT hub and start-up hotspot, offers entrepreneurs an array of opportunities in a business-friendly environment. With its access to a highly qualified workforce and advanced infrastructure, the city attracts entrepreneurs from various domains. This comprehensive guide covers everything you need to know about company registration in Bangalore, including the different types of company structures, required documents, essential checklists, and step-by-step procedures for online registration. Additionally, it provides insights into the scope of starting a business in Bangalore and an estimation of the costs involved in the registration process. Gain all the necessary information about registering a company in Bangalore.
Bengaluru, with a population of over 10 million people, is one of the fastest-growing cities in India. It is a prominent IT hub that offers various opportunities to entrepreneurs from different parts of the country.
One of the main advantages of setting up a business in Bengaluru is access to a highly qualified workforce composed mostly of tech-savvy professionals. The city also boasts of advanced infrastructure and business-friendly laws, which create a conducive economic environment for start-ups.
In addition, Bengaluru hosts world-renowned tech companies such as Amazon, Google, and Microsoft, demonstrating the city’s global appeal.
Moreover, Bengaluru is a well-established start-up hotspot, attracting new talent from across the country for years. All these factors indicate that the potential for company registration in Bengaluru is enormous.
If you want to start a business in Bangalore, you should know the different kinds of companies you can register:
Private Limited Company: Private Ltd. Company is a separate legal entity and features limited liability protection for its shareholders. It can have at least two and at most 200 shareholders. Private limited companies are more complicated to set up and manage but offer more credibility, access to capital, and growth opportunities.
One-Person Company (OPC): A one-person company (OPC) is a kind of private limited company that has only one owner. It has the benefits of both a sole proprietorship and a private limited company, such as limited liability protection and easy management.
Public Limited Company: A public limited company (PLC) is a type of corporate structure that can sell its shares to the public through an IPO. It needs at least seven shareholders to start and has to follow more rules and regulations than other business structures.
Section 8 Company: A non-profit company (NPC) is a company that works for a good cause, such as charity, education, religion, or social welfare. It can get some tax breaks and benefits from the government.
LLP (Limited Liability Partnership): An LLP is a business structure that has the benefits of both a partnership and a private limited company. It protects the partners from being personally liable for the debts of the business and has less rules and regulations to follow than a private limited company.
To register a Private Limited Company in Bangalore, you need to provide the following documents:
To register a Private Limited Company in Bangalore, you need to adhere to the following essential checklist:
Unique Name: The company's name must be distinct and not confusingly similar to any existing business. It should also be checked against registered or pending trademarks in India. The proposed name should comply with intellectual property legislation and not violate copyright or trademark laws.
Minimum 2 Directors: The company must have a minimum of two directors or shareholders to be eligible for registration. It can have up to 15 directors. If foreign nationals are shareholders, relevant documentation, such as passports, must be submitted. Additionally, a digital signature certificate is required for all filings with the Ministry of Corporate Affairs.
Registered Office Address: A physical business facility or commercial space is not mandatory for the registered office. It can be a rented property with proper address proof and the landlord's permission.
Capital Requirement: There is no minimum capital requirement for a Private Limited Company. The investment should be based on the business's needs, considering government charges, if any, and the appropriate business structure.
Registering a private limited company in Bangalore is a straightforward and online process through the Ministry of Corporate Affairs (MCA) or MCA websites. Here are the step-by-step procedures to form a new company in Bangalore:
The cost of registering a company in Bangalore depends on several factors, including the authorized share capital and the services required during the registration process. The expenses can be categorized into government fees and professional fees.
Government Fees: These fees are charged by the government for various services related to company registration. They include charges for filing forms, obtaining DIN (Director Identification Number), and registering the company. The government fees are typically based on the authorized share capital. For instance:
Professional Fees: When you want to register a company, you may need the help of experts, such as company secretaries, chartered accountants, and legal consultants. They can provide you with services that will make the registration process easier and more compliant with the relevant laws and regulations. The charges for these services are called professional fees. The amount of professional fees may depend on the type of business structure, the qualifications of the experts, and the extent of help needed. You are not required to hire professional help, but it is advisable to do so to avoid any problems or delays in the registration process.
The total cost of company registration in Bangalore can range from ₹10,000 to ₹25,000 or more, depending on the specific requirements and the assistance sought from professionals. Additionally, keep in mind that there may be separate fees for obtaining additional licenses and registrations, such as GST registration.
To register a company, you need to use the MCA Portal. However, if you are not a Chartered Accountant or a legal expert, you will require the assistance of a legal expert to complete the registration process. This is because many documents need to be verified by a Practicing Chartered Accountant.
If you have a small company with a turnover of less than Rs. 2 Crores and capital of up to Rs. 50 Lac, you can choose to register it as a one-person company (OPC). An OPC is a type of company that can have more than one director but only one shareholder.
