Once you had decided to start your own business, you need three things, Well worth Business Idea, Capital, and a Company. So if you had already chosen the best business Idea, not its time to decide on the Type of Company for your business.
1. Proprietorship Registration:
This is the oldest and traditional form of business ownership in the world. There will be just a single owner and he is solely responsible for the entire profit and loss of the Company.
Proprietorship firm Registration:
There is no registration procedure for a Proprietorship Firm. There is no Governing act too. So just by enrolling under MSME registration at Bangalore, you can float a Proprietorship Firm.
Bank Account Opening:
If you approach a nationalized bank, just by submitting the MSME Certificate, you can open a current account. But if you approach a Private bank, they may ask for two different Government licenses. At that time, you may obtain a GST Certificate.
PAN Card:
For the Proprietorship firm, there is no separate Pan card to be obtained. In that case, the Proprietor’s pan card can be used for the Firm too.
2. Partnership Firm:
Minimum two or more people join together, share the ownership, as well as shares the responsibilities, and also share the profit and loss. To carry out the above object the Partnership firm is formed.
Governing Act:
Indian Partnership Act, 1932 is the Governing Act for the Partnership Act. Registration of a Partnership Firm in Bangalore is not compulsory as per the Act.
Partnership Deed:
The partners decide upon the terms and conditions and sign up a deed called Partnership Deed. This needs to be very carefully drafted legally because it speaks about the entire rights of the partners and the object.
PAN Card:
This is unlike a Proprietorship type of business, this need to have a separate PAN card. By submitting the entire details about the Partners and also submitting the deed, you can obtain a PAN Card for the business separately.
3. LLP Registration:
A limited Liability Partnership is a combination of both Partnership and Private Limited. It has the feature of both these forms. This has become a preferred form of organization among entrepreneurs as it incorporates the benefits of both partnership firms and companies into a single form of organization.
Features of LLP:
- LLP is a Separate Legal Entity. And the Partners are distinct from the Company
- Minimum 2 partners are required, no maximum limit.
- No authorized minimum share capital as per the Act.
Documents Required:
– Address Proof of both the Partners
– PAN Card of both the Partners
– Passport Size Photo of both the partners
– Rental deed for office space
– EB Bill
Governing Act for LLP Registration in Bangalore: Limited Liability Partnership Act, 2008. The Registering authority for LLP is the Registrar of Companies.
4. Private Limited Company:
Private Limited is the most popular form of Company in India suitable for small and medium scale companies. This is registered under the Indian Companies Act, 2013. A Private Limited Company is a separate Legal Entity that requires a minim of two shareholders and One Lakh shareholders.
Registration Process:
a. Name Approval
b. Obtain DIN Number
c. Obtain Digital Signature
d. Submission of MOA and AOA
e. Incorporation Certificate
Advantages of Private Limited Registration in Bangalore:
Limited Liability: Limited Liability means the status of being legally responsible only to a limited amount for debts of a company.
Credibility: It created huge credibility for the company among its clients and the vendors.
Perpetual Succession: A Private Limited company, being a separate legal entity, is unaffected by the death of any member and it continues to be in survival irrespective of the changes in membership.
5. One Person Company:
The most recent newborn child baby in the ROC family Once Person Company which is suitable for Small businesses. Just with a single director, you can incorporate a One Person Company. This was introduced in the year of 2013 through the Indian Companies Act, 2013.
- Requirements:
- One Director
- One Nominee
- No minimum authorized Share Capital
- Office Space
- Conversion of OPC to Private Limited Company:
OPC must be converted to a private limited company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.
6. Public Limited Company:
A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. Its stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market.
Requirements:
- Minimum 7 Shareholders
- Minimum 3 directors
- Minimum 5 lakhs share capital
Registration Formality:
Step 1: Obtain Digital Signature
Step 2: Obtain Din Number
Step 3: Name Approval
Step 4: Submission of AOA & MOA
Step 5: Incorporation Certificate
Step 6: Get listed on the stock exchange
Le Intelligensia where we can handle your Company Registration in Bangalore. Send Us an e-mail at [email protected] or give us a call at +91-9108569562.
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