Start your Private Limited Company Registration in India

Share holders/Directors Details

  • Pan card
  • Aadhar card
  • Passport or Voter ID or Valid Driving License
  • Recent Bank statements (not older than 1 month)
  • Mobile number & email id
  • passport size photo

Company Details

  • Electricity bill or Telephone bill or gas bill of your office address (not older than 1 month)
  • Property owner - Name & Address (to draft rental agreement)
  • Two Proposed company names (To apply for name reservation)

Deliverables

  • Digital signature for 2 directors
  • MoA & AoA preparation
  • PAN & TAN for the company
  • DIN for 2 directors
  • Incorporation certificate
  • Name reservation fees
  • Current Account Opening Support

Things to know

Private Limited Company Registration in India: A Detailed Guide - Overview

An In-Depth Guide to Private Limited Company Formation in Bangalore

Introduction

Bangalore, often hailed as the Silicon Valley of India, has emerged as a premier destination for entrepreneurs and businesses alike. The city’s robust infrastructure, supportive government policies, and vibrant ecosystem make it an ideal location for starting a business. Among various business structures, forming a Private Limited Company (Pvt Ltd) in Bangalore offers numerous advantages, including limited liability, ease of ownership transfer, and enhanced credibility. This comprehensive guide aims to provide you with the necessary insights and steps involved in forming a Private Limited Company in Bangalore.

Understanding the Basics

A Private Limited Company is a type of business entity in India governed by the Companies Act, 2013. It is a separate legal entity distinct from its owners, providing limited liability protection to its shareholders. This means that in the event of financial distress, the personal assets of shareholders are protected.

 

What is a Private Limited Company?

  1. As per Section 2(68) of the Companies Act, 2013, a private company means a company having a minimum paid-up share capital as may be prescribed, and which by its articles, --
  2. Restricts the right to transfer its shares;
  3. Except in case of One Person Company, limits the number of its members to two hundred:
  4. Provided that where two or more persons hold one or more shares in a company jointly, they shall, for this clause, be treated as a single member:

Provided further that --

  • Persons who are in the employment of the company; and
  • (B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and
  1.  Prohibits any invitation to the public to subscribe for any securities of the company;
  2. The companies act lays down an explicit definition for private limited companies. Particular restrictions have been placed on the transfer of shares, the number of members, and public involvement as shareholders in order to maintain its status quo.

Benefits of Private Limited Company Registration

Key Benefits of a Private Limited Company

  1. Limited Liability Protection: Shareholders' personal assets are protected in case of business liabilities.
  2. Separate Legal Entity: The company is distinct from its shareholders, enhancing credibility and trustworthiness.
  3. Ease of Ownership Transfer: Shares can be easily transferred, ensuring smooth succession and investment opportunities.
  4. Access to Funding: Easier access to funding from venture capitalists and banks due to the structured nature of the entity.
  5. Perpetual Succession: The company’s existence is not affected by the status of shareholders, ensuring continuity.

Eligibility for Private Limited Company

Pre-Requisites for Formation

Before initiating the formation process, certain prerequisites must be met:

  1. Minimum Two Directors: A Private Limited Company requires a minimum of two directors.
  2. Minimum Two Shareholders: It also requires at least two shareholders, who can be the same as the directors.
  3. Registered Office Address: A physical address in Bangalore is mandatory for the company's registered office.
  4. Digital Signature Certificate (DSC): Required for electronic filing of documents with the Registrar of Companies (RoC).
  5. Director Identification Number (DIN): Directors must obtain a DIN, which is a unique identification number

Private Limited Company Registration Documents

Following documents are required for private limited company registration in India:

  • Passport size photos of all the directors
  • PAN Card and Aadhaar Card of all the directors
  • Identity proofs of all the directors [Voter ID Card / Driving License / Passport (Any one of the following)]
  • Address proof of the registered office of the company (Electricity Bill / Any other utility bill). In case the premises are not owned, a NOC or legal agreement to use the premises shall be obtained from the landlord.
  • Residential address proof of all the directors (self-attested) (Mobile bill / Bank Statement / Electricity Bill) (Bills shall not be older than 2 months)

If any of the shareholders is not an individual, then the following additional documents of the subscriber shall be provided:

  • Certificate of Incorporation
  • Resolution to subscribe to the shares of the company

Private Limited Company Registration Process - An Overview

Step-by-Step Formation Process

1. Obtain Digital Signature Certificate (DSC)

The first step involves obtaining DSCs for all proposed directors. The DSC is used to electronically sign documents submitted to the RoC. Authorized agencies provide DSCs, and the application requires identity and address proof.

2. Apply for Director Identification Number (DIN)

Once the DSC is obtained, the next step is to apply for DIN through the Ministry of Corporate Affairs (MCA) portal. The application form DIR-3 needs to be filled and submitted along with identity and address proof.

3. Name Reservation

Choosing a unique name for your company is crucial. The name should be distinct and not infringe on any existing trademarks. The proposed name can be reserved through the MCA’s RUN (Reserve Unique Name) service. Up to two names can be submitted, and the approved name will be reserved for 20 days.

4. Drafting of Memorandum and Articles of Association (MoA and AoA)

The Memorandum of Association (MoA) and Articles of Association (AoA) are foundational documents that define the company’s objectives, scope, and internal management. These documents must be drafted carefully to comply with the Companies Act, 2013.

5. Filing Incorporation Forms

After obtaining name approval and drafting the MoA and AoA, the incorporation application is submitted to the RoC. The application includes:

  • Form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus): Integrated web form for incorporating a company, applying for DIN, PAN, TAN, EPFO, ESIC, GSTIN, and opening a bank account.
  • eMoA (Electronic Memorandum of Association)
  • eAoA (Electronic Articles of Association)

These forms are submitted along with the required documents, including identity and address proof of directors, proof of registered office address, and a declaration by professionals certifying the compliance of all requirements.

6. Certificate of Incorporation

Upon successful verification, the RoC issues a Certificate of Incorporation, which signifies the formal establishment of the Private Limited Company. The certificate includes the company’s Corporate Identification Number (CIN).

Post-Incorporation Compliance

Forming the company is just the beginning. To maintain compliance and ensure smooth operation, several post-incorporation steps are required:

  1. Open a Bank Account: Open a corporate bank account in the company’s name for financial transactions.
  2. Obtain PAN and TAN: Apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
  3. GST Registration: If applicable, register for Goods and Services Tax (GST).
  4. Compliance Filings: Regularly file annual returns, financial statements, and other necessary documents with the RoC.

Conclusion

Forming a Private Limited Company in Bangalore is a strategic decision that offers numerous advantages and opportunities for growth. By following the outlined steps and ensuring compliance with legal requirements, entrepreneurs can establish a strong and credible business entity. Bangalore’s dynamic business environment, coupled with the benefits of a Private Limited Company, creates a promising foundation for long-term success.

About the Author

This guide is authored by experts from Wellcorp Office, specializing in Virtual CFO services and company formation consultancy. With years of experience and a commitment to providing authoritative and trustworthy guidance, Wellcorp is your reliable partner in navigating the complexities of business formation in India.

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