A Private Limited Company is a business entity held by a small group of people. It is registered for pre-defined objects and owned by a group of members called shareholders. Startups and businesses with higher growth aspirations popularly choose Private companies as suitable business structures.

The business entity gets recognised as a Company through its registration under the Companies Act of 2013 in India. The governing body is The Ministry of Corporate Affairs, widely known as MCA. 

Requirement  for registering a Company in Bangalore

There are some requirements for registering a Private limited company in Bangalore, the requirements are mentioned below:

• Minimum 2 directors (should be Indian residents).
• Minimum 2 shareholders which can be maximized up to 200 shareholders.
• Registered Office address.

Process of registering a Private Limited company in Bangalore

Documents submission :

The identity documents of the 2 proposed Directors are to submit which include:

• PAN Card or Passport.
• Address Proof: Passport/ Driver Licence/ Voter ID/ Ration Card/ Aadhar Card.
• Residence Proof: Bank Statement/ Electricity Bill/Phone Bill (not older than 2 months)

Name Approval Process

The name of the company should be unique and an application is to be made for approval from the Ministry of Corporate Affairs. Up to 2 names can be provided as proposed names. In case of rejection, an opportunity is given to the applicant for re-submission of the form with 2 more names.

Getting the Digital Signature Certificate:

It is necessary to obtain the Digital Signatures of the proposed shareholders. The DSC is required for signing the incorporation application. However, the DSC is not required to obtain the name approval.

SPIC e+ form application:

After obtaining the Digital Signature Certificate the incorporation application is submitted in the SPICe form in the MCA portal. There is no requirement to obtain the name approval to submit the SPICe Form.

Incorporation of the company: 

Once the Company gets registered, a certificate of incorporation is issued. In the certificate of incorporation details like PAN, TAN, CIN number, Date of Incorporation, and Address of the registered office are mentioned.

Current Bank Account:

Opening the bank account comes in and it is one of the most important steps for the process of company incorporation.

Benefits of Private Company registration in Bangalore

No Minimum Capital

The private limited company requires no minimum capital for its formation. As per the provision of the Companies Act, 2013 there is no minimum limit set for authorised  Capital for incorporating a private limited company.

Perpetual Succession 

The private limited company works on the principle of “Perpetual succession”. This means, its existence would remain unharmed until its members decided to winding up through the legal process. The uninterrupted continuation makes it a most reliable and sustainable business model, unlike its counterparts. Simply put, a private limited company will continue to serve its founders until they decide to close it down via legal procedure. It means the business would remain harmless irrespective of the status of its members. Even during the unfortunate event such as the demise of the owner or liquidation of assets, a Pvt. Ltd. Company continues to operate seamlessly.

Limited Liability

The structure of the Privately-held entity facilitates comprehensive protection to its owners and members during the financial crunch. Unlike other business models, the private limited company has the potency to safeguard the assets of its owner during a stressful situation.

This business model allows the member to bypass any risk associated with addressing debts, raised due to losses that occurred to the company. Unlike other business models, the private limited company is more growth-centric and attracts a minimum of compliances and risks. This is one of the standout benefits of private company registration.

Seamless Transferability or Selling Of Shares 

There is no obligation on the private limited company to procure a pool of shareholders for the registration purpose. As per the ongoing law, such companies only require a minimum of two shareholders to become eligible for the registration process. The maximum number can go up to 200 as the business thrives with time.

The founders and the shareholders of the privately held entity reserve the right to sell or transfer their shares to anyone and anytime. That means that the shares held by these individuals are not subjected to any condition related to selling or transferability. 

Considerable Scope of Expansion

Every company needs an ample amount of capital to stretch its existing footprint. The private companies offer the liberty of adding a maximum of 200 shareholders which inherently strengthens the ability of its founder to procure additional funds for expansion. In the initial stages, the private company owners are more reluctant to share their details of business with others even if their success depends on them.

However, as the business thrives, the need for more capital will escalate with time which in turn drives the owner to get more shareholders on board through a legal process. When it comes to scaling the business, a private limited company offers unparalleled opportunities in that regard. Henceforth, it is one of the prominent benefits of private company registration.

Long-Term Benefits 

Private limited companies are best at providing long-term benefits to their owners, shareholders, and members due to their legally balanced structure. It lures fewer risks as compared to its counterparts and offers improved rigidity for a prolonged time. Since it is hard to dissolve easily, the private limited company strikes the perfect balance between the benefits and probable risks. 

Ease of FundRaising

A Private Limited Company is a kind of business structure that can procure capital from Angel investors or venture capitalists. 

Builds Credibility

The details of the privately-held entity are available on a public database. This helps in improving the credibility of the entity as it makes it easy to authenticate the particulars.

Registration of Private Limited Company

The registration of a Private Limited Company has to be done online through MCA portal, here in Online Legal India we provide a complete solution for registering a company in ROC Bangalore.

Conclusion

All the details that are mentioned in the above blog, are the essential requirement to incorporate a Private Limited Company in Bangalore. Online Legal India makes this whole registration process easy and flawless. The experts of Online Legal India have catered a lot of clients till now and most of them are happy with the services they got.