Whether you are considering registering a private company in Bangalore or you are already operating one, there are some advantages that come with this choice. A private company can be formed with no minimum capital investment, it can have up to 200 shareholders, and it can also provide limited liability protection.
Is eligible to take benefit of registration under the Startup India Scheme of the Government of India
Whether you are starting your own business or already running an existing business, you can benefit from registration under the Startup India Scheme of the Government of India. This scheme is launched by the Government of India to encourage new business startups in the country. It provides a number of benefits to startups including tax exemptions, grants and loans.
Startup India registration is available online. You will be required to fill in a form and submit documents to verify your information. After proper verification, you will receive a Startup India Certificate of Recognition. The certificate will help your business spread across the country.
Startups must be in the process of developing a new product or service. These businesses are not allowed to merge or split their existing business. Start-ups are required to create employment as well. You can register as a private limited company, limited liability partnership or partnership firm.
The Startup India scheme aims at promoting new businesses and wealth creation. Startups are allowed to self-certify their compliance with six employment laws and three environmental laws. In addition, they can apply for tax holiday for three consecutive years.
Startups must meet the criteria specified by the government. For example, a startup's annual turnover must not exceed Rs. 25 crores in the last five years. Startups must be incorporated as a Private Limited Company or Limited Liability Partnership.
Start-ups are also exempted from income tax for three years and are given priority in government tenders. Startups are also given grants of Rs. 2500 crores annually. They can also apply for angel tax exemption.
Startups are required to register online. You will need to create an account and fill in your personal details, shareholder details, and OTP (One Time Password). You will then be required to upload certain documents. You can also download a mobile application for Startup India. You can access this application from 01-04-2016.
You can also access various accelerator programs and state policies. In addition, the government has set up hubs for guiding entrepreneurs. The Startup India website also offers pro-bono services.
Provides limited liability protection
Having a Private company registered in Bangalore will provide you with a host of benefits. First and foremost is the fact that you can legally hire people to operate your business. Also, you can acquire property.
The limited liability is also a plus. This is because you are not personally liable for the losses and debts of the company. Secondly, this type of business entity has the best tax benefits. Besides, you are able to raise capital from NRIs and financial institutions.
You can also register a Limited Liability Partnership. This is the ideal business entity for short-term enterprises. It is also a good choice for joint family businesses. It is easier to set up than a Private Limited Company. The benefits include limited liability protection and an ability to survive beyond the founders.
The other benefit of registering a Limited Liability Partnership is its lower cost of incorporation. Its statutory compliance is not as high as a Private Limited Company. It is also a good choice for micro businesses.
While registering a Private company in Bangalore, you will need to be aware of the minimum number of shareholders and directors. You also need to be aware of the number of documents that you will need.
The Registrar of Companies will provide you with information regarding the minimum number of members and directors you will need. They will also tell you about the process of registering a name. You will also need a Digital Signature Certificate (DSC). A DSC is a digital signature that can be used for signing e-forms. It is also a good idea to have the aforementioned documents on hand.
Lastly, you will need a landlord's NOC to rent out your home. While it is not mandatory to have a Registered Office, it is highly recommended. This will help you to protect your business assets and increase your credibility.
Registering a Private company in Bangalore is easy and will provide you with numerous benefits. You are able to raise capital from financial institutions and vendors. It also gives you the benefit of being able to have a legal presence and receive full legal benefits in the event of an infringement.
Can have up to 200 shareholders
Whether you are looking to start a small business or expand a current operation, a Private Limited Company is the ideal legal structure for you. The benefits of this type of company are many. They are often chosen by startups and organizations with ambitious growth aspirations. They limit liability, have a limited number of shareholders, and can offer shares to the public.
Private companies are defined by Section 2(68) of the Companies Act, 2013. They can have up to two hundred shareholders and two directors. The minimum paid-up share capital is INR 1 lakh. A higher minimum paid-up share capital may be prescribed by the MCA.
Private companies have limited liability, which means that creditors cannot sue the owner's personal assets. They can only sue the owner if the company is insolvent. The owner is only liable for unpaid shares in the company.
The director of a Private Limited Company is responsible for running the business on behalf of the shareholders. The director must be a natural person or an individual with a Director Identification Number (DIN).
The maximum number of shareholders allowed in a Private Limited Company is 200. Usually, companies with a large number of shareholders make it easier to raise capital funds. The shareholders are allowed to attend meetings of the company and give consent to any matters that need to be discussed. They are also able to vote on important issues.
In addition, private limited companies are not allowed to offer shares to the public. They can transfer their shares through a stock exchange deal, and a legal expert can help you determine which type of structure is best for your business.
Whether you're registering a Private Limited Company or Public Limited Company, the first step is to get an incorporation certificate. This certificate must be attested by a chartered accountant. A valid Digital Signature Certificate (DSC) is also needed. You'll need to apply for this through a government-approved certifying organization.
A Private Limited Company is ideal for small business owners who want to start a business immediately. It is also a good choice for a team of entrepreneurs. However, if you're planning to offer your shares to the public, a public limited company may be a better option.
Tags corporate law