No. 1653, 9th Main A Block, 2nd Stage, Rajaji Nagar, Bangalore - 560010
No.92/4, 14th Main, 8th E Cross, Weavers Layout, Vijayanagar 2nd Stage, Attiguppe, Bangalore - 560041
Ramamurthy Nagar, Bangalore - 560036
B- 211, Fair Deal House,Swastik Cros Road, Navrangpura, Ahmedabad - 380009
Jain Bhawan Building ,No.18/1, 1st Floor, Andree Road,, Shanti Nagar, Bangalore - 560027
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The number of start-ups and small businesses in India is on the rise and India is fast becoming the start-up hub of the world. At the time of writing this article, only the United States of America (USA) has more number of start-ups than India, which is also the youngest start-up nation with a whopping 72% of the entrepreneurs being less than 35 years old.
Start-ups have their share of advantages and disadvantages in comparison with the bigger, established businesses, and, with time, clear planning and the right level of investment, start-ups can flourish too.
Before beginning a small business or a start-up, however, an entrepreneur/founder has to register his/her business. And, in this article, let us look at the process of company registration in Bangalore or elsewhere and five different types of business organizations.
Before an organization can start functioning, it has to register itself with the Registrar of Companies (ROC) in the state where the company will be located. The first and primary step in the process of registering a company is getting the company’s name approved by the ROC. Of course, your business organization cannot have a name that is in use and the name of a private company has to include Private Ltd. at the end.
Upon submission of the application, ROC’s approval can take up to a week. After the ROC approves a business organization of its proposed name, it becomes valid for a period of six months. Within this period, the Memorandum and Articles of Association have to be produced to get the business organization registered.
After the Memorandum and Articles of Association, the registration fee and the filled forms have been submitted, they get assessed by the ROC and if everything is perfect, the ROC issues a Certificate of Incorporation to the concerned organization.
The five types of business organizations are:
In a Private Ltd. Company, business assets are independent of the personal assets and the company’s shareholders are responsible solely for their shares.
A Private Ltd. Company can be of the following three types:
Any two individuals can register and set up a private company, although a maximum of 200 members can combine to create a private organization as well.
As the name implies, more than one person is involved in this type of business organization and the profits made are shared between the business partners.
In this kind of business organization, a business partner cannot lose more than his/her share in the company for a mishap which happens to any of the other partners. LLP also tends to have more credibility with investors, compared to partnership and sole partnership business organization kinds, because the financial, incorporation and tax records tend to be properly maintained.
Sole Proprietorship is the kind of business organization which has been registered in the name of only one individual. And therefore, the sole proprietor invests in the business, enjoys the profits and also manages the losses incurred by the business.
A One Person Company is managed by entrepreneurs capable of starting and building a venture on their own. OPCs are easier to incorporate because of the lack of partnerships and additional members, although the same can make matters complicated.
Above is a list of company registration consultants in Bangalore who you can reach out to, for advice on forming your new business. The above listed company registration consultants are seasoned but, in addition, they have the nous of the procedures and the laws that new ventures have to abide by. And, when you are on a path you haven’t tread before, advice from experts is indispensable.
All the best, entrepreneurs!