Category: Business

How to Get MSME Registration Certificate in Bangalore India?

MSME Registration in Bangalore
Business Company Registration Govt Registration PATSON LEGAL

MSME Registration: Classification, Documents, Process & Benefits

The term MSME is an abbreviation of micro, small, and medium enterprises. As far as a country like India, whose economy is still in the developmental stage, is concerned these industries can be regarded as the very spine that supports the economy as such.

It is said that around 45 percent of the total industrial employment of India is directly contributed by these companies. They also account for half of all the exports made by India and make up 95 percent of the total industrial units in the country. As per statistics provided by the MSME (Ministry of Micro, Small, and Medium Enterprises) is concerned these companies make around 6000 different kinds of products.

It can be said for sure that with the growth of these companies the country grows as well. These industries are also referred to as SSIs or small scale industries.

How are MSMEs Classified?

The MSMEs in India are classified by the MSME Act, 2006 that came into being on 2nd October that year. The main aim to establish this act and the ministry was to make sure that MSMEs could be promoted, developed, and fostered so that they could be more competitive.

Recently, Government of India has planned to change the definition of MSME by redefining its classification, and providing some special benefits to the entities to push up their competitiveness, sustainability and growth.

Now, they are broadly present in two sectors – Service and Manufacturing same as earlier classification. But, they are normally categorized in terms of the investment and annual turnover. Means what they’ve invested in plant & machines for manufacturing industry, and earnings annually for service industry such as:

  1. Manufacturing enterprises – Investment in plant & machinery
  2. Service enterprises – Annual turnover

Manufacturing industries are categorized on the basis of their amount invested in plant and machinery:

  • Micro enterprises: These businesses are one that could be invested less than INR 1 crore;
  • Small enterprises: These businesses are one that could be invested between INR 1 crore and INR 10 crore; and
  • Medium enterprises: These businesses are also one that could be invested between INR 10 crore and INR 20 crore.

In the context of service sector, these industries are also categorized on the basis of their annual turnover:

  • Micro enterprises: These businesses are one that could be invested less than INR 5 crore;
  • Small enterprises: These businesses are one that could be invested between INR 5 crore and INR 50 crore; and
  • Medium enterprises: These businesses are one that could be invested between INR 50 crore and INR 100 crore.

Existing MSME Investment chart as per Ministry of Micro, Small & Medium Enterprises

Enterprises Manufacturing Sector Service Sector
Investment in Plant & Machinery Investment in Equipment
Micro Enterprise Doesn’t exceed Rs. 25 lakh Doesn’t exceed Rs. 10 lakh
Small Enterprise More than Rs. 25 lakh but doesn’t exceed Rs. 5 crore More than Rs. 10 lakh but doesn’t exceed Rs. 2 crore
Medium Enterprise More than Rs. 5 crore but doesn’t exceed Rs. 10 crore More than Rs. 2 crore but doesn’t exceed Rs. 5 crore

Revised MSME Classification Scheme

Enterprise Classification Manufacturing Sectors Service Sectors
Based on Investment Based on Turnover
Micro < Rs. 1 crore < Rs. 5 crore
Small < Rs. 10 crore < Rs. 50 crore
Medium < Rs. 20 crore < Rs. 100 crore
MSME Classification
MSME Classification Revised

Role of MSMEs in India’s Growth

The key role of MSMEs are vast, here we have just mentioned only 6 points:

  1. To generate large scale employment opportunities in India at low cost capital
  2. To provide maximum opportunities for both self-employment and wage-employment
  3. To create flexible environment to ensure competitive innovation
  4. To enhance the regional social structure and its development
  5. MSME sector contributes enormously to the socio-economic development of the country
  6. To build an inclusive, sustainable and equitable livelihoods of society in innumerable ways

What are the Benefits of Registering Your MSME?

There are several advantages of registering your MSME. Here are the top 6 key benefits of MSME registration comes from government side:

  1. First of all, when you do this you can get bank loans at much lower rates of interest. In fact, it can get to as low as 1 or 1.5 per cent. As you would know this is much less than the rate of interest applicable for repayment of normal business loans.
  2. You also get a number of tax rebates as well.
  3. You also get credit facilities for minimum alternate tax (MAT). This can be taken up to a maximum of 15 years instead of the normal limit of 10 years.
  4. As an MSME you also have the sole right to apply to a number of tenders issued by governmental agencies.
  5. You also have quite easier access to credit. This way, you also get a number of concessions and rebates that help you set up your industry or even perform business related work such as registering a patent.
  6. You would also get better preference when it comes to various certificates and licenses issued by the government.

What are the Documents Needed for MSME Registration?

Here are some essential documents we required to get the information about the organization and its activity:

  • Aadhaar Card of entrepreneur is must required
  • Proprietorship PAN Card is must required, if it is sole proprietorship firm
  • Company PAN Card is must required for Pvt Ltd/ LLP/ OPC/ Partnership
  • Certificate of Incorporation (COI) of company
  • Address proof of business place
  • Bank details (A/C Number, IFSC code)
  • Nature of the business
  • Investment of capital in business
  • Number of employees working in your organization

Normally as a business entity in these cases you need to furnish your business address proof, copies of sale bill and purchase bill, partnership deed or MoA (Memorandum of Association) and AoA (Articles of Association), and copy of bills and licenses of machinery that you have bought for your business.

If you own the premises you can provide allotment letter, lease deed, possession letter, or receipt of property tax as proof of your business address.

If you have a municipal license in the name of your business or even in the name of the business owner, director, or partner you need not provide any other possession document as such.

If you have rented the premises you may furnish rent receipt as well as a no objection certificate from your landlord. You would also need to submit utility bills or any other document that supports the ownership of the landlord.

As far as copies of sale bill and purchase bill are concerned you have to provide copies of sale bills for each and every product that you are selling. Much in the same way, you also need to provide a purchase bill for each raw material that you have bought.

As far as partnership deed or MoA and AoA are concerned you would need to submit the partnership deed in case you are a partnership firm. Now, if you are registered officially as a partnership firm you would need to submit the registration certificate as well.

In case you are any other kind of company you would have to provide the MoA and AoA. Along with you need to provide your certificate of incorporation as well. In these cases you would also need to submit a copy of a general meeting resolution as well as the copy of a board resolution that has permitted a director to sign said application.

MSME Registration Process

Aadhaar number is compulsory needed for registering your business enterprise online under the MSME, Act; and to get this Udyog Aadhaar registration number you have to apply it through Udyam Registration official website.

However, before going to do registration of your enterprise, keep handy the entire above said documents asides with you.

  1. Make an application online with the help of your Aadhaar number and Name and generate OTP (remember that your mobile number should be linked to your Aadhaar).
  2. Make confirmation of OTP which has sent to your mobile. It will be direct you to Udyog Aadhaar Form.
  3. Fill the form online, from 1 to 21 fields of MSME Registration Form and click on Final Submit button. Then you will get the registration certificate along with your UAM (Udyog Aadhaar Memorandum) number.

We Help You Get Your MSME Your Certificate Instantly?

For registering your MSME in Bengaluru Karnataka or any other cities in India; you will get numerous good agencies in Bangalore. But, if you need our help, we will assist you in this matter as well as other business concerns also.

If you wish to register your small and medium scale industry you would have to first fill up a form. You can do it online or offline as well. If you wish to register for more than a single industry you can go for separate registration as well. The registration form for an MSME is available at the official website of Udyog Aadhaar. There are certain documents that you need to provide along with your application. You also need to fill up some basic information in this form. It may be enumerated as below:

  • Personal Aadhaar number
  • Industry name
  • Address
  • Details of bank account

While filling up the form in these cases you can also provide certificates that you have certified by yourself. Keep in mind that this process is absolutely free. You do not need to pay any registration fees for the same. Once you have filled in the details and uploaded the same you would get the registration number and certificate in due course of time.

How to Get FSSAI Registration License in Bangalore Karnataka?

FSSAI Registration
Business Profession PATSON LEGAL

Know All About FSSAI License in Bangalore India

The FSSAI (Food Safety and Standards Authority of India) is an independent organization that has been created under the aegis of the Ministry of Health & Family Welfare of the government of India. The body has been set up as per the Food Safety and Standards Act, 2006. This particular act can be regarded as a sort of consolidated statute that deals with food regulation and safety in the country.

The main responsibility of FSSAI is to make sure public health is promoted and protected and it does so by supervising and regulating food safety. It was established during August 2011 and its head offices are at New Delhi. In a nutshell, it is responsible for making sure that the billions of people in India are getting food that is healthy and wholesome in the truest sense of the term.

Why is FSSAI registration required?

Since the FSSAI deals with exclusively food safety and standards; you must need its certification in order to convince your customers that you can be trusted with what you are doing. The FSSAI puts the standards based on scientific research and development or food science particularly for food items.

And as an independent body, it facilitates food safety, and regulates critical areas of your business such as manufacture, sale, storage, import, and distribution of food.

This is why having its certification means you are sorted in these areas and there is no reason to doubt your quality as a provider of food-based products and services. It is an industry norm that you would have to adhere to.

What are the different types and categories of FSSAI licenses in India?

FSSAI normally issues 3 kinds of licenses. These are –

  1. FSSAI Registration Central License
  2. FSSAI Registration State License
  3. Basic FSSAI Registration License
Types of FSSAI License
FSSAI License

The FSSAI Registration for Central License is normally meant for the following entities:

  • Importers
  • 100 per cent export-oriented units
  • Large scale manufacturers
  • Companies that work with the central government organizations
  • Premises in airports
  • Premises seaports
  • Hotels
  • Restaurants

The central license is normally issued by the national government. Food business operators (FBOs) need to get a central license if they have a head office and operate in more than a state in India. It is primarily for units whose income is in excess of INR 20 crore in a year. At the very least such a license comes with a tenure of a year and at the most it is available for 5 years.

The FSSAI Registration for State License is meant for the following kinds of FBOs:

  • Small and medium manufacturers
  • Food operator units serving under Central Government agencies like Railways, Airports, Seaports, Defence and etc.
  • Storage units
  • Transporters
  • Wholesalers
  • Retailers
  • Marketers
  • Distributors
  • Club/canteen

As the name would state these licenses are provided by the government of the state where you wish to work. In order to obtain such a license, it is absolutely necessary that you work in only one state and not more than that. This license is primarily for units that earn in excess of INR 12 lakh a year. The minimum tenure of this license is a year and at the most it can be stretched to 5 years.

The FSSAI Registration license is meant for the FBOs that happen to be at the absolute bottom of the pyramid. Some of the examples in this case may be mentioned as below:

  • Small manufacturers
  • Storage units
  • Transporters
  • Retailers
  • Marketers
  • Distributors
  • Dhaba
  • Boarding houses serving food
  • Dabba Wallas

This particular license too is issued by the state government department. However, the kind of license that gets allotted to you would depend on what you are considered to be eligible for. It is meant primarily for units that earn less than INR 12 lakh a year. The minimum tenure of this license is a year and at the most it can get up to 5 years.

Look over here the chart which states the turnover limits for FSSAI license:

Types of License Recommended Annual Turnover
Basic Registration Below Rs. 12 lakh
State Registration Above Rs. 12 lakh & Below Rs. 20 crore
Central Registration Above Rs. 20 crore

Who should have to get a FSSAI license?

As has been stated above if you are in the business of food in India in some way or the other you have to get this license. It does not really matter as to what kind of capacity you are involved in the same you have to get it.

It has also been said already that having this license means that you are an authentic business entity who can be trusted to provide the very best quality of food and related products to people that are paying for the same.

It basically separates you from the illegitimate service providers in this regard.

What are the benefits of getting an FSSAI license?

There are 4 major benefits of getting an FSSAI license –

  1. You are able to generate awareness about your products and services among the consumers. Because eating the right food and staying healthy is the first priority of FSSAI “Eat Right Movement”.
  2. You get the legal benefits to your food business, the consumers trust on your food and believe that your food is safety and healthy.
  3. You get the permission to use the FSSAI logo in menu card and FSSAI number also in packaged food items.
  4. You can also expand your business a lot easily compared to what may have been possible otherwise.

Consumers have nowadays become extremely aware and informed and this also extends to the food that they are eating. As has been said already with an FSSAI license you can let the people know that they can trust what you are offering.

What are the documents needed to get an FSSAI license?

In order to get an FSSAI license you normally need to provide the following documents:

  • Completed and signed copy of Form B
  • Partnership deed, certificate of incorporation, articles of association, or any other similar document that may be applicable for you
  • Photo identity of the FBO
  • List of food products that you are trying to deal with
  • Proof that you possess business premises – you can furnish documents such as rental agreement
  • Management plan to ensure that your food products would be safe for the buyers

In case of the national license you would have to provide the following along with the above mentioned documents:

  • Plan of processing unit with dimensions and area allocated for each operation
  • NOC (no objection certificate) or PA from the FSSAI
  • List of directors, partners, or owners along with their address, photo ID, and contact details
  • IE code document from the DGFT (Directorate General of Foreign Trade)
  • List with name of equipment and machineries being used with installed capacity and number
  • Form IX
  • Authority letter from the makers nominating a responsible person with his name and address
  • Certificate from Ministry of Tourism
  • Analysis report of water to be used
  • Copy of license and NOC from the makers
  • Source of raw materials
  • NOC from local administrative bodies
  • Recall plan
  • Document that provides proof of transportation and turnover
  • Certificate from Ministry of Commerce for 100 per cent EOU (export-oriented units)
  • Declaration form

If you wish to obtain the state license you need to provide these documents with the exception of the penultimate point. Instead you need to provide copy of the certificate provided as per the Coop Act 1861 or the Multi state Coop Act 2002.

How to apply for an FSSAI license in Bangalore?

In order to start this particular process, you need to submit application “Form-A” for Basic Registration and “Form-B” for both State & Central Registration to the relevant Food and Safety Department. The department may either accept the application or reject it within a period of 7 days. No matter what the decision is you would be informed in writing. In case your application meets with approval you would get a registration certificate from the department. It will contain your registration number as well as your photo.

For this FSSAI license and registration, you can find there are numerous agencies are available to you in Bangalore and also other part in India; you can contact them to obtain your FSSAI license certificate otherwise we can help you in this matter to get your registration done.

We are a leading company registration consultant agency in Bangalore; value your business and are always happy to serve you.

Expiry and Renewal of FSSAI license

Normally the certificate of FSSAI license is valid from 1 year to 5 years. But it depends upon you how many years of term you’ve chosen for your food business and according to that you have to renew your license.

Before expiry of food license, it is essential that the FBOs are need to be renewed their license to avoid the penalties.

As per the guidelines mentioned by the FSSAI; you need to apply for renewal of license a minimum of 30 days prior to the date when the license is about to expire. If you do not do so, your license will lapse and a penalty would be levied on you. Normally, the penalty for each day is INR 100.

The process to be followed for renewal is the same as it happened at the time when you obtained it. The documents needed in these cases are the same as well.

Professional Tax (PT) Registration in Bangalore Karnataka

Professional Tax Registration
Business Profession Tax Registration PATSON LEGAL

Know Everything About Profession Tax in Karnataka

If you have ever noticed your pay slip each month you would have seen a minor deduction along with the likes of HRA (housing rent allowance), the basic salary related breakups, and conveyance, to name a few. This deduction is normally in the region of INR 200 and is referred to as professional tax.

As far as India is concerned, this tax rate happens to be different for each state. In fact, in certain states you may also see that there is no deduction being made under this particular heading.

What is professional tax and who levies it?

Professional tax can be described as a tax that is charged by the state government. It is normally imposed on all people who are earning a living some way or the other in the state. In this case the term professional should not be confused with the definition of professionals that would include people such as doctors.

This is basically a tax that you have to pay if you are an individual who earns and meets the particular limit. This figure normally differs between states.

However, it does not get above INR 2500 on a yearly basis no matter which state you may be in.

It also needs to be stated in this context that this rate is different for different individuals as well.

Who is liable to pay professional tax in Bangalore?

In Karnataka Tax on Profession, Trades, & Calling, both salaried as well as self-employed earners and the business entities have to pay this tax to the state government of Karnataka. As far as salaried people are concerned it is the responsibility of the employers to collect the tax.

The following categories are required to pay professional tax in Karnataka:

  • Companies
  • Corporations
  • Other corporate bodies
  • Firms
  • Hindu undivided family (HUF)
  • Any club or association
  • Any society

With regards to the self employed people they need to pay it to the people who have been appointed by the state government for such purposes. Professionals such as doctors, chartered accountants, and lawyers have to pay this particular tax over here in Karnataka.

See, these professionals are required to pay the profession tax:

Professional Tax
Tax on Profession

Professional tax rate in Karnataka

In Karnataka professional taxes are levied as per the Karnataka Tax on Professions, Trades, Callings and Employment Act 1976.

As far as salary and wage earners in the state are concerned professional tax does not apply if you earn less than INR 15000 a month.

If you are earning more than INR 15000 a month for the year 2019-20; you would need to pay INR 200 for each month.

However, it also needs to be stated in this particular context that there are other categories of professional tax payers in the state as well and the rates for them are different.

Professional tax slab rate in Karnataka for salaried person

Salary/Wage Range For Employee Tax Amount
Less than Rs. 15,000/- Per Month 1 Employee Nil
Not less than and above Rs. 15,000/- Per Month 1 Employee Rs. 200

Who are exempted from paying professional tax in Karnataka?

There are certain classes that do not need to pay professional tax in the state. These are –

  1. All the philanthropic and charitable hospitals and nursing homes that are located at places that are lower than the taluk level in each and every district of the state would not need to pay this tax. This however does not include Bangalore and the Bangalore Rural District.
  2. Directors of companies that are registered in the state and have been nominated by financing agencies that are controlled or owned by the state government, or any other statutory body, are exempt from this tax.
  3. Technicians from other countries working in the state under appointment from the national government are exempted from paying this tax as well. However, this exemption would be applicable only for a period of 2 years from the date when the concerned professional joined his work.
  4. The employee who has attained 65 years of age, tax is not deducted from him/her.
  5. The employee who has employed but not worked more than 120 days in respective year, tax shall not be deducted from him.
  6. Physically handicapped and blind persons are exempted from Karnataka professional tax.
  7. The persons running educational institutions and teaching classes up to 12th standard or pre-University are exempted.

Documents required for professional tax registration in Karnataka

Following are the documents needed for registering for professional tax in Karnataka:

  • Copy of PAN (permanent account number) Card for applicants – in case it is a company it is the directors’ PAN cards that would be needed
  • AOA (articles of association) and MOA (memorandum of association) if it is a company
  • Copy of ID (identification) proof of applicants and director in case it is a company –it is preferable to provide the Aadhaar Card in these cases
  • Declaration, if it is a company
  • Passport size photo of applicant or director in case it is a company
  • Sale deed if the property is owned
  • Mobile number and email ID of applicants and directors if it is a company
  • Rent agreement if the property has been rented
  • Residence proof of registered office – it is better to provide copies of mobile bill, telephone bill, electricity bill, or gas bill
  • PT authorization letter

You need to provide scanned copies of these documents when you make the application.

How to enroll for professional tax (PT) registration?

We want to clear you one thing regarding on enrollment and registration. Because these two things are little bit different; so who shall have to acquire PT enrollment certificate and who needs this registration?

So, you have to understand and aware about the simple difference on them.

Case of Enrollment

As it is stated in Karnataka Act 35 of 1976; In Schedule for Class of persons from Sl. No. 2 to 74 shall have to obtain a Certificate of Enrollment from the Profession Tax Officer of the jurisdiction.

The companies or businesses owners have the responsibilities to enroll for PT (professional tax) for doing business in Karnataka State and shall have to pay certain annual tax before 30th April of every year.

Case of Registration

The employees of Sole Proprietorship/ Partnership/ LLP/ OPC/ Pvt Ltd/ Public companies or any other business organization are getting salary above and not less than Rs. 15,000 monthly have to pay tax on profession.

And it is the responsible of employer to deduct the tax from employees account and pay to State Government and it can be done through filing of monthly PT return. For this, the organization has to obtain PT registration from department.

Therefore, a company having employees has to do both registration and enrollment.

If you wish to be registered for professional taxes in Karnataka; you can get help and support from us. We’ll help you complete your PT application process & obtain enrollment and registration certificate for your business.

PT registration process

You need to visit the official personal tax website. The process is rather simple. By visiting the website you can apply online for registration. Go to https://pt.kar.nic.in/ link for personal tax enrollment and then click on the same. After that you would need to follow the instructions as they appear on the website.

4 simple steps to get PT enrollment & registration certificate:

  1. Prepared documentation for PT registration
  2. Visit to e-PRERANA website
  3. For Enrollment Certificate (EC), click on “Enrollment Application” from left panel of e-Services and fill the details. Then make payment online, then take a print of enrollment application and after that you will get enrollment certificate.
  4. For New Registration Certificate (RC), click on “New RC Request”, fill the entire mandatory field, Sent OTP to Mobile and Verify the number, then you will receive a Acknowledgement No; Through this you can get a RC certificate.

How long does it take to register professional tax?

It takes at least 5 days of working time in Karnataka to get PT enrollment and registration number.

We can apply it in 1 day; however to get the User ID and Password, we’ve to visit the PT office and submit the application with all documents in physical data format, and then the concerned PT officer will verify it.  After verification, they issue a User ID & Password for your organization and we receive it. Then we can proceed for PT filing.

Note: The important thing is that the person who is going to collect the login details from PT office has to take an authorization letter from organization head with seal and signature. So that he/she can be treated as the concerned person for receiving details.

Due date for payment of professional tax in Karnataka

As per Karnataka profession tax, every employer or other taxable person has to make the payment of professional tax on or before 20th of every subsequent month.

And 30th May of every year is the last date for filing of annual statements and it is to be filed with Form-5A.

Professional tax registration fees

Consultants or tax professionals charge fees for doing your PT registration and filing returns on time and it varies from one consultancy to other. So before going with them, ask how much they are charging, what services they’ll offer, for how many employees they’ll do filing or anything it is coming to your mind can ask and judge them with their work capability, service and its output.

Penalties for not paying the professional tax

If as an employer you do not register for professional tax in Karnataka you would be charged a fine of INR 1000. In case, you are not a business owner this fine would come down to INR 500.

If as an employer you do not file returns for your employees you would have to pay a fine of INR 250.

If you have registered for the tax and are not paying it then a fine of 1.25 per cent of the outstanding amount would be levied at you on a monthly basis. However, this can go up to a maximum of 50 per cent of the outstanding amount.

How to file PT return online in Karnataka?

Nowadays, the state government of Karnataka has come up with a website named e-Prerana (web link – https://pt.kar.nic.in/(S(pvyjes1a4nocykl51dyfdnae))/Main.aspx). Here professional tax payers can come and enter their returns, and then submit it online as well. This website also enables them to make the payments online.

If they wish they can also generate professional tax certificates online and the best part of this is that they do not also need to go to the professional tax office for the purpose.

Proprietorship Registration in Bangalore Karnataka

Sole Proprietorship Registration
Business GST Profession PATSON LEGAL

Know All About Sole Proprietorship Firm

Sole proprietorship can be called the simplest form of business. As such, a sole proprietorship is not a legal entity. The term is basically used to refer to owners who have their own businesses and in these cases they happen to be responsible for the debts incurred by their business as well.

Such a business can operate either under a name chosen by the owner or under the name of the owner itself. The name in these cases is just one intended for purposes of trading. It does not really mean that the business is a legal entity that happens to be separate from its owner.

There are several reasons as to why sole proprietorships have become as popular as they have been. As has been said already, this form of business is the simplest out there. It is also really easy to set up such a business and you need little money in order to set up such a company.

If you wish to register a sole proprietorship, all you need to do is register your name and get a license that allows you to do business in your immediate locality. One of the major issues of such a business though is that you are always held personally responsible for all the debts incurred by your business.

What is sole proprietorship firm registration?

It needs to be mentioned in this context that in India it is not mandatory for you to register your sole proprietorship business. Now you may ask why is it that you should get your sole proprietorship registered. There are two major benefits of such a step –

  1. Your business gets a proper identity and
  2. It gets a lot easier to open a bank account in the name of your business while it happens to be registered;

When you get your sole proprietorship registered your business would get a separate identity that would mark it out against other types of companies such as partnerships. One of the biggest issues of sole proprietorship is that it can be quite hard to open a bank account in the name of your business.

Normally these businesses do not really have any recognition from a government and this is what makes it so hard for owners like you to prove to banks that your business exists. Once you register your business it gets a definite identity from the government and thus it becomes a lot easier for you to open a bank account in the name of your business.

Advantages and benefits of a sole proprietorship

As a kind of business entity you get a number of benefits by starting a sole proprietorship. You would already know by now that these businesses are easier to start and you do not need a lot of money to start such a company.

This particular type of business also comes with a lot less regulatory compliance related requirements. It is also easier to name such a business as opposed to other kinds of businesses. Since you are the only owner in such a company you have complete control over the same.

It is also a lot easier to close a sole proprietorship company.

Such a company does not need to file any income tax separately. This is applicable even when you have registered it. All you need to do is file your individual tax return. In that you can easily disclose how much profits you have made from the business or how much loss you have incurred. Normally in case of partnerships a separate return has to be filed for the business.

However, if you have registered your business as per GST (Goods and Services Tax) then your return has to be compliant with GST requirements as well.

Coming to the costs of starting such a business they are basically next to nothing. The only money that you may have to spend in such a business is in order to get a license for your business.

It also needs to be mentioned in this context that since the compliance related requirements in these cases are minimal you can save a whole lot of money in that regard as well.

As has been stated already, it is pretty easy to name a sole proprietorship. You can give your company any name as long as you are not violating a trademark held by another company.

You can always start off your business with a unique name and once you feel you have earned a sufficient amount of goodwill you can get your company registered in that particular name.

Documents required for proprietorship registration

In order to register a sole proprietorship you need to furnish the following documents:

  • Self attested copy of your PAN (Permanent Account Number) Card
  • Self attested copy of your Aadhaar Card/ Voter ID/ Driving License (DL)/ Passport as address proof
  • Electricity bill and Rental agreement of premises where you want to setup your business (if it is rented premises)
  • Tax paid bill (if it is own premises)
  • Bank statement required for GST registration or MSME registration
  • Passport size photographs

How to register a sole proprietorship in India?

There are 3 ways through which you can register a sole proprietorship firm and get an ownership certificate in Bangalore or any other cities in India as per the business requirements.

  1. Obtain a CA (Chartered Accountant) Certificate for Opening a Current Bank Account
  2. Obtain a Labour Certificate from the State Labour Department (or Municipality)
  3. Obtain a MSME/ GST Certificate Based on Nature of Business

Get a CA Authorized Certificate

In First, you have to obtain a Chartered Accountant (CA) Certificate for your business to open a Current Account in any nationalized bank. It is mandatory for every proprietor to acquire the CA authorization letter for his/ her business name.

Get a Labour License Certificate

Secondly, you shall have to register and acquire one Shops and Establishments registration license from State Government under the Karnataka Shops & Establishments Act, to give a legal name to your business.

If you have a shop that serves as your place of business you can register your sole proprietorship under the Shop and Establishment Act. In this case the term shop means a place where you sell goods on a retail or wholesale basis. It could also be a place from where you provide services to your customers. You can also go for this particular way if you have any of the following that you use for the purpose of business:

  • Office
  • Store room
  • Go-down
  • Warehouse
  • Workplace

In this case the application needs to be made to your local municipal body.

If you do not know how to register a sole proprietorship business in Bengaluru you need not worry on this regard as these days there are a number of companies that are willing to help you to register your company. You can be sure that they would help you in each step of the way.

We are also a leading company registration service provider in Bangalore offers various services in relating to business consultation; if you need our help, we will deliver you the best services on the basis of your requirements.

Get a MSME/ GST Certificate

And Thirdly, you can take a Central Government’s GST/ MSME registration certificate to avail the benefits and subsidies from them on the basis of SME criteria.

In case of MSME registration, you can register a sole proprietorship through Udyog Aadhaar (now it is changed to Udyam Registration) under the Ministry of MSME (Micro, Small and Medium Enterprises) of India. Udyog Aadhaar can be described as a unique identification number that is provided to business owners by the Ministry of MSME. Just like all other kinds of companies you can apply for an Udyog Aadhaar as well. Once you do this you would be eligible to receive all the benefits and facilities that the MSME Ministry provides. Apart from that this would provide your business a unique identity as well.

Or if you are getting registration under GST law, in this case your business is to get registered through GST. Normally you should apply for GST if you happen to deal in goods and services. As you may know, GST has substituted the old system of registering for service taxes and VAT (Valued Added Tax). This is indeed a great method in which to get your sole proprietorship registered. However, you also need to keep in mind that there are plenty of GST related compliance issues that you would have to adhere once you choose to go this way. For example you have to compulsorily take taxes from your buyers and then file the applicable returns.

Partnership Firm Registration Online in Bangalore Karnataka

Partnership Registration in Bangalore
Business Company Registration Profession PATSON LEGAL

Know All About Partnership Registration

A partnership firm is a kind of business organization. As such it is also regarded as one of the most important kinds of businesses out there. This is basically a kind of company where two or more individuals come together and form a business.

They decide to split the profits of the company as well but in a ratio that is mutually agreeable to all of them. It is quite easy to form a partnership company as the compliance related requirements are much lesser than other kinds of companies. The registration of such companies in India is governed by the Indian Partnership Act, 1932.

Normally there is no law that mandates the formation of such a company. It happens to be optional – it is up to you and your partners to decide whether you want to register your partnership firm or not.

But registering a firm under Partnership Act is always advisable which ensures that you get a legal proof of the firm’s existence where your customer could have a trust on your establishment.

Apart from this, the Act provides various benefits and rights to every partner like filing a suit in case of disputes, settling claim against third parties, etc.

So, it is always better to get your firm registered at Registrar of Firms/ Departments of the Regional State Registrar where you are planning to set up the business.

The best part of the registration process of such a company is that you can do it at any time of your choice – either before starting your business or after having started it.

Why are partnership firms so popular?

Partnership Advantages
Partnership Benefits

As has been said already, it is really easy to form partnership firms in Karnataka India as they need a lot less by way of compliance compared to other forms of a company. This is perhaps the major reason as to why these companies enjoy such a high degree of popularity.

Apart from that these companies have some taxation related advantages as well. If you register your business as a partnership company, you would not have to pay any business income tax as such.

As a partner you can file the losses you have incurred or the profits you have made in your personal income tax only. This means that your business would not be subjected to taxation as such.

With a partnership you have more than one source of funds, which always comes in handy especially when setting up a company.

What are the features of a partnership firm?

As opposed to a proprietorship firm; in a partnership there are at least two owners of a company is required. The maximum number of partner permissible is 10, in case of such companies in India; as far as banking work is concerned. However, if non-banking work is taken into account this number can go up to 20 as well.

As has been said already, the partnership company has good features for those who wants to run their business with full ownership. An agreement between the partners can spell out the profit or loss sharing, roles, positions and management among them. The thing with a partnership is that these contracts need not always be a written one – it can be an oral one as well.

Normally, a partnership business is created with the intention of doing some business in a lawful manner and also to share in the profits as well as the losses. Companies formed with a charitable intent are not partnerships.

In a partnership firm, you also have a greater amount of knowledge, wisdom, and resources to draw from. It has also been seen that these companies normally have lot more contacts as well. Since there is more than one owner in such a firm there is always a chance that the management could be better than a proprietary firm.

How to choose the name of a partnership?

There are a few things that you need to keep in mind while choosing the name of your partnership firm.

First of all, it should not be identical or highly similar to a company that is already in the same line of business as you wish to be in or are in. This is forbidden for the simple reason you could be damaging the goodwill or reputation of that particular firm by choosing such a name.

In secondly, it would also be better if the name of your partnership company does not contain words such as emperor, empress, crown, empire, or any other word that may come across as approval or sanction of the government. It should not in any way show that it is being patronized by the government.

Why should you have a partnership deed?

As it has been said already, a partnership deed in a partnership firm can be either a written one or an oral one. Normally, a partnership deed is a very important agreement in the sense that it contains the rights, profits, duties, shares, and other such obligations of each and every partner in such a company.

Partnership Deed
Partnership Deed

Section 4 of Partnership Act, 1932 defines that an agreement between the partners/ persons need to be agreed by all or any one of the members for sharing of profits up to how much from business carried on. And the registration of partnership deed takes care of all disputes as per the terms and conditions under which the partnership was formed.

The benefit of a written deed is that it serves as an inalienable record and thus comes in really handy at the time of any conflict in the future. Normally, when you make a partnership deed there are some general details that have to be included. They may be enumerated as below:

  • Name and address of your partnership firm as well as that of the partners
  • Capital that each partner is supposed to contribute
  • Nature of business
  • Profit and loss sharing ratio among the partners
  • The date when the business started

Apart from these some specific details should be there in the partnership deed as well as they would also help avoid any conflict during the later stages. You need to mention the interest applicable for the capital that has been invested in the firm, interest for any loan that a partner may have provided to the firm, and interest on drawings made by partners. The commissions, salaries, or any other amount to be paid to the partners need to be mentioned in the deed as well.

The partnership deed should contain details on the rights of each partner. This should also include the extra rights that only the active partners would be eligible for. The obligations and duties of the partners need to be mentioned as well. This deed should also contain the processes and adjustments that have to be adhered to when a partner passes away or retires from the firm.

Partnership firm registration process

Through the below steps a business can be perfectly registered as a partnership firm:

  1. Choose a unique partnership name
  2. Prepared an agreement or deed for partnership business
  3. Register the business in Regional Registrar of Firm and obtain the certificate
  4. Apply PAN for your business name
  5. Open a current bank account in the name of business

How to register a partnership firm?

If you want to know how to form a partnership firm in Bangalore, you need not worry as we are expert in this domains, providing business solutions to overcome the problem you faced and more than that we are ready to help you. If you need our assistance in this matter, we would always be happy to help.

The application form in this case needs to be submitted along with the required fees. Normally in these cases the Registrar of Firms should be of the state where you wish to do business. You also need to make sure that the application contains the signatures of all the partners. At least their agents should sign the same.

Necessary documents required to register a partnership?

Following are the documents that you need to provide to the Registrar of Firms while registering your company as a partnership firm:

  • Application registering the partnership – Form 1
  • Certified original copy of the partnership deed
  • A specimen of the affidavit
  • Proof of the central location of business – in this case you can provide lease or rental agreement or ownership papers as well
  • Identity proof of partners – PAN Card, Aadhaar, Voter ID, Passport
  • Address proof of partners – Electricity Bill, Mobile/ Phone Bill, Bank Statements (not older than two months)
  • Stamp duty of appropriate value through Stamp papers
  • Photographs of all partners

If the Registrar happens to be satisfied with all the documents that have been furnished by you she or he would register your firm in the Register of Firms and would issue your Certificate of Registration as well. The Register of Firms has all the latest information on each and every partnership firm working in a state. However, in order to be able to view it you have to pay a certain amount of fees.

One Person Company (OPC) Registration in Bangalore India

Business Company Registration Profession PATSON LEGAL

How to Register a One Person Company in India?

While an entrepreneur or a business owner is going to register an OPC company in Bangalore or any other cities in India; he/she should have to aware and know the most important things related to it such as features, advantages, reasons, requirements, documents, process and time and cost involved in registration. That’s why in this article, we discuss the key points which is most essential to get started a one person company in India.

Introduction to OPC

The concept of a one person company (OPC) was brought out as per the Company’s Act 2013. Previously, in order to find a private company you need at least 2 members and directors. On the other hand, you needed at least 7 members and 3 directors in order to start a public company. A single person was never allowed to incorporate a company earlier on.

However, the Section 2 (62) of said act has made it possible for the people who want to form a company with just one director and one member. Normally, in such a company the compliance related requirements are lot lesser than a private company.

As per the statistical report, it is shown that the number of registered one person company is growing gradually in India. Because the entrepreneurs or single business owners are liking to do business as OPC rather than sole proprietorship to get the advantages of it.

You might be interested to know what are the numbers of one person company are registered in India till date. Here we share a little information on OPC formation which carries the records that how many companies are annually registered from financial year 2014-18 (until March).

As on 30th June, 2018, a total number of 18,153 One Person Companies (OPCs) were registered in India. The below image chart gives a pictorial representation view of OPC.

See the growth chart of registered one person company (OPC) as on 30th June, 2018:

OPC Registered
OPC Registered in India

What is OPC Registration?

OPC registration means solopreneurs or entrepreneurs could register their venture or business enterprises with MCA (Ministry of Corporate Affairs) under the laws and rules of Companies Act, 2013 and start as a single person/owner entity to reach in their business goals. To do business in India; a business has to get a legal name and this called registration. After registration, the ABC Company will be known as “ABC OPC Private Limited” and it is treated as one person Pvt Ltd Company.

Features of a One Person Company (OPC)

As far as the rules and regulations in India are concerned only a natural citizen of India can start an OPC over here. The same facility is also available to the residents of India. Such an individual can be both the nominee and a member of such a company. For the purpose of this particular discussion it must be mentioned that the term resident indicates a person who has stayed in the country for at least 182 days in the immediately previous financial year.

A person cannot be a member in more than 1 OPC. You also need to keep in mind that if your paid up share capital crosses the INR 50 lakh mark you have to change yourself into a public or private company. The same is also applicable if in the immediately preceding 3 financial years your yearly turnover crosses the INR 2 crore mark. This mandatory conversion needs to be completed within a period of 6 months.

As far as voluntary conversion is concerned, you need to wait for at least 2 years before you can change your company to a private or public company. After that period you can easily apply and change your company to the kind that you want to. The Companies Act, 2013 has laid down certain rules and regulations for such conversion under Section 18 as well as Rule 7 (4) of the Companies (Incorporation) Rules, 2014. They have to be followed to the letter in such cases.

There are also some mandatory rules and regulations that you have to observe as an OPC. You should have at least one board meeting in each period of 6 months in a calendar year. At the same time, these meetings should not be more than 90 days apart. You have to maintain proper bank accounts and get your financial statements audited the right way. Each year you have to file your business income tax returns prior to 30th September. You need to file your ROC (Registrar of Companies) Annual Return through Form MGT-7 and financial statements through form AOC-4.

If you happen to be a minor you would not be allowed to form such a company. The same will also be applicable if you are a foreign citizen, a person who is contractually incapacitated, or a non resident of India.

Advantages of an One Person Company

There are several advantages of an OPC that may be enumerated as below:

  • It is a separate legal entity
  • It is easier to get funding for the same
  • The liability is limited but opportunities are endless
  • You get the benefits normally associated with owning a small scale industry (SSI)
  • You are the only owner
  • Even with a bad credit rating you would get a loan if you are an OPC
  • You get Income Tax benefits
  • You get high interest on any late payment
  • These companies carry a lot of prestige and the faith in them is increasing by the day

It needs to be stated in this context that the income tax benefit is perhaps the only tax related benefit that an OPC is entitled to. Otherwise all the other kinds of taxes such as Dividend Distribution Tax and MAT (Minimum Alternate Tax) are applicable for these companies as well. They are applicable in this context just as they are for others as well.

Why You Must Register a One Person Company in Bangalore?

There are several reasons as to why you (entrepreneur) should register such a company in Bangalore. The capital city of Karnataka happens to be one of the major business hubs in the country and this means that there are plenty of chances for you to prosper. So you should you start a company over here.

In fact, right now Bangalore can be called as one of the great tech hubs of Asia itself. Foreign investors, entrepreneurs and capitalists have eyes on this place.

Just to name a few reasons here:

  1. To create better image and credibility in the market
  2. To magnetize the faith of the customers
  3. To make distinct personal liability from business
  4. To get bank credit & investment from investors
  5. To create faith & attract talented manpower
  6. To make potential to get more customers
  7. To make your business a magic brand

Apart from that there are also plenty of companies over here that can help you get started in this regard. But we are a leading trademark and company registration services provider, offering wonderful services for business brands to make impact on their industry niche. We are the specialists in such work and have plenty of experience in this regard as well. We have helped plenty business entities like you before and you can expect us to do the same for you as well. We know quite clearly what works and what does not. We bring such knowledge and experience to bear for your benefit and make sure that you get what you need.

Documents Required for OPC Registration in Bangalore

  • PAN card copy of director/members
  • Passport size photograph
  • Proof of identity (Aadhaar Card, Voter ID, Passport, Driving License)
  • Proof of Residence in the name of applicant (Bank statements, Electricity Bill, Telephone Bill, Mobile Bill)
  • Rental agreement/ Sale deed of property from owner of the premises for using it as registered office
  • NOC from the owner of the premises for registered office
  • Electricity/ Telephone/ Mobile Bill & Property Tax Receipt required for premises address proof

How to Incorporate or Register an OPC?

Here are the 6 steps which must be needed for OPC registration process:

  1. Applying for Company Name Approval
  2. Applying for Digital Signature Certificate (DSC)
  3. Applying for Directors Identification Number (DIN)
  4. Preparing Documents for Registrar of Office (ROC)
  5. Filing Forms with MCA
  6. Issuing Certificate of Incorporation (COI)

And here we have shared a brief explanation for the above procedure where the applicant or entrepreneur could learn, know and understand the step by step process of incorporation.

  1. Applying for name approval in MCA

There are certain steps as far as how to register an OPC in Bangalore is concerned. The first step in this regard is to apply to get your company’s name approved. As per rules and regulations the name of the company should be like this – name of company (OPC) private limited. There are 2 options that you have in this regard – you can fill up Form SPICe 32 or use a web service named RUN (Reserve Unique Name) being operated by the MCA (Ministry of Corporate Affairs). In both these cases you would have to provide a name and also the significance of why you want that name. However, from 23rdMarch 2018 onwards the MCA has opted to provide the option of a resubmission (RSUB) along with 2 proposed names.

  1. Applying for DSC

The second step is that you need to take in this regard is to procure a Digital Signature Certificate (DSC) from the authorized Certifying Authority (CA), to whom the permission has given by the Central Government to issue the DSC. This is for the person who is supposed to become the company’s director – you. You normally need documents such as address proof, Aadhaar Card, PAN (Permanent Account Number) card, a photo, email id (identification), and phone number.

  1. Applying for DIN

After you get your DSC the next step that you take in order for OPC registration in Bangalore Karnataka is to apply for your DIN (Director Identification Number). For this, you need to fill up the SPICe (Simplified Proforma for Incorporating Company Electronically) form and provide your name and address proof. If you are already an existing company you should be filling up Form DIR-3. This implies that starting from January 2018 companies need not file that particular form in a separate manner. This particular application can be made for a maximum of 3 directors.

  1. Preparing the documents for ROC

Once the MCA approves of the name you have to start preparing the documents that you would submit to the ROC.

The first such document is the Memorandum of Association (MoA). It contains the objectives that the company would follow. It basically states the business for which the company is being started.

The second document in this regard is the Articles of Association (AoA). It basically mentions the bylaws that would be followed in order to run the company.

Since such a company has only 1 member and 1 director a nominee needs to be appointed. This person would take over the reins when the director is unable to run the company because of death or incapacity of some or the other kind. In this case the consent would be taken in Form INC-3. The concerned person would have to provide documents such as Aadhaar Card and PAN Card.

The fifth document in this regard is the proof that you have a registered office for the proposed company. You also need to furnish a NOC (No Objection Certificate) from the property’s owner or show proof of ownership yourself.

You, the director, would also need to provide Consent and Affidavit by way of Form DIR-2 and INC-9 respectively.

You also need to provide professional certification of the fact that you have met all the compliances in this regard.

  1. Filling forms with MCA

You need to attach all these documents to the SPICe Form, SPICe-AoA, and SPICe-MoA. You would also need to attach your DSC as well as that of the professional who has certified that you have satisfied all the necessary compliance. Then you need to upload these on the official website of MCA in order for them to be approved. Once you have uploaded the documents Forms 49B and 49A would be created. These would help generate your company’s PAN and TAN (Tax Deduction and Collection Account Number). You would have to attach them to your DSC and upload them to the official website of MCA.

  1. Issuing the certificate of incorporation

The ROC would verify all the documents and then issue the Certificate of Incorporation. Then you would be able to start your business legally.

One person company has the great opportunities rather to sole proprietorship; it can build a great wall of success by taking its advantages, when an innovative and creative thinking of an entrepreneur executed in his/ her business and energy to do some good things where the customer will be benefited as well as you also. But the thinking should be clear and concise about your motive.

How Long does it Take to Register an OPC?

We can register your one person company within 7 days. But before that client should have to provide all the necessary documents in time and choose a fresh unique name which helps to get approval quickly from MCA and speed up the incorporation process. Otherwise it will take more time for company incorporation.

How much does it Cost to Register a One Person Company?

We can help you to do complete your OPC registration in Bangalore at Rs 12,500 without any hidden charges. If any requirement is there; we would talk with you proceed for next step.

If you are thinking to get free consultation on company formation as well as for business matters from experienced Chartered Accountants, Company Secretary and Lawyers; get counsel here.

Limited Liability Partnership (LLP) Registration in Bangalore

LLP Registration in Bangalore
Business Company Registration PATSON LEGAL

Know All About LLP (Limited Liability Partnership)

A limited liability partnership (LLP) can be described as a hybrid form of business where you get the flexibility that is normally there in case of a partnership; as well as the benefits of limited liability that are usually associated with a limited liability firm.

It is basically an independent legal entity. An LLP can continue doing business in spite of changes of partners. It can hold property and also enter contracts on its own. As such it is held liable to the fullest extent of its assets.

However, the liability of the partners is restricted to the contribution that they have made in the same.

What is an LLP?

Since an LLP is accorded the status of a body corporate as well as a separate legal entity it has perpetual succession. In an LLP, no partner would be held accountable for any action of another partner that has been taken in an unauthorized or independent manner.

This means that all the individual partners happen to be safeguarded from any joint liability that may be created by the wrong business decisions taken by the other partner. The same can also be said about any misconduct on part of partners. It is the main partnership agreement that governs the mutual duties and rights of the partners in an LLP.

At times, such agreements may also be reached between an LLP and the partners. In that case that particular agreement would be accorded the status of main governing entity. However, since it is an independent legal entity, an LLP cannot be considered to have been absolved of the liability towards its various obligations.

What are the advantages of an LLP?

As this is a form of business, LLP offers a number of advantages.

It is an organized form of business and normally works on the basis of an agreement.

There is a lot of flexibility over here and you also do not have plenty of procedural and legal necessities to deal with over here.

In this business there is plenty of scope to combine technical and professional initiative and expertise with the capacity to take financial risks.

The best part of this business is that all this can be done in an efficient and innovative manner.

Differences between an LLP and a general partnership firm

In a normal partnership firm each and every partner is held liable for all the business decisions and dealings done by the company during her or his presence as a partner.

However, in an LLP the liability is only limited to the contribution that has been made by that partner. On top of that a partner is never held accountable for the bad business decisions and dealings of the other partner as well as the unauthorized or independent decisions that she or he may have taken.

Why is LLP such a popular form of business?

There are several reasons as to why LLP has become such a highly sought after form of business all around. They may be enumerated as below:

  • They are easy to form
  • Low compliance burden & cost
  • The liability is limited
  • There is perpetual succession
  • It is easy to manage such a company
  • Ownership can be transferred quite easily
  • There are various tax related benefits
  • No compulsory audit is necessary

First of all, it is really easy to form an LLP. It does not take as much time as it does to form a company. Nor is the process as complicated. At the very least you need to pay a fee of INR 5600 to form an LLP and the maximum fee is in the region of INR 9500 or it may be vary as per the requirements.

In an LLP the partners do not have to pay for the debts incurred by the company from their own assets. A partner is also not held responsible for the misconduct or misbehavior of the other partner.

It does not matter if a partner of an LLP dies, becomes insolvent, or retires. An LLP can be closed only as per the provisions mentioned in the LLP Act, 2008. The directors of the company are supposed to decide and manage the company. Shareholders do not have the same power as the directors.

There is no restriction as far as joining or leaving an LLP is concerned. One can get in quite easily as a partner and leave the firm equally easily as well.

It is also quite easy for ownership to change hands in such a business enterprise.

An LLP is exempted from a number of taxes such as the minimum alternative tax and the dividend distribution tax. The rate of taxation applicable for these companies is also quite less than other companies.

Normally a business needs to employ an auditor in order to see if the accounts of the organization as well as its internal management are in proper order or not. This however is not required for an LLP.

An LLP only needs compulsory audit when its turnover is in excess of INR 40 lakh and in cases where the capital contribution is more than INR 25 lakh. There is yet another major advantage of an LLP that has made it such a popular form of business to so many people in India. There is no minimum limit of capital contribution over here.

Who are looking to create such a company?

An LLP happens to be the ideal option for people who are looking for the benefits of limited liability and the flexibility that one gets with a partnership firm. It also helps that the compliance costs for such a company are on the lower side.

If you want to organize your internal management on the basis of a mutual agreement – as happens with a partnership firm – this is the format of business that you should choose. This is the reason; this format is such a hit with the small and medium companies in India.

In fact, this is especially true for enterprises looking to make a mark in the burgeoning service sector of the country. If your business involves hiring professionals then this is one format that you can definitely look into. At least, all over the world that is how things work in this case.

If you are in a business that is sure to be profitable then too an LLP is the right choice for you.

As you already know that there is no minimum standard needed for capital contribution in such a company it would also be the right kind of company for you if you are an entrepreneur, professional and service provider who has a bright and innovative business idea but very little money to form a company as such and execute it in the right order.

Accordingly, the LLP business vehicle can be opted by the followings:

Who can choose/ select LLP type business structure? – They could be Professionals, Service Providers, Small and Medium Sized Businesses, Joint Ventures and etc.

LLP Chosen by Whom

How to form an LLP in Bangalore?

As far as forming an LLP in Bangalore Karnataka or any other cities in India is concerned that there are 6 major steps must required for it. In the first step you have to get the DSC (Digital Signature Certificate). In the next step you have to apply for the DIN (Director Identification Number). In the third step you need to get the name of your company approved and reserved. In the fourth step you have to incorporate the company. In the fifth step you have to file the LLP agreement. In sixth step, you’ve to acquire the LLP incorporation certificate from the Registrar.

To apply and obtain registration for LLP in Bangalore or any other cities in India; you can go for a good and effective agency/ consultant/ professional, so that they can help you to get registered your LLP.

What are the documents required to form a LLP?

For registering a LLP in India, you need to produce these documents:

Documents of Partners

  • PAN Card/ Aadhaar/ Voter ID proof of partners
  • Address proof of the partners
  • Passport sized photographs
  • Passport for Foreign National/ NRI

Documents of Business (LLP)

  • Electricity/ water bill of proposed registered office
  • Rental/ leased agreement copy of business place from property-owner
  • NOC (No Objection Certificate) from landowner
  • DSC (Digital Signature Certificate) of proposed LLP

Limited Liability Partnership (LLP) Registration Process:

Here’s a step by step guide, which will help you to know and understand the process of LLP registration.

LLP Process
LLP Application Process

Step 1: Obtain Digital Signature Certificate (DSC) for Proposed Designated Partner

Step 2: Obtain Designated Partners Identification Number (DPIN)

Step 3: Obtain Name Approval from MCA

Step 4: Incorporate the LLP Company by Filing Certain Form

Step 5: Filing of LLP Agreement and Partners Details

A limited liability partnership can be incorporated as per the procedure explained below:

  1. The first step is to acquire the DSC (Digital Signature Certificate) for Designated Partner of LLP/ proposed LLP, whose signature and photo is to be affixed on the e-form along with attested Identity and address proof documents to obtain Class 2 or Class 3 DSC from any authorised certifying authority.
  2. In second step you have to apply for DPIN/ DIN (Designated Partner Identification Number/ Director Identification Number) for all designated partners of proposed LLP. And for this, you have to apply for DIN through e-Form DIR-3 in MCA portal.
  3. In third step, before incorporating or registering a limited liability partnership (LLP) company in Bangalore; the applicant/ entrepreneur has to reserve the proposed name of LLP in MCA database and he needs to file the eForm 1 for ascertaining the availability and reservation of unique name of the LLP business.
  4. In fourth step, once the name is reserved by the ROC, then you can incorporate the LLP company by filing eForm 2 along with necessary documents, which is typically used for incorporating a new limited liability partnership.

E-Form 2 contains all details of LLP proposed to be incorporated, partners’/ designate partners’ details and consent of the partners/ designated partners to act as partner/ designated partner.

After submission of complete documents towards at ROC; then the registrar will scrutiny and verify it, if they satisfied with your relevant compliance provisions of LLP Act, then will register the LLP. And you will be issue a certificate of incorporation in Form 16 within 14 days of filing e-Form 2.

  1. In fifth step, the applicant has to file LLP Agreement with the Registrar in eForm 3 within 30 days of incorporation of LLP. And the execution of LLP Agreement is mandatory as per Section 23 of LLP Act, 2008.

There are certain documents that have to be provided by both the LLP as well as the partners in order for the company to be registered. An LLP needs to furnish proof of its registered office address and its DSC. The partners have to provide their PAN (permanent account number) cards or any other ID proof, their address proof, their residence proof, and photographs.

In case the partners are foreign nationals or non resident Indians they have to provide their passports. It is very important that these passports are either apostilled or notarized by relevant authorities in the relevant home country of that partner.

In the first step it would cost around INR 1500 to 2500 to get the DSC. The amount in this case depends on the agency that is doing the work. In the second stage the cost for obtaining the DIN is INR 1000 for 2 partners. In the third stage INR 1000 needs to be paid for reserving the name of the LLP. The cost of incorporation, the fourth stage, depends on the capital contribution being made in the company. If it is lower than INR 1 lakh INR 500 has to be paid. However, if the contribution is between INR 1 lakh and 5 lakh it can go up to INR 2000. Once again the costs of filing the LLP agreement depend upon the capital contribution. In case the contribution is lower than INR 1 lakh then you need to pay INR 50 for filing Form 3. There is also the important matter of paying stamp duty. This is decided by the state where the LLP is being formed.

Normally the entire process of forming an LLP starting from the first step till the last one takes almost 15 days. However, the applicants need to furnish all the documents properly for the work to proceed at the proper pace.

Compliances related to limited liability partnership

LLP is required to file the following annually:

  1. Statements of Accounts and Solvency [in Form-8]: It should be filed within 30 days from the end of 6 months of the financial year.
  2. Annual Return [in Form-11]: The ‘Annual Return’ is to be filed within 60 days of closing the financial year.
  3. Audit is compulsory, if turnover exceeds Rs. 40 lakhs or contribution of LLP exceeds Rs. 25 lakhs.

How to Register a Private Limited Company in Bangalore India?

How to Incorporate a Company
Business Company Registration Profession PATSON LEGAL

Pvt Ltd Company Registration: Features, Requirements, Process & Benefits

A Private Limited Company can be defined as one that is owned primarily by small businesses. These days, in India a private limited company happens to be the most prominent form of companies out there. In fact of all the different kinds of corporate legal entities being formed in India this happens to be the most popular one out there as well.

While registering a Pvt Ltd company, you need to consult an effective and proficient consultant so that they can clarify and aware you about your business creation and complete your registration within a time frame.

For this you must know and understand all the process how is it carry out.

We used to make simple and right technique for private limited company registration and it is easy with us; so that you can get your registration in right time.

In India, the formation of Pvt Ltd Companies is regulated by the Ministry of Corporate Affairs and the Companies Act, 2013, and the Companies Incorporation Rules 2014. You need at least a couple of shareholders as well as a couple of directors in order to form such a company. In these companies, only a proper individual can be a Shareholder as well as a Director, while a Corporate Legal Entity can only be a Shareholder.

These days, foreign nationals can become Directors and foreign nationals and Companies can also become shareholders through Foreign Direct Investment (FDI). So doing business in India is simpler now.

This is the reason why these companies have become so popular with Foreign Investors looking to make their presence felt in the Indian market. These facilities are available for the non resident Indians (NRIs) as well.

It needs to be stated in this particular context that it is the unique features of this type of Company that have endeared them so much to investors all over the world. This is especially true for the millions of small and medium businesses in the world today.

Features of Private Limited Company

It has been already stated that you need to have at least 2 members in such a company. The maximum number in this case is 200.

One of the major traits of a private limited company the liability of a shareholder is restricted only to the number of shares held by a shareholder in case of Company Limited by Shares. This implies that in case the Company faces any financial problem as such the shareholders would not have to sell their assets to make the payment. The dues in such a case would have to be realized by using the assets owned by the company in question.

Never, under any circumstance, would the assets owned personally by the members of the company would be under any threat in such circumstances. As per laws, these companies continue to exist even in case the members die, become insolvent, or go bankrupt. They can go on and on.

Normally, the names of these companies have three components – the name, the words private limited company, and the kind of business that they are doing and it ends with the word Private Limited or Pvt Ltd.

Benefits and Advantages of a Private Limited Company

As per Companies Act, 2013; a Pvt Ltd company has the rights to utilize the following benefits of organization.

  • Discrete legal entity
  • Limited liability to shareholders and directors
  • Easy transferability of shares
  • Easy transferability of ownership rights
  • Privilege to raise equity funds
  • Ownership of acquired property

Discrete legal entity

One of the first benefits of private company is that it can operate as a separate legal entity. This means that it is regarded as a separate individual as per the laws of India. This is the reason why it can perform functions like starting a bank account, hire employees, take on equity, or even get licenses or more.

Limited liability

As such the members of the company like the shareholders and the Directors do not have any personal liability to the creditors of the company for any of the debts incurred by the same.

Easy transfer-ability of shares & ownership

Apart from these facilities, the Private Limited Companies can stay on till the time they are dissolved formally and they can be transferred quite easily as well. This means that you need to transfer the shares of such a company and you are basically transferring the ownership of the same. In this case, all you need to do is sign, file, and then transfer the share transfer form as well as share certificates.

Privilege to raise funds

However, in such a company you also need the consent of the other shareholders of the company in order to perform such a transaction. In India, these Companies are allowed to raise equity funds. They are also allowed to issue equity shares, debentures, preference shares, and take deposits with the permission of the Reserve Bank of India (RBI). Normally, financial institutions such as banks like to fund companies instead of proprietary companies or partnership firms as such.

Rights for own property

Since these are independent legal entities they are allowed to own property in their own names. Apart from owning property they can acquiring and owning property they can enjoy it or sell it at any time they choose to. They could own any kind of property such as the following:

  • Machines
  • Buildings
  • Intangible Assets
  • Land
  • Residential Property
  • Factories

Minimum Requirement to Form a Private Company

As has been stated already, you need at least two shareholders of the company as well as two Directors. The directors have to be natural people while both human beings and companies can act as shareholders of such a company. Apart from that you also need to have a registered office in India. This comes in handy at the time of registering the company. You also need a paid up capital of INR 1 lakh.

How to Choose the Name of a Private Limited Company?

In India, in general the rules and regulations for naming the companies are formulated by the Companies Act 2013. And when you are forming a company in Bangalore; things need to keep in mind regarding name approval.

The first rule in this case is that the proposed name of the new company should not be same as any other company. It should not be undesirable as well. This implies that it should not flout the Emblems and Name Act and any trademark as such. It should also not have any offensive words as well.

It should not include the words British India, should not include any association with a foreign embassy, consulate, or government. It should not also imply any patronage as well. The name also needs to be clear – it should not be abbreviated or vague.

Procedure for Registering a Pvt. Ltd. Company in Bangalore

The step-wise process for registration of private company under Companies Act, 2013

Pvt Ltd Company Registration
Company Registration Process

A private limited company can be incorporated with these 6 easy and simple steps:

  1. The first step is registering such a company started as per the amendment from January, 2018; it has mandated that apply for name approval through RUN (Reserve Unique Name). You can apply 2 names at a time along with one re-submission for 2 other names.

Proposed name/objects should not include the words like Finance, Insurance, Credit, NBFC, Stock Exchange, Venture Capital, Asset Management, etc., without declaration from RBI/SEBI/MCA according to the incorporation rules 2014.

In case the name you want is available you will be approved but if not you would receive an objection along with suggestions on available names. You have to choose from one of them and use the same application with a new name.

  1. In second step, you need to apply for DSC (Digital Signature Certificate) for Directors; for the purpose of signing in on various documents during the business process. It is must required for every company.
  2. Third step is for incorporating the company through the SPICe form and here you need to apply for DIN for Directors, PAN and TAN for company; for this you have to prepare several documents, make the necessary payments, and submit them.

DIN (Director Identification Number) is required for those who don’t have DIN. The important documents in this case could be enumerated as below:

  • DIR-2 Consent to act as Directors
  • Declaration by Directors
  • Declaration by Professional
  • INC-9
  1. In fourth step, you need to prepare for online drafting of MOA and AOA as there is a separate forms spice-33 MOA and spice-34 AOA; you can download the above Forms from MCA website, fill and submit it along with digital signature with spice-32.
  2. Fifth step is for getting the registration certificate of company, after rechecking and verification by ROC department; if everything is ok, then you will get an email about the Certification of Incorporation (COI) from your regional ROC department.
  3. Final step to receipt of Company Incorporation Certificate from Registrar of Companies (ROC) bearing with PAN and TAN number.

Documents Required for Registration of Pvt Ltd Company

Here’s the list of documents are needed for company incorporation process

  • PAN/ Voter ID/ Aadhaar/ DL/ Passport card (in case of Indian nationality)
  • Apostille Passport (in case of foreign nationality)
  • Present and permanent address proof of directors
  • Bank statements (not older than 2 months)
  • Recent utility bill (Electricity bill, water bill, property tax bill)
  • Registered office address proof
  • Rental/ sales deed agreement from property-owner
  • No objection certificate (NOC)
  • DSC of directors
  • DIN of directors

You need to have valid identity (PAN) as PAN is mandatory to register a Company and permanent and temporary address proofs as well as registered office proof in order to start a private limited company in India. Identity and address proofs are necessary for all the members of the company at the time when the company is being incorporated. As far as Indians are concerned they have to provide their PAN (permanent account number) and for foreigners it is a notarized or apostilled copy of the passport. All these documents have to be valid. Documents such as electricity bill or bank statement can serve as proofs of residence but they should not be more than 2 months old. In fact, passport, driver’s license, and Aadhaar Card can serve the same purpose as well.

As far as registered office proof is concerned an applicant needs to furnish documents such as recent copy of electricity bill, water bill, or receipt of property tax. Along with utility bills the applicants also need to submit sale deeds or rental agreement along with a letter of consent from the landlord that states that the concerned individual has agreed to let the applicants use said premises as a registered office of the applicant. The applicants also need to provide signed incorporation documents such as hard copies of signed digital signature application documents. Other incorporation documents can be signed and uploaded as soft copies.

Compliance Related to Private Company in India

A private limited company in India needs to be compliant in the following areas:

  • Appointment of auditor within 30 days of incorporation
  • Conducting statutory audit of accounts every year
  • Filing annual returns using Form MGT-7 every year
  • Filing financial statements using Form AOC-4 every year
  • Organizing annual general meetings once in a year
  • Preparing director’s reports once in a year

In these cases, the auditor will have to be filed for 5 years and the Form ADT-1 will have to be filed for the same time period as well. The first auditor has to be appointed within a month from the date on which said company was incorporated.

All these companies would have to prepare their accounts and get them checked by Chartered Accountants. This needs to be done on a compulsory basis at the end of each financial year.

The auditor shall provide audit reports and audited financial statements, and these would be filed with the registrar.