Different Types of Limited Company Registration in Karnataka
‘Private Limited Company’ is a business organization registered under company laws for doing business in a particular jurisdiction. It is an association of real persons and/or body corporate (Companies and LLPs) registered under relevant laws. It is one of the most accepted business organizations in India.
For administrative and other requirements including compliance, a company is classified as
1. One Person Company Registration in Bangalore, Karnataka
This category of company is a new creation after the introduction of Companies Act,2013. Basically OPC is a private company with one shareholder. The main features of OPC are;
- Single shareholder
- Board may have one or more directors
- Maximum share capital of an OPC is Rs.50 lakhs
- Maximum turnover allowed in OPC is Rs.200 lakhs
- Conversion to private limited is only possible after two years of existence.
2. Private Limited Company Registration in Bangalore, Karnataka
It is the most common form of company for doing business in Bangalore. A ’private company has the following features and restrictions (for registration purposes):
- The minimum and maximum numbers of shareholders are two and two hundred respectively.
- The minimum number of directors is Two.
- Share transfers can be restricted as per articles of the company.
- A private company cannot accept deposits from the public; only loans and deposits from the company’s shareholders, directors and their relatives.
- A private company cannot issue shares to public.
- Compliance and regulatory requirements under applicable company laws are fewer and simpler as compared to requirements prescribed for a public company.
- The name of the company should end with ‘Private Limited’.
3. Public Limited Company Registration in Bangalore, Karnataka
Typically, large-sized businesses and/or stock exchange listed entities are incorporated as public companies. Public companies have the following features:
- The minimum number of directors is three; while the maximum number is twelve or other similar number as approved by the government.
- The name of a public company ends with ‘Limited’.
- A public company can issue shares to the public subject to Government Regulations.
- The minimum number of shareholders allowed is seven and there is no restriction on the maximum number of shareholders.