Company registration in Bangalore, or anywhere in India, can be a smooth process if you plan carefully. But a lot of entrepreneurs run into avoidable issues. Here are the Top 10 Mistakes to Avoid During Company Registration in Bangalore:
1. Choosing the Wrong Business Structure
Whether it’s a Private Limited Company, LLP, Sole Proprietorship, or OPC, the structure affects taxation, liability, funding, and compliance. Many startups go for Pvt Ltd without understanding the long-term implications.
✅ Tip: Consult a legal or financial advisor to choose the most suitable entity for your goals.
2. Incomplete or Incorrect Documentation
Missing or incorrect documents (ID/address proofs, utility bills, NOC from landlord, etc.) can lead to rejection or long delays in registration.
✅ Tip: Triple-check all documents and keep soft copies ready for upload.
3. Not Verifying the Availability of Company Name
Assuming your desired company name is unique without checking on the MCA portal can cause your application to be rejected.
✅ Tip: Do a formal name availability check and secure the name through the RUN (Reserve Unique Name) service.
4. Ignoring Local Address Proof Requirements
Using temporary or unverified addresses (like co-working spaces without proper NOC) can create issues with ROC inspections and compliance.
✅ Tip: Ensure your business address has clear documentation and landlord consent if rented.
5. Skipping the Digital Signature Certificate (DSC) Step
DSC is mandatory for directors to sign electronic forms. Many delay this step, causing hold-ups.
✅ Tip: Get DSCs for all directors before starting the SPICe+ process.
6. Appointing Ineligible or Unwilling Directors
All directors must meet the eligibility requirements and give consent. Appointing someone without their full understanding or legal standing can be risky.
✅ Tip: Confirm Director Identification Numbers (DINs) and get signed consents in Form DIR-2.
7. Incorrect or Incomplete MOA and AOA
Errors in the Memorandum of Association (MOA) or Articles of Association (AOA) can cause compliance issues or misalignment with future goals.
✅ Tip: Customize your MOA/AOA carefully; don’t blindly use templates.
8. Delaying PAN, TAN, or GST Registrations
You may need these immediately after incorporation, especially for opening bank accounts or starting operations.
✅ Tip: Apply for PAN/TAN along with SPICe+ forms and check if GST is needed right away.
9. Not Understanding Post-Incorporation Compliance
Many forget ongoing obligations like filing annual returns, holding board meetings, or maintaining books of accounts.
✅ Tip: Have a compliance calendar or hire a professional to manage post-incorporation tasks.
10. DIY Approach Without Professional Help
Trying to register without understanding the legal framework can lead to rejections, delays, or even penalties later.
