Become a Certified GST Practitioner with CA Arun Chhajer. Register Now!

Registration state - does it matter?

Safalat Khan (Co-founder) (24 Points)

05 January 2012

Hello Experts,

I'm a resident of Patna (Bihar) and I am going to start an Information Technology (IT) business in Bangalore. For this, I wish to register a Pvt. Ltd. company.

Where shall I register my company --- in Bihar or in Karnataka? Obviously, it is easier for me to complete the registration process in Patna ( eg. I can use my home as the Registered Office) and then rent a business office in Bangalore only when the registration process in Patna is complete.

Please let me know :-

(i) if there will be any tax filing problems later

(ii) if there may be problems related to bank ( opening account, securing loans etc.)

(iii) if there will be any other complications or additional steps involved in operating in Bangalore (while having Registered Office in Patna)

Thanks for your valuable advice.

Reply
Follow
Share

4 Replies

Charu Srivastava (Company Secretary) (4210 Points)
Replied 05 January 2012

No there will be no issue you can incorporate Company in Patna, whereas corporate office can be openend in Bangalore.Many company does like this.There will be no issues in tax related issyes and openig of bank acount as everything is online.

others views are solicited.

Upgrade to CAclubindia Pro. Subscribe Now!

Kumar Gaurav (Company Secretary) (58 Points)
Replied 05 January 2012

Agree with CS Charu,but do keep the documents in your registered office which are specifically prescribed in Companies Act. If you are going to take a office in Bangalore then follow the state rules in regard to registration of Office and allied things because they are State Matters.

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 05 January 2012

Mr S Khan,

For producing and selling IT products(software),which are taxable under KVAT Act,and also for doing service and maintenance contract of IT products,you have to register under KVAT Act. This is necessary for issuing tax invoices,filing of returns etc. For the products made in Karnataka you cannot raisse invoices from Bihar or under that registration No, which becomes illegal. If you just want to have a sales offfice only here in Bangalore, then no registration under local law is necessary.

MJK