I receive lots of queries about legal formalities required for starting HR Consultancy ? Actually, the answer depends upon the type of company you want to start. As i already wrote about it in my earlier post How to start a HR Consultancy company, that there are four types of firms in India i.e.
- Sole Proprietorship
- Partnership
- Private Limited
- Public Limited
The easiest and most affordable way to start a HR consultancy is to start it as a Sole Proprietorship firm. For starting a proprietorship firm, you will need few documents as well.
- Letter Head in the name of company
- Visiting card
- Company Rubber Stamp
- Your PAN Card
- Address Proof (copy of telephone bill. Electricity bill)
- Rent Agreement if you are running from rented premises
- Service tax registration (optional)
- Current account in the name of your firm in any bank, we prefer IDBI
It is always advised to have a website designed for your company as it boosts trust about your company in the market. You can even go for SEO as it will bring new customers to you through internet. You can also go for service tax registration, but is optional. Service tax registration is only needed when your annual revenue is more than 10 lakhs. For service tax registration you can contact any CA and he will happy do service tax registration for you for anything between Rs. 2500- Rs.3500.
If you want to open partnership firm for your HR consultancy, you will still need all the things above but in addition to that you will be needing copy of partnership deed. In partnership firm all the partners will be the owners of the company.
If you want to open a Private Limited company, you will be needing 2 persons as board of directors and you will need one auditor. Along with this you will be needing a copy of memorandum of association.
If you are just starting, I advise you to start with sole proprietorship or partnership firm depending on the situation. Then you can move to make it private limited if everything is fine. Hope this will solved some of your queries.:) Leave a comment if you want to know anything regarding the legal formalities.
WP Themes
- Feb 3rd, 10
Nice brief and this post helped me alot in my college assignement. Say thank you you on your information.
surai
- Feb 7th, 10
Thankyou soooo…. much for your answer.
really appreciated….
I want to know few more things, Can I run my consultancy from my home…??
how to get registered the company…???
What all information should be include in a proposals which we send to the client..??
Pradeep G
- Feb 12th, 10
Hi, this article is quite explanatory, albeit I have some points that you may want to help with:
1. Is it advisable or will you recommend a person without HR background or qualification to run a HR consultancy. If so, in your view, will the clients be okay with it?
2. Is it advisable to start before knowing the clients or without related key contacts in the client’s industry.
On proof reading thios question this kinda sounds insane be hope your answer will clarify my doubts.
Thanks
surai
- Feb 13th, 10
Hi pradeep.. I think you can start the consultancy even without having the HR background,but you must have the clear idea about the consultancy business.Even I am planning to start a consultancy in Delhi.
All the best.
surai
- Feb 16th, 10
can anybody tell me how and where to get registered the company in delhi ??
amazon coupon
- Feb 16th, 10
quite interesting article. I would love to follow you on twitter.
sangita
- Feb 16th, 10
@surai: Yes, you can run consultancy from home if you are comfortable. Running a office from home has its advantages and disadvantages. But initially you can start from home.
Initially you just start as a sole proprietor firm. For sole proprietorship, you just need to open a current account in the name of your company, print letterheads and business cards and you are ready to go. This is all required to start. No extra formalities are required.
Proposal should contain the terms and conditions for your services. It should be careful written as it is the only proof at the time of dispute. You should also try to get the proposal signed by client on their company letterhead.
sangita
- Feb 16th, 10
@pradeep: Running a company has nothing to do with the background. Ofcourse HR background helps. But even if you don’t have HR background you can research about HR and recruitment services on net and start. Remember, you should never jump into river without knowing swimming.
As far as clients concerned, they are comfortable if you are confident and if you can deliver. Client will never ask about the degrees or grades or background. you should only know how to convince a client.
and if you have key contact it will definitely help. if you don’t have then also you can start. bharti, tata, ambani, all started once without any contacts. What you need is a killing desire to succeed and sky is the limit.
sangita
- Feb 16th, 10
@surai: What kind of company you want to register and what is the purpose of registering?
surai
- Feb 21st, 10
Is it necessary to get registered my consultancy even if I am running it from my home??
whom to contact to make a decent website & what are the charges…?????
Thanks for your help….
Megha Rathi
- Mar 2nd, 10
Friends,
I want to open up a hr consultancy…
Kindly tell me wht precautions i need to tk while opening it…
Megha Rathi
- Mar 3rd, 10
Please revert!!!!
sangita
- Mar 7th, 10
@surai: If you are running your consultancy from home, you must have a current account in bank in your consultancy’s name.
For website design, you can contact Outshine solutions as they are experts in this field and provides best value for money.
@megha: there are many types of precautions. do you want to know precautions for opening and registering a company or precautions while making new clients, or precautions while providing services or precautions in contract. Please elaborate
Megha Rathi
- Mar 8th, 10
Precautions while dealing with the client during signing a contract & while opening the co.
Also, would like to know any what best i can do ti get business from the market.