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..??
Vijay
- Jan 22nd, 11
Thanks for this site I have acquired lot of information for my queries..ie. how to start a agency
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.
david
- Oct 13th, 10
Hi Sangita,
I am palnning to start my Recruitment firm from Home in Bangalore.I stay in a rented house.As of now only i would be working and few of my friends are helping.
Just wanted to know more abt the legal formalities.
For sighning an agreement with the client,they asked me
1.PAN
2.Service Tax registration certificate
3.Company Registration certificate
Kindly let me know how to get Service Tax Reg & Company Reg.
Would be of great help
sridhar
- Jul 2nd, 11
@david in case u have got answer for ur queries pls pass it on to me. Even i wanted to start the consultancy.
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
Krunal
- May 1st, 11
hey i wanna start my own consultancy for HR and Marketing…. please suggest me that how can i start initially. i also wanna know about the terms and conditions for HR consultancy. which kind of rules and regulation i have to add in contract?
what are the formalities for starting that business. i wanna start as sole proprietorship
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.
Neha
- Apr 8th, 10
How to approach to the first client.. should I send them the proposal mail or cold call or directly go to the company…?
what questions they normaly ask..?
Thsnkyou so much for your help…
Umarani
- Apr 15th, 10
hi…
how can i get licence/ registration to work for gulf countries?
what are the documents need for registration?
we are running manpower agency for domestic.
we have a plan to extend our business to gulf countries.
we have some clients in hand, so is there any separate process to work for gulf countries?
kindly let me know if any registration required? where can get that certificate in hyd?
thanks and regards….
Javeed Iqbal
- Apr 21st, 10
We have registered a company named Falak Multi services (P) Ltd., 7 months back now it is going on well. Now I want one favour from you please say whether can a run manpower consultancy or I have to take any licence please mail me your valuable guideline to info@falakms.com
Zeeshan Siddiqui
- Apr 29th, 10
Thanks a ton… clarified a lot of things….
fumy
- May 6th, 10
nicely written …simple and to the point
antima
- May 12th, 10
this are only the formalities that i have to complete to start a consultancy or thrie are any more formalities.
Ajay
- Jun 3rd, 10
hi.
I am planning to start a consultancy to recruit jobs in callcenters and BPO’s ..What kind of registration i need to do and where.Does it need license and from where i can get this.
kindly contact me on
ajayyaaridosti@yahoo.com
thanks & regards
Ajay
RC
- Jun 6th, 10
I really liked the insight.Please also confirm what all documents would be needed to open a current account.
yogendra
- Jun 8th, 10
What say you?
i want to start one consultancy company.plz help me to get all the details of opening it,n i want all the sectors to recruit like:bpo,it,non it,s/w,etc…
can anyone help me or guide me so that i can invest safely…plz mail me all the details…n if anyone is intrested n hav the experience in the same area can mail me i m ready to invest u only hav to bring my business to top…
yogendra
- Jun 8th, 10
What say you?mail me at yogendra.barik@gmail.com
ankit yadav
- Jun 9th, 10
is there any registration for consultancy in any department. i am just going to open a consultancy. i have the place & staff for the consultancy and some clients also. should i go for this.
pls reply yanki15@gmail.com
mukesh
- Jul 24th, 10
Do you want to work with us? contact is at contact@jobmilestone.com
karthi
- Jun 28th, 10
hi, i am going to start new consultancy firm in madurai.
i am a MBA proff. may i knw how to make a more client.
karthi
- Jun 28th, 10
MY mail id is karthi.suji63@gmail.com.please post the anwers related to hr consultancy firm.
sonu
- Jul 11th, 10
thanks, i had visit ur web i saw allmethods to start a consultancy…
plz tell me how can contact with clint in a better way on my mail id:
chouhan.sonu1987@gmail.com
umesh
- Aug 5th, 10
i am interested in starting placement consultancy. would kindly guideline me in proper manner what are all the legal formalities i have to do.
shubham
- Aug 11th, 10
thankyou for the relevant information
shubham
- Aug 11th, 10
please let me know the procedure to buy jobs from naukri.com as mentioned in tyhe article
Amita
- Aug 19th, 10
Hi, Sangeeta
I read your blog. it is interesting. now just let me know if we are going to contact with company so, what we have to tell like what we have to present. and how to talk with them. how to make company profile as hardcopy and softcopy. and what we have to take care while contract. plz tell me as soon as possible.
Thanks & Regards,
Amita
KAPILDEV
- Aug 26th, 10
MY DEAR FRIENDS PUBLISH YOUR BUSINESS OR RIGHT THINK SHOW YOUR BUSINESS IF EVERY BADY WANT MANPOWER CONTACT U
BUT EXPANDING BUSINESS IS BEST IDEA WITH UNITY
SANGITA MEM I STUDY U R VIEW ITS SO GOOD FOR ENTER PRUNER
ANY WAY GAYS CONTACT ME @
BESTHRINDIA@GMAIL.COM
919 909 978 111
Raakesh Rajoli
- Aug 31st, 10
Hi Sangita,
Can you please post your new blog on how to present yourself to the prospective clients. What all queries are asked by HR Mgr of the company. How to approach different companies like whom to contact how to go about it.What kind of agreement needs to be done with the company with important clauses. And last but not the least all business have trade secrets if you know and could share some with the budding entrepreneurs it would be highly appreciated.
Thanks & Regards,
Raakesh P Rajoli
Mohan
- Sep 9th, 10
Hi Friends
We would like to inform you that we are Human Resourcing Consultant in Central India..further we interetsed to know if any placement agency having work-consigment or require any assistence in central india on money sharing basis.
Our strong presence in Nagpur, Nasik, Jalgaon, Aurangabad,Jabalpur
Pls get in touch with consultant.gmc@gmail.com
Regards
Mohan
Jay
- Sep 16th, 10
What are the legal formalities to start a consultancy if the proprietor is an NRI…I am an NRI in USA and i would like to start the company in India
Jay
- Sep 16th, 10
What are the legal formalities to start a consultancy if the proprietor is an NRI…I am an NRI in USA and i would like to start the company in India
Please reply to jj_mech@yahoo.com
vikas
- Sep 22nd, 10
hi i want to start the Hr consultancy & it was very helpful information i got from all you people.
Happy buisiness
Ashwin
- Oct 14th, 10
Dear Sir,
I am planning to run a software company, but however to start with a HR consultancy Pvt company and then improve to a software company. What are the basic things that I have to do now?? To which office I have to contact to register my company?? I will be waiting for the reply. I have some other queries as well please on knowing this basically.
david
- Oct 14th, 10
waiting for ur suggestion
MANISH KUMAR
- Dec 14th, 10
How to approach to the first client.. should I send them the proposal mail or cold call or directly go to the company…?
what questions they normaly ask..?
Thsnkyou so much for your help…
s.sahu
- Dec 14th, 10
well,i want to start ahonme based hr consultansy of personaly or in other word sole propitorship,in this business should i have to register any where of my firm,thanks
Sukhadev Sathe
- Dec 25th, 10
Dear Sir/Madam,
I want to start a firm to supply required manpower to automobile and other engineering industry. So I need information that what govt acts are applicable to me? and also it need to go for PF ESI and other.
How should I do marketing of my business?
Hoping your nice solution as ever.
Regards
Mangal
- Jan 11th, 11
Thanks for ur support to describe me easily but plz can u just ans. me that
1) HR or Placement agency both r the same or differ.
2) Is there any requirement any registration , legal notices , deed or any type of govt. papers ,is it nessesarry, coz i want to open my single name propritorship for only my city placements.
Kindly help me out nd plz ans. of my Q.’s
Vijay
- Jan 22nd, 11
is gumasta or any govt registration required to start our recruitment agency (domestic)
Vijay
- Jan 22nd, 11
normally the comapny prefers to place adds in the news paper..what is the chances they approach agencies.
How to get the client . which firms we can follow
Saumil
- Feb 9th, 11
I start Hr consultant though franchisee.I want to create my own brand name .
Please suggest name of placements-stating word”R”,”M”,”F”.
Thanks
Praveen
- Mar 17th, 11
@Sangeeta.. Good information.
I have one basic but important query. As you suggested to start from sole proprietorship. To do so, just open a current account with the name of your consultancy and it is done. But, when I approached banks, they are asking any governemt’s registration certificate that should show the name of my consultancy. In that case, how to open current account, if we do want to for registration (as this is optional for sole proprietership)?
Please suggest.
A.SENTHILVEL
- Mar 27th, 11
Hai, It is a practical problem to open a current account as you said. My suggestion in this regard is you can apply and get a SSI certificate, which most of the banks accepting this as a proof. You can get the same at the Dist head qts.
Praveen
- Mar 28th, 11
Thanks for suggestion Senthil.
What is SSI certificate? Is this same as Service Tax registration? Also, does SSI contains name of the company?
Also, now-days, for opening of any bank account (current or saving), bank ask for PAN card. It means we need to have PAN card in the name of company. But for applying for PAN card, we need to provide detail of company incorporation documents. So, the problem remains the same for sole propritership.
Pls suggest, how others have opened bank account in the name of sole propritership firm, without registering the firm.
sangita
- Mar 28th, 11
——– Forwarded message ———-
From: SENTHIL VEL
Date: Mon, Mar 28, 2011 at 3:08 PM
Subject: Re: [gsjobpoint.com] New Comment On: Legal Formalities for Starting HR consultancy
To: “gsjobpoint.com”
HAI,
SSI certificate means Small Scale Industries certificate, which can be obtained from state govt, which will have your company name. Pl let me know your place of business. If possible i will try to help you to get.
with regards
senthilvel
Arfath
- May 23rd, 11
Greetings Sangita,
I’m starting up a HR Consultancy with my partner. Initially, we would like to operate from home cause we don’t have the required infrastructure as of now. As we are partners, do we have to register the company in both of our names? Or what? Also please provide me with the information of basic legal formalities, I would really appreciate it.
Regards
Arfath
charan
- Mar 21st, 11
What is the minimum qualification required to start a consultancy.
Please help me with this waiting for reply
mail me at charan_krn@rediffmail.com
Aryan
- Mar 26th, 11
What say you? I want to register my Consultancy with the proper authorities (which is sole proprietorship and already serving a handful of clients across Indian locations) and I am based in Bangalore. Could you please MAIL ME YOUR REPLY TO MY EMAIL ID, PLEASE?.
Regards,
Aryan.