Starting a manpower consultancy company in India requires a bit of know hows. When i started i thought starting a company legally is going to be very time consuming with lot of formalities. Because most of my friends asked how i started mu company and requested to write a post on how to start a consultancy company, i am writing this post.
I will be very straight forward and will write the points in steps for better understanding.
1. Decide a name for your company: Deciding name for the company is very important as this is the brand for which you will be working for the rest of your life. You should like the name and you should be able to relate yourself to the company.
2. Buy a domain name: You should buy a domain name for your company. Its compulsory because no body would trust a company who doesn’t have a good website and domain name is very important for having a website. Domain names are cheap around Rs. 450 /year and you can register a domain easily from this link and you can even check whether you company name is available or not by clicking this link?
3. Get your website Designed and Hosted: Next step is to get yourself a professional website design for your company. Designing could start from Rs. 7000 but i would recommend you to invest a little in website designing and hire a professional website design company . Professional design could cost you starting from Rs. 15,000 and basic Hosting for your website could cost you around Rs. 1000 per year.
4. Choose the type of company you want to open: Deciding which type of company you want to open is something which you have to do. There are 4 types of company which you can form in India.
- Sole Proprietorship : A sole proprietorship also known as a sole trader, or simply proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the owner . All assets of the business are owned by the proprietor and all debts of the business are his debts and he must pay them from his personal resources
- Partnership: A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners
- Private Limited: A private company is a type of company incorporated under the India. It has shareholders with limited liability and its shares may not be offered to the general public, unlike those of public limited companies
- Public Limited: A public limited company is a type of limited company in the India which is permitted to offer its shares to the public.
5. Starting as a sole proprietorship firm: If you are starting alone i recommend you to start as a sole proprietor, because its easy to start and total control is in your hands. There are not much formalities for this kind of firm, you just have to get a current account ready in your name and you are ready to do business. However, if you company turnover reaches 10 lakhs per year, you will have to register for service tax.
6. Open a current account in any Bank: Opening a current account is the most important part of business. If you are opening a sole proprietorship firm and have your service tax registration done, you can open account in any bank you want. But if you have not applied for service tax registration, you can opt for government banks to open the account. You can look for IDBI bank as opening current account is quite easy in that bank. For opening a current account you will need a company letterhead, Visiting card, and company stamp.
7. Buy naukri or monster login: You have to buy naukri or monster login to supply candidates to your clients. This is the costly part of consultancy business but you have to buy this to get started. Naukri login costs around Rs. 60,000 for 3 months and monster is almost around Rs. 35,000 for 3 months. You can buy it anytime but i recommend you to buy it once you get your first client. Don’t forget to negotiate as who knows you can get a better deal.
8. You are ready to do the business. Just go ahead and start searching for clients.