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
- 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.