Breaking News
Home » How To's » How to setup HR Consultancy firm in India (4 Steps)

How to setup HR Consultancy firm in India (4 Steps)

We keep getting lot of Queries from wanna be entrepreneurs about getting started with Placement or HR Consultancy and here we come with all the information you will require explained step by step.

Steps to set up HR/Placement Consultancy Firm India


Step 1. Get website

Get clients who you want to serve is very important and for getting their trust, getting yourself a website is must. Decide on the domain name and get a decent looking website in your firms name. Domain registration will cost you 500 and website designing starts from  7000.

Step 2.  Decide on Business entity

There are several options for registering your company from which you can select the most appropriate one. Four major types are Sole Proprietor, Partnership, Private or Public limited. If you decide to work on your own name, then none of these entities is required.

If you are starting alone and don’t want any registration headaches then go for sole proprietorship, as it is easy to start and you control everything. You just have to get a current account ready in your name and you are ready to do business. However, if your company turnover reaches 10 lakhs per year, you will have to register for service tax.

If you want to open partnership firm for your HR consultancy, you will  be needing a 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.

Other Option – Do it as Part time with your current employment

If you want to do job/placement consultancy along with your current job, then you have to make sure what your employeers terms of employment are.

As a consultant you can work for many clients but as an employee you can only work for one employer. There are no statutory restrictions on engaging yourself in any other activity / trade while simultaneously working as an employee. But, usually as per the terms and conditions of employment contract (appointment letter), employees are barred from undertaking any business, profession or vocation directly or indirectly without prior permission of the employer.

Step 3. Get current account in Bank

This is not mandatory you can choose to do business in your name also but it makes thing simple if you have separate personal and business bank account. To get Current account in bank you will need to show your company letter head, visiting card, ID and address proof. Some banks may make it difficult to get it, in that case you can try in with nationalized banks.

Step 4. Get business Tools

By business tools i mean, your firms rubber stamp, letterhead, visiting cards, naukri/monster(where you can post job requirement and find candidates) log in accounts etc. You can get a database of resumes from one of the many job-sites, but the difficult part is tying up with companies and get their requirements and satisfy them with your results.

Trademark – If you want to safeguard the name of your firm or the logo for long term business, then you can get Trademark registration done for your firm or your company’s logo.

Suggested Read for you

  1. 5 Personal Questions before-starting-business
  2. Awesome-tips-for-naming-your-company
  3. Things-to-know-before-hosting-your-website

About StartupFreak

All About Startups Simplified 'What is', 'How to' and 'why to' about Startups.


  1. Thanks for sharing your tips on how to set-up a firm. For me, it has to have a lot of effort,time and money when one wants to set-up a business. Most of all you have to have knowledge and skills for you to keep on the track always .Anyways for a more ideas you can invite hr consulting firms to help you with this matters

  2. Wonderful blog! Do you haѵe anу hints foг aѕpiring writеrs?
    Ι’m planning to start my own website soon but I’m a little loѕt on everуthing.
    Would уou recοmmenԁ stаrting wіth a free platfoгm
    liκe Woгdpгess or gο for a paid optіon?
    There arе ѕо manу oрtiоns out theгe
    thаt I’m totally overwhelmed .. Any recommendations? Cheers!

    • would recommend you start on a free platform and later go for a paid one. Anyways we will follow up with an article on it soon

  3. would recommend you start on a free platform and later go for a paid one. Anyways we will follow up with an article on it soon

  4. Bollaveni Kotesh

    can anyone help me out how to get companies to start a job consultancy

    services. please mail me if any solutions my mail id [email protected]

    you can call me at 09700466070

  5. I have 2 questions. Can someone answer them please ??

    1) Working with one B.P.O. company is better or working with many B.P.O companies is better ?

    2) Also, in the information stated above, its written that the difficult part is tying up with companies, get their requirements and satisfy them with their results. How do we do that ??

    Plzzz Help !!!

  6. Hello, its a good blog! I liked this!