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.