Dinesh Divekar
Business Mentor, Consultant And Trainer
Consultant - Hr & Legal

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Dear Friends,
i have been to this forum since many days and this is my first oppurtunity to interact with such a brilliant and cooperative people out there. i need some help in understanding, first to breif you i am a freelance trainer since a year, working on small project like for drivers, college students, ground level excecutives and fos doing some soft skill and sales training but now i am trying to get in to more professiolism starting with company name, so i need some help on this how , what are the pre-requisite to start a new training company, from where i need to start and what are the ways to market my self and my company. please help me in understanding this.
Rajesh gupta

From India, Mumbai
Dear Rajesh,
You need to register you company under Company Act and then Shops and Establishment Act of your state.
As far as strategic and marketing aspects of the business are concerned, you can refer my following reply that I had given earlier:
Re: Starting a new organization
Dinesh V Divekar

It is not goal but direction decides the destination.

From India, Bangalore
Sorry to differ with your views in the first para please.
There is no need to register a firm under the Companies Act, 1956 in the instant case. We have the option to start the venture on sole ownership basis. If we start a venture on sole ownership basis, question of applicability of Shops and Establishments Act also will not arise.
R Sundararajan

From India, Madras
Dear Mr R Sundararajan,
Thanks for the update. About Companies Act 1956, I don't have first hand knowledge.
As per Karnataka Shops and Establishment Rules, 1963, the firm is required to register under this act even when employer does not employ any employee.
When you register a company under sole proprietary ownership and when you employ the employees, what is the legal standing of employer-employee relationship? Any employer-employee relationship has to fall within the purview of either Factory Act or Shops and Establishment Act.
Earlier I have worked in a hotel group. The group had one restaurant, the very first restaurant from where MD started his business. It was registered as proprietary concern. However, it was also registered under Shops and Establishment Act.
Dinesh V Divekar

From India, Bangalore
Dear Sri Dinesh Divekar:

I have the pleasure to clarify the issues raised by you:

a) Applicability of Factories Act: Depends only upon the manufacturing process and Number of employees and not based on the legal character of a firm. That is regardless of the fact whether a firm is a sole proprietary one or a partnership one or a company registered under the Companies Act, 1956, purely based on the manufacturing process and the number of employees employed in it, Factories Act will be attracted.

b) Legal relationship between employer and employees:

Even if a sole proprietor employs personnel, he becomes an employer within the meaning of Industrial Disputes Act 1947. In other words, legal character of a firm is not relevant for the consideration of employer-employee relationship. The question is who is employing and who are serviing.

c) The case re: Restuarant: Inthecase of certain industries like Hotels and Restaurants, Multiple legislations apply, vide the link:

single-window-clearance-barot <link updated to site home> ( Search On Cite | Search On Google ) -

Therefore, what is relevant for Hotels and Restaurants may not be relevant for other industries/profession.

R Sundararajan

From India, Madras
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