A lot of people wish to start their own manpower consultancy business. The following steps provide a guideline for setting up the same
1. Name Deciding on a name is very important for setting up a business as you would want to build a brand image of your company over the course of time.
2. Website For having a website you need to register a domain name. Domain registration is around Rs 500 and website designing would cost around Rs 7000.
It is advisable to get a professional website design company. Professional designing cost starts around Rs 15000 and basic website hosting would come around Rs 1000 per year.
The website should contain the company profile in the homepage with the address of the location and also the contact details like phone number and email address in a separate link.
There should be other links mentioning the different verticals like manufacturing, retail, banking, media and advertising, etc in which you work or intend to work.
Another link for job seekers may contain sub links where candidates may upload their CV. In a different sub link you may have the option of displaying the current openings of various clients that your company is currently handling.
3. Decide on Business Entity There are 4 types of company you can form in India. Sole Proprietorship, Partnership, Private Limited and Public Limited.
a)Sole Proprietorship A sole proprietorship is a type of business entity which is owned and run by one individual and 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 has to pay them from his personal resources.
If you do not wish to go for registration headaches, you can go for sole proprietorship. It is easy to start and all controls reside in the hands of the owner. However, if your company turnover reaches 10 lakhs per year, you will have to register for service tax.
There arent too much formalities involved in this kind of company. You just need to get a letterhead printed in your company name, print some business card, get a proprietor stamp made in your company name.
With these in your hand just go to any bank to get a current account opened in your company name. Once you have started your proprietorship firm, you should have these documents handy with you.
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.
Letter Head with the name of company
Company Rubber Stamp
Address Proof (Copy of Telephone Bill/Electricity bill)
Rent Agreement if you are running from rented premises.
Current account in the name of your firm in any bank.
b)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 structure does not normally incur a tax on profits before it is distributed to the partners, so partnerships are often favored over corporations.
If you want to open partnership firm for your HR consultancy, you will still need all the things needed in sole proprietorship but in addition to that you will be needing partnership deed.
In partnership firm all the partners will be the owners of the company based on the conditions mentioned in the partnership deed. A partnership deed can be executed by any lawyer.
c)Private Limited Company A private limited company is a type of company incorporated under the law of government of India. It has shareholders with limited liability. The shares may not be offered to the common people, unlike those of public limited companies.
For opening a private limited company for your HR consultancy you will need 2 persons as Board of Directors and you will need one Auditor. For registering your Pvt. Ltd. Company, you can contact any of practicing CA in your area to do that.
d)Public Limited Company A public limited company is a type of limited company in the India which is permitted to offer its shares to the public. It is quite complex in nature. It is advisable to start a public limited company only when your existing company grows very big.
4. Develop a business plan You may decide to specialize in a few areas of HR depending upon those which are in high demand. This may need some market research into the probable client companys requirements and businesses and offer your services based on those requirements. Know about your client company so that you can pitch your services effectively.
5. Promote your consulting services in a variety of ways In order to reach a wider audience you should promote your services using the social and professional networking sites. When you join professional networks you get to associate with a lot of HR professionals who have diverse needs and you can acquire clients through them.
6. Join professional organizations You can also join professional organizations like Society for Human Resource Management and contact businesses through them and send them marketing letters and brochures explaining your HR services.
7. Cold Calling It is a really cost effective marketing service by which you can reach out to advertise and inform potential clients about your services. Do some research.