Starting a Small Web Development Firm: How Do I Navigate Legal Registration Requirements?

I have a plan to start a company where I am looking to offer web development and consultancy services with only four people, including myself. In which sector should I register my company to comply with the labor welfare board, the Factories Act, and other legal requirements?

Please suggest your valuable information to help me proceed further.

Regards,

You want to be in the service sector; hence, the Factories Act and labor compliance are not significant concerns. You can register a private Ltd. company; for this, you can refer to the Companies Act 1956. You can start by obtaining a local "Gumasta" and a municipal corporation's license. These kinds of firms are known as proprietorship firms. If you need a partner, they can be added only with a partnership deed along with the earlier stated two documents.

Regards,

You need to register under the Shops and Establishments Act and your State Labour Welfare Fund Act, if applicable, as well as under the Professional Tax Act, but not the Factories Act. Also, verify compliance with the Information Technology Act.

Regards

As per the nature of your business, you should enroll only with the Shops & Commercial Establishment Act as per the Coimbatore Municipality. You should also register with Professional Tax. If your business crosses beyond 10 lakhs, then you should register with Service Tax as it is related to services. If there are any sales involved, you should also enroll with Commercial Tax.

Thank you.

Steps to Register a Pvt. Ltd. Company

First of all, you should obtain registration as a Pvt. Ltd. Company under the Companies Act, 1956. Thereafter, you should apply for the following:

- Registration under the Shops & Establishment Act.
- Registration under the VAT, CST, Service Tax, Professional Tax, and P.F. Act, if applicable.
- You should also apply for PAN and TAN.
- Registration under the State Labour Welfare Fund Act, if applicable.
- Apply for a Trade/Business License from the Local Municipality.
- Apply for Trademarks.

Regards

For any kind of business, you must obtain the necessary registrations/licenses as applicable under the statutes. You can start your business on a proprietorship, partnership, or company basis. It depends on the number of owners of the business.

Choosing the Right Business Structure

If you want to do the consultancy job on a partnership basis, I advise you to get registration under the LLP Act. It contains all the basic features of a Ltd. Company and also includes the benefits of a partnership. However, if you want to conduct the business with many people, you must obtain registration under the Companies Act, 1956. It can be registered as a Public Ltd. Company or as a Pvt. Ltd. Company. The type of registration depends on the number of promoters.

Please make appropriate decisions in this matter in consultation with a good lawyer.