Starting My Own HR Consultancy While Employed: Legalities and Practical Tips Needed

Dear all respected HR professionals,

I have worked for 4.5 years in the HR sector and wish to open my own consultancy. I have a few queries:

1. I am currently employed with an online e-commerce women-only placement firm (specially designed for women empowerment). I wish to open my own consultancy firm. Is it legal/allowed to be the CEO of the company while employed elsewhere in India?

2. I have my database and clients, but I want a top management database. What is the best site to obtain that?

3. How much would a Chartered Accountant (CA) cost for paperwork and legal registration as a proprietorship?

4. Once I establish the consultancy, will it necessitate an office? If not, what is the suggested address I can put on my business cards?

Thank you. Any more tips of any sort are most welcome. I hope you can provide me with the best answers and positive replies.

Hi Kanistha, based on my experience, please find the answers to your questions.

1. As you are employed and would have signed an NDA agreement with your present employer, please review your appointment letter, offer letter, or any other legal document signed with your employer. If it states anywhere that you cannot be employed with a competitor or in the same business, there is an issue. Ideally, I would suggest you register the company in someone else's name or in the name of a family member.

2. There are a lot of paid database sites such as dataguru.in, fundoodata, etc. The decision should be yours based on pricing and facility.

3. It varies from CA to CA in terms of pricing. It is better to go for an LLP, which is faster to register. A little Google search will help you find online service providers as well.

4. Ideally, you should have a company space, but as it is a new startup, you can register with any virtual office or shared facility that charges on a monthly basis. Charges are nominal and again depend on the facilities being used.

Hope this helps you.

Regards, Niraj Sharma