Starting a Business During a Career Break: Legal Insights for Freelancers vs. Companies

Starting a Business While on a Career Break

Hello Seniors, I am an HR professional currently on a career break due to personal reasons. Now, I want to start a business with my friend, who is already working full-time with a company. My queries are as follows:

1) As I am not working anywhere, I will be the face of the company. For any payments, my bank account will be used.

2) Nature of Business
We will be sourcing kids' profiles to required clients for modeling purposes (from parents who are willing for their kids to model).

3) Freelancer vs. Company
If I start as a freelancer and not as a company, what points need to be covered? Kindly advise me on the legal points that need to be addressed from both a company perspective and as a freelancer.

Waiting for your valuable inputs.

Warm Regards,
Meenakshi

Starting a Business: Key Considerations

Everything depends on the kind and quantum of funds you have. Starting out as a company will require capital and funds for expenses required to complete all the formalities. You can start small as a freelancer, and as your business grows, you can incorporate it into a company.

Legal Requirements for Service Providers

In any case, at the bare minimum, you will have to register for GST as a service provider. Whenever any company pays you, they will be paying 18% GST on your behalf, which they cannot get credited back to them as input credit.