Starting a Small Service Business: What Are the Essential Steps and Legal Requirements?

Hi friends,

I would like to start a company on my own, service-oriented... Not a big one, just to start with 5 employees and then move forward. Can anyone post some information on what is basically required? Such as company registration, tax formalities, legal formalities, and more.

Waiting for information.

You can start as a sole proprietor firm, but registering as a private company will put you in a safe place when huge unexpected losses are incurred; such losses cannot claim your personal property. It is advisable to consult a chartered accountant.

The following registrations are usually necessary:

1. If it is a company, register with the Registrar of Companies. After registration, obtain a 'Commencement of Business' certificate.
2. Trade license from the Municipality or Panchayat.
3. VAT registration with the Commercial Taxes Department.
4. Registration with the labor department if you open shops.
5. If it is a factory, register with the Registrar of Factories and Boilers.

It is recommended to seek advice from a chartered accountant.

Dr. Appalayya Meesala

I want to start a recruitment consultancy as a sole proprietorship firm in Bangalore. Kindly suggest some CA firms that can help in setting up a new small startup company.

Email: hrm143@gmail.com

Thanks,
Shyam