Start up consultancy firm - what are the formalities

Dear all,

Am starting a small consultancy setup with my friends. We thought of a Pvt Ltd / Partnership / proprietorship, but could not take up a big place due to initial fund constraints. I don't know whether a board is required to be kept for a commercial display or its mandatory to comply with any statutory obligation.

I would like to make a modest beginning and then take up one by one. From the taxation related stuff (VAT / Service Tax / TDS, etc.,), which one suits better?

if i go with a proprietoryship (which i feel is the simplest to begin with), should i go for separate PAN & TAN for deducting tax from salaries (employees)?

How best the proprietorship can be explained to banks for an operating account & facilities?

Any further input & ideas would be highly appreciated.

Thanks in advance.