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Start up consultancy firm - what are the formalities

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Sundar

Owner

25 Points Posted on 13 October 2012

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.

Replies (1)

Sundar

Owner

25 Points Posted on 14 October 2012

Just an update.

My banker says that to open current account for a proprietorship, i need to submit VAT certificate, a leter from CA.

How does this differ if I open it as a Pvt Ltd or LLP? I believe the Registration letter in either of these should work out. Any idea on how long the formalities w.r.t. VAT / Service Tax / TAN should take and an indicative cost to invest?

Will i be bothered to have a board in front of my premise in any of this case? I have taken a furnished house to start with and I cannot put up any board over there.

Appreciate an input from anyone.

Best Regards,

Sundar