How to start a company in bangalore?

Question

i am thinking of starting a Firm in bangalore..what are the procedures..whom should i approach

Answer 1

If you are serious, i am from bangalore and have a Chartered Accountant Firm which deals with the required registrations..........you could mail me back with your contact details..... some one from the CA's Office will call you within 24 hours......

With respect to the procedures to start a firm (i am presuming a proprietory concern, which is into service industry) then:

1. PT Registration

2. Labour Registration

3. PAN/ TAN

4. PF/ ESI based on employee strength

5. Service Tax

Answer 2

I am more interested in giving serious useful info. See my other answers also please

Remember mainly there are two expenses you need to consider when starting a business.

1) Real Estate.

2) Salary.

You plan to start a firm. This is a small and medium business. The rule for running a small and medium business is not the same as corporations.

YOU SHOULD ENSURE CASH FLOW.

Most of the small and medium businesses are closed because, by the time the business start making money, they face severe cash flow problems.

Do you have existing customer base? (Most of the traditional business will have existing customer base. They dont build anything new.) If yo dont have customer base already, I suggest to you to build customer base even before starting the business.

This is possible in many ways. You can build a website first and generate traffic to that (if you know how). Or you can work as a broker/commission agent in certain type of businesses. This connects you to yoru customers even before you start the business. In some other cases, you can just take the service of existing businesses. Or you can take the service of some agencies who provide contract workers. The advantage is this. If you take longer than expected time to start making money or due to some reason, your original plan does not work, still you dont have much problem, as you dont have recurring expenses much like building rent and salary for employees.

Secondly, you should be eligible for loans etc even before starting business. When ever you are in a financial crisis, the fund should be readily available. I would suggest you to pay Income Tax for three years in advance (you can simply pay even if you dont have income).

Even when you consider taking an office space, try to share some office space with others. Never spend a single penny unnecessarily.

You should network and build contacts with all the concerned parties. You should also build rapport with yoru future business partners. Always in business contacts are precious.

Initially you can start a firm. But quickly you may have to convert into private limited company. But remember, it is not easy to get rid of a company once you start it. You should have good partners with rational approach.

Treat your business as a separate individual. The rule is that if you take something from this person(business) you should always give somethign back. If you violate this rule and start taking things from business without paying back, all others next to you will follow and business will end sooner.

Show model for the colleagues. You should be the last person to be benefited from the business. Business is also you managing human beings. You have to handle all types of people. If you have a lot of moral strengths, others will treat you as a leader and you can run business longer. But if you act like a selfish person, others will not give you respect and business will close down sooner.

People think Bangalore is a good place to start Software companies. But it is not true.

For small and medium enterpreneurs, big cities are not good. in late 80s and early nintees Bangalore was electronic hub and it connected well with chennai, coimmatore, trichy, south canara, hubli, dharwad, hyderabad, and kerala from the young job seekers thronged here. As north and bengal didnt have much opportunity even they came. But then Hydarabad, chennai and Pune became intdependent hubs. Now calcutta, and cochin also is emerging. Not to talk about various other places.

For software business, fast internet is more and more available elsewhere now. I guess any new company/firm can go to emerging destinations like Mysore or Cochin or even Calcutta. The key is you should get enough required specific skill in a given territory easily. Bangalore has not produced any software workforce, all are from outside, and thus they are costly. And the biggest problem with Bangalore is attrition rate. For the same reason, one can avoid, Hyderabad, Chennai, and Pune (Pune I am not sure, but I dont know if enough skill available there). Dont go by official statements. All official statements are manipulated to help the big players. The big players need smaller companies as training centers. By the time one realize this, it will be too late. One main activity the freshers do in a start up company is to prepare resume and post to job portals using the internet connection in office and use the telephone etc. Rest of the time, they enjoy a chat.

If the person starting company/firm in Bangalore is a foreigner, he/she may face difficulty to understand people's response, cultural difference. "Okay" in India has a lot of meaning. If you are working against a deadline, you will often find this "okay" really hurting.

Mysore has a lot of engineering colleges, and that is one good thing. People from south canara, Calcutta, and Kerala has a tradition of commitment to their job. Normally they take job seriously. A person who stick with job is not just because of the salary you offer. It is a cultural thing. The middleclass in the cities lacks any moral principles. What you need is commited workers, with long term interest. But there is no use with commitment if they dont have necessary skill. The freshers can burn your fingers.

If the real estate value is cheep, and workers stick wiht long, then it is good. Another option is to approach contractors to provide the skill. So you dont need to worry about it, but you pay a premium.

BSNL is the best for internet. But their service is not packaged well for medium business. Once it crosses the maximum usage limit, it is crazy. You should watch out for excess usage or ask the authorities to put an upper cap. (as of now BSNL has no limitless usage package).Leased line may be a bit costly.

Beware of Tata and Touchtell. (companies like Tata and Reliace are known for unethical business. Trusting them will hurt small business interest) As long as their connection works it is fine. But the contract they ask you to sign is (the small letter paragraphs) are highly unethical. TATA or TouchTell(Aritel) do not assure you 24 hours connectivity. (in the contract they assure you only 24 hours customer service). If necessary take the copy of their contract to a good lawyer and ask their advice. You can not fight against TATA and Reliance, and TouchTell. No newspapers will support you, and "justice" is cheaper than vegetables in India. Anybody can buy it. The ruling party is funded by them and you should be careful, if you have legal commitment at your customer end for the delivery deadline. If so, be careful to use the DSL from private companies. BSNL has world class infrastructure and a world class minister. But it is a government company. In a government company they will all be nice, but they wont act fast. And they dont have enough technical staff to serve you. But once you get connection normally there wont be any problem with connection. It is good.

Dont open your mouth big and tell every one that you are running a business. Many think they can come and "milk" a small business man. Starting from a local "religious festival committee" to daily worker of the electricity company... People do not have shame to beg in India... And the last but most important lesson: You may think on many occassion to beat up some one or kill a person. Be patient! Anger and business can not go together. If you are alone, you are lucky, but if you have to work with others, it is h**l!!

Many people will give you advice to start business with all the papers ready. But my suggestion is that in India rules are different. You first start business and then start making profit. The moment you start making profits, do the paper works and pay the taxes.

You should discuss your plans well in advance with a good Chartered Accountant. You can also take legal advise in advance. When you formally start a company, then you approach a Chartered Accountant and he will do things for you.

Answers should be verified for accuracy

Answer 3

if u have no idea about India and Bangalore then let me know I know a company which has helped many!!!