During the year and a half of TechJini’s existence, we have learnt several things about starting and running a company in Bangalore. I am putting together our experiences in this post so that it can be helpful to others.

Register the company

The World Bank has a very detailed and comprehensive list of things to be done when you want to start your company. It covers most of the statutory requirements of starting a company in Bangalore. Many of these services are available online, so it makes life simpler. For those that are not available online, it is advisable to go through a Chartered Accountant.

It is advisable to get your company registered before you commence operations. Else it can create problems when you receive payments and don’t yet have a bank account in the company’s name.

Open a bank account

We chose citibank as our company bankers after we spoke to several banks. They offered better personalized service, were easily accessible and had the necessary features we were looking for. Since current account have no interest, choose a bank that offers easy ways to park/withdraw your surplus funds into/from short term funds which are mostly risk free and earn a good interest rate of 6% p.a.

Accounting and statutory compliance

Since Tally is the most commonly used accounting software, I would recommend to buy a license and start using it from the beginning. This avoids any accounting nightmares when you try to create your balance sheets at the eleventh hour. If you are not from an accounting background, it is best to hire a part-time accountant who can visit your premises and update your accounts every week or every fortnight. You can find such a person by locating any Tally coaching institute in your locality. They charge anywhere between Rs 1500 to Rs 3000 based on the amount of work.

There are several statutory and back office requirements like payroll, filing PT returns, advance tax, TDS returns, ROC returns, VAT/CST returns etc that require knowledge, time and effort. I did this myself the first year, but found that it is better to hire a professional for these while I can focus on our core business. Thus we met few CAs and finally contracted one of them. For a monthly fee, they handle all things including accounting, payroll, TDS, ROC, IT , PT etc (except the audit). They charge upwards of Rs 10,000 per month based on the number of employees.

Liability of employee behaviour
Another aspect to remember is that the company should formulate and get every employee (including the founders) tosign a Term of Employment or Company Policy documents. These documents outline several things including (but not limited to)

This becomes even more critical for IT startups since cyber laws are still evolving and these documents go a long way in proving that the employer takes preventive measures to protect the law. You can contact any lawyer who specializes in Cyber Law and he can assist you with the drafting of a policy.

Premises and utilities

We chose an office that was close to both the founders’ residences. This greatly improves productivity since we do not waste time and energy commuting to the workplace. Since we are a startup, we chose an office that offered us the best value for the money. Also ensure that there are few eateries in vicinity. Make sure you verify other things like, water availability, parking space, capacity of electricity connection etc.

If you are an IT startup, get at least 2 internet connections. We have BSNL and Tata Indicom. We have had bad experience with both of them, but Airtel (which is the best in terms of uptime) is not available in our locality.

Resources

I am sharing the contacts/resources that may save you time. Feel free to let them know you heard about them from us.
Chartered Accountants

Lawyers

Please share any thing we missed via the comments.

about the author

Shyamal

  • http://hone kingjawedatyahoodotcom

    hi,
    I liked this article very muchch. it is very honest and practical. though I don’t have any entrepreneurial experience, I know a person, who went throughg a very silimar experience. what is your email id? and what is techjini?

  • Shyamal

    @kingjawedatyahoodotcom
    Glad you liked the article.
    TechJini is a software company that provides software product engineering services. Please visit http://www.techjini.com for more information and contact information.

  • http://None Swapnil

    Really a very good article; Somehow you have made very tough things translate into to look such plain and simple;

    I think i can say for sure, your writting creativity is improving day by day;

  • dreamzhunterz

    Can you give the Cost of each step which will help us to plan our savings

  • Shyamal
  • http://yobangalore.com/general-yapping/ Bangalore

    I found this blog through Google mate. I kind of liked the theme alot.
    Are you a member of digitalpont by any chance ??

  • http://annually.com annually

    starting a company in india is not that hard , you need a pan number on the company , few small registeration and in bangalore its really a great it hub , real good for company trageting it related service.

    thanks

  • http://buy-kinect.org/ buy kinect

    Hi,

    This is a message for the webmaster/admin here at http://www.techjini.com.

    Can I use some of the information from this blog post right above if I provide a backlink back to this site?

    Thanks,
    James

    • http://www.techjini.com Amit

      Hello James, Sure you are welcome to use the information.

  • http://mailto_nagaraj@rediffmail.com NAGARAJ

    hi sir me looking for managment trinee post i hope you will send me mail …..

  • http://mailto_nagaraj@rediffmail.com NAGARAJ

    hi sir me looking for managment trinee post in ur co. i hope you will send me mail …..

  • http://www.mis-soldppi.info Calton

    thanks

  • http://www.majorgeeks.com/Kingsoft_Free_Antivirus_d6512.html Sid Lamphere

    If you have some malicious program like RegCure or some other rogue registry cleaner, uninstall it from your programs. Then update SUPERAntiSpyware and Malwarebytes and run full scans with both, one right after the other. Don’t run any two of those at the same time. Updating those programs is crucial.

  • prajwal

    sir,
    I am so happy to find persons like you who shares info with others and make others life much simpler.. hats off..

  • http://www.onlineshareplace.info/index.php/freida338958pa/all Carlton Tassone

    windows 7 keythe fashionable boots can be spotted on everyone from college kids across the northeast to celebrities looking to give their feet a rest from six inch heels.patek philippe aquanaut replica

  • http://womanstreet.ru/user/viagmaCap/ Emmett Vue

    Thanks for the new stuff you have unveiled in your short article. One thing I would really like to comment on is that FSBO interactions are built over time. By launching yourself to the owners the first few days their FSBO is definitely announced, prior to the masses start off calling on Thursday, you generate a good network. By sending them resources, educational products, free accounts, and forms, you become a good ally. By using a personal curiosity about them plus their situation, you produce a solid connection that, on many occasions, pays off if the owners decide to go with a realtor they know in addition to trust – preferably you actually.

  • http://www.ozinseo.com/ Ozin SEO Services

    Hello,

    Thanks a lot this helped me lot to register my company.

    Thanks
    Powar

  • mylib

    HEllo sir, i want to open an IT company (startup small with 2- 3 employees).plz help me to know the procedure,how many days does it take to register a company,& how much does it cost for all the fees ?

  • http://freshphonecase.com Cheap iphone 4 cases

    I really wanted to jot down a note to be able to express gratitude to you for all the stunning steps you are giving on this website. My particularly long internet search has finally been honored with pleasant facts and strategies to exchange with my family members. I would repeat that we site visitors are truly blessed to be in a really good community with so many perfect individuals with useful principles. I feel somewhat fortunate to have come across the web site and look forward to so many more exciting moments reading here. Thank you once again for a lot of things.

  • http://www.allsatellitedirect.com satellite tv dishes

    pw4Am4 Of course, I understand a little about this post but will try cope with it!!….

  • http://www.reddit.com/r/worldnews/comments/tixx2/baking_dish/ Christinia Dowgiallo

    I have seen plenty of useful elements on your web site about pc’s. However, I’ve got the opinion that notebook computers are still more or less not powerful enough to be a wise decision if you often do tasks that require a great deal of power, for example video editing. But for net surfing, word processing, and the majority of other prevalent computer functions they are all right, provided you don’t mind the small screen size. Many thanks sharing your thinking.

  • Deepthi P Thomas

    You can contact http://www.CompaniesInn.com for getting your start up registered. They are a professional team with transparent pricing.

    They have offices across India. Their website is very useful for a business starup.

  • http://www.angelconsulting.in sam

    Hi,

    I have registered a company in bangalore and facing problem in opening a bank account. Can anyone help?

    thanks.
    Sam

  • Deep

    Hi, I am in a process of opening my own firm and need some assistance in opening a bank account. Need some please.
    Requesting Seniors to please advise. Thanks, Deep.

  • http://arksee.ncsu.edu/community/groups/nashua-insurance-analysis-of-the-types-of-life-insurance-available-in-kelowna/ Nashua Jedidiah

    Even though this is an older page, Found your website while searching Bing. This was a cool article. I hope to see you remove the primary point of this article and create a second article, and maybe you could embed a movie, too? If you do, it will be very much appreciated.

  • Sandeep

    Hi All ,

    If anyone is interested in opening a current account please get in touch with me. This is for a MNC Bank and my role is of a Relationship Manager.

    Regards
    Name : Sandeep Khurana
    Number: 9886251642

  • http://samsunggalaxys7.co.uk smart phone

    Hello there, You’ve done an incredible job. I’ll certainly digg it and personally recommend to my friends. I’m sure they’ll be benefited from this website.

  • http://fun-worm.cu.cc/?p=28 Sau Demotta

    I love this idea, the lace is perfect for the theme of my wedding! I had the same question as above, is there a Maid of Honor printable? Thanks a ton!

  • http://www.eziauctions.com.au Only cost you one dollar if your item sells

    Hello there, You have done an excellent job. I’ll certainly digg it and personally suggest to my friends. I am confident they’ll be benefited from this web site.

  • http://winninggadgets.weebly.com mini dvd player mit hdmi

    What’s Happening i’m new to this, I stumbled upon this I have discovered It positively useful and it has helped me out loads. I hope to contribute & aid different customers like its aided me. Great job.

  • http://www.ledhydroponics.co.uk Quantum led grow lights

    It’s the best time to make some plans for the future and it is time to be happy. I have read this post and if I could I want to suggest you some interesting things or suggestions. Perhaps you could write next articles referring to this article. I desire to read more things about it!

  • http://www.amazon.com/waterproof-external-battery-iphone5/dp/B00EZDGVCY Terri Park

    Really good blog, thank you so much for your time in writing the posts.

  • http://www.aptassist.com/book-keeping-manage-business.html Best accounting services Bangalore

    Are you struggling to do account calculation and any difficulty related to it? We do all accounting related work for you. Best and reliable accounting service and Bookkeeping Services in HRBR Layout, Abbigere, Kasturi Nagar, Hebbal Kempapura, Yeshwantpur.

  • http://www.psychicsolutionsbylynne.org/ Www.Psychicsolutionsbylynne.org

    Hey! I know this is kinda off topic but I was wondering
    which blog platform are you using for this site? I’m getting sick and tired of WordPress because I’ve had
    issues with hackers and I’m looking at options for another
    platform. I would be awesome if you could point me in the direction of a good platform.

    My web-site; psychic readings (http://Www.Psychicsolutionsbylynne.org)

  • http://trustedusfastcash.weebly.com/ Miguel

    Having read this I thought it was extremely informative.
    I appreciate you finding the time and energy to put this content together.
    I once again find myself personally spending way too
    much time both reading and leaving comments.
    But so what, it was still worth it!

    Also visit my site … usfastcash.com (Miguel)

  • http://www.aptassist.com Accounting services Bangalore

    Apt assist provides services related to accounting, registration, setting up of business.

  • http://kimeepark.com/xe/11520 Evelyn

    There is absolutely no resonance between your interior truth which which can be depicted!To switch
    this structure, start out sightseeing. Different health food
    stores and specialized retailers start a fast industry on China natural herbs.
    We commit plenty of it operating.

  • http://www.aptassist.com/contract-labor-registration.html Contract labor registrtaion bangalore

    We need to have a contract registration certificate when you have hired based on contract in any industry or company. We at Apt assist do all labor registrations, Labor license registration and Contract Labor Registration in Mahadevapura, Thippasandra, Begur, Mathikere, and Chikkajala Bangalore.

  • http://www.clitter.ru/ShantaeDo/tab:info russia

    Let me give you a review of Truth about abs
    at a different viewpoint, or direction if you would like. Cardiovascular
    system physical exercises can be performed a
    few a few minutes every day, and may improve it to
    fortyfive units. is the two intriguing, notable and foreboding.

  • Munim Team

    Hi, we at Munim.in help startups in managing legal aspects in their business. Munim.in offers
    Company Registration, Company Compliances, Trademark Registration and other
    related services.

    The services are provided at PAN INDIA level at very affordable prices for budding entrepreneurs.

    Visit http://www.munim.in or mail us at contact@munim.in