How to Start a Consulting Firm in India?

Are you thinking about starting a consulting firm in India?

Many professionals across finance, law, IT, and HR consider this idea, but often hesitate to take the first step. The most common assumption among them is that businesses require large investments, big office, a huge team to get started. The reality is quite opposite. Consulting is one of the most accessible businesses in India because your expertise itself is the product. You are not required to manufacture or sell goods; instead, you offer guidance, advice, and practical solutions to individuals and businesses. With skills, a laptop, the right approach, and a clear roadmap, you can start your journey.

Who Needs Consulting Services in India?

The word “consulting” may sound heavy, but it simply means giving expert advice. In India, different kinds of people and businesses look for consultants:

1. Small businesses such as shopkeepers, small manufacturers, or service providers for GST registration, GST return filing, setting up accountants, digital marketing, and promotion of business.
2. Startups with business plans, registration, preparing agreements, funding strategies, and technology.
3. Corporations for specialised tasks like audits, HR training, or IT upgrades.
4. Professionals such as Doctors, lawyers, architects, and teachers sometimes use social media for branding and presence.
5. Government projects for areas like IT systems, infrastructure, and project planning.

Step-by-Step Procedure to Start a Consulting Firm in India

Step 1 – Be clear about your niche

Before you start your consulting firm, decide what area you want to focus on. Consulting is a broad word. A consultant could be advising a farmer on better seeds or guiding a software company on cybersecurity. Ask yourself the following questions.

1. What am I good at?
2. What problems can I solve better than others?
3. Do I have real experience or qualifications to back this up?

For example, if you are a Chartered Accountant, financial consulting makes sense. If you have worked in an Information Technology Firm for a long period of time, you can start your IT consultancy firm.

Remember, clients prefer specialists. A startup founder will not hire a “general” consultant but will trust someone who clearly knows finance, HR, or IT.

Step 2 – Research your market

In India, each city has different consulting needs. For example:

1. Bangalore has a huge demand for IT and startup consulting.
2. Mumbai is strong in finance and legal consulting.
3. Delhi NCR sees demand for marketing, HR, and government-related consulting.
4. Smaller cities like Jaipur or Indore have a growing demand for tax and business setup consulting.

Step 3 – Pick a suitable business structure

Once you are clear about your area, you need to decide on the legal setup for your firm. In India, you can choose from:

1. Sole Proprietorship: If you are starting alone and want something simple. Good for tax or freelance consulting.
2. Partnership Firm: If two or more people are planning to start a business.
3. LLP (Limited Liability Partnership): If you want the flexibility of a partnership but want your liability to be limited.
4. Private Limited Company: Best if you want to scale, raise funds, or hire employees quickly.
5. One Person Company (OPC): If you want to start your business alone, but with a proper legal structure.

Many consultants start as proprietors and later shift to LLP or Private Limited when their business grows.

Step 4 – Take care of registrations and licenses

Starting a business is not enough; your consulting firm may need the following registration(s):

• GST registration – If the annual turnover of your consultancy firm is more than ₹20 lakhs, ₹10 lakhs in the northeastern and special states
• PAN and TAN – Required for taxes.
• Professional Tax – Mandatory in some states.
• Industry-specific registrations – For example, financial consultants may need SEBI registration if dealing with investments.

It is better to consult a CA or CS to make sure you’re compliant from day one.

Step 5 – Build your brand identity

A consulting firm is about trust. Clients will only trust you if they feel confident in your expertise and competence. That is why branding is important. You don’t need expensive logos or campaigns, but at least make sure you have:

• A professional name for your firm.
• A simple website that explains your services.
• A LinkedIn profile and presence on platforms where your clients are active.
• Visiting cards or e-brochures you can share.

For example, a small HR consulting firm in Pune grew quickly just by writing LinkedIn posts on hiring tips. People saw the value and started contacting them.

Step 6 – Set your pricing model

This is where many new consultants struggle. Should you charge per hour, per project, or a monthly retainer?

1. Hourly fee works well for short tasks like training sessions.
2. The project fee is good when you have to deliver a complete project, like setting up HR policies.
3. Retainer model means clients pay you monthly for ongoing advice, like tax or legal support.

Step 7 – Create a strong network

Consulting in India works a lot through word of mouth. Your first clients may come from your own circle, like your friends and family.  Try to attend local business events, join chambers of commerce, and be active on professional social media networks, such as LinkedIn.

Sometimes, a small conversation can get you a client of your dreams!

Step 8 – Market your services

To market your business in the digital era, you don’t need TV or billboards. You can just

• Share tips on LinkedIn or Instagram.
• Write blogs about your area of expertise.
• Join WhatsApp or Telegram groups where your audience is active.
• Offer free webinars or workshops to show your knowledge.

Over time, your visibility will grow, and people will start approaching you directly.

Step 9 – Build a small team (when needed)

In the beginning, you can manage alone. But as your firm grows, you may need the help of others. You may need to hire some employees. For example, you may hire an assistant to handle accounts, a junior consultant for research, or freelancers for design and content.

The key is to expand slowly. Don’t hire a big team until your revenue is steady. Many Indian consulting firms grow this way – step by step.

Checklist for Starting a Consulting Firm in India

• First, decide what area you will work in, like finance.
• Study the market to understand what clients need and what problems they want solved.
• Choose a business structure. You can start as a sole proprietor, form a partnership, register as an LLP, or set up a private limited company.
• Complete the basic registrations, such as PAN, GST (if turnover requires), and any state-level licenses like professional tax.
• Pick a business name and build a simple identity with a logo, website, and LinkedIn profile.
• Fix your fee model. You can charge hourly, per project, or on a monthly retainer basis.
• Start networking through local events, business groups, and LinkedIn.
• Use simple marketing like blogs, social media posts, or small workshops to reach clients.
• Ask satisfied clients for referrals, as word of mouth is very powerful in this business.
• Begin alone, and only hire a team when your client base grows and you really need support.