Want to start a company providing listing of service providers

885 votes

It is always much safer to incorporate a company or a limited liability partnership in order for tax purposes as well as to save yourself from personal liability. If you are to go ahead with the model you propose, you will be personally liable for all debts and repayments, whereas if you incorporate a company or a limited liability partnership, it is the company of the LLP which is liable. As regards tax issues, I cannot advise you as I do not practice tax law. It is also better from the angle of availing of permissions, permits, etc., which can be done directly in the name of the company/LLP.

Advocate Angad Mehta LawRato

615 votes

An aggregator is an intermediary as per Press Note 3 definition and is bound to follow all the general laws of Contract, Company, Labour and Employment and Tax etc. One need to have the blue print of your business idea to explain you further about the legal nuances to be followed in your case.

Advocate Pulkit Prakash LawRato

728 votes

Hi! Irrespective of the service providers not complying with laws relating to say, taxation, infrastructure, minimum qualification etc. As of date, you will have to ensure that your company doesn't
Enroll people who flout laws. Say, in case of a beautician, the invoice must indicate service charge, in case of a physiotherapist he/ she must have educational qualification, in case of a pharmacist he / she must have a retail set up with prescribed dimensions, in case of a maid Servant she must be police verified etc. So yes, ideally you must ensure that the providers give you in written that they are complying with the prescribed laws of their respective sector. You should do a quick due diligence before enrolling them. Recall über case where the drivers were enrolled without checking that they had valid DLs in the first place. You can contact me for any queries ranging from setting up a company to ensuring your website content is legally tight to the contracts for different categories of service providers.all the best!

Advocate Mansi Airi Gambhir LawRato

916 votes

Thank you for your question. We understand that you wish to go for an aggregator model for your business. The moment you start doing business, it becomes a legal entity in the form of sole proprietorship. Whether you wish to register it in the form of Partnership, Limited Liability Partnership or Private Limited Company is completely your prerogative. However, we advise that you have a registered legal entity to provide credibility to the affairs of the company which will also help you when you raise funds at a later stage. With regard to your query on taxation, it will depend on the kind of business organization you opt for. In an aggregator model that you are interested in, there will be various direct and indirect tax implications like imposition of service tax etc. For any further discussion, feel free to get in touch with us.

Advocate Bhoomika Choudhury LawRato