I am an IT software professional with good experience and currently out of job. One of the early startups has approached me and asked if I can work as contractor for sometime till they get funding and headcount approved. It will be 4-6 months. I don’t want to work through consulting firms but rather work directly as a contractor (self employed). For this do I need to open a company, get a license or something? and what other statutory things I need to be taking care of? Thanks for reply
If your current employer allows in such a set up with other organizations, then you can go ahead. There is no such license or statutory things required. However, do remember that this self-employed work is considered as business income. If the receivable from such income surpasses more than Rs.40 lakh a year, then you have apply for GST.