Do I need to Incorporate to be able to hire legally?


Do I need to register OR incorporate my start up to be able to legally hire people?
This start up will be in India.

Can I give written appointment letter if I am just a sole proprietor? Will it be legally bound?

Legal Hire

asked Apr 24 '13 at 17:55
Abhijit Navale
245 points
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  • in what country? – Littleadv 8 years ago
  • I mentioned it already. – Abhijit Navale 8 years ago

1 Answer


You can

  1. directly employ
  2. subcontract (so long as clear on IP assignment)
  3. outsource via 3rd party agent eg mechanical turk

The difference is the degree of control. I cannot speak to Indian labor laws but when you typically pay a contractor, they are responsible for their own taxes, insurance etc. On the other hand, if something goes wrong, you can order your employee to remedy whereas you'd have to follow what's specified in the contract. The other dimension to think about is whether the work performed is core, and how long do you want to retain the employee. The other aspect to consider is your own temperment as a manager of people ... do you have the time/ability to supervise appropriately.

answered Apr 30 '13 at 16:58
501 points

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Legal Hire