Previously, In India software companies were established as international company subsidiaries. However, with the IT boom, new software start-ups are seen in the Indian lands. You may have several doubts on how to start a software company in India. Yes, it requires some procedures and regulations to follow by the entrepreneurs based on the enterprise regulations in India.

Here is some guidance to help you on how to start a software company in India.

Prepare A Business Plan

Primarily you are supposed to write a business plan. This has to include the type of skills and technologies that you are going to implement in the company. A description about the target market in which you are going to operate is also essential. Suppose you have decided to develop software for BPO, the description about this industry has to be provided.

Now it is time to think about your business structure. As per the Indian government, it is vital to have the employees with specified skills and technical expertise in your company. You can also go ahead either with sole proprietorship, partnership, or limited company options. If you are targeting all over India, it would be better to register as a limited company.

Select Location

Next thing is the ideal location for your business, which can be the related industry high-density locations. Suppose, you are planning to sell pharmaceutical software, then it would be better to focus towards the western India for the company location. An ideal location can grab more business to you! It is a real strategy to earn more revenue and sales!

Register Your Company

In the process of how to start a software company in India, the next step is the registration of your software company under the Registrar of Companies (ROC). In order to register, you will have to provide different names for your company, which shouldn’t be used by any similar company. In order to constitute the company, you have to prepare Memorandum and Articles of Association. You also have to fill up the declaration of compliance, particulars of managers, directors etc. To get more details about this registration process, you may visit Indian government website. The registration fees will be nearly Rs.1000/-. Once filling the forms, you will have to provide all the details of your software company.

Company structure is the next vital element in forming your software company. It depends on the size of your company. Based on that, you can choose the employees, technology, R&D facilities etc. It is always suggested to start a small office initially and looking at the growth and viability including Return of Investment (ROI) from the company, that is when your company gets more profit margin, you can expand the business operations to new regions and internationally also.

Hire Employees

Next process is the recruitment of the staffs. In order to have a quality services and best software products, you will have to hire people that are highly talented and have specialized technical skills. Considering the employees, those who have good experience in the particular industry that you are focusing can be a better option.

While registering process of your software company in India, you have to register as an employer within a particular state. Online registration is possible only in four states in India that are Maharashtra, Kerala, Tamil Nadu, and Jammu and Kashmir. When you register in a state under the department of Employment, it is possible for you to post direct advertisements.

To start your software company, it is essential to do the registration under Software Technology Parks India (STPI). If your company is registered under STPI, you will be able to get tax benefits. For this, you are required to submit all the details like your business plan, financial plan, business structure, marketing strategies etc to STPI.

Well, you now know the ways about how to start a software company in India. Do you think anything else to be taken care of?


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