There are various steps to follow to register a software company in India. There is a big rise in Software companies in India recently with India being the 3rd largest startup ecosystem in the world. Thus, let’s talk about the procedure to start a software company in India. Before starting a software company let’s comprehend growth in its industry or software industry in India. The Indian sector is expected to grow at a rate of 12-14 percent for the financial year 2016 in constant currency terms. The sector is also expected to triple its present annual profits to reach US Dollar 350 billion by the financial year 2025, as per the national association of software and services companies (NASSCOM).

Even as per the PWC report the Indian companies in the top 100 emerging markets list account for combined revenue of 797 million US dollars. India ranks fifth amongst the emerging markets based on revenues.

How to start a software company in India

Before starting a software company in India, we have to choose the right type of company as service or product based so let’s understand how many types of software companies in India exist. And how to register a company in India with Company registration.

Register a software company types in India

Register a software company in India can be categorized broadly. To start a software company in India we have to choose the right category of the software company. So, in India, there are mainly 2 types of software company –

  1. Service or consulting-based software company
  2. Product or development-based software company

To establish a software company in India, we have to know about their expert domain on categorized based –

Service or consulting-based software company. These companies provide services regarding business consulting, information technology, software engineering, and outsourcing services to clients.

Top software consulting as well as service companies in India are –

TCS, Wipro, Infosys, Accenture, IBM, Tech Mahindra as well as Many Others.

Type of services provided by the companies are–

  • Custom business solutions
  • Database migration services
  • Customization services
  • Application development
  • Outsourcing
  • ERP solutions
  • Collaborative commerce
  • Programming services
  • Quality assurance and testing services
  • Multimedia offering

Read more: How to Register a Company in India: Step by Step Procedure

Product or development-based software company

These types of register a software company have a product or set of products that are providing a major portion of the revenue. The top software product, as well as a development-based software company in India, is-

  • Amazon
  • Microsoft
  • Cisco
  • Google
  • Zoho
  • Inmobi
  • Tally

How to get projects for a software consultancy company in India?

For the open a software consultancy company in India, you need good clients for the starting purpose. It requires a lot of networking and good contacts which you getting through your personal as well as professional resources. As per Quora user brucelin kitchen if you are working already in another software company then you have to find a client who can outsource his work to you on trust or experience-based.

Another source like you can advertise online or use some online good platforms like freelancer, Yorkshire in India, Upwork and start the bidding for the projects. This is the best way to start a software company in India for free as a freelancer. There easy steps to register a software company.

Learn more about: List of Registration and licenses required for Startups

How to get projects for the product or development-based software company

For the product or software, a development-based company has to think about the ideas & implantation the things but it requires a lot of money upfront for the development and marketing. In India, most startup software companies bring new ideas or tools and build SAS (software as service) software companies. Here is the perfect more than 64+ software startup ideas list.

How to register a software company and raise funds?

In 2016 there is a lot of opportunities to raise the funds for the software company in India. Traditional businesses are depending on bank loans and friends & family but these days venture capital funding works for startup software companies. There is a lot of angel investor as well as venture capital fund which are invested in the software development companies as well as looking for the products and technology which disrupt the market.

You can read more about how venture capital works in India or you can apply for the startup registration in India incubators in India that helps you to build your software products in India.

How to register a software company in India

Legally for starting a business in India you need a legal entity for the business and need to register a software company. In India, there is mostly 5 popular legal entity which enables to doing the business in India.

A) sole proprietorship firm as software firm – it’s the best legal entity to try your ideas in the starting with the nominal cost. It’s not a company but you can say a simple firm as well as a sole proprietorship company that helps to start your business.

B) Partnership firm – it’s good when you have co-founders and just try the idea with the least legal cost.

C) LLP as well as a private limited company – It’s a real company or business in India. More than 90% of companies or businesses are registered in India as private limited companies.

If you are looking to register a software company in India?

Register your software company as a private limited company. Just fill up the below form and get started with your dream software company in India. We help you with everything from license to registration.

To register a software company some important documents required:

  • Pan card copy of the owner as well as partners.
  • Aadhar card, voter id or Aadhar card, or driving license as address proof of the owner or partners.
  • Business address proof-like utility bills copy as well as rent agreement copy even you can register your home address also as a business place.

Other public licenses and legal registration for open a software company in India are –

A) service tax registration for a consultancy business

B) GST registration when delivering software in CDs or any other medium

C) STPI license which is beneficial for the new software companies for the zero taxes and no export duty on hardware or software products.

D) Trademark registration to protect your brand name.

E) Copyright registration on your source codes

F) Patent registration on technology

G) Software license agreements

We recommend my online a for the register your startup software company in India.

Tip: get an instant proposal in your email inbox with the full pricing, procedure, and documents to set up your private limited company in India.

Office location or space for a software company in India

In the starting, you can start with the home address but if you are living outside India and want to run a company in India then there are a lot of virtual space service providers in India which are providing mailing and office sharing space at reasonable pricing like Regus across the world.

Hiring or recruitment process for a software company in India

There are many free tools or job listing website which can provide you quality resumes as well as candidates. You can even use a freelancer website to use talent from the US as well as other countries. Hope this article helpful for you regarding how to start a software company in India.

There are some rules & regulations that one has to abide by while registering as a software company. In India, the constitutional laws and other business laws which we are being followed now have been based on the rules of the British period. In our nation, all companies are liable to register under the ‘New Companies Act 2013’.

  • Basic Procedure for Registering as a Software Company
  • Legal Process Followed to Start A Software Company
  • Acquiring Digital Signature Certificate (DSC)
  • Create a new Account on MCA Portal under New User Registration
  • Company Trademark Registration

Basic Process for Registering as a Software Company

So, for registering as a software company, your first job is to get the name of your company approved with permission from ROC (Registrar of Companies). Then you will get a CIN (Company Identification Number). After getting a CIN, you will need to submit all your legal documents and other legal forms. During this procedure, you have to mention all the essential details about the company.

Correspondingly, indicate the shareholders, share capital, funds, and all the relative data which you need to fill in the legal form. Once it is permitted, you (the owner) can apply for the certificate of registration.

Legal Processes to Start A Software Company

To start a new software company, the company should follow a pre-registration procedure which is as follows:

  • Direct Company Identification Numbers
  • Registration of Company Name
  • Automated Electronic Signatures

While integrating a software company, it has to recognize its directors first. The number of directors must be between 2 and 8 inclusive, but not less or more than that. The directors should have Director Identification Numbers (DIN). If they do not have DIN, they should apply for that. They must submit their identity proof as well as residence proof to apply for DIN. The identity proof can be PAN card, Passport, DL, or Voter ID, and the address proof may can DL, Ration Card, EB bill, Passport, or Telephone bill.

After the DIN is attained, the company should apply for a name. There are around 5-6 name choices for the company. If the ideal name is not available, then the company may choose a name on its own. After this, the company should apply for incorporation. For this procedure, the company has to come up with a Memorandum of Association which comprises the company’s first director as well as its operations.

This process must be completed online. When applying one must submit this application along with the form 1A at the official website of the respective department. Registration can also be completed with the help of chartered accountants. After the company has been formed formally, the owner should open a current account in a well-known bank for carrying their operations. To open a current account the owners, have to deliver copies of the Memorandum of Association and Certificate of Incorporation.

Acquire a Digital Signature Certificate (DSC)

To guarantee the legitimacy or security of documents filed online, the information act 2000 demands a valid digital signature on the necessary documents submitted online. This is the only convenient method through which one can submit their essential documents online. The digital signature certificate should be attained only through agencies that are appointed by CCA (Controller of Certification Agencies). One should not use DSC provided by any other agency that is not approved and it is unlawful to use other DSC as yours or the forged one.

If you already have a digital signature then you can use the same, no requirement for another. But don’t forget to check the legitimacy of the digital signature, agencies provide DSCs with 1 or 2-year validity after expiry you must renew it.

Create a new Account on MCA Portal under New User Registration

Here, we discuss making a registered user account on the MCA site for filling up an e-form, for online fee-payment, for various transactions as a business and registered user. Creating an account is completely free. For registering on the MCA portal, click on the given registered link.

Steps to follow for register a software company

  • First, one has to give a short account of the business like the type of product, field, target, and the type of technology which will be in use. You need to mention everything related to that software including its development and supply to the market, etc.
  • Then select the type of company whether it is a sole proprietorship or private or partnership. The important factor that decides the form of the company is sizes of the firm, the range of risk, target market as well as budget. Plan rendering to your goal whether to go nation-wide or globally.
  • Select the region and know about the business laws running in that respective region.
  • Register your software company under the category ROC. While registering it is essential to apply to the same office where the head office is located.
  • Choose the location where you want to set up your office. After getting the certificate from ROC, you can start hiring staff.
  • Registering in the Department of Employment for legal hiring and offering jobs is always better. Applying in one state can enable you to hire from all over India. Not registering can cause problems in your hiring process.
  • Register under the category of STPI (Software Technology Parks India). This can help you to reach comprehensive legal benefits as well as other benefits like tax breaks, etc.


When registering a software company, there are many laws and regulations to follow. The constitutional laws and other company laws that we now observe in India are derived from British-era regulations. All businesses in our country must be licensed under the ‘New Companies Act 2013′. The Legalraasta offers the best of its services to start a company. You can easily register a software company. LegalRaasta.Our expert team will help you in each part related to Company registration processes like GST RegistrationCompany RegistrationTrademark Registration, and its services relatable. You can download our app which is easy to access in android mobiles LegalRaasta APP. Ring us a call at 8750008585 and feel free to send your inquiry on Email: [email protected]