How To Start Software Company In India

Software companies are growing well in India and now software companies have started being established in every major city. In such a situation, if you also want to expand your business in this area, then you will definitely get benefit. Therefore, today in this article we are going to tell you the process of starting a software company. You will also get to know about different types of software companies. So read this article completely.

First of all know the types of Software companies.

In India you will find two types of software companies first service or consulting based software company and second product or development based software company.

Wipro, Infosys, IBM, Tech Mahinadra are software consulting or service companies. This type of companies provide services of business consulting, information technology, software engineering and out sourcing services. Whereas product or development based software company has such products which provide a major portion in the revenue. Amazon, Microsoft, Google are such companies. 

What is the step by step procedure to open a software company in India?

Step 1. Collect funds:

Either you will have sufficient funds for funding your business or you will be able to do so with the help of bank loans. The good thing is that in today's time you can also take help of crowd funding, angel investment and venture capital funding.

Step 2. Create business plan:

Before starting any business, it is important to make a business plan. Many times this step is skipped due to which the results are not satisfactory. Therefore, no matter how soon you want to start your business, make sure to make a proper business plan which is based on deep research. And you have also observed the competition of this field very well. In this business plan, choose the type of software company which is according to your knowledge and business. And in which you can give better service. In this you will have to choose products and services and also target a specific audience or market.

Step 3. Decide the Structure of Business Organization:

After choosing the right type of software company for your business, you have to decide whether you want to start in business partnership or not. You want to give your service in the whole country or only in the local community.step 4. Select the right Area/Region For Business.

Step 4. Select the right Area/Region For Business:

It will depend on what type of software you are going to work on, whether you will sell your product in the entire country or in the local area, but for your business, you will have to focus on such areas of India where you can get the maximum profit.

Step 5. Register the Software company:

You will have to register your company with the Registrar of Companies i.e. ROC. For this, you will also have to give four such names for yourself which are not yet the names of any company. Apart from this, you will also have to fill some forms in which you will have to provide basic personal information of the software company. Before starting the business of your software company in India, you will need a legal entity. Therefore, you should choose a suitable legal entity for your company.

• 1. Sole Proprietorship Firm. It is not considered a company but it is considered a good legal entity to start working on a new idea.
• 2. Partnership Firm. In this there are also cofounders along with the business owner who together work on that business idea. 
• 3. LLP means limited liability partnership or private limited company. It is called the real company of business in India and more than 90 percent of business owners get their companies registered with this name.

To start software companies, you will also need these common documents in the form of pen card copy, Aadhar card, voter ID or driving license address proof. Utility bills copy or rent agreement copy will also work for business address proof. Apart from these, to start a software company, you will also need these licenses and legal registration. Such as service tax registration, STPI license, trademark registration, copyright registration, patent registration, and software license agreements for consultancy business. Here you must know about STPI. You will also have to register the company or organization in STPI i.e. software technology parks in India. These STPI licenses are especially for new software companies of India and provide them many facilities such as no payment for five years and no import and export duty on software products. With its help, you can also get office at a rate lower than the normal rate. You should also register yourself as an employer in the department of employment of your state or region in India. So that you can give job ads in that state and your company can hire suitable candidates for open positions.

Step 6. Choose office location:

While choosing the location for your office, you have to keep in mind the size employees of the company and available technology and available resources such as internet connection in that area. In the beginning, you should make minimum possible investment in office space. You can also take it on rent or lease. Avoid spending too much on space in the beginning    

Step 7. Hire Energetic And Anthropological Staff:

After preparing the setup of your software company, you have to hire such skilled staff who will take your company to new heights. For this, they should have knowledge of software development, higher education and technical skills. In the beginning, you can hire two to three software engineers and one to two computer programming professionals. While hiring employees, you must give freshers, but you must also hire experienced employees for your specific field.

So friends, in this way you can start your software company with the right business plan, right software company type and setup.