How to open a software company?

At this time the software company in India is growing well to the next level. Software company is starting to be establish in most of the cities of India. In such a situation, if you also want to do business in this field. Then you will definitely get the benefit.

So, today we will tell you the process of starting a software company and also about its types.

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

Wipro, IBM, Infosys, Tech Mahindra are all software consulting or service companies. Companies of this type provide clients with services such as business consulting, information technology, software engineering and outsourcing services.

Amazon, Microsoft, Google are all product or development-based software companies. They have such products which provide major portion of revenue.

So, now know what is the process of opening a software company in India.

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1.    Collect funds for business: –

You will either have sufficient funds to fund your business or you will take a loan from the bank. And you can also take help of crowdfunding, angel investing and venture capital funding today.

2.    Create a business plan: –

It is very important to make a business plan before starting any business. Many times, people do not make a business plan, which results in bad results. So, no matter how soon you start a business, first make a proper business plan that is based on deep research. You should also thoroughly observe the competition in this field.

In this business plan, choose the software type which is according to your knowledge and business. And in which you can give more good service. In this you have to choose services and products and also target specific market and audience.

3.    Decide the structure of business organization: –

After the business plan, you have to choose whether you want to start in business partnership or not. Do you want to serve your company in the entire country or only in the local community?

4.    Select the right area/region for the business: –

Depending on the type of software you are going to work on, it will depend on whether you will sell your product in the whole country or in the local area. But you have to focus on the area, where you can get the most profit.

5.    Register the software company: –

In this step you have to register with the Registrar of Companies (ROC). For this, you also have to give four names for your company, which are not yet of any company. Apart from this, you will also have to fill some forms in which you will have to give basic, personal information of your company.

To start a software company in India, you will need a legal entity for your company.


  • Sole proprietorship firm (It is not considered a company but it is considered a good legal entity to start work on a new idea).
  • Partnership firm (it also has business owners as well as co-founders who work together on that business idea.
  • IIP (Limited Liability Partnership or private limited company). It is called the real company of business in India and more than 90% of business owners register their company by this name.

To start a software company, you will also need these common documents like PANCARD, AADHAR Card, Voter ID or Driving License. Utility bill or rent agreement copy will also run for business address proof.

Apart from this you will also need these license and legal registration such as service tax registration, STPI license, trademark registration, copyright registration, patent registration and software license agreement for consultancy business.

Here you must know about STPI. You will also have to register your company in STPI (Software Technology Parks in India). These STPI licenses are especially for new software companies in India. And they provide many facilities. Such as no payments for 5 years, apart from this, no import and export duty on software products. With its help, you can also have an office available at a lower rate 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 him job ads in the state and hire candidates for your company.

6.    Select the office location: –

While choosing the location for your office, you have to keep in mind the size of the company, employees and the technology available in that area, and internet sources such as internet connections. In the beginning, you should make at least a possible investment in the office space. You can also take it on rent. In the beginning you should avoid spending more on space.

7.    Hire energetic and anthropological staff: –

After setting up the setup of your software company, you will have to hire skilled staff who take your company to greater heights. For this, they should have knowledge and technical skills of software development. Initially, you can hire 2-3 Software Engineers and 1-2 Computer programming Professionals. While hiring employees you should give freshers a chance. But experienced employees must also hire for their specific field.

So, guys this way you can setup a good software company.

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