Here are some mandatory registrations you will need for your software company:
You’ll also need a ESIC & PF license when your number of employees exceeds 20.
Registration Cost : Rs. 6000 - 8000
The reason why you should register your software company as a business entity is to be legally safe.
Suppose a client purchased software from your company and, unfortunately, something goes wrong.
In this case, the customer can sue the business entity but not you cannot sue the customer.
Thus, you should register your software company as any of the following business structures:-
A private limited company is the most preferred software company registration.
The reason is that it is the most stable structure and provides ample growth opportunities.
It also solves the concern of legal conflicts as it is a separate legal entity.
Moreover, the liability of owners is limited to the amount invested in the business.
It means if the company goes bankrupt, all the personal assets of shareholders and owners will remain safe.
This business structure is best for single owners. Therefore, in case you do not have any other person to become the director in your company, register as one person company.
A one person company enjoys the same benefits as a private limited company.
Further, you can also convert it into a private limited company when you introduce a new director.
An LLP is best in case you have multiple partners in the business.
In fact, it has to do minimum compliances after incorporation as compared to any other structure.
An LLP not only gives the benefit of limited liability to owners but also gives the flexibility of a partnership.
Office or Premises
If you cannot decide which structure to choose for software company registration, get in touch with our consultant for expert advice.
Approximately, the total cost will be around Rs. 6000 - Rs. 8000.
However, it will depend on the following factors:
So, get in touch with our experts by filling the form on your right-hand side. They will assist you with the total cost of registering your software company and how to do it the right way.
Registration Cost : Rs. 500 - 700
The next most important registration for a software company is GST Registration.
Here are the conditions in which you need a GST mandatorily: -
Documents Required for GST Registration
Partnership or LLP
Private Limited Company or One Person Company
Registration Cost : Rs. 1000 - 1200
Of course, when you are starting a company, you will want to operate it on legal premises.
So that no one can grab your collar and throw you out of your own office.
For this purpose, you will have to register your office under the Shop and Establishment Act.
The registration is generally done with the local municipality.
In fact, most of them have an online portal, so you do not have to run to government offices.
However, if you are office is in Mumbai, you will have to apply for a "Gumasta License" which is another name for Shop and Establishment License.
Registration Cost : Rs. 7000 - 9000
When it comes to software, you would know how difficult it becomes to protect your brand name.
Thus, you must get your brand name trademarked under which you will be creating the software.
However, you do not need trademark registration immediately unless you have created very unique software.
But, if you think that someone might steal your idea, do not waste your time and apply for trademark registration online.
Besides, it takes 7-8 months to receive the registration certificate unless there are no objections or oppositions raised by anyone.