Software Company Registration | How to Get Started

Here are some mandatory registrations you will need for your software company:

 

• Business Registration 
• GST Registration 
• Trademark Registration 
• Shop and Establishments Act License

 

You’ll also need a ESIC & PF license when your number of employees exceeds 20.

 

Business Registration

 

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:-

 

• Private Limited Company
• One Person Company
• Limited Liability Partnership (LLP)

 

Private Limited Company

 

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.

 

Documents Required

 

• Rent agreement – NOC
• Electricity bill
• Photos of directors
• Aadhar card
• Pan card
• Digital signature certificate
• Self-declaration about the directorship

 

One Person Company

 

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.

 

Documents Required

 

Director

• Copy of PAN Card of owner
• Passport size photograph of the owner
• Copy of Aadhaar Card/ Voter identity card
• Specimen signature

 

Nominee

• Copy of PAN Card
• Passport size photograph
• Copy of Aadhaar Card/ Voter identity card

 

Company

• Copy of Rent agreement (If rented property)
• Electricity/ Water bill (Business Place)
• Copy of Property papers (If owned property)
• Landlord NOC (Format will be provided)

 

LLP (Limited Liability Partnership)

 

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.

 

Document Required

 

Partners Documents

• Adhaar card and the PAN card of the partners
• Photograph of Partners
• Address proof of partners
• Passport of partners (In case of foreign nationals)

 

Office or Premises

• Electricity bill 
• Rent Agreement/NOC of the office

 

If you cannot decide which structure to choose for software company registration, get in touch with our consultant for expert advice.

 

Software Company Registration Cost in India

 

Approximately, the total cost will be around Rs. 6000 - Rs. 8000.

 

However, it will depend on the following factors:

 

• Business Structure
• Authorized Capital 
• State of Incorporation
• Number of Directors

 

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.

 

GST Registration

 

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: - 

 

• Turnover - If your aggregate turnover of the software company exceeds Rs.40 lacs in the financial year. However, the limit is Rs.20 lacs in special category states. Learn how to calculate aggregate turnover for GST Registration.
• Inter-State Business - You have to get GST Registration if your business provides software from one state to another. It is regardless of the turnover.
• Ecommerce - Apply for GST if you sell your software on an ecommerce platform.
• Voluntary Registration - You can apply for it voluntarily if you want a GST Number. In fact, you can surrender it any time you want to.

 

Documents Required for GST Registration

 

Sole Proprietorship

• Owner’s Pan card
• Aadhar card of the owner
• Bank details
• Address proof

 

Partnership or LLP

• Partnership deed or LLP certificate
• Owner’s PAN card
• Aadhar card of the owner
• Bank details
• Address proof

 

Private Limited Company or One Person Company

 

• MOA and AOA 
• Incorporation certificate
• Business PAN card
• Owner’s Aadhar card
• Bank details
• Address proof

 

Shop and Establishments Act License

 

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.

 

Documents Required

• Aadhaar card 
• Pan Card 
• Photo of signboard with owner and premises
• Business address proof
• Any other shop registration
• List of Employees, details, wages, time period and number of working days

 

Trademark Registration

 

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.

 

Documents Required

• Company Registration Certificate
• Business PAN Card 
• Address Proof of the Office or Premises
• Declaration by Directors/Partners
• Signed form TM-48