Don’t you think that 2020 is the year of some sort of positive change? Maybe, it sounds a little weird to some of you but most will agree with me. Although it was a year full of challenges and inconsistency. Still, it gave rise to too many innovations. One of the best things COVID-19 has given is the concept of “ATMA NIRBHAR”. I am sure that if you belong to India, then you are familiar with this term.
I noticed that many people took the initiative of quitting their 9to 5 jobs and had started working on their dreams. If you also have the same vision of starting something of your own as many people in the world, then you are in the right place.
One of the most trending niches people are exploring is Software Company. Establishing a software company requires a process and legalities. Earlier, we were using different rules and regulations for starting a software company.
But now all the companies need to be registered under the ‘New Companies Act, 2013’. Before proceeding further, let’s understand what software is. Software is a set of functions that are designed to help computers and other electronic devices.
Did you know, software businesses contribute around 8% to the nation’s GDP in India.
What is a Software Company?
A company that is generally established to serve other organizations with its amazing set of functions is called a Software Company.
Types of Software Company
There are two types of software companies in India.
- Product-Based Software Company
It is a type of software company that deals with end products. In other words, it has a product to offer to targeted customers. Some product-based companies in India are Amazon, Microsoft, Cisco, Google, Tally, and many more.
- Service-Based Software Company
It is a type of software company that is focused on providing solutions with its services. Generally, it includes services like Business Consulting, IT, Hardware & Software Engineering and Outsourcing Services to clients. Wipro, Infosys, Accenture, Oracle are some examples of service-based software companies in India.
Steps to Start a Software Company in India
After knowing what a software company is. It’s time to understand the steps that are essential to start a software company in India:
- Observe your Clients and the Market
The first step to start a software company in India is to observe your clients and the market. It is essential to understand the needs of your clients. For example- Suppose you are running a software company that deals in health software. As you know we cannot refer to the current period as the complete lockdown period, not even as the safe period. You have to determine first; whether your software is needed by your clients or not.
Moreover, offer your clients a free trial of your software. As you already know that it is hard to invest in something without exactly comprehending the benefit of a product. Offering a trial of your product helps your clients to make a better buying decision.
- Choose the Company Name
All of us know that name gives an individual identity to people. Without having a name, it will be difficult to differentiate one person from another. Same happens with companies, after all, a company is a separate entity. After observing your clients, now it is important to choose an appropriate name for starting a software company in India.
Select 4-5 best names for your company and then choose the best one for your company.
- Prepare a Business Plan
The next important step for starting a software company in India is to prepare a compatible business plan for your company that matches your vision. Without having a proper business plan, you cannot reach higher.
A proper business plan must include:
- Startup capital
- USPs and future endeavors
- Description of your technology
- marketing strategy
- Your Desires and vision
- Selling strategy
- Name of core team members and their functions
You can add more points in the above-mentioned lists but these are mandatory. Prepare a remarkable business plan after analyzing every factor.
- Choosing the Compatible Organisation Model
After conducting the proper research, choosing a proper company and formulating a good business plan, it’s time to choose the organisation model.
There are four types of business models for your software company in India.
- Sole Proprietorship
It is the type of software company model in India in which the whole business is managed by a single person. It is a cost-effective model to start with a limited budget. It cannot be represented as a company but it can be represented as the self- proprietor firm.
- General Partnership
It refers to the type of software company model in India that is run by two or more persons as the partners. It is the best model to start on a limited budget. In this type of business model, everything is divisible between the partners as per their consent or written agreement.
- Limited Liability Company (LLC)
The next business model for your software company in India is a limited liability company. It is a hybrid legal entity that combines both the features of corporate and partnership. It is a US-specific form of a private limited company.
- Select the Region in India
Starting a software company in India requires a selection of a specific region in India. You need to choose a specific place where you want to establish your company. You should focus on determining the internet connectivity, reach of the place, and proper availability of networks while selecting the region in India.
- Registration of the Company
After selecting the company model and region, now the next step is to register the company. Registration of the company is mandatory from the legal perspective of the working. It is essential for the smooth functioning of the company. Don’t forget that it should include a Memorandum of Association (MoA) & Article of Association (AoA) as well.
- Find the Best Human Resource for your Software Company
Human Resource is the need for the running of every business. Without a good team, you cannot accomplish your goals. It is essential to have a team that matches your visions. Also, do not forget to include all the specialists of all the segments.
For example- you are planning to start a software company but you also require a marketing team for effective promotion. You also need a different sales team as you cannot do everything on your own. So, it is important for you to find the best human resource for your software company.
- Register with Software Technology Parks of India (STPI)
Registration with Software Technology Parks of India (STPI) is important to expand your business globally. Recently whether you are planning to expand globally or not, but it will be helpful for you in the future. It encourages the smooth functioning of your business.
- Build Your Website
Online presence matters a lot in this world of digitalization and your website works like your visiting card. We are living in 2020 and in this current period, it is necessary to have a website for your software company.
You should opt for good website designing services and we can help you in it.
- Determine Effective Marketing Strategy
Marketing is an important factor for the growth of the business. It is an act of promoting any brand, goods or service. You need to focus on developing an effective marketing strategy to promote your software company to cover the maximum number of people.
According to today’s era, opting for digital marketing services would be the best option.
Contact us for incredible marketing services at an affordable price.
- Develop Good Working Systems for your Software Company
We often heard that there is a reason behind the success of a person and for the company also. Do you know, what is the actual reason behind the success of the company? Its system. Yes, you read right. A good and friendly working system is important for the growth of the company.
It is your responsibility to develop a good working environment for your software company.
How the Advisory Board helps the growth of your Software Company in India?
We heard very often that “a great mentor is responsible for the success of the great achiever”. But that does not apply only to people; rather to companies too. There is a rise in the number of start-ups day by day and with the increasing number of start-ups, competition also rises.
Although the board of directors are full of expertise, sometimes they can’t have all the knowledge related to all fields. And for this, advisory boards benefit your business. First, let’s understand what is the meaning of an advisory board?
What is meant by the Advisory Board?
An advisory board refers to the special team of people that is created to help in special matters. They have relatively good experience in different fields and can help you to grow with their expertise in different fields. These people are neither mentors nor consultants and usually stay away from legal matters.
How to Elect them?
Choosing a good advisory team can add to your growth. So, it is important to select your team members wisely. You can take the help of your investors who have experience and knowledge about the advisory team.
Electing an advisory team to follow a proper process and you shouldn’t ignore this at any cost as this determines the powers and the terms & conditions.
Develop a proper agreement mentioning all the terms & conditions, working duration, duties and responsibilities and the agreed compensation.
Why is the Advisory Board important for your Software Company?
We have listed down all the benefits of having an advisory board in your company that are as follows:
- Get the advantage of the advice from multiple experts from various industries like technology, sales, marketing, and more.
- The Advisory board helps to fill in the gaps in the funding board’s existing knowledge.
- They can help you to solve complex problems.
- Advisory boards can guide board members about investing decisions.
- Advisory boards help startup boards to learn more about establishing efficient workflows.
- The Advisory board helps the startup board make better-informed decisions.
Having the advisory board team can multiply your growth. So, choose your team wisely.
Do you know Nasscom’s data mentioned, India’s IT workforce strength is over 4.36 million employees in 2020.
Top Software Companies in India
After searching a lot, we have mentioned the top 10 software companies in India that are as follows:
- Hyperlink Infosystem
Hyperlink Infosystem is one of the leading companies of India having offices in the USA, Australia & the UAE. It provides services in custom software, web & app development, AI solutions, salesforce solutions, Big data solution, IoT development, AR/VR, blockchain, CRM solutions, etc.
It has almost 2300+ worldwide clients, delivered 3500+ apps/software and 1600+ website projects for custom requirements. It has a team of 250+ highly skilled employees who serve you with their best of knowledge.
- Infosys
Infosys is one of the best IT companies having its headquarter in Bangalore. It is the second-largest IT company after TCS. Its main area of services is consulting, information technology & outsourcing services. It has experienced employees who will never disappoint you with its services.
- Tata Consultancy Services
Tata Consultancy Services is already a popular name. If you are planning to start a software company in India then it is not possible that you haven’t heard about it. TCS was founded in 1968 having its headquarter in Mumbai.
But now operates in approximately 149 locations across 46 countries. Its service sectors are mobile apps, the Internet of things, blockchain, cloud solutions, Enterprise apps, automation & AI, custom software development, and many more.
- HCL Technologies
HCL Technologies is one of the best IT companies. It was founded in 1976. It has a global community of 1,53,000 experts operating from 50+ countries. It approximately makes annual revenue of US $9.9 billion.
- Wipro
Wipro is one of the best software companies in India having its headquarter in Bangalore. It was established in 1945 and focused to serve in the area of cloud, security, and networking. It serves clients across 6 continents with its skilled next-generation technologies.
- Mphasis
Mphasis is the best company that uses next-generation technology to help companies transform globally. Their next-gen solutions allow companies to accelerate the digital modification journey. With agile business processes & innovations, they expect the future of applied technology, perceive tomorrow’s trends to keep the clients at the council in an ever-changing marketplace.
7. Capgemini India Pvt. Ltd
Capgemini founded as a startup 50 years ago having its headquarter in Paris. It provides services consulting, technology, professional & outsourcing. It has more than 270k employees in over 50 countries.
8. Tech Mahindra
Tech Mahindra is a part of Mahindra Group, providing information technology (IT) services for almost all industries. It provides services in web and app development, cloud solutions, enterprise business solutions, custom software development, digital supply chain, Data science & much more. It has approximately 125k employees across 90 countries & 900+ active global clients.
9. Accenture
Accenture is a Fortune Global 500 company working to connect business modeling with technological insights. Its service area is software development, blockchain, cloud, Oracle, Salesforce, SAP, etc. It has an employee of approximately 4.92k from 200 cities in 120 countries.
10. HData Systems
Hdata Systems is a software & Data science company located in India. It helps businesses improve their productivity and performance with analytical processes. It provides services in app development, data science, big data analytics, AI, custom software development, machine learning, automation, etc.
The above-mentioned companies are the top 10 software companies in India.
Legal Procedure to Start a Software Company in India
If you are a resident of India and planning to start a software company then you have to follow a proper legal procedure. We have mentioned the list of documents that are compulsory to obtain for the effective working of your software company in India.
- Director Identification Number(DIN)
The first thing that is mandatory to obtain is the director identification number. It is a unique 8 digit number allotted by the central government to a person, intending to be a director of the company. It is the most important document to obtain if you are willing to start a software company in India. You can get it by completing the whole process.
- Reservation of Company Name
It is mandatory to register a company under the government from a legal perspective. Registering your software company under government simply refers to running a profit organisation in the knowledge of the government.
You can reserve your software company in India by visiting www.mca.gov.in. It is an official website of the ministry of corporate affairs ensuring the legality of the corporate sectors.
- Digital Signature Certificates (DSC)
Do you know why a driving license is important while driving? To ensure whether a person is legally eligible to drive or not. Similarly, digital signature certificates are the identity proof of a person in electronic form.
It is important to have someone’s consent or their signature in digital form. You can get it from the license Certifying Authority (CA) by completing their procedure.
Frequently asked questions
- How much does it cost to start a software company in India?
The costing of a software company depends upon the size of it’s business, it’s functioning criteria and your vision. If you are a person who wants to start a software company as a sole proprietor then it would not cost much. But if you are planning to start a private limited company and want to expand it globally then it would cost more. So, it completely depends upon you.
- Is there any city in India that acquired a huge number of software companies?
Yes, Bangalore is a city that has a huge number of software companies in India.
- Is there any benefit in starting a software company in India?
This question sounds more like doubting whether you should secure money for your children’s education even after knowing that they are growing. India is still in its development phase and to make it developed innovations and technologies are essential.
Starting a software company means adding to India’s growth and giving more opportunities by utilizing technology rather than using it.
- How can I start my software company in India?
Starting a software company in India isn’t an impossible task. You need to find an idea and develop it completely. After that, you need to follow the above-mentioned steps and get the guidance of a good software development agency that supports you more like a family.
Also, you need to complete these four steps to start your software company in India:
- Acquire Digital Signature Certificate (DSC)
- Acquire Director Identification Number (DIN)
- Create your profile on the MCA portal (www.mca.gov.in)
- Apply for the registration of the company.
- How to market a software company to get a good number of client’s?
Marketing is an art and can be done with the help of a good artist. Make proper strategy, use effective modes and hire a good team for marketing your software company in India.
Final Words-
Starting a software company in India is equal to contributing to the growth of the Indian Economy.
Work on ideas properly, do complete market research to understand the needs of people, prepare a good business plan to accomplish your vision, select a compatible name, choose your business model wisely, select the region and do a proper registration of your company by fulfilling all the legal requirements. Also, market your software company as much as you could do.
Hope you have got the answer on how to start a software company in India? Don’t forget to comment and share this article with your family and friends who are willing to start a software company in India. We are connected with you in the comment section.
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