Some various rules and regulations need to be followed while applying for the software company’s registration. In India, the constitutional laws and other business-related laws that we are abiding by now have been carried forward from the British era’s rules. First and foremost, you should choose the correct form of business. There are multiple forms of business. But the private limited company is more preferred among others. Private limited company registration can be done online with necessary documents according to the companies act 2013.

In India, all the companies need to be registered under the new companies act 2013. Now, let’s discuss the basic process to register a software development company in India.

Fundamental process to register a software development company

In the registration process of a software development company, first, you will have to get your company’s name authorised with approval from the registrar of companies (ROC). Then you are required to obtain the company identification number (CIN). Once you get the CIN, you will have to file all the legal documents along with legal forms. While in process, you are required to provide all the requisite information about the company.  

Additionally, state the information of share capital, shareholders, funds and other necessary information in the compulsory legal form. Once you get approval from the authority, the business owner (you) can apply for the certificate of registration.

Legal process you are required to follow to start a software development company.

To initiate a software development company, the company is obliged to follow the pre-registration processes that have been given below;

– Direct identification numbers (DIN).

– Reservation of company name.

– E-signatures (electronic signatures).

First, the company will have to identify two directors while incorporating as a software development company. The number of directors has to be betwixt two and eight inclusive, but not to be more than that or less than that. The directors should possess the DIN (director identification number). They will have to file their ID proof and residence proof while applying for the same. The ID proof can be a passport, PAN card, voter’s ID, DL, and the address proof can be ration card, DL, passport, EB bill or telephone bill.

Once they get the DIN, the company will have to apply for a name. There will be around five or six names from which a company can opt for one. If the chosen name is already taken, the company can opt for its own name. Further, the company will have to apply for incorporation. In this process, the company is required to come up with an MoA (memorandum of association) that contains the first director of the company and its operations.

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Also, this process can be initiated online. While applying, one must file this application along with form 1A at the official website of the concerned department. Assistance can be taken from experts such as chartered accountants (CA). Once the company has been incorporated formally, the owner will have to open a current account in a notable bank for carrying their business operations. To open a current account in the bank, you must provide copies of MoA and a certificate of incorporation.

Step 1: Obtain a digital signature certificate (DSC).

To make sure the veracity or security of documents submitted electronically, the Information Technology Act, 2000 commands a legitimate digital signature on the required documents filed electronically. This is a safe method by which one can file their prominent documents electronically. The digital signature certificate should be acquired only via agencies appointed by the controller of certification agencies (CCA). One should not recruit DSC granted by any other agency that is not allowed, and it is illegal to use other DSC for your own use or the counterfeit one.

If you already possess a digital signature, then you can employ it; you are no longer required to apply for another. Remember, to check the validity of the digital signature, agencies offer DSC’s with one- or two-years validity, after which you are required to renew it.   

Step 2: Create an account on the MCA portal: new user registration

It is about having a user account on the MCA site to fill up and submit an e-form, make online fee payment, and for several other transactions as a registered user and a business. The process is entirely cost-free.

Step 3: Steps that are needed to be followed while establishing a software development company

  • First, one must provide a cursory description of the business, such as the type of product, target, field, and type of technology you will deploy. You will have to state everything concerning the software, such as how it would be developed and means by which you will supply in the market and so forth.
  • Secondly, choose the company’s form from various options such as one-person company, LLP (emerging entrepreneurs prefer the LLP as a business form because it offers the limited liability of them. LLP registration can be done online in India with the help of required documents as per the LLP act 2008), private or partnership. Factors on which you should focus while deciding are the firm’s size, target market, budget and range of risk. Plan accordingly, whether you want to go globally or nationally.
  • Then, choose the region and get acquainted with the business laws running in that specific region.
  • Complete the registration of your software company under the ROC. It is crucial to apply to the same office during the registration, where the head office is located.
  • Select the place where you want to establish your office. Once you receive the certificate from the ROC, you can start recruiting the employees.
  • It is advisable to register in the region or a state department of employment for legal recruitment and offering jobs. Applying in one state might provide you to recruit from anywhere in India. Without registration, it might cause problems in the recruitment process.
  • Register under the software technology parks, India. This might benefit you in obtaining legal advantages and other benefits such as tax breaks and so forth.