IT company registration in India – An Open and Business Friendly System

By NSquareIT Offshore Agency February 8, 2022 Blog, Business, Entrepreneurship, General, Marketing, Services, Software, Tips 0 Comments

For a successful IT company registration in India, the proprietor needs to follow multiple rules and regulations. In India, most of the fundamental and other identical business laws that we currently follow were conscripted during the reigning of the British era. All the firms are required to be incorporated under the New Companies Act 2013.

Before you get started with the incorporation of your software firm, it is imperative that you get the name of your firm approved under the approval of (registrar of companies) ROC. Then acquire the CIN or company identification number. Once CIN is acquired, you will have to submit all the important licit documents. You will also need to mention vital particulars of the firm along with details of share capital, funds, shareholders, and other relative details to fill the legal form.

On ratification, you can start with applying for the certificate of registration!

The legal process used to form a software company
You will require going through a pre-registration process to incorporate your firm; this includes:

Direct identification number (DIN)
Reservation of company name
Electronic signatures

The directors of the software firm need to be recognized first while registering the firm. The count of directors can be between 2 and 8 inclusively – nothing lesser or greater than that. The directors must have DIN; if they don’t have one, they must appeal for the same.

Once the DIN is acquired, the firm can appeal for the name. The firm can choose from about 5 to 6 names available or choose a name on its own if the preferred name isn’t at its disposal. Then the firm is required to appeal for registration and has to come up with a memorandum of association – it includes the company’s first directors and the operations.

This process has to be done online and must be submitted along with Form 1A at the official website. You can also finalize the registration process by hiring a CA. Then to carry the further operation, it is imperative to open a current account in a well-known bank. The copies of the memorandum of association and certificate of incorporation will prove useful here.

Obtain a digital signature certificate or DSC
As per the information act 2000, it is obligatory to ensure the originality of the documents submitted electronically. This is why the documents are required to have a licit digital signature.

The digital signature certificate needs to be acquired only from agencies prearranged by CCA or the controller of certification agencies.

If you already have a digital signature, then you can use them. But ensure to check the validity of the digital signature. Typically, the DSC is valid for 1 to 2 years from the date of issue.

Create an account on the MCA portal
You need to register a user account on the MCA site to fill up an e-form. Generating the account is completely free of cost.

Steps to keep in mind while doing India Company Registration

Start by providing short information about the business like its type of field, the product you wish to sell, target audience, and type of technology you wish to use. You have to mention everything about the software and how you conclude to develop and supply your services to the market, etc.
Then select the type of your firm, whether it is a sole proprietorship, private, or partnership. The key factor that determines the type of your company is the firm’s size, range of risks associated, target market, and budget. Plan as per your goal whether you wish to serve nationwide or universally.
Select the region to get enlightened about the business laws of that specific region.
Incorporate your software development company in accordance with ROC.
Choose the locality where you wish to set your office, then carry on with hiring the employees after receiving the certificate from the ROC.
Lastly, register under STPI to acquire extensive legal benefits.

Wrapping up

Now that you know how to register a software company in India, it is time to connect with NSquare IT Offshore to get started with your IT company registration procedure.