it company

How to Start an IT Company in India in 6 Steps

Do you want to start an IT company in India? Find in this article a detailed guide on various aspects of starting an IT-related business.

The information technology and software industry in India has a major contribution to the country’s progressive economic performance. A person having experience in IT-related activity can start an IT company.  As a start-up, you need to follow some specific requirements and procedures that are dictated by India’s enterprise regulations including provisions on business endeavors within the IT sector.

Here are the 6 Steps to Start an IT company in India

1. Compliance For IT Company

As a start-up IT company you need to focus on the registration process for registering companies in India. You will need to decide whether you want to run the organization as LLP, Pvt. Ltd., or as a limited company.

Related: Different Forms of Business Organization in India 

After the company has been formally incorporated you will need to have a Pan Card and a current bank account for carrying out the operations.

2. STPI License For IT Company

The STPI licenses are meant exclusively for start-up software companies operating in India and provide them with several benefits like zero tax for 5 years and no export or import duty for hardware and software products. The license holder can also avail of office spaces at a lower cost than the usual rate. For detail, you may visit

3. Location For IT Company

A location that has the most appropriate infrastructural facilities such as consistent internet facility and connection should be chosen. You will also need to consider the size of your company and the number of employees.

You may start the operation with a small office having enough space to place a couple of computers and then transfer to a bigger one as your company starts making revenues.

4. Select Products for IT Company

There are mainly two sectors in the IT industry. One is the software product and the other is software services. You will need to determine the specific products and services that you are going to offer with consideration of the feasibility and profitability and also the target market.

You need to focus on creating new channels for distribution that provide a solution in a more effective way. As a start-up, you need to come up with a beta version product. And once a complete product is ready it should be protected through copyrights, patents, and trademarks.

5. Manpower Hiring 

Sourcing effective manpower is the key to building a successful IT business. In fact, a major share of your investment goes into hiring professionals. Everything other is secondary.

Software IT company is a specialized type of business that requires you to employ individuals with high technological skills, higher educational knowledge, and knowledge of software development. Choose wisely when picking employees.

Take your time to build a team that can work harmoniously together and delivers quality work. If you focus on a specific industry, make sure you are hiring experts with experience in the specific domain. In the end, you need to remember, employee success is going to help the organization to achieve its objectives.

6. Focus on Delivery

The internet has made global market access for small companies. Identify gaps in the market where you can sell your products and service. As it is a service-based business, you have to concentrate your maximum on the delivery of your services. Do not take projects which your bandwidth can’t handle.