Get a Quote
Get a Quote and Find Services to Fit Your Needs 50000+ Satisfied Clients
5000+ Licenses & Registration
15 Branches across India
75 Years + Combined experience
Information technology has not only become a part of our day-to-day lives, but also our professional lives. Almost every company has IT-enabled infrastructure to conduct business operations, especially after the COVID-19 pandemic.
In the coming years, the IT services market in India is expected to witness a significant growth. Therefore, establishing an IT company seems like a profitable idea. In this blog post, we shall discuss various licenses and certifications necessary to start an IT company in India.
Here are the different types of IT companies in India:
IT Consulting Firm
Software Development Company
Digital Transformation Company
Cybersecurity Company
Cloud Computing Company
IT Support and Maintenance Company
The following licenses and certifications are crucial for establishing an IT company in India:
To start a company in India, you need to get the business entity registered with the Registrar of Companies in accordance with the provisions of the Companies Act 2013. To register a company, you need to visit the official MCA website and file a company incorporation application using SPICe+ form. Make sure you enter all the required details in the form correctly to avoid delays and reduce chances of rejection.
While submitting the application, you will be required to pay the prescribed incorporation application fee. Once your application has been received by the ROC, its details will be reviewed and verified. If satisfied with the application, the ROC will issue a certificate of incorporation. This certificate serves as a legal proof of the company’s existence.
The certificate of commencement of business is an essential document. It is required for a company to commence its business operations. It must be obtained within 180 days of the company's incorporation. To secure this certificate, you must file form INC 20 A with the Registrar of Companies.
Once ROC is satisfied with the details in the form, it’ll issue the certificate of business commencement. Upon receipt of the certificate (along with other necessary approvals), your company can legally commence business activities.
For all businesses in India, it is essential to obtain a shop and establishment license. This license typically needs to be obtained within 30 days of commencing business. It is issued under the Shop and Establishment Act, a state-level legislation. Each state has its own version of this Act.
Therefore, the process to apply for the license varies from one state to another. To apply for the shop and establishment license, you must file an application with the concerned state authority.
GST registration is a mandatory requirement for a business if its annual turnover crosses Rs. 40 lakhs for goods and Rs. 20 lakhs for services. This registration is required to ensure compliance with the GST regulations and stay in the good books of the government.
To secure GST registration, the process is completely online. Therefore, you don’t need to visit any government office. All you need to do is visit the official website of GST and register there. Upon successful registration, you will receive the GST registration certificate, which serves as a proof of GST registration.
Trademark registration isn’t a mandatory requirement. However, it is recommended. This is because trademark registration protects the company’s brand identity and also prevents trademark infringement. It also establishes a strong market presence and sets the business apart from its competitors.
To register a trademark in India, you need to file an application with the Trade Marks Registry in accordance with the Indian Trade Marks Act 1999. Upon successful registration, you will receive a TM registration certificate.
NASSCOM membership certificate isn’t a mandatory requirement for an IT company. However, it is recommended. This certification can open doors to networking opportunities in the IT sector and aid business growth and innovation.
Regular membership is for IT BPM (Business process management) organizations registered in India with annual revenues exceeding Rs. 2 crore. The associate membership is available for startups having an annual revenue of Rs. 2 crore or less from IT BPM operations.
Firms that support or provide services to IT BPM organizations, like research institutions, real estate companies, venture capital firms, etc., can apply for the institutional membership of NASSCOM.
The IT industry is undoubtedly one of the most important industries. Many other industries are dependent on this industry. For instance, the banking industry relies heavily on IT softwares. As a result, starting an IT company that provides IT services and products can be a lucrative business. To start this type of company, make sure to secure important licenses and certifications like certificate of incorporation, certificate of business commencement, shop and establishment license, GST registration certificate and trademark registration certificate. For assistance, feel free to reach out to company registration consultants at Registrationwala.
Q1. Does an IT consulting firm require GST registration?
A. Yes, an IT consulting firm requires the Goods and Services Tax registration if its annual turnover exceeds Rs. 20 lakhs for services.
Q2. Why is trademark registration recommended for an IT company?
A. To protect the IT company’s brand identity and prevent others from using similar names or logos, the trademark registration is recommended.
Q3. Which authority issues shop and establishment license in Delhi?
A. The Department of Labour is the authority responsible for issuing the shop and establishment license in Delhi.
Q4. How to start an IT company in India?
A. To start an IT company in India, you need to secure all the necessary licenses and certifications such as certificate of incorporation, business commencement certificate, GST registration and shop and establishment certificate. In addition to this, you will also need to secure PAN/TAN registration, open a bank account for business transactions, etc.
Want to know More ?
