Guide on Opening a Tech Company in India
Updated on Thursday 30th August 2018
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The technology sector is one of the most suitable industries for starting a company in India, due to the fact that this domain increased at a rapid pace. For example, between 2000 – 2010, the industry accounted for US $78 billion, while between 2010 – 2015, its revenues accounted for US $143 billion. Furthermore, in these two timeframes, the number of tech companies increased at a rapid pace, from a total of 12,000 to more than 16,000 companies.
Between 2010 – 2015, the characteristics of the technology market in India modified, as the local and foreign entrepreneurs became more interested into new technologies, such as the Internet of Things, innovation in the field, a friendly environment for innovative start-ups and others. Our team of consultants in company registration in India can offer in-depth advice on the registration procedure, comprised on the steps mentioned below.
How can an investor register an Indian tech company?
Foreign investors are allowed to enter the technology market in India, following the standard incorporation procedure available for other types of businesses. One of the first aspects that should be decided by those who want to know how to form a company in India refers to the legal entity of the future business, which is generally set up as a limited liability company; other important aspects refer to the following:
- register for Goods and Services Tax (GST) - this is required once the company reaches a certain turnover threshold and if the business is involved in export activities, the registration is compulsory;
- obtain an Import Export Code – if the company’s activities are related to trading operations;
- companies registered as tech or bio-technology start-ups must obtain a certificate from the Inter-Ministerial Board, which will also allow the qualification under specific tax breaks;
- provide all the company’s documents, such as the Certificate of Incorporation, letter or recommendation and letter of funding (the last two mentioned are compulsory for an Indian startup).
Where to register an Indian tech company?
India stands out as the world’s leading destination for outsourcing IT services, having one of the most talented workforces. Numerous Indian cities are growing into large IT centers, but Mumbai and Delhi are the most developed cities for business purposes. Our team of consultants of specialists in company formation in India can assist with advice on how to register a business in these cities.
Currently, the cities of Bangalore and Chennai are considered the largest IT destinations, as the first is considered the Silicon Valley of the country and is ranked as one of the main IT centers at a global level, while the latter is a great destination for outsourcing companies. Investors are invited to contact our team of specialists, who can advise on how to register a company in India.