Information technology (IT) company means a type of company whose business is focused mainly on the development and manufacturing of technology products or providing technology as a service. Here, technology primarily means electronic-based technology. IT includes computer programming, network administration, computer engineering, web development, technical support and many other related occupations.
Now let us see how to register IT company in India.
How to register IT company in India, Step 1: Formulation of a Business plan
Before starting with any legal formality to commence a business, a business plan should be drawn in order to describe and understand the goals of the business. It contains the nature of business, its sales and marketing strategy, financial background of entrepreneur including projected profit and loss statement. It is a document which tells what you plan to do and how you plan to do it.
How to register IT company in India, Step 2: Selection of Business Model
After drafting the business plan and before any starting the legal procedure or formalities, Organizational structure for doing business is to be selected. It includes deciding whether you want public limited company, private limited company or limited liability partnership. Along with it, a number of directors, capital structure, registered office, name of the company etc. is to be finalized.
How to register IT company in India, Step 3: Finalize a Name
Once the business plan and business model are clear, you should decide the name of the business which should be unique and which can be associated to the nature of business. Company will have to send 5 to 6 names in preferential order to ROC to get its name reserved. Also, you can get your trademark registered so that no one can copy it and to induce investment.
How to register IT company in India, Step 4: Select a Region
Finalizing a place for doing business is the most important steps because not every place is feasible for any kind of business. To start an IT company, places like Bombay, Delhi, and Bangalore can be selected as they are IT hubs and doing business there would be more advantageous. So select the place your company is to be based and also select what all regions it will cover nationally and internationally.
How to register IT company in India, Step 5: Start the Legal Process
You should start with your legal formalities once the business model, name of the business and place for doing business is selected. Approach ROC and fill all the required documents to start a business along with Memorandum of Association (MoA) and Articles of Association (AoA) with prescribed fees. Submit all the forms and company-related documents duly signed with the ROC for deliberation.
How to register IT company in India, Step 6: Application for Company Identification Number (CIN)
After the name of the company is approved, along with other legal formalities application for Corporate Identification Number (CIN) is to be made to the ROC. It is a unique 21- digit alphanumeric number which is used to track all the aspects of the company
How to register IT company in India, Step 7: Application for Certificate of Registration
After all the legal documents and information is approved, application for certificate of registration shall be made to the registrar along with the form 1A at the official website of the concerned department. It is a legal document that shows you have formed and registered your company with the ROC.
How to register IT company in India, Step 8: Commence Business
Once the Certificate of Incorporation (COI) is obtained, your company is registered as a separate legal entity and you can commence the business from the date mentioned in the COI.