How to Setup Your Own Software Company in India

The legal formalities for setting up a software company or company formation in Delhi requires two broad steps – one, the pre-registration procedure and the second is the post-registration process.

The pre-registration procedure includes the following steps:

1. Get your Directors Identification Number or DIN: The first step for starting your software firm in India is identifying the directors. In an ideal situation, the number of directors have to be between two and eight, not more not less. It is mandatory for all the directors to have a separate DIN. The directors can get their DIN by giving their documents of identity proof such as Passport, PAN card, Voter’s ID and residence proof documents such as Ration card, EB bill, etc.
2. Reserve and register a Company Name with the Registrar of Companies: For registering the intended company name for your new software firm, you are required to find a good and suitable company name to check if the name you prefer is available or not. In case it is not available, you might have to look for alternative names while keeping in mind the relevant MCA guidelines for the naming process.
3. Apply for the Certificate of Incorporation: Next, you must apply for getting the Certificate of Incorporation. At this juncture, you have to draft a Memorandum of Association (MoU) while also including the firm’s first directions and operations thereof. For applying, you need to submit the duly-filled application along with the form 1A and upload it on the official website of the relevant department.
4. Get your Digital Signature Certificate (DSC): According to the provisions of the Information Technology Act, 2000, a software company must mandatorily have a valid Digital Signatureon the documents that are submitted electronically. This also ensures the authenticity and also the security of the documents which are filed electronically.