How to start a software company in India

Why You Should Start A Software Company In India

If you’re in a dilemma about whether or not to start a Software Company in India. Then here we’re to help you. This blog would clear all your doubts with the reasons stated.

  1. Automatic Route of FDI:

    This is one of the sectors where the government of India allows 100% FDI. Thus, making it easier for NRIs and foreigners to start a software company and Indian founders to receive investment from foreign investors.

  2. Easy Govt Policies:

    Since the Indian government is very supportive and has started a lot of schemes and policies to help startups and MSMEs grow such as:

    • High Risk -High Reward Research:High Risk and High Reward Research is a scheme supporting and inviting new proposals and ideas expected to have a paradigm shifting influence on the Science and Technology.
    • Promoting Innovations in Individuals, Start-ups and MSMEs (PRISM): PRISM (Promoting Innovations in Individuals, Start-ups and MSMEs) scheme aims at to support individual innovators which will enable to achieve the agenda of inclusive development - one of the thrust areas of XIIth five year plan (2012-2017).

      It would also provide support to institutions or Organisation set up as Autonomous Organisation under a specific statute or as a society registered under the Societies Registration Act, 1860 or Indian Trusts Act, 1882 leading to development of state-of-art new technology solutions aimed at helping MSME clusters.

    • Start-up India Funding Support:The Government of India formed a fund of INR 10,000 CR to increase capital availability as well as to catalyse private investments and thereby accelerate the growth of the Indian startup ecosystem. The Fund was set up as a Fund of Funds for Startups (FFS), approved by the Cabinet and established by the Department for Promotion of Industry and Internal Trade (DPIIT) in June 2016.

      FFS does not invest in startups directly but provides capital to SEBI-registered Alternate Investment Funds (AIFs), known as daughter funds, who in turn invest money in high-potential Indian startups. SIDBI has been given the mandate of managing the FFS through the selection of daughter funds and overseeing the disbursal of committed capital.

      The fund of funds makes downstream investments in venture capital and alternative investment funds that in turn invest in startups. The fund has been formed in a way that creates a catalysing effect. Funding is provided to startups across different life cycles.

    hence anyone willing to start a software company can easily avail of loans and funds.

  3. Skilled and Cheap Labour:

    India has a vast pool of skilled human resources at cheaper rates as the IT hub of India (which is Bangalore) is 150% cheaper than the overall cost of living in California. Each year many students are being added to the workforce. It has even compelled big companies like Google to develop a new R&D (Research and Development) Centre in this country.

    Billion dollars companies like CISCO, Oracle, and HP have chosen India for outsourcing because of the ease in availability of talented resources. More time to focus on business

  4. Outsourcing:

    when foreign software companies wish to outsource their work then India comes at first place. Outsourcing software development to Indian companies allows you to utilise time and resources to focus on your core business activities. These include sales, accounting, marketing, etc. It will serve to streamline your business operations, improve efficiency and productivity.

  5. Proficiency in English:

    Indian developers are trained to communicate effectively over all mediums of interactions. Regardless of the geographical hurdles, top-quality developers of India always find themselves occupied with the bulk of work coming their way. It is also a fact that many companies choose an offshore software development company based on language compatibility.

  6. Flexibility and Diversity:

    Indian developers are known for being flexible and giving multiple services as the majority of them include youth, making it easier to find a software company that specialises in:

    • Mobile application development (Android and iOS)
    • SaaS and web application development
    • React Native development
    • Laravel development
    • Full Stack developer
    • Blockchain consulting
    • AI (Artificial Intelligence) and a lot more
  7. 24×7 Support:

    You can hire software development companies without any worries because they work day and night to complete your project. Even if there is a difference in time zones, the Indian developers are accustomed to working around the clock.

  8. No Physical Office:

    If you’re a start-up and do not plan on starting the work from a physical office then you can start working virtual as it’s not mandatory to own a physical office in India.

  9. Dedicated Workforce:

    If you’re going to start a software company in India then be sure of a thing that the workforce would be dedicated towards their work. there would be no complaints received.

  10. Cost Reduction:

    One of the main benefits to starting a software company in India is overall cost of development would be much less in India as compared to any other country hence resulting in cost reduction.


We hope you enjoyed reading this article on Why to start a software company in India. If you want to set up a company in India and need assistance with your incorporation, please feel free to contact us anytime at Thank you for reading, we are always happy to be able to provide useful information on topics like this!

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