This decade has seen a sharp increase in the number of software companies in India; it’s almost as if starting an IT business and the software industry is a revolution. India actually has the third-largest to start an IT business ecosystem globally. Establishing a software firm in this country might be lucrative because every industry is dependent on technology and its services.
Almost 8% of GDP in India is made up of software companies. To everyone’s amazement, the software sector generated $180 billion in sales. And more than $135 billion in exports in the initial quarter of 2019 alone. It is based on hundreds of thousands of technology service suppliers that were founded in the last three decades. In 2021, the Indian IT sector generated $200 billion in revenue.
In India, this sector has directly supported 5 million jobs. Additionally to this expansion, it is believed that the largest Indian software services firm is worth over US$100 billion. And brings in over US$20 billion annually.
During 2021, India spent approximately 18.12 billion dollars on IT services.
Conventional businesses rely on bank debt and other resources, such as asking friends and family for investment, but they operate differently from online firms. Several angel investors support the software development of computer companies in this sector. There are several financial strategies that business owners use to get money from different sources, and they are not as challenging as they may seem.
Legal Entity that can start an IT business in India
Entrepreneurs require a legal business entity before launching a software business in India. There are a few well-known legal entities that can launch a business in India.
The best type of legal structure to test out new concepts at a low expense is probably a sole proprietorship. Although owners can refer to it as a sole proprietorship firm, it won’t be a company.
Partnership Firm: When a business owner has co-founders, there is a good chance that they can hammer out the details of the business plan with the least amount of money spent on legal fees.
A Genuine Company for Indian Businesses: Private Limited Company About 90% of business owners in India register their companies as Private Limited Companies.