Setting Up A Tech Support Company In India
Ahlawat & Associates (“A&A”) provides industry-leading legal services across the globe with unparalleled expertise in company incorporation. We have designed a team of professionals, from the ground up, who are dedicated to efficiency and client service. Before an establishment can start operating in India, there are several procedural requirements that must be met.
Foreign businesses must therefore overcome various hurdles before they can get the appropriate government licences and approvals to start operating in India. A&A fosters an approachable, transparent, and accountable environment that has leveraged its enhanced legal services to aid clients from the technology industry and has immense experience in assisting foreign businesses to establish flourishing tech support companies in India.
Billion worth corporate transactions handled last year
Clients assisted in setting up in India
Presence and representations made in High Courts and NCLTs
Years of cumulative partner experience
A&A’s Expertise In Tech Support Company Setup
With over five decades of industry experience, A&A has not only assisted entities to set up a tech support business in India with successful incorporations but has also provided secretarial and other legal services ancillary to such newly incorporated tech support companies. A&A unshackles clients from the burden of dealing with India’s bureaucratic stumbling blocks and helps them successfully enter the industry.
In addition to providing our clients with strategic and practical advice, we also develop creative solutions to best accomplish our clients’ investment plans. Our clients vouch for our efficiency and prompt work which is why they have let us dispense our legal services to them up until now and in light of our successful results, continue to do so.
Setting Up a Tech Support Company Operations In India
Over the years outsourcing has been the backbone of India’s services-led economy and this fact is warranted by the hundreds of tech-support customer care centres set up by some of the biggest tech companies in major Indian cities. India has a wide variety of growing domestic markets, highly skilled workers, and business-friendly regulations. India has consequently become a popular location for local as well as international businesses and individuals looking to expand their operations.
For a foreign company to establish a business in India, it may form any of the following business structures prevalent in India:
Limited Liability Partnership
Private Limited Company
Public Limited Company
Before choosing an optimum business structure in India, several factors need to be taken into account, including, but not limited to, software industry requirements, exit plans, Indian laws and regulations, and operational issues like connectivity, employment, state-specific regulations, etc.
The ideal path for a business to enter the Indian market would be to choose a business structure relying on the needs of the business. The key factors that decide the business structure are business objectives, type of services the business would offer, size of the business, range of risk, the budget as well as the target market and the type of technology that the business would use.
Steps to Set Up a Tech Support Company In India
One should have a business plan in place before starting their tech-support business as per local laws and licenses required for activities to be carried out and services to be provided. Ideally, the business plan should cover the kind of operations to be handled, processes that need to be implemented, the number of employees, and the costs one might incur. The given steps will not only help an entity be legally compliant but will also help avoid any future impediments in incorporation or operations.
Indian regulations, which include provisions on commercial activities within the Information Technology (“IT“) industry, define many standards and procedures that entrepreneurs wishing to launch a software support company in India must adhere to.
After you have a business plan in place, you may then initiate crucial paperwork related to the proposed business plan. As per Indian law, you are required to register your company under the Companies Act, 2013, a law which regulates the scope of business firms’ operations and compliances.
Incorporating a new company offers flexibility and independence. A public company should have at least 7 (seven) shareholders, but a private limited company must have at least 2 (two) shareholders. While incorporating a software company, the entity must determine the number of directors who shall each have a Director Identification Number (“DIN”). A DIN can be obtained through an application with the Ministry of Corporate Affairs (“MCA”) along with supporting documents such as digital signature, identity and residence proof, among various other necessary documents.
As a tech support company, the entity additionally needs to obtain the Other Service Provider (“OSP”) license from the Department of Telecommunications (“DOT”) to ensure that the business entity does not risk evading regulatory compliance by failing to adhere to the industry norms and regulations can result in incurring hefty fines and litigations.
India has been the choice of destination for fulfilling organisations’ outsourcing needs and there are many Indian states where the law allows entrepreneurs to receive incentives for setting up their businesses therein. States under Indian law have special economic zones, info parks, and software technology parks which allow the tech support companies with infrastructure suitable to their needs in addition to providing other incentives.
Role Of Ahlawat & Associates In Setting Up A Tech Support Company In India
A&A offers a top-tier international team of professionals who excel in a variety of practice areas. Our in-depth industry sector knowledge and commercial awareness ensure our clients receive insightful advice to facilitate informed commercial decision-making. A&A expertise ranges from providing structural corporate advisory as well as incorporation, regulatory compliances and obtaining relevant licenses required to establish a flourishing business in India.
A&A’s legal and secretarial support is not limited to the initial stage of incorporation. Employment being essential for every business entity comes with its own set of legal compliances. A&A has immense experience in advising the entities on their obligations as an employer and the rights available to its employees as well. Our team is adept with not only the central employment and labour laws but the state laws as well and is devoted to ensuring the smooth functioning of your business even at a later stage.
- Advised and assisted foreign entities in setting up their tech support business and incorporating a subsidiary in India.
- Guided entities about their obligations as an employer and provided advisory pertaining to employment and labour laws.
- Formulated legal documents such as offer letters, employment agreements, and employment manuals as per state regulations, along with human resource policies and compliance manuals for technology companies in India.
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Frequently Asked Questions
Few most frequently asked questions on setting up a company in India. Feel free to contact us for any other queries.
1. How should a tech support company register itself in India?
To kick off the registration process, business entities can adopt any one of the legal structures mentioned above. To have a permanent establishment in India, a foreign company can, inter alia, either form a private limited company in accordance with the Companies Act, 2013 or form a limited liability partnership as per the provisions of the Limited Liability Partnership Act, 2008.
Various documents which are of utmost importance need to be furnished during the registration of the business which includes but are not limited to PAN card, Aadhar card, rent agreements and other public licenses and legal registrations such as service tax, GST, trademark, copyright and/or patent registrations.
2. How much time is involved in the incorporation of a technology support company in India?
It usually takes about 8-10 business days to register a private limited company in India. Further, the time taken for registration of a company in India depends on other factors such as the submission of relevant documents and the processing at the end of the government department along with the time involved in seeking government approvals and licenses.
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