Dear Team,
I would like to have the documents and statutory details for setting up a small software company of say 10-15 software engineers.
What are the licences required and other statutory requirements.
Thanks
Ramananand

From India, Chennai
From the Date of Incorporation of an Establishment/ Workplace Registration following few Acts Employer should begin with ARE:--
1. Shops & Esta Act & Rules applicable to your State Tamilnadu;
2. SHWW (P,P &R) Act 2013;
3. PF & Misc Pro Act;
; Maternity Act if a Woman is employed; + All other State-Specific Acts such as Safety & Fire Preven Act and the like
Kritarth Consulting Team
10.8.20

From India, Delhi
Dear Sir, Thanks a Lot. Very useful. Regards Ramananand
From India, Chennai
In addition you should/can have the following registrations also:
1.If yours is a Partnership firm, register the entity with 'Registrar of firms' submiting necessary Partnership Deed. If Ltd.Co you have register with the Registrar of Companies.
2.PAN & TAN
3.GST registration (mentioning the services to be rendered assigning the Codes.)
4.Professional Tax Registration (Commercial Taxes Dept.)
5.MSME registration (if meeting the stipulations) (Dept.of Industries & Commerce)
6.If exporting (software) and imports (SW, components, eqpts.) are involved, IEC registration & code.
7.Identify & appoint an Auditor, Consultants for taking care of GST & IT compliances.
8.ESIC registration if your firm is coverable.
9.Employees Register, Wage & Leave Register and other statutory compliances.

From India, Bangalore
Dear Ramananand,

Prof. Kumar amply touched upon the subject covering even MSME and IEC registration.

MSME registration is not mandatory but it is advised to obtain it. There is no hassle in getting it. Now the procedure is very simple. It is at Free of Cost and paperless. There is no need of any agent to do it. It is now called as Udyam Registration. This will help you to avail certain loans / benefits by Govt.

IEC registration is mandatory for export from India or Import to India.

Since more than 10 employees at workplace, POSH compliance needs to be done. Violation will attract heavy penalty as well as cancellation of all your business licences.

ESI is applicable except in Maharashtra. In Maharashtra, ESI is applicable to shops and commercial on 20 and more coverable employees. If your software company is treated as factory under ESI Act then ESI would be applicable.

When you are looking to setting up a company, you need to first decide on what kind of company you want to form such as Propriety, Partnership, LLP, Pvt. Limited etc. and proceed further.

From India, Mumbai
Dear Sirs,
Thanks a lot for your indepth advice. One point i missed out to put here is that the owners of this project are in US and they want me to set it up in india. Now they have outsourced this work to a small company in india but now they want this work to be set up on their own and want me to manage it.
So will this make any difference in the statutory licences required as advised by you. What are the things I need to keep it ready before I start recruiting the people since i may not have much man power help since we are just stsrting with just 10-15 software engineers.Please let me know so that I can present to them accordingly.
Thanks
Ramananand

From India, Chennai
Dear friend,

I would need some more info. Let me understand little more to give you enough suggestions. Piecemeal info only result in avoidable time delay -

1.Is't that the US owner setting up an Indian Co. or a Proprietorship or a Partnership, with his own perception to take up to execute a project here, may be for a given period and that the project should be managed by you. Or is it going to be a "going Co." for a longer period which should be built up by you. It should be clear what is going to be the status of this entity first. Once this is clear other parameters will be known.

2.If he is setting up his Co.with his own choice of Management team and if so are you going to be a part of the team either as insider or outsider, mean to say part of the Board. or outside the Board. If Yes,

Or you are going to be an Executive (CEO,COO) outside the Board vested with delegated powers by a GPA. What's going to be your status in the management team.

From India, Bangalore
Dear Ramananand,
Half knowledge is always very dangerous. You need to hire an expert to take care of your issues. Specific query as to the Labour Laws can be answered over here.
To my (half) knowledge, any foreign company is required to be registered with ROC as Foreign Company for doing business in India. Foreign citizens or companies making investment in India has to follow the FDI policy. Investments in shares or debentures should be either through automatic route or government route. Certain sectors are classified as prohibited sectors.

From India, Mumbai
Dear Sirs, Thank you so much for the immense details. I will first have all the details from the client side and check with an expert accordingly. Thanks Ramananand
From India, Chennai

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