rakhalbalok
rakhalbalok
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software company suru korar kuno funda?
«on:
09/03/05 at 19:41:57 » |
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Many of our own silcharites are having their own sites and some of them even own small software firms.
As a matter of fact, I am interested in opening a software company. Can anyone of having some fundas or experiences to share with? It can be creative to jot down a few lines in this regard. Believe me!!!
N.B: if anyone is interested in my idea or he wants to give some kind of invaluable "tips" in this regard to me he may reach me at czar_sw_007@yahoo.com.
Thanks. :) :) :) |
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kigoobe
kigoobe
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Re: software company suru korar kuno funda?
«on:
09/04/05 at 05:30:54 » |
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I think the right person who can help you in this matter is Sayaan-da. Contact him if u can. |
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Saayan Choudhury
Saayan
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Re: software company suru korar kuno funda?
«on:
09/04/05 at 11:09:55 » |
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Funda dite kaar na bhala lage :)
Ok, let us take this scenario:
You have some projects from clients outside India and you want to get the work done in India, through your own software company. How do you go about it?
Solution (one of many):
step 1] setup a pvt ltd company in India. cost of setting up can be anywhere from 30K INR - 100K INR, depending on the scope and the business consultant you hire.
Pvt Ltd companies in India usually have authorised capital of 5 lakh+ and paid up capital of minimum 1 Lakh. Depending on your authorised capital, you have to pay company registration costs. So, if your authorised capital is 1 crore, you are looking at a few lakhs of setup cost.
step 2] get trade licence (from local corporation or municipality office), PAN number (for tax), TAN number (for witholding tax at source from your employees). Some consultants package it with step 1 and do it for you. Also open a company bank account (or several accounts, depending on how the company is structured).
step 3] since you are invoicing foreign companies, you need to have an Import-Export Code (IEC). For this, you need to apply to local DGFT office (Director General of Foreign Trade). Again, sometimes consultants do it for you.
step 4] there is tax holiday for software companies (which are 100% export oriented) upto 2009. Tax holiday means this: normally any pvt ltd company pays 30% tax on its annual profit. If you have tax holiday, you pay 0. Now, how to get this tax holiday? You need to get registered with the STPI office (Software Technology Park of India) under whose jurisdiction you fall. For example, for a software company at Silchar, you need to register with STPI, Guwahati.
note on step 4: STPI registration means several hassles. hassle 1> pay them annual fee of 15000 (can be more, depends on your company's income) hassle 2> for any invoice to foreign company, it needs their endorsement (meaning, seal and signature of the STPI director etc.). So, think how much will be your profit and whether it is worth going into it.
step 5] Get the project done for the foreign client, invoice the client, get money into your bank account and enjoy. You need to fill in customs softex forms etc - when you prepare the invoice. This one becomes mandatory when you go through STPI. In other cases, I think it is a bit flexible - how much flexible that depends on your local customs office :)
some tips:
tip 1> when any company in any country pays money to another company in another country, the source company has to pay "witholding tax" to the origin country. For example, you bill your client 100 Rs. You will not get 100 Rs in your bank account; you will get 100 Rs - witholding tax amount. Witholding tax can go upto 25% - so, be careful with that. Usually, if there is bilateral tax treaty with India, you may be able to claim the witholding tax amount as "tax deduction" when you file company tax in India. Discuss with your tax consultant about this.
tip 2> don't get local consultants to help you. go big guns like KPMG, deloitte etc. Yes, the cost will be high; but you will have peace of mind. no one understands international tax issues and distributed company structure like them. By distributes, I do not mean open a "shell company" in a Samoa or Monaco :) .. I mean a legal valid structure that will really save you lots of tax and hassles in the long run.
I have considered the case when your client is a foreign company. For clients that are Indian companies, there are no customs, dgft, stpi etc. formalities. If you have only Indian clients, then much less issues. If you have a mixture of clients (some foreign and some local), you will have a more complicated company structure.
If you have any questions, feel free to ask. |
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rakhalbhai
rakhalbalok
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Re: software company suru korar kuno funda?
«on:
09/04/05 at 21:26:21 » |
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Dear Shayanda
Thanks for all your invaluable tips. But can I ask some more details from you please? Especially on how to get projects. Hope I am not disturbing you. |
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didibhai
Kavita_Gupta
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Re: software company suru korar kuno funda?
«on:
09/06/05 at 21:58:12 » |
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wow!! Sayaan, that is complicated by any standard. I am an ex-tax collection officer here in the UK. This is very complicated and un-structured I feel. It will deter alot of potential investments & empolyment needed so desperately.
I am surprised that the Indian govt. has made, running a company so complicated. I have my own company here, and am thinking of outsourcing some work to India. My brother-in-law is in India at the moment setting up his call centre, but I thought to set the call centre in the Barak valley area for three reasons, (1) to give the area more recongnition (2) create local employment (3) my home. After reading your post I'll have to think carefully.
Any other tips will help. It is so difficult to get information on these subjects in India. |
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Shankar_Chakravarti
Shankar_Chakravart
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Re: software company suru korar kuno funda?
«on:
09/08/05 at 11:31:32 » |
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[quote author=didibhai link=board=0011&num=1125749517&start=0#4 date=09/06/05 at 21:58:12]
I thought to set the call centre in the Barak valley area for three reasons, (1) to give the area more recongnition (2) create local employment (3) my home. After reading your post I'll have to think carefully.
Any other tips will help. It is so difficult to get information on these subjects in India.
[/quote]
Dear Didibhai,
A couple of years back I shared my thoughts of starting a call centre at Silchar in the thread “SILCHAR !!!! NOW AND BEFORE “. It was a failure project from my side, but I found many knowledgeable people coming up with positive attitude. If you have specific questions and / or problems, then you will surely get expert opinion. You are to only ask them, many people have soft corners for Barak Valley and earnestly want to do something for betterment of that region, but don’t know how and what to contribute. Good Luck, Didibhai for your endeavor.
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admin
admin
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Re: software company suru korar kuno funda?
«on:
09/08/05 at 13:56:49 » |
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Informative reply Sayaan (da).
I was trying to find the STP Guwahati website .. could not find (doesnot look like they have a site !!! )
The STP Hyd has a decent website .. it says upto some 25 lakhs (around) .. the fees is around 7K Rs..
And also the income has to be in foreign currency !!
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hi_priest
hi_priest
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Re: software company suru korar kuno funda?
«on:
09/10/05 at 14:31:37 » |
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STPI Guw site was http://www.stpghy.soft.net. But at this moment its not opening. So don't know whether it has moved or something like that.
While starting a new company, one does not have to necessarily go through all these steps. There is a one step simple process also. Pay the CA his fees and he will do all the paper works and get your company registered within 7-10 days. |
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hi_priest
hi_priest
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Re: software company suru korar kuno funda?
«on:
09/10/05 at 14:38:16 » |
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Normally the minimum fees for registering a Private Ltd. company will be around Rs. 8,500 including the name registration. The charges of a CA are in the range of Rs. 10,000. |
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admin
admin
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Re: software company suru korar kuno funda?
«on:
09/11/05 at 03:10:43 » |
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is anyone aware of any good CA based in the north east who can handle registration with the STPG ? |
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