Open an IT Company in India

Updated on Thursday 23rd July 2020

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The IT market in India is very well developed, the country being one of the leading jurisdictions for this business sector. More importantly, the projections for IT exports from India show an increase of 7-8% between 2017-2018, while by 2020, the market will double in value (reaching $ 250 billion), growing to 7,5% of the country’s gross domestic product. When starting a company in India in the IT sector, the company’s representatives will need to comply with the new regulations introduced by the Telecom Regulatory Authority of India (TRAI) related to internet neutrality. Our team of agents in company formation in India can advise on the provisions established in this sense. 

Business prospects for the IT sector in India 

If by 2020, the IT market is expected to reach $ 250 billion, by 2025, the projections on this market show an increase of $ 350 billion. Those who want to open a company in India should know that the driving force behind this solid growth will be determined by the domestic software products market, which currently has an overall value of $4.8 billion and a year-to-year increase of 10,4%. 

According to a study carried out by the National Association of Software and Services Companies, the total market of internet users in India will reach 730 million by 2020, which will have a positive effect on the employment market in this country. 

IT companies can register their software and other products as trademarks in India.

Net neutrality regulations in India 

In order to register a company in India that will offer internet services, the service providers will have to comply with the regulations that were imposed this year by TRAI, under the Prohibition of Discriminatory Tariffs for Data Services Regulations 2016. Our team of specialists in company formation in India can further advise on the legislation. 

The law refers to the fact that such companies are not allowed to control the content searched by internet users or the speed of the online traffic flow. The legislation also states that companies operating in this sector can’t establish fast internet lanes for higher-paying customers, as all users should have the same rights; if violated, the procedure can be imposed with a fine. 

Under the legislation in India, internet is considered a basic human right and it is seen as a public utility service. Foreign businessmen can contact our team of consultants for in-depth advice on this matter.