How to set up an IT Company in Ahmedabad
How to Setup an IT Company in Ahmedabad
With a CAGR of 48% in IT investments over the decade from INR700.0 crores in 2005-06 to INR35,200.0 crores in 2015-16, the popularity of the Gujarat state in the IT sector has reached a new high. In 2018, the state accounted for more than 5,500 ICT companies, which includes 10% large entities, 30% medium entities, and 60% small enterprises.
The Gujarat government is working tirelessly to promote the development of the sector with positive policies and regulations that can encourage the incorporation of IT companies in the state. Specifically, the development of the state as an SME industrial ecosystem along with other new-age concepts of artificial intelligence, robotics, the internet of things, and machine-to-machine can give the required impetus to the IT industry growth. The proposal for the development of a technology hub in Ahmedabad can provide the right direction needed to create a vibrant IT ecosystem in the city.
Information Technology (IT) and IT-enabled Services (ITeS) were accorded bonafide industry status on October 14, 2019, in the Gujarat state to improve the ease of doing business. Such a status means more development opportunities for the IT industry, which will result in an increased generation of employment. The state government’s ‘Gujarat State New IT Policy of 2016-21’ aims to develop a robust IT/ITeS ecosystem that contributes to the prosperity of the state and hence the nation. The key objectives of this policy were:
Ahmedabad – an ideal destination for IT companies
Some of the key factors that contribute to making Ahmedabad a preferred destination for IT companies are as follows:
Registration procedure for IT companies: How to Set up an IT Company in Ahmedabad
Deciding on the legal structure of the company
The number of owners/partners in a business:
Income tax rates imposed on the business type:
Risks of a business:
Multiple compliances and increased complexities:
Selecting the business name or company name or brand name
The company name must be in three parts: The keyword, which is the brand name, followed by the business activity word, which shows the key business activity of the entity’s operations and last is the structure word, which shows the type of company – LLP or private limited or any other. The keyword (brand name) must not be the same as any other company’s name.