Software is the lightest-regulated business in India – there is no sector licence at all. The stack is entity + GST + Udyam, plus one obligation most founders discover late: SOFTEX. If you export software or IT services, SOFTEX filing is an RBI requirement even if you never joined the STPI scheme. Here is the clean list.
Updated July 2026. Registrations and fees current as of July 2026 (major recent changes are dated in-line). Rules change by notification – use the official links to confirm before applying.
Registrations and licences you need
| Registration / licence | Applies | Government fee | Authority / portal | Validity |
|---|---|---|---|---|
| GST registration Threshold Rs 20 lakh for services (Rs 10 lakh in Manipur, Mizoram, Nagaland, Tripura). Inter-state SERVICES within the threshold stay exempt from registration. | IF APPLICABLE | Nil | GST portal gst.gov.in | Ongoing (returns apply) |
| LUT for service exports (RFD-11) Software/IT exports are zero-rated services; the LUT avoids charging IGST to foreign clients. | IF APPLICABLE | Nil | GST portal gst.gov.in | One financial year – refile every April |
| SOFTEX filing (via STPI non-STP registration) An RBI/FEMA requirement for ALL software and ITeS exports through data links – non-STP units register with STPI purely to get SOFTEX certified. STPI scheme MEMBERSHIP remains optional; the filing is not. | IF APPLICABLE | One-time about Rs 1,000 + annual service charge by export slab (as per STPI) | STPI stpionline.stpi.in | Annual service charge; SOFTEX filed within 30 days of month-end invoices |
| Udyam (MSME) registration Not legally compulsory but practically essential: cheaper trademark and expedited fees, priority-sector lending, delayed-payment protection under MSMED Act. | MANDATORY | Free | Ministry of MSME udyamregistration.gov.in | Lifetime |
| Shops and Establishment registration Required in most states within 30 days of starting; our guide covers state-wise fees and portals. | MANDATORY | Varies by state | State labour department Our state-wise S and E guide | State-wise (one-time to 5 years) |
| Professional tax (PTEC / PTRC) Levied in about 21 states – PTEC for the business itself, PTRC once you have employees. | IF APPLICABLE | Up to Rs 2,500 per year | State commercial tax department Our PT calculator + state pages | Annual |
| DPIIT Startup recognition Optional but valuable: 80-IAC tax holiday window, self-certification under labour laws, discounted IP fees, easier public procurement. | OPTIONAL | Free | Startup India startupindia.gov.in | Up to 10 years from incorporation |
| EPF and ESI EPF at 20+ employees, ESI at 10+ (wages up to Rs 21,000). Labour Codes in force since 21-Nov-2025; state rules rolling out. | IF APPLICABLE | Free registration | EPFO / ESIC (Shram Suvidha) shramsuvidha.gov.in | Ongoing monthly compliance |
Shops and Establishment applies to your office (registration rules for home offices vary by state), and professional tax applies in about 21 states. There is no software-specific state licence anywhere.
The right order to do it in
- Incorporate: for a funded startup a private limited company on SPICe+ (MCA fee NIL up to Rs 15 lakh capital); for bootstrapped services an LLP or even proprietorship works. Choose your entity first: a proprietorship needs no central registration (PAN + bank account, with GST/Udyam/Shops-and-Establishment serving as business proof); a partnership needs a deed (register with the state Registrar of Firms – an unregistered firm cannot sue); an LLP files FiLLiP and a company files SPICe+ on mca.gov.in – the MCA fee for SPICe+ is NIL up to Rs 15 lakh authorised capital (state stamp duty extra).
- Take GST registration once you cross Rs 20 lakh or start invoicing foreign clients, and file the LUT so exports carry no IGST.
- If exporting: register as a Non-STP unit with STPI and start filing SOFTEX within 30 days of each month-end invoice – banks increasingly reconcile inward remittances against SOFTEX-backed e-BRCs.
- Register on Udyam (free) and under the state Shops and Establishment Act; add professional tax where levied.
- Consider DPIIT startup recognition for the tax holiday window and IP fee discounts – and register your brand as a trademark early (class 9 for the product, 42 for services).
- As the team grows: EPF at 20 employees, ESI at 10 (wages up to Rs 21,000).
Documents to keep ready
Your NIC code: Division 62. Common Udyam picks: 62011 (software development), 62012 (web design), 62013 (software support), 62020 (IT consultancy). Open the NIC Code Finder to search and copy the exact code.
Frequently asked questions
Does a software company need any licence in India?
No sector licence exists – software development and IT services are unregulated businesses. Your stack is the entity registration, GST (Rs 20 lakh services threshold), free Udyam registration, state Shops and Establishment, and SOFTEX if you export. That is the whole list.
What is SOFTEX and do freelancers really need it?
SOFTEX is the RBI-mandated declaration of software/ITeS export value, filed through STPI within 30 days of the month-end invoice – and in law it applies to ALL exporters through data links, STPI member or not, freelancer or company. Non-STP units register with STPI (about Rs 1,000 one-time plus a turnover-based annual charge) purely for this certification. Non-compliance is widespread among freelancers but is a FEMA violation, and banks increasingly match remittances against SOFTEX.
Should I register under the STPI scheme?
STPI scheme membership (the export-oriented-unit scheme) is optional and mostly relevant for units wanting infrastructure or legacy benefits. What is NOT optional for exporters is the SOFTEX filing – which is why non-STP registration exists. Do not confuse the two.
Is DPIIT startup recognition worth it?
It is free and takes a day, so usually yes for companies under 10 years with under Rs 100 crore turnover: it opens the 80-IAC three-year tax holiday window (subject to approval), labour-law self-certification, 50 percent trademark fee rebates and easier government procurement. It changes nothing for tax or GST registration obligations.
Related tools on CalcGuru
Business Registration Guide (all types)Trademark Fee CalculatorWhich ITR Form? SelectorSalary / CTC Calculator (hiring)Compliance Calendar + email reminders
This page lists the registrations COMMONLY required for this type of business – sector-, product- and state-specific requirements may also apply, and thresholds change by notification. It is general information, not professional advice; confirm your specific case with the official portals linked above or a professional before acting. See our full disclaimer.