How to Register a Website Design Company in India
Every company requires a website to reach out to potential clients and establish a unique brand. Every year, significant numbers of businesses are formed. Moreover, each business requires its own website. Each year, a growing number of website design companies are registered to meet the demand of these businesses. This is the best time to enter the market if you are a website developer or designer who wants to start a website design company.
This guide will show you how to register a website design company in India, as well as what licenses are required, and the legal requirements. My main purpose is to help new entrepreneurs start their own businesses without facing legal issues.
If you want to start a website design company, you must follow these four steps.
1. Company Registration.
2. Taxation (GST Registration)
3. Trademark Registration.
1. Company Registration
Your website design company must be registered as a legal entity. Your company should be registered under one of the categories to become an entity.
- Proprietorship Firm.
- Partnership Firm.
- Limited Liability Partnership (LLP).
- Private Limited Company.
- One Person Company.
The first step to starting a website design company is to register a company either as a sole proprietorship or a private limited company.
If you want to start a small website design business, you can register your company as a sole proprietorship. The registration process for a proprietorship firm is simple as it can be registered online in the MSME portal (Micro, Small, and Medium Enterprises). Adhaar card is required to register and there is no fee.
If you wish to start a large website design company, it is recommended that you register as a private limited company. This business involves some risk. For instance, if you provide software and a mobile application to a client and the client faces a problem and files a lawsuit against you, the loss will be covered by the company’s assets rather than your personal assets. Find out step by step guide on how to register a private limited company.
It’s an important stage in starting a company in India. The taxation for a website design company is separated into two categories:
Every year, you must pay income tax to the government from your earnings. To file your taxes, you’ll need a pan card. If you own a sole proprietorship, you can use your personal proprietor’s pan card, but for other types of businesses, a company’s pan card is necessary.
Goods and Service Tax (GST)
In order to continue doing business, every business owner must obtain a GST registration number, although there are a few criteria.
Your company must register for GST:
- If the company’s turnover exceeds 20 lakhs per annum.
- If you provide website design services to other states of India.
- Large corporate clients will request GST billing in order to take advantage of “Input Credits.” (The client will benefit because the tax they paid on the purchase will be deducted from the tax they pay on sales.)
GST returns must be filed on a monthly basis. GSTR1 and GSTR2 are two different types of GSTRs. You can register a GST certificate online at the GST portal.
3. Trademark Registration
It is important to register a trademark for your company name, brand name, or logo in order to prevent others from duplicating or misusing it. Think about what would happen if someone copied your logo or band after all of your hard work to establish your brand. All of your goodwill and consumers begin to migrate towards them without even realizing it’s your company.
Sometimes the duplicated company’s service is poor, which has an impact on your business as well. So, to prevent it from being copied, you must register a trademark for your company.
Agreements are the final stage in the legal procedure. The majority of businesspeople claim to have a problem with customer issues, overdue bills, and so on, but in order to prevent these issues, you must have an agreement. These three different types of agreements are used in any business.
Employee Employer Agreement:
Both you and your employee must sign the terms of the relationship with the company. This agreement is important to protect your confidential and sensitive information about your business. This agreement should specify the job that the employee will perform as well as the employee’s compensation. Many additional aspects of the working relationship can be addressed in the contract, such as:
- Duration of the job
- Roles and responsibilities of the job.
- Benefits of the employment. (Leaves, allowances, etc).
- Terms and conditions for termination.
- Data protection, etc.
Service Provider Agreement
To avoid conflicts and misunderstandings from your customers, you must sign a service provider agreement. The majority of clients will remain unsatisfied with the work. After the task is completed, they may change the requirements and delay the payment.
So, before starting the work, it is better to sign a service provider agreement with your customer.
- Terms and Conditions agreements will protect your company.
These are the legal procedures and steps for starting a website design business. 1) company registration, 2) tax-related registration, 3) trademark registration, and 4) agreements. You can successfully run a website design company without any legal issues if you follow all of these guidelines. I hope my guide on how to register a website design company in India was useful. If you have any queries, please leave them in the comments section and I will happily answer them. provider agreement.