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IT and SaaS Company Registration in India

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

What it is: registering an IT or SaaS business and its export and startup compliance.

Fees: IT and SaaS company registration starting from INR 9,999 (Exl GST and Govt. Charges).

Structure: private limited company - DPIIT and ESOP-ready.

Export layer: LUT for zero-rated exports, plus STPI or Non-STP registration.

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Setting Up an IT or SaaS Business: Overview

📌 TL;DR - IT and SaaS Company Registration Services at a Glance

An IT or SaaS business is best set up as a private limited company, because it is DPIIT-recognition-ready and ESOP-ready and preferred by investors. If you export software or SaaS, you file a Letter of Undertaking to export zero-rated, and most exporters register as a Non-STP unit with STPI for SOFTEX. DPIIT adds a tax holiday. Patron Accounting handles it from INR 9,999.

What you need	When	Why
Private limited company	First step	DPIIT and ESOP-ready, investor-friendly
GST + LUT	If exporting services	Export zero-rated, claim ITC refunds
STPI / Non-STP	If exporting software	SOFTEX certification and forex realisation
DPIIT recognition	If an eligible startup	Section 80-IAC tax holiday
ESOP plan	To hire and retain talent	Standard for tech teams

The IT and SaaS difference is the export layer: the LUT and STPI compliance are what set this apart from a generic company registration. Whether STP or Non-STP suits your company depends on your export scale and capital plans, which we assess case by case.

Content is reviewed quarterly for accuracy.

What Is IT and SaaS Company Registration?

IT and SaaS company registration is setting up the right entity for a software or technology business - usually a private limited company - and putting in place the export and startup compliance it needs. It is built for companies that sell software, SaaS or IT services, often to clients abroad.

The entity is a private limited company, chosen because it is DPIIT-recognition-ready and ESOP-ready and preferred by investors. The IT-specific layer is the export compliance: a Letter of Undertaking to export services zero-rated under GST, and STPI or Non-STP registration for SOFTEX certification of software exports.

Key Terms for IT and SaaS Company Registration:

LUT: Letter of Undertaking - lets you export services without paying IGST.
STPI: Software Technology Parks of India, the scheme for IT and software exporters.
Non-STP unit: STPI registration most IT exporters use to obtain SOFTEX certification.
DPIIT: startup recognition that unlocks the Section 80-IAC tax holiday and ESOP deferral.

Export Layer LUT | STPI | DPIIT | ESOP

Who Is This For?

This is for IT, software and SaaS founders - product startups, SaaS companies, software-services firms, app developers and IT-enabled services businesses - especially those serving clients abroad or planning to raise funding and hire on ESOPs.

If you export software or SaaS, the export layer matters: GST registration and an LUT let you bill foreign clients zero-rated and recover input tax, and STPI or Non-STP registration provides the SOFTEX certification needed to realise your foreign-exchange receipts. If you are an eligible startup, DPIIT recognition adds a tax holiday and ESOP benefits. We set up exactly what your model needs.

Our IT and SaaS Setup Services

Service	What We Do
Company incorporation	Registering the private limited company through SPICe+.
GST and LUT	GST registration and the Letter of Undertaking for zero-rated exports.
STPI / Non-STP	STPI or Non-STP registration and SOFTEX support for software exports.
DPIIT recognition	Startup recognition for the Section 80-IAC tax holiday and benefits.
ESOP readiness	Structuring an ESOP plan to hire and retain talent.
Ongoing compliance	IT-sector accounting, payroll and company compliance.

Our Process

IT and SaaS Setup Process: 6 Steps

From incorporating the company to setting up the export and startup layers, here is how Patron Accounting takes an IT or SaaS business from idea to a DPIIT-ready, ESOP-ready, export-compliant company.

Step 1

Incorporate the company

Pvt Ltd incorporated PAN and TAN issued

Company Set Up 01

Step 2

Register GST and file LUT

Obtain GST and file the Letter of Undertaking for zero-rated exports.

GST registered LUT filed

Exports Zero-Rated 02

Step 3

Register with STPI

Complete STPI or Non-STP registration and the IEC for software exports.

Non-STP registered IEC obtained

STPI Done 03

Step 4

Apply for DPIIT

Obtain DPIIT recognition if eligible, for the tax holiday and benefits.

DPIIT recognised 80-IAC eligible

Startup Recognised 04

Step 5

Set up ESOPs

Structure an ESOP plan for the team where required.

ESOP scheme drafted Approvals in place

ESOP Ready 05

Step 6

Set up compliance

Put SOFTEX, accounting, payroll and company compliance in place.

SOFTEX filing live Compliance scheduled

Compliance Live 06

Documents Required

Directors' KYC: PAN, Aadhaar, photographs and address proof.
Registered office proof: rent agreement or ownership with a utility bill and NOC.
Business details: the proposed name, software or SaaS activities and export plans.
Bank details: for the company current account and forex receipts.
For STPI: IEC, PAN, GSTIN and the export activity details.

Common Challenges and How We Solve Them

Challenge	Impact	How Patron Accounting Solves It
Export billing and GST	Charging or paying IGST hurts cash flow	We set up the LUT for zero-rated exports
STPI vs Non-STP confusion	Wrong registration adds cost or obligations	We advise and register the right one
SOFTEX and forex realisation	Missed filings risk FEMA penalties	We handle SOFTEX filing and reconciliation
DPIIT and ESOP readiness	Missing the tax holiday and equity tools	We set up recognition and the ESOP plan

IT and SaaS Company Registration Fees

Fee Component	Amount
Patron Accounting Professional Fees	Starting from INR 9,999 (Exl GST and Govt. Charges)
MCA / SPICe+ incorporation government fees	As per MCA schedule, based on authorised capital and state
GST + LUT, DPIIT recognition, ESOP structuring	Transparent, modular fees added per requirement
STPI / Non-STP registration	Modular fee plus its own STPI government charges

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free IT and SaaS Company Registration consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

How Long Does It Take?

Stage	Estimated Timeline
Private limited company incorporation	About 7 to 12 working days
GST and the LUT	A few days
DPIIT recognition	A week or two
STPI or Non-STP registration	Typically a few weeks including verification

We set up the company first so you can start billing, and add the export and startup layers in parallel so nothing holds up your launch.

Key Benefits

Why Set Up the Right Way

Export-clean

LUT and STPI compliance for zero-rated exports and clean foreign-exchange realisation.

Tax-efficient

DPIIT recognition unlocks the Section 80-IAC tax holiday of 100% of profits for any 3 years.

Talent and funding

An ESOP-ready, investor-friendly private limited company built to hire and raise.

Trusted by IT and SaaS Founders Across India

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Trusted by clients including Hyundai, Asian Paints and Bridgestone. With offices in Pune, Mumbai, Delhi and Gurugram, Patron Accounting sets up and supports IT and SaaS companies both in-person and remotely.

The IT and SaaS Setup Bundle

Component	Who needs it	Benefit
Private limited company	Every IT/SaaS founder	DPIIT and ESOP-ready
GST + LUT	Service exporters	Zero-rated exports, ITC refunds
STPI / Non-STP	Software exporters	SOFTEX, forex realisation
DPIIT recognition	Eligible startups	Section 80-IAC tax holiday
ESOP plan	Companies hiring talent	Attract and retain teams

Related Services

This page bundles what an IT or SaaS company needs. Each is available on its own:

Private Limited Company Registration - the DPIIT and ESOP-ready base entity.
Startup (DPIIT) Registration - recognition for the Section 80-IAC tax holiday.
ESOP Management and Compliance Services - structure and run your ESOP plan.
IEC Registration - the Import Export Code for software exports.
IT Sector Accounting Services - accounting built for software businesses.
Payroll Services for the IT and Software Industry - payroll for tech teams.
Private Limited Company Compliance - ongoing ROC and statutory compliance.

Legal and Compliance Framework

Company: an IT or SaaS business is generally a private limited company under the Companies Act, 2013, incorporated through SPICe+, which is DPIIT-recognition-ready and ESOP-ready and the structure investors expect.

GST and LUT for exports: the export of software and SaaS to foreign clients is treated as a zero-rated supply under the IGST Act where the conditions are met, and filing a Letter of Undertaking on the GST portal allows the company to export without paying IGST and to claim refunds of input tax credit, with GST registration mandatory for exporters.

STPI, Non-STP and SOFTEX: under the Software Technology Parks of India scheme, software and IT-enabled-services exporters can register as an STP unit for full scheme benefits or, more commonly, as a Non-STP unit to obtain SOFTEX certification, which validates foreign-exchange receipts under the RBI framework and supports GST refunds, with non-compliance risking FEMA penalties.

DPIIT and ESOP: a DPIIT (Startup India) recognised startup can claim the Section 80-IAC tax holiday of 100% of profits for any three consecutive years and ESOP perquisite-tax deferral under Section 192(1C); angel tax under Section 56(2)(viib) has been abolished from FY 2025-26, and a private limited company is the structure used to grant ESOPs to employees.

How do I register an IT or SaaS company in India?

You register an IT or SaaS company by incorporating an entity, usually a private limited company through the SPICe+ form, and then putting in place the export and startup compliance the business needs. If you export software or SaaS, you register for GST and file a Letter of Undertaking to export zero-rated, and register with STPI as a Non-STP unit for SOFTEX certification. Eligible startups also obtain DPIIT recognition, and most companies set up an ESOP plan. We handle the company and this full IT-specific layer.

What structure is best for a SaaS startup?

A private limited company is the preferred structure for a SaaS or IT startup. It is DPIIT-recognition-ready, ESOP-ready, allows the company to raise equity from angels and venture capital, and gives the credibility that investors and foreign clients expect. While a proprietorship or LLP can work for a very small or single-founder service business, almost every SaaS company that intends to scale, hire on equity or raise funding incorporates as a private limited company from the start.

What is LUT and why do SaaS exporters need it?

A Letter of Undertaking is a declaration filed under GST that lets an exporter supply services to foreign clients without paying IGST upfront. Software and SaaS exports are treated as zero-rated supplies, so with an LUT in place a SaaS company can invoice overseas clients without charging GST and can claim refunds of the input tax credit on its expenses. Without an LUT, the exporter would have to pay IGST and claim it back, which hurts cash flow, so the LUT is a standard first step for SaaS exporters.

What is STPI registration and is it mandatory?

STPI registration is registration under the Software Technology Parks of India scheme, which supports IT and software exporters. It is not mandatory in the sense of incorporation, but software and IT-enabled-services exporters generally register, most as Non-STP units, because STPI issues the SOFTEX certification needed to validate foreign-exchange receipts under the RBI framework and to support GST refunds. Full STP units additionally get duty exemptions and scheme benefits. We advise whether STP or Non-STP suits your export model.

What is the difference between STP and Non-STP registration?

An STP unit registers fully under the Software Technology Parks of India scheme and gets benefits such as duty-free import of capital goods and infrastructure support, but commits to export obligations and more compliance, suiting larger export operations. A Non-STP unit is a lighter registration that most IT and SaaS exporters use simply to obtain SOFTEX certification for their software exports, with lower fees and obligations. The right choice depends on your export scale and whether you need the duty and infrastructure benefits.

What DPIIT benefits do IT startups get?

A DPIIT-recognised IT or SaaS startup can claim the Section 80-IAC income-tax holiday, which exempts 100% of profits for any three consecutive years within the eligible window, and can defer the perquisite tax on employee ESOPs under Section 192(1C). Recognition also helps with public procurement and self-certification on certain labour and environmental laws. Angel tax under Section 56(2)(viib) has been abolished from FY 2025-26, so the main value of DPIIT now is the tax holiday and the ESOP and procurement benefits.

Can an IT company set up ESOPs?

Yes, and most IT and SaaS companies do. A private limited company can create an Employee Stock Option Plan to grant options to employees, which is a key tool for attracting and retaining tech talent when cash salaries are limited. The plan is set up through a scheme and board and shareholder approvals, and the tax on ESOPs can be deferred for employees of DPIIT-recognised startups. We structure the ESOP plan and handle its grant, exercise and compliance, which is why the company should be ESOP-ready from the start.

IT SaaS company registration kaise kare?

Private limited company banao (DPIIT aur ESOP-ready), service export ke liye GST aur LUT lo, software export ke liye STPI ya Non-STP (SOFTEX) registration karo, aur eligible startup ho to DPIIT recognition. Patron Accounting poora setup karta hai.

Quick Answers

Best structure? Private limited company (DPIIT and ESOP-ready).
Exporting? File an LUT to export zero-rated.
STPI? Usually Non-STP, for SOFTEX certification.
DPIIT? For the Section 80-IAC tax holiday.

Launching an IT or SaaS Company? Set It Up Right

IT and SaaS companies live on exports, talent and funding, and each has a compliance angle. Setting up a DPIIT-ready, ESOP-ready company with the right export compliance lets you bill foreign clients cleanly, recover taxes, hire on equity and raise capital without friction.

Call +91 945 945 6700 or message us on WhatsApp and we will set you up DPIIT-ready, ESOP-ready and export-compliant.

Set Up Your IT or SaaS Company Today

An IT or SaaS company should be built export-ready, talent-ready and funding-ready from day one. A private limited company gives you the DPIIT-recognition-ready, ESOP-ready, investor-friendly base, and the IT-specific export layer - GST with a Letter of Undertaking to export zero-rated, and STPI or Non-STP registration for SOFTEX - lets you bill foreign clients cleanly and realise your forex.

Add DPIIT recognition for the Section 80-IAC tax holiday and an ESOP plan for your team, and you are set to scale. Patron Accounting, with 15+ years of experience and a CA and CS team that specialises in the IT sector, sets up the whole bundle.

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IT and SaaS Company Registration Across India

We set up and support IT and SaaS companies nationwide - in-person in these cities and remotely everywhere else.

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The core IT/SaaS entity, set up locally

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Content Created: 3 June 2026 | Last Updated: | Next Review: 3 December 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed every 6 months or whenever the DPIIT and 80-IAC rules, the GST export and LUT rules, or the STPI and SOFTEX procedures change, so the setup guidance stays current.