How to start a software company

The software industry is one of the most lucrative businesses and a sector that still provides numerous business opportunities, especially with the rise of software as a service or those third-party providers who make their applications available to the public.

Investors will not only need to come up with a business idea and model, and the capital to launch their startup, but the knowledge of how to start a software company pertaining to the local commercial requirements in their country of choice.

Opening a software company in Europe

When it comes to choosing the headquarters for a new business, many investors select countries in Europe. Here is a look at two particular jurisdictions, and what it means to start a software company there.

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The United Kingdom, best represented by London, is a particularly attractive business destination in Europe. Investors may choose to set up their businesses in the outskirts of London because of the lower headquarter maintenance costs and benefit from the city’s recognised position as one of the top
business and economic centers in the old continent.

Business registration in Great Britain is relatively simple and international investors have an important language advantage. Companies in the United Kingdom are required to observe a set of rules and regulations and those that break them can be accused of business crime. The representatives of software companies in the United Kingdom can seek for legal representation in case of business crime from a local attorney.

Spain has a national broadband strategy that follows most of the EU regulations for software companies and those involved in other IT sub-sectors. Spanish software companies benefit from a welcoming business environment and openness towards foreign investments.

>See also: UK software developers missing out on R&D tax credits

In order to open an IT company in Spain, investors need to obtain the relevant special permits and licenses, as well as register their business in the country.

Opening a software company in Asia

For investors who prefer to locate their business in other areas of the world, Asia is a good choice for a number of reasons but mainly because it has the advantages of a growing market: lower incorporation and labour costs and openness towards foreign investments.

Malaysia is one of the top locations of software startups in Asia and many investors choose to base their business here and then expand to other areas in the Asian market.

Malaysian software companies may be eligible for special tax incentives and it is well worth to seek these benefits when deciding to incorporate here.

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China is a market that has seen a remarkable growth and a dedicated improvement in terms of approach towards foreign investments. Investors who open a software company in China benefit not only from a large internal market, but also from access to other Asian markets and affordable local

Choosing the most suitable location for a software company is an important step. It is recommended that any budding software start-up talk to a local company incorporation specialist once it has decided on a jurisdiction.

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Nick Ismail

Nick Ismail is a former editor for Information Age (from 2018 to 2022) before moving on to become Global Head of Brand Journalism at HCLTech. He has a particular interest in smart technologies, AI and...

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