The information technology and software industry of India has been a major contributor to the country’s progressive economic performance in the last couple of years.

Legal procedures involved in starting a software company
To start with, a start-up software company should focus on the pre-registration process for registering companies in India.

They should also procure the following from relevant government offices:

Direct Identification Numbers
Reservation of company name
Electronic signatures

Any one of the following documents can be submitted as an identity proof while applying for a DIN:

PAN Card
Passport
Driving License
Voters ID Card

The applicants can also furnish any one of the below mentioned documents as residence proof while making this application:

Driving license
Ration card
Passport
Electricity bill
Voter ID card
Bank statement
Telephone bill

Tips to start software company:

Don’t quit your job now.
Find a cofounder. If you are from a technical background (Hacker), find a person who can sell and collect money from your future customers(Pirate).
If he doesn’t have a job now, he can take care of the company formation and other works while you can support him continuing in your present job.
Talk to your family about this
You should start your company with a clear and focused mind.
Make an emergency fund. Of some rupees per year for the next 3 year
It takes minimum 3 years to build a good company.
Don't take an office.
Don't recruit employees initially.
If you are doing a business it should be a scaling of what you can do alone.
When you are quiting your job, dont burn the bridges.
Keep good relation with your existing company.
Register the company and a good domain name.
Start working and focus on giving value to your customers.