How do I start a small software company

Founding a software company - that's how it works!

So you want to start your own business with a software company. First of all, you should note that the first step towards self-employment begins with start-up planning. You record these professionally in your business plan. What kind of software would you like to develop? Who should this be sold to? Before the exact product development, you still have to choose the legal form. As a founder, you have to decide on a legal form that suits you, which must then be properly registered commercially. You can find information about the various legal forms as well as all other important aspects of your business start-up here in our start-up guide.


Your software company formation: Know-how

If you want to start your own business with a software company, ideally you already have experience in the industry. However, there are no guidelines or requirements to be followed when starting a software business. You should, however, be proficient in the current programming languages ​​and have a knack for business administration, marketing and sales. Training or studying in the field of computer science, databases or the like can only be helpful when starting your business.

Do you still need a legally compliant standard contract for your software services? Book a free initial consultation from a lawyer here!

Founding a software company as a GmbH, UG, GbR or sole proprietorship: choose legal form

Do you still need a legally compliant standard contract for your software services? Book a free initial consultation from a lawyer here!

In order to be able to fulfill the dream of your own software company, you must first decide which legal form is suitable for your company. Common legal forms for business start-ups in the industry are the GmbH, the UG, the GbR or the sole proprietorship. When making your choice, please also note that the individual legal forms also differ in terms of taxation.

Learn more about the possible legal forms:

In principle, there are of course other legal forms available to you. If necessary, you can also benefit from the small business regulation: A small business person is someone who does not generate more than 22,000 euros in sales in the first year and not more than 50,000 euros in the following year. Small businesses are allowed to keep their bookkeeping via EÜR (income-surplus-invoice) and do not have to mark and pay sales tax. In order to be able to use the small business regulation, you have to apply to the tax office.

Which legal form suits you and your company depends on your goals as a company founder and how much capital you want to invest.

After you have decided on a legal form, there are still some commercial registrations to be made: Business registration, registration with the professional association responsible for you and the Chamber of Industry and Commerce. For the legal forms GmbH and UG, you also have to be entered in the commercial register.


Starting a software company: the next steps

When you have successfully founded your company, the share capital (depending on the legal form) is in the business account and all registrations have been completed, the next point in your business plan is your business idea and the planning of the product or service. In which area do you want to work?

  • Industry-specific solutions (e.g. banking software)
  • privacy
  • Entertainment industry: game development
  • Tailor-made software for companies
  • Software suitable for the masses for the end user (e.g. graphics programs, browsers, etc.)
  • SAAS (Software as a Service)

Which company suits me and my business idea?


Our packages for your easy start-up of a software company

All you need for the tailor-made software is a professional website that presents your services and offers to potential customers in an appealing and clear manner. If you want to address as many end customers as possible, you either have to set up a shop system or choose the route through resellers. They offer your software on existing platforms and, depending on the buyer's country, also calculate the applicable sales tax, which can make your work a lot easier. You receive your net income minus a small commission. Game design and game development are, on the other hand, more complex because, in addition to designers, you also have to look for a publisher for your finished game, as he can optimally market your finished game and make it known. However, numerous “indie” games (games by independent developers, independent games) that were released without a major publisher are also known and popular, and gamers also keep an eye on the smaller developer market for exciting games that may be lost in the mass market. to be able to discover.

Another way to get your software on the go is by means of cloud computing. Your software can be operated online through a VM (Virtual Machine); customers don't have to download and install your software. For use, you can sell licenses for full use or offer a free version with which certain features, which are also available in the offline version, are chargeable.


The information published on our site is all written and checked by experts with the greatest care. However, we cannot guarantee the correctness, as laws and regulations are subject to constant change. Therefore, always consult a technical expert in a specific case - we will be happy to put you in touch. assumes no liability for damage caused by errors in the texts.