Ansha Dixit .

Hey guys!

What is a better country to start a Software Development agency right now during the pandemic; India or Canada?🧐

Someone in my network lost his job and wants to pursue his dream of starting a business. He is a skilled developer.

He currently has options to open up a business in both countries.

What country should he choose? Or what factors to consider while making this decision?

Originally Posted Here
45 Comments

Geet Kiran Aneja

Work from India and have CA and US clients. A dual citizenship of such sorts is a dream of many including Akshay Kumar

Ansha Dixit

Don't you think that would be on a very high budget?

Geet Kiran Aneja

Go to CA for biz dev and outsource the work to India for lower costs. Outsourcing has been the most efficient business model. With a CA citizenship, I'd use that as a card to establish more trust among clients.

Ansha Dixit

Yeah I have seen an increase in number of outsourcing work nowadays! And yes definately trust thing that you have mentioned is absolutely correct!

Avinash Kewlani

Geet Kiran Aneja can you register a company there and get the work done here?

Geet Kiran Aneja

Avinash Kewlani register company in Singapore xD. But yeah having a company registered in CA will require a lot of terms to follow for indian outsourcing. Register here in india like other outsourcing companies.

Paras Shah

Market wise India has the highest potential. Pay and ease of doing business wise Canada wins.

Ansha Dixit

So which one to choose on the safer side considering all the factors?

Paras Shah

Safer Side India will always be the best option. The cost of starting is low, huge talent pool available, big untapped market and already establishes networks to get the start.

Agni Chatterjee

Most of the talent pool is bs

Sandeep YN

Canada - a small business in Canada can pay you the same or more than a mid sized company could.
We had a UK fabricator ( not even a company ) who did a monthly billing or 60k with us.

Ansha Dixit

Ohk thats great!

Any challenges that you faced opting Canada as a choice?

Sandeep YN

we haven’t done business in Canada but have done in US. We registered a company in US which was actually not needed. There are other options like stripe bank account and stuff you can manage with. Clients usually expect us to meet in personbut for us most of the business came through referrals so they dint expect us to meet in person . No challenges otherwise, easy to do business in other countries in general

Ankur Gupta

Work from India and have US / Canada clients that's the best option you can go with

Ansha Dixit

Yeah good decision but wouldn't this limit the number of clients! Basically being in the country where you are giving services is I think have a good advantage! Networking wiuld be easy!

Ankur Gupta

See it's totally about how you perceive, there are the companies with HQ in India and serving across the golbe
India as a location because this is the time when government officials will support you in whatever way they can

Ashwini Nair

Make in India, sell in Canada

Ansha Dixit

Basically working from India and taking foriegn clients! Good thats a nice idea!

But being in the country where you are doing business would be easy for Networking and would give more clients! Don't you think?

Ashwini Nair

People build clients both ways - sitting in their base location or travelling to the clients location. There are enough people based in India who travel to other countries to build a client base.

In terms of moving, I would recommend your friend take that decision based on multiple factors like cost of living, family commitment, long term life plans etc...

Akshata Barge

It's actually the right time to start his business, as people are considering options to move out and as soon as the lockdown ends and overseas commute start people would start applying for migration. This is the time he can start the process and ground work by laying business foundation, gathering data, marketing and BD. The top countries offering students and PR are Canada, New Zealand, Australia and Germany. He can undertake these countries.

Ansha Dixit

Ok so you are saying Canada would be a be having good opportunities than India! Any challenges though🙄?

Akshata Barge

If the person is a resident of Canada then he can look for starting it in Canada as the government do have alluring schemes and support for emerging businesses.

Vishal Rewari

India and get clients from all over the world

Subham Bapna

I've been with people who manage service based businesses.

According to them having an office in Canada and exporting services from India could be profit making.

Indian clients (unless you get big ones) suck, I've come across a few who've wanted to make an Instagram like app with a budget of 25K INR and wanted weird customizations.

Not that it can't be done - what most companies do is take ready made scripts and sell them, but doing the same in the western market could fetch him $10-15K easily.

Also, there are Indian development companies that do huge, one thing you'll notice with them is, all of these big web dev companies have offices registered in different parts of the world.

My school senior,Fenil Parekh, has a similar setup, he has built a company based out of the United States and has people working in his Indian offices, maybe (if he's available) he could share his experience here.:)

Ansha Dixit

Thanks for your suggestion! So apart from money point of view, any other challenges in Indian market?

Subham Bapna

Getting technical centric clients, I once had to deal with a client who wanted me to create a site that'd display a secret panel which would open when the code is being input (without actually having a input field, which is sneaky). Explaining tech tothem is quite difficult.

Also, the service business runs on money, for instance you can't solely develop an entire project, you'll need designers, developers, and other guys. So without having high-paying clients you won't be able to continue it for long term.

A lot of companies prefer Indian companies for their work and getting work from western or foreign wouldn't be tough, but the timezone would need to be managed being in India (but that would be a struggle even if you're making in India and exporting services from a Canadian company).

Tax wise - you can do great settlements from an Indian company (I know a few guys who make a million and pay very less tax, but that won't be a case unless there are grants and stuff or you know to settle them there).

Due to increase in the IT-service based companies, you could find a company in almost every part of a city in India, some of them exploit people to work for 5-10K bucks/month, they produce bad quality code, and some even copy codes and stuff to make things cheaper.

If he's planning to get good quality clients, he might have to compete with the pricing of these cheap companies because most of the Indian clients don't understand shit, I'm not blaming the guys who do it, it's ultimately because clients have very low budgets.

Both places have their own set of advantages and disadvantages, If I'd be in his shoes I'd prefer having a trustable project manager who can handle my employees in India and be in Canada/US to get clients:)

Gaurav Hasija

What kind of development agency, software, real estate or ???

Post does not have complete information!!!

Ansha Dixit

Software development agency.

edited in the post as well. Thanks for Pointing out.

Nalin Savara

It depends on where do u have clients and where can your services or products sell the best

If he is clueless or undecided and has a way like green card of reaching Canada then maybe he is better off sitting in Canada

Ansha Dixit

Clients would increase as the organisation grows but majorly as a starting, I think you always go with the country which you live in! What would you recommend based on the challenges India and other

Nalin Savara

see if it is a new idea for him to start a company and he has an open ocean in front of him then canada is a better market to struggle or even fail in

If he has already invested time and money and got customers in india then obviously india

Shivam Sarkar

Hello I am already working on the same model and working since last 2 years. We may have some opportunities to explore and exchange.

Ansha Dixit

You are residing in Canada right now?

Shivam Sarkar

No I have some channel partners in USA and Canada

Faisal Zia Anwer

India

And take up clients in US, Canada etc.

If something works out maybe a virtual address in the US. ( just a thought)

Rahul Anand

Anytime Canada or US. A lot of people in my network have shifted HQ to US or Canada with extension branch in India.

Sanath Kumar

I would say North America , though I am not sure what your friend’s profile or how well he is networked in his industry. He could look at building a team in india for offshore development

Ajay Shibu

Opening a business in Canada would make much more sense economical as well as in networking. The Canadian government is encouraging skilled labour infusion as well is supporting the IT industry. Also starting a business in canada and then probably outsourcing some work to india will make much more sense than opening a firm in india and hunt for North American clients. Tax redemptions and benefits of having a business in canada is unparalleled.

Mayur Malpani

Stay Safe with ur parents and family, in India and keep a BD person on commision basis in countries u wish to work for, bcoz u r a great developer and not a great marketing person, this pandemic has changed perspective for PPL seeking foreign opportunities.

Krinal Mehta

Sorry to hear about the job loss.

A skilled developer may or may not be a good businessman.

Most businesses shut down within 5 years for this very reason.

Starting a business anywhere in the world doesn’t guarantee success if that’s how your friend is planning to base his decision.

There are success and failure stories in both countries you mentioned.

Advantage Canada makes 5% different tops for a software engineer.

Software engineering is a skill that is universally sold and bought online.

My suggestion to your friend would be to dig deeper and write the “why” does he want to start his own business? That will lead to objective answers and help you help him with the decision.

P.S. I’ve run that business in both countries.

I’m currently in Canada.

Happy to answer any additional questions.

All the best.

Ritabh Pandey

The best scenario would be if the workforce is in India while the customers are from Canada. That is the most profitable situation. As per setting up the company is concerned, I'm sure he should look up all tax liabilities in both countries and create a setup that allows him to pay the least possible amount.

Amit Savargaonkar

Malta or Estonia...

Oliver Gasser

Estonia🇪🇪

Indrasen Bhosale

Check Moldova as well

AMiT Thakrar

What difference he can make except delivering a tech product? Consultancy has to have business acumen at core. Why we see so many companies all across because every technical person feels they can start and build own business. While it's more difficultthan what it seems.

My two cents would be, even before starting a full scale business - build a consulting profile, try to grab few projects first. Establish partnership with agencies which are already established. Deliver few projects by being on front to understand the day to day operations and to understand, is it really worth.

He should try to grab clients where he's based at the moment. Doesn't matter India or Canada. It should be our choice and way to build contracts which are mutual for both parties. You can find mature clients at all locations.

Most difficult in any business is to bring business. Delivery can be managed by any means. Plenty of options.

Sharing this on basis of total 18 yrs experience in this domain with 8+ yrs of experience running own agency.

These days, if you really want to stand out, you have to bring something extra to the table else you will become a part of rat race.

Happy to help if need more insights.

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