How to choose a software or app development company in India: what to check before you pay an advance.

The short version

• Get a written scope and a fixed, itemised quote in rupees before you pay for the build.
• Pay in milestones tied to working software, not a large advance.
• Keep the domain, hosting, code, cloud and app store accounts in your company's name.
• Get the copyright in the code assigned to you in a signed document.
• Check live work and speak to past clients.
• Agree support after launch in writing.

1. Scope and price

Is there a written scope?

A price without a written scope is a guess. The scope should list the screens, the features, the types of users, the other systems it connects to (such as Razorpay, WhatsApp or Tally) and what is not included. For anything bigger than a simple website, a short paid planning stage before the build, often called discovery, usually costs less than fixing a vague scope later.

Is the quote fixed and itemised?

Ask for a fixed quote in rupees, broken down by milestone, with GST shown separately. Ask what counts as a change and how a change is priced. Agree in writing that no change is built until you approve its price.

What will it cost to run each month?

Hosting, domain renewal, app store fees, SMS and WhatsApp message charges, AI model usage, software licences and support all continue after launch. Ask for these costs in writing, separate from the build price, so you know what the product really costs to own.

2. Payments and milestones

A large advance gives you the least control. Ask for a small advance, then payments tied to things you can see working: an approved design, a first working version, a tested release and the live launch. Each milestone should say what you receive and how you will check it.

Ask for a proper tax invoice for every payment. If the developer is registered for GST, the invoice should show GST separately and carry your GSTIN if you want to claim input tax credit. A freelancer below the GST registration threshold may not charge GST at all. Ask your CA how this affects your input tax credit and any TDS you need to deduct.

3. Ownership of the code and the accounts

Will the copyright be assigned to you in writing?

Under the Copyright Act, 1957, computer programmes are literary works, and the author is the first owner of the copyright. An employer owns what its employees write as part of their jobs, but a freelancer or a development company owns the code it writes for you until it assigns it to you (section 17). An assignment is valid only if it is in writing and signed (section 19). Paying the invoice does not transfer ownership on its own.

Whose name are the accounts in?

Yours, from day one. A common fear is the developer who disappears holding the domain, the hosting and the logins. Prevent it by making your company the owner of:

• the domain name, with your company as the registrant;
• the hosting and cloud accounts, such as AWS, Google Cloud or Azure, in your company's name and paid with your card;
• the code repository, in your company's own GitHub, GitLab or Bitbucket organisation;
• the Apple and Google developer accounts for any app;
• the payment gateway, WhatsApp Business Platform, analytics and email accounts, with you as the owner.

App store accounts take time, so start early. Apple and Google both ask an organisation for a D-U-N-S Number before they open a company developer account. Google says getting one can take up to 30 days and that applying through Dun & Bradstreet is free (Google Play Console Help, checked 15 October 2026). On the App Store, the organisation's name is shown as the seller of your app (Apple Developer Program, checked 15 October 2026). Give your developer access to your account rather than letting them publish under theirs.

4. People and track record

Who will actually do the work?

Ask to meet the people who will build your product, not only the people who pitch it. Ask whether any part of the work will be passed to another company or to freelancers. Put the names of the lead developer and the project manager in the contract.

Can you see live work and speak to clients?

Ask for links to live websites and apps you can open yourself, and for Play Store or App Store listings published under the client's own name. Ask for two or three clients you can call. Read Google reviews and other reviews the developer does not control. Screenshots alone prove very little.

5. Confidentiality and data

If you need to share a detailed idea or business data before you hire, sign a short NDA (non-disclosure agreement) first. An NDA protects confidential information. It does not transfer ownership of the code, so you still need the written assignment.

If the developer will handle personal data of your customers or staff, they act as your data processor. The Digital Personal Data Protection Act, 2023 says a business may use a data processor only under a valid contract (section 8(2)). Ask how they protect data, who can access your systems and where your data will be hosted. Our guide to the DPDP Act for websites and apps explains what is changing.

6. Support after launch

Every product needs bug fixes, security updates and small changes after launch. Ask for the support terms in writing before you sign the build contract: what a free warranty period covers, what an annual maintenance contract (AMC) costs, how fast urgent and minor problems are answered, and what happens to your code and accounts if support ends.

Red flags

• A price, but no written scope.
• A large advance before any work you can see.
• No contract, or a contract with no IP assignment.
• The domain, hosting, code or app store accounts set up in the developer's name.
• A senior person at the pitch, then only juniors you never met on the project.
• Promises of guaranteed rankings, sales or a launch date before the scope is clear.
• Reviews and references you cannot check anywhere else.
• No reply for days once the advance is paid.

Freelancer or company?

A good freelancer can be the right choice for a small, well-defined job. For a product your business depends on, ask how the work continues if one person falls ill or leaves, who tests the code and who supports it after launch. The same checks on scope, payments, ownership and support apply to both.

How we answer these

We publish our answers: how our process runs, our terms, how we handle security and data and how our support and AMC plans work. Ask us the same questions on a free call and judge the answers for yourself.