The Software Technology Parks of India (STPI) scheme is a 100% export oriented scheme for the development and export of computer software using data communication links or in the form of physical media including the export of professional services. This scheme is unique in its nature as it focuses on one product/sector, i.e. computer software. The scheme integrates the government concept of 100 percent Export Oriented Units (EOUs) and Export Processing Zones (EPZs) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world.Also, any company/partnership firm/proprietorship which is into development of Export oriented Computer Software/IT Enabled Services can register itself as NON-STP unit under STPI to avail Softex certification.
The major attraction of this scheme is a single point contact service to the STP units. STP units are exempted from payment of corporate income tax. All the imports of Hardware & Software in the STP units are completely duty free. Import of second hand capital goods is also permitted. An Indian company, a Subsidiary of a Foreign Company and a branch office of Foreign Company are eligible to become an STP unit.
Registration under STPI as a NON-STP unit is mandatory for any company who does IT/ITES exports through Data communication links.
A STP/ NON-STP unit’s Letter of Permission is valid for a period of 5/3 years respectively; the request for renewal has to be filed with the authorities, 3 months prior to the date of expiry.
A STP project may be set up anywhere in India, 100% FDI is allowed, duty free import of hardware and software, 100% depreciation on capital goods over a period of 5 years is allowed etc.
In order to obtain Softex certification, the IT/ITES entity has to become a STPI member by either registering as a STP or a NON-STP unit.
Import Export code is a unique code number to be mandatorily obtained by every importer or exporter, once registered under the STPI as a STP, EHTP or NON-STP member unit.
Once registered under the STPI as a STP, EHTP or NON-STP member unit, the entity shall submit monthly, quarterly and annual reports to respective STPI centres as per the prescribed format.
Apply by filling in the prescribed draft application form with all the details as required by the authority.
The draft application submitted will be screened by the STPI authorities.
Once the Authorities clear the draft application, 2 sets of Fair Applications have to be submitted.
The CEO/Head of operations to make a presentation to the new application processing committee & the Director of STPI.
Upon satisfying themselves on the subject, the committee will recommend to issue the Letter of Permission to the Entity.
Obtain help of Professionals & Subject matter experts at CFO Affairs to understand the intricacies involved in the registration. We are more than happy to educate you and make your entity registration a hassle free process.
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