STPI REGISTRATION
Software Technology Park of India (STPI) is an autonomous society under the Ministry of Communication and Information Technology, Dept. of Electronics and Information Technology, Govt. of India. The main objective of STPI is to promote the development and export of software and software services including Information Technology (IT) enabled services/ Bio-IT.
STP/EHTP schemes formulated by the Government of India are implemented by STPI to set up and manage infrastructural facilities. The benefits of becoming a STP unit include exemption from payment of corporate income tax until 2011, duty-free imports of hardware and software, and permission to import second-hand capital goods.
To become a STP unit, an Indian company, a subsidiary of a foreign company, or a branch office of a foreign company can apply for certification from the competent authority. The application should be submitted to the Software Technology Parks of India along with details of the software project in terms of strengths, area of expertise, marketing arrangement, business plans, and means of finance.
Operations under the STP Scheme can be carried out from any location in the country, and subject to meeting the Minimum Export Performance norms, a STP unit can do business in the Domestic Tariff Area (DTA). After the approval is granted, the approved unit will be required to sign a legal agreement, with a list of capital goods and indigenous purchases, to obtain a Private Bonded Warehouse License from the Customs Department.
A unit operating under the STP Scheme can import capital goods (i.e., computer hardware and software and basic infrastructure support) without paying any customs duty, as may be levied on the importer in normal cases.
If a business entity is into the development of export-oriented computer software/IT enabled services, it is required to register itself as a NON-STP unit under STPI to avail Softex certification. Softex certification is mandatory for any company that exports IT/ITES through data communication links, as per RBI Master Circular.
To register as a NON-STP unit under STPI, any company/partnership firm/proprietorship which is into the development of export-oriented computer software/IT enabled services can submit an application form along with the supporting documents to the jurisdictional Director, STPI, along with the applicable processing fee of Rs.1000/- (one thousand only) + GST in the form of demand draft or through NEFT in favor of the Director STPI. Once the registration is complete, the company can submit the Softex Form for certification.
The objectives of the Software Technology Parks of India are:
The Software Technology Parks of India (STPI) was set up in 1991 by the Government of India with the primary objective of encouraging, promoting, and boosting the export of software and other IT-enabled services from India. Some of the key objectives of STPI are:

  1. To provide a conducive environment for software development and export: STPI provides state-of-the-art infrastructure facilities and other support services to software companies in India to enable them to carry out software development activities and export their products and services.
  2. To promote entrepreneurship and innovation: STPI provides various incentives and benefits to startups and small and medium-sized enterprises (SMEs) in the IT sector to encourage entrepreneurship and innovation.
  3. To enhance the competitiveness of the Indian IT industry: STPI supports the Indian IT industry by providing various services, including technology development, manpower training, and marketing support, to help improve its competitiveness in the global market.
  4. To generate employment opportunities: STPI’s activities help create new employment opportunities in the IT sector and contribute to the overall economic growth of the country.
  5. To promote the growth of the IT industry in tier-2 and tier-3 cities: STPI aims to promote the development of the IT industry in smaller towns and cities by setting up STPI centers in these areas and providing necessary support services to software companies operating from there.
    Commonly asked question and answer for the same is enumerated below:
    Q. What is STP and what are the advantages of becoming a STP unit?
    STP stands for Software Technology Park. It is a program initiated by the Government of India to promote software exports from the country. An STP unit is a company that is registered under the Software Technology Parks of India scheme
    Some advantages of becoming an STP unit include:
  6. Tax benefits: STP units are eligible for various tax benefits, including exemption from corporate tax for the first five years, and 50% exemption for the next five years. This can significantly reduce the tax liability of the company.
  7. Custom duty exemptions: STP units can import and export goods without paying custom duty, making it easier and cheaper to do business.
  8. Infrastructure facilities: STP units have access to state-of-the-art infrastructure facilities, including high-speed data communication links, uninterrupted power supply, and other amenities. This can help the company to operate smoothly and efficiently.
  9. Simplified procedures: STP units enjoy simplified procedures for registration, import, and export, making it easier to do business.
  10. Access to skilled resources: STP units have access to a large pool of skilled resources, including software professionals and engineers, who can help the company to develop and implement innovative solutions.
  11. Brand recognition: Being registered as an STP unit can enhance the brand recognition and reputation of the company, helping to attract new customers and partners.
    Q. Who can become a STP unit and how?
    Any company, whether it is an Indian or foreign company, can become a Software Technology Park (STP) unit. The company must be involved in the development or export of software or IT-enabled services (ITES).
    To become a STP unit, the company must follow these steps:
  12. Obtain a Certificate of Incorporation: The company must be registered as a company under the Companies Act, 2013, or any previous law. The company must obtain a Certificate of Incorporation from the Registrar of Companies (ROC).
  13. Obtain PAN: The company must obtain a Permanent Account Number (PAN) from the Income Tax Department.
  14. Obtain a Digital Signature Certificate (DSC): The company must obtain a Digital Signature Certificate (DSC) from any of the certifying authorities appointed by the Controller of Certifying Authorities (CCA).
  15. Apply for STP registration: The company must apply for STP registration to the concerned STPI jurisdictional Director. The application should be submitted along with the necessary documents and fees.
  16. Compliance with STP guidelines: Once the company is granted STP registration, it must comply with the guidelines and regulations set forth by STPI, including timely submission of reports, adherence to the rules and regulations, and maintenance of proper records.
    It is important to note that STP registration is not automatic, and the company must meet certain criteria and provide the necessary documentation to be granted STP status. However, becoming a STP unit can provide numerous benefits to the company, including tax benefits, access to infrastructure and facilities, and easier access to foreign markets.

Q. Can I operate from any location in the country?
In order to become a STP unit, you are required to operate from an STP facility or an incubation center that is approved by the STPI. The STP facility is typically located in designated areas across the country, known as “STP zones.” Therefore, you cannot operate from any location in the country, but only from the designated STP zones where the STP facilities or incubation centers are located.
You can check the list of STP facilities and incubation centers on the STPI website and choose the one that suits your requirements. Once you select the facility, you can apply for registration as an STP unit through the online portal provided by STPI.
Q. Being a STP unit, can I take up domestic projects?
Yes, as a STP unit, you can take up domestic projects. While STPI was originally established to boost software exports from India, STP units are also allowed to undertake domestic software projects, subject to certain conditions. However, the primary focus of STPI remains the promotion of software exports from India.
Q. What is the process to be followed after I become a STP unit?
After becoming a STP unit, you need to follow certain procedures and comply with certain requirements to continue availing the benefits of the STP scheme. Here are some of the key steps and requirements:

  1. Compliance with STPI regulations: As a STP unit, you need to comply with the regulations and guidelines set by STPI. This includes timely submission of reports, payment of dues, maintenance of records, etc.
  2. Maintenance of accounts: You need to maintain separate accounts for STP operations, and submit audited annual financial statements to STPI.
    Compliance with export regulations: If you are engaged in export activities, you need to comply with the regulations and requirements of the concerned government agencies, such as the Directorate General of Foreign Trade (DGFT), Reserve Bank of India (RBI), etc.
  3. Compliance with tax laws: You need to comply with the tax laws and regulations applicable to your business, such as income tax, GST, etc.
  4. Compliance with employment laws: You need to comply with the employment laws and regulations, such as payment of minimum wages, social security contributions, etc.
  5. Compliance with environmental laws: You need to comply with the environmental laws and regulations applicable to your business, such as waste management, pollution control, etc.
  6. Renewal of STP registration: Your STP registration is valid for a certain period, typically 5 years, after which you need to renew it by submitting the required documents and fees to STPI.
    Overall, as a STP unit, you need to maintain high standards of corporate governance, ethics, and compliance to continue availing the benefits of the STP scheme.
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    Q. What is import and how can I do the same under STP?
    Import refers to bringing goods or services from a foreign country into the domestic territory of a country. As an STP unit, you can import goods and services that are required for the production or export of software products.
    The process for importing goods and services under STP is as follows:
  7. Obtain an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT).
  8. Identify the goods or services that need to be imported and the country from which they need to be imported.
  9. Obtain a Proforma Invoice from the supplier of the goods or services. The Proforma Invoice should contain details of the goods or services, their quantity, price, terms of delivery, and payment.
  10. Submit the Proforma Invoice to the STPI for approval.
  11. Once the Proforma Invoice is approved, open a Letter of Credit (LC) in favor of the supplier. The LC is a guarantee from the bank that the payment will be made to the supplier once the goods or services are delivered as per the terms of the Proforma Invoice.
  12. Once the goods or services are delivered, submit the shipping documents to the bank, which will release the payment to the supplier.
    It is important to note that the import of certain goods and services may be subject to restrictions and regulations, and it is advisable to check with the DGFT or STPI before initiating the import process.
    NON-STPI REGISTRATION
    If a software company or IT-enabled service provider is not located in an STP unit, it can still register with the government as an IT/ITES company. This registration is called Non-STPI registration.
    The benefits of Non-STPI registration are similar to those of STPI registration, including tax benefits, exemptions on customs duties, and access to high-speed data communication links.
    To apply for Non-STPI registration, the company needs to submit an application along with the required documents to the Ministry of Electronics and Information Technology (MeitY) or the Software Technology Parks of India (STPI). The application should contain details about the company, its business activities, and the proposed investment in the IT/ITES sector. Once the application is approved, the company is granted Non-STPI registration.
  13. Who can become a NON-STP unit under STPI and how?
    There is no provision for NON-STP units under STPI. STPI is a government organization that facilitates the setting up of STP units in India to promote software exports. However, there are other schemes and incentives available for non-STP units in the software industry, such as the Special Economic Zone (SEZ) scheme and the Export Promotion Capital Goods (EPCG) scheme. These schemes are administered by the Ministry of Commerce and Industry, Government of India, and the application process and eligibility criteria may vary depending on the specific scheme.
  14. Is it mandatory for any IT/ITES companies who are into exports, to get registered as NON-STP unit under STPI?
    Yes, any IT/ITES company that is involved in exports is required to register as a Non-STP unit under STPI. This is because Non-STP units are eligible for various benefits and incentives offered by the government of India for promoting software exports. Registration as a Non-STP unit provides legal recognition to the company and enables it to avail the benefits under the Foreign Trade Policy of the Government of India.
  15. Once the Non-STP registered unit Letter of Permission (LoP) expires after 3 years, what is the procedure to be followed for renewal of LoP?
    The procedure for renewing a Non-STP (Small and Medium Enterprises with an annual turnover of less than INR 50 crores) registered unit’s Letter of Permission (LoP) varies depending on the state in which the unit is located. In general, the following steps may be required:
  16. Submit an application for LoP renewal: The unit should submit an application for renewal of LoP to the concerned authority, typically the District Industries Centre (DIC), well before the expiry of the current LoP.
  17. Submit required documents: The unit should submit all the necessary documents required for LoP renewal along with the application form. These may include proof of ownership of the unit, details of the machinery installed, financial statements, and other relevant documents.
  18. Inspection by authorities: The authorities may conduct an inspection of the unit to verify the information provided in the application and to ensure compliance with regulations.
  19. Payment of renewal fee: The unit may be required to pay a renewal fee along with the application.
  20. Grant of renewed LoP: If the authorities are satisfied with the application and the inspection, they will issue a renewed LoP to the unit.
    It is important to note that the exact procedure and requirements for LoP renewal may differ from state to state, and the unit should contact the concerned authority for specific information and guidance.
  21. Once the company gets registered as Non-STP unit, what will be the procedure to certify the Softex forms from STPI?
      Once a company is registered as a Non-STP unit, it can still apply for Software Technology Parks of India (STPI) certification of Softex forms. The following are the general procedures for certifying Softex forms from STPI:
  22. Fill and submit Softex form: The Non-STP unit should fill the Softex form with all the required details and submit it to the concerned STPI office.
  23. Submit supporting documents: The unit should also submit all the supporting documents along with the Softex form. These documents may include invoices, purchase orders, delivery challans, and other relevant documents.
  24. STPI scrutiny: The STPI office will scrutinize the Softex form and supporting documents to verify the details provided and to ensure compliance with the applicable regulations.
  25. Certification: If the STPI office is satisfied with the form and supporting documents, it will issue a Softex certification for the export of software from India.
    It is important to note that the specific procedures and requirements for certifying Softex forms may differ depending on the STPI office and the export destination. Therefore, the Non-STP unit should contact the concerned STPI office for specific information and guidance. Additionally, it is advisable to submit the Softex form well in advance of the actual export date to avoid any delays or issues.
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  26. What is the proof of NON-STP registration?
    The proof of Non-STP (Small and Medium Enterprises with an annual turnover of less than INR 50 crores) registration may differ depending on the state or authority that has issued the registration certificate. However, in general, the following documents may serve as proof of Non-STP registration:
  27. Registration Certificate: The Non-STP unit may receive a registration certificate from the concerned authority, such as the District Industries Centre (DIC), which certifies the registration of the unit as a Non-STP unit. This certificate may serve as proof of registration.
  28. Acknowledgment Letter: In some cases, the Non-STP unit may receive an acknowledgment letter from the concerned authority after submitting the registration application. This letter may contain the registration number and other relevant details, and it may serve as proof of registration until the registration certificate is issued.
  29. Udyog Aadhaar Memorandum (UAM): The Non-STP unit may have registered under the Udyog Aadhaar Memorandum (UAM) portal, in which case they may receive an acknowledgment or registration certificate from the portal. This document may serve as proof of Non-STP registration.
    It is important to note that the specific proof of registration may differ depending on the state or authority, and the Non-STP unit should check with the concerned authority for specific information and guidance. Additionally, the Non-STP unit should maintain these documents carefully and produce them when required for any regulatory or legal purposes.
  30. Can a NON-STP operate from any location in the country?
      Yes, a Non-STP (Small and Medium Enterprises with an annual turnover of less than INR 50 crores) can operate from any location in the country, subject to the applicable rules and regulations.
    The registration of a Non-STP unit is generally done at the state level, and once registered, the unit can operate from any location within the state. However, if the unit intends to operate from a different state, it may need to obtain additional registrations or licenses as per the regulations of that state.
    Additionally, the Non-STP unit may need to comply with the rules and regulations applicable to the specific industry or sector in which it operates. For example, if the unit operates in a regulated sector such as food, pharmaceuticals, or chemicals, it may need to obtain additional licenses or approvals from the respective regulatory authorities.
    Therefore, while a Non-STP unit can operate from any location in the country, it is important to ensure compliance with all the applicable rules and regulations. The unit should consult with the concerned authorities and seek professional guidance to ensure compliance and avoid any legal or regulatory issues.
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  31. What are the entitlements of NON-STP registration?
    The entitlements of Non-STP (Small and Medium Enterprises with an annual turnover of less than INR 50 crores) registration may differ depending on the state or authority that has issued the registration certificate. However, in general, the following are the common entitlements of Non-STP registration:
  32. Financial incentives: Non-STP units may be eligible for various financial incentives and benefits provided by the government. These may include subsidies, tax exemptions, and financial assistance schemes to promote growth and development.
  33. Regulatory benefits: Non-STP units may receive regulatory benefits such as simplified compliance procedures, single-window clearance, and streamlined regulatory approvals to promote ease of doing business.
  34. Priority sector lending: Non-STP units may be eligible for priority sector lending from banks and financial institutions, which may offer lower interest rates and easier access to credit.
  35. Export benefits: Non-STP units engaged in export activities may be eligible for various benefits and schemes provided by the government to promote exports. These may include duty drawback, exemption from certain taxes, and export promotion capital goods (EPCG) scheme.
  36. Networking and support: Non-STP units may have access to various networking opportunities and support services provided by the government and industry associations to promote growth and development. These may include training programs, technical support, and market research services.
    It is important to note that the specific entitlements of Non-STP registration may differ depending on the state or authority, and the Non-STP unit should check with the concerned authority for specific information and guidance. Additionally, the entitlements may be subject to certain conditions and compliance requirements, and the Non-STP unit should ensure compliance with all the applicable rules and regulations to avail of the entitlements.
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  37. Is the Softex submission by NON-STP units mandatory?
    Yes, the Softex submission by Non-STP (Small and Medium Enterprises with an annual turnover of less than INR 50 crores) units is mandatory if they are engaged in the export of software or software services.
    The Software Technology Parks of India (STPI) is responsible for certifying the exports of software and software services from India, and Softex is the online system used for the submission of export declarations. The Softex forms are used to declare the value of the exported software or software services and to claim benefits and incentives provided by the government.
    Non-STP units engaged in the export of software or software services are required to register on the Softex portal and submit the Softex forms for each export transaction. The Softex forms are also used to certify the realization of export proceeds and to monitor the exports of software and software services from India.
    It is important for Non-STP units engaged in the export of software or software services to comply with the Softex submission requirements to avoid any regulatory or legal issues. The Softex submission may also help them avail of various benefits and incentives provided by the government to promote exports. Therefore, it is advisable for Non-STP units to seek professional guidance and ensure compliance with all the applicable regulations.