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An Overview of STPI Registration

A government-recognized organisation called Software Technology Park of India (STPI) was founded in India in 1991 as a 100% tax-free zone for software exports. The Ministry of Communication and Information Technology oversees all STPIs. According to the Income Tax Act of 1961, STPI registration is required in order to benefit from tax relief on exports to other countries. To promote computer software and other related IT products in a nation, the government has established these STPIs as Export Oriented Units (EOU). For better administration, STPI registration includes a few specific norms and regulations that one should follow when applying. These STPIs are 100% foreign owned and benefit from tax breaks, duty-free imports, and CST refunds on each transaction.

Goals of India's Software Technology Parks (STPI Registration)

The software technology parks in India have the following goals:

  • Promotion and Export: The primary goal of the Software Technology Parks of India is to encourage the creation of software products in the nation. In addition, one of the primary objectives of STPI Registration is to provide export incentives for technology and R&D.
  • MSME Contribution: India's MSME sector is largely made up of micro, small, and medium-sized businesses. The Government has launched several programmes under India's STPI system to encourage the development of software in various fields.
  • Boost Data Communication Services and Volume: Through this society, more communication services can be made available to many industries.
  • Improve software quality and user expectations: It is possible to improve the quality of life through such social programmes. This will have an immediate impact on societal demands for consumer happiness.

Benefits of Joining the India Software Technology Parks

By thinking about the SPTI registration, the following advantages are obtained:

  • No import taxes or customs fees: Products that are imported into the nation are exempt from import duties under this programme. In India, these goods are not subject to any import taxes. There is some exemption from particular customs.
  • No Central Excise in the Purchase of Goods: Excise will not apply to any unit that is registered through the Software Technology Parks of India system. The system of excise duty on software items will be affected by this.
  • Importation of foreign machinery: Such plans will make arrangements for the import of specific machinery. These items can be imported using the hire buy and leasing systems.
  • Direct foreign investment: The unit can obtain 100% foreign direct investment under this plan using the automated approach. Any foreign direct investment in the creation of software services would fall under the automatic route and not need government permission in advance.
  • Relief from Income Tax>: Such units are eligible for income tax holidays and other government advantages under the Income Tax Act of 1961.
  • Green Card: Benefits from the government are available to any STP included in the Software Technology Parks of India. Any STP registered unit with a green card is eligible to take advantage of speedy processing and other features under such programmes.

Eligibility Requirements for STPI Registration

The Software Technology Parks of India requires the following qualifying requirements in order to register a STP:

  • Any Entities: The applicant must first meet the requirements of the particular entity for the STPI registration process. Only the following organisations are eligible to submit an application to set up a STPI in India:
  1. A company founded in India.
  2. A foreign business seeking to establish operations in India.
  3. An Indian branch office of a foreign business. Such a branch office must be formed in accordance with the RBI Act's branch office formation provisions.
  • Type of Proposal: The applicant must specify the STP unit proposal type in order to be eligible for STP unit registration in India. For the establishment of a STP (Software Technology Parks of India), the following components can be taken into consideration:
  1. Establishing a new Software Technology Park Unit (STP unit).
  2. Renewing the STP unit's Certificate of Registration.
  3. Converting to a STP unit from any other unit.
  4. Transforming a DTA into a STP unit.
  • Provide an undertaking: The applicant must offer an assurance for the same for registering the unit in India at the conclusion of the application. For the purpose of exporting software-based technology from India, such an undertaking must be true and accurate.

Documents for STPI Registration

The STP unit under Software Technology Parks of India must have the following Documents:

  • Workings related to profit and loss accounts.
  • SOFTEX Form
  • Monthly Reports, Quarterly Reports and Annual Performance Reports
  • Master Service Agreements (MSA) and other Forms of Services Agreement
  • Man Power Plans
  • Invoice Copy related to Internet Service Provider
  • Information pertaining to the number of employees and the wage bill
  • Information on the Time Frame
  • Future Plans of the Business
  • Fund Flow Statement
  • Details of the Foreign Collaborator
  • Copy of the Rent Agreement
  • Certificate of Incorporation in case of the Company
  • Balance Sheet
  • Audited Financial Statements
  • Articles of Association and Memorandum of Association (AOA and MOA)
  • Application form
  • Any other Document which is prescribed under the application Form

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Steps for STPI Registration under India's Software Technology Parks

Such a request must be for the export of Indian software technology and products. When submitting an application to register a STP unit in India, the following procedure must be taken into account:

  • Visit the website online: To start the process of establishing a STP unit, the applicant must go to the website https://www.stpi.in/. The candidate must then navigate to the login tab.
  • To fill out the application, sign up on the website: The applicant must set up a password for the portal and register his email address. The applicant will submit all necessary data to the Software Technology Parks of India website at this step. The applicant should proceed to the "I want to register as New Unit" link in the login application. The applicant must then submit the necessary registration details. The applicant will then receive a username and password after this has been added. A captcha code will be created after this information is entered on the login page. The candidate must then click login after completing this step.
  • Applicants can also download the application: Online users can also download the application. Downloading this is possible at http://www.mah.stpi.in/formats_body.html.
  • Fill out the required information: The application for STPI Registration under Software Technology Parks of India is required to submit all the information necessary to complete the registration procedure. 

To complete the registration process, the applicant must submit the required information:

  1. Name, Address, Location, and Activities Performed by the Entity or Undertaking.
  2. IEC (Import Export Code) Numbers, PAN Numbers, GSTIN Numbers, Income Tax Numbers, and Bank Information (Including Account Number and IFSC Code).
  3. The application must also state whether the applicant has another STP that is registered. In addition, if the promoters are handling the registration of another STP, information about them must be provided.
  4. The kind of the project, whether it be a private limited company, public limited company, or another kind of business, must also be stated.
  5. Additionally, a brief history of the applicant's actions must be provided.
  6. Types of Projects Executed, The application must also include information on the capital expenditures made by the company, projected exports for a five-year period, value, or the need for capital goods.
  7. Any information pertaining to overseas partnerships or collaborations that the applicants have entered into must be disclosed.
  8. Information on any relevant technology agreements that have been signed between the applicant and the overseas collaborator must be given.
  9. Performance in terms of product exports must be mentioned in the application as well.
  10. The applicant must also mention areas of software development. If the candidate is concentrating on IT, R&D, ITES, or some innovative machine learning programming, this will be taken into account. To open an SPT unit under Software Technology Parks of India, the applicant must meet all of the aforementioned standards.
  • Offering the Software Export Undertaking: The applicant must offer an undertaking for software export in the next stage. The applicant must guarantee in this undertaking that the information submitted complies with the regulations of the Ministry of Electronics and Technology.
  • Submit the Application to the Authority: The applicant must submit the application to the Director of Software Technology Parks of India for the STP unit registration process as the last stage. The authority must sign the application and include the firm seal and other information. The company's office seal must appear on every page of the application.
  1. The applicant is required to pay the fees. You must pay a cost of Rs. 2,950.00 (Rs. 2500.00 + Taxes) using NEFT or RTGS. This fee would only cover the costs associated with handling the STPI registration application under Software Technology Parks of India. GST will be included in such application and processing fees.
  2. The applicant is required to include the undertaking with the application when submitting it.
  • Reporting requirements that STP units must adhere to: The following reporting standards must be correctly fulfilled in order to comply with Software Technology Parks in India:
  1. Monthly Reports—Progress reports must be provided by the seventh of each month following the end of the preceding month.
  2. Quarterly Reports - In order to meet the requirements of STPI units, units must also submit quarterly reports.
  3. Performance Reports: Performance reports and STPI progress must be filed in accordance with the rules.
  4. Accounts: Separate bank accounts must be maintained. This would apply to a unit that engages in both domestic and international activity. Even though the separate legal entity principle is still in effect, there must still be a procedure for the division of components.
  5. Foreign Exchange Compliance: The applicant must additionally present annual compliance information about foreign exchange.

Frequently Asked Questions

The acronym STP stands for Software Technology Park. These organisations are founded under the primary supervision of India's Software Technology Parks. This newly developed unit is primarily a 100 percent export-oriented unit. The creation and export of software products are examples of such exportable services.

Setting a shop in one of India's Software Technology Parks has numerous benefits, including:

  1. The main draw of this strategy is starting a business.
  2. Units established under STP are eligible for a greater number of exemptions.

The following are the critical areas in which the applicant must provide detailed information in the application:

  1. Information about the company.
  2. There are various types of software involved.
  3. Subject Matter Expertise.
  4. Expenses for the project.

Yes, the project specifications, as well as predicted funds and other information, must be submitted to India's software technology parks.

Foreign investments in the following categories are permitted:

  1. Foreign Direct Investment via the Automatic Route- This route allows for 100% foreign investment.
  2. Foreign investment that is considered repatriable.
  3. Foreign investment that is considered non-repatriable.

STPI registration takes place according to government timetables.

Bonded warehouses are any warehouses that have been declared under the STPI scheme for exports.

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