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TAXAJ Corporate Services LLP - Financial Doctors

STPI/Non-STPI Registration for Export of Softwares

The STP Scheme is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media. As a unique scheme, it focuses on one sector, i.e. computer software. The scheme integrates the government concept of 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world. The unique feature of the STP scheme is the provisioning of single-point contact services for member units, enabling them to conduct exports operations at a pace commensurate with international practices.

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About This Plan

Filing of Forms with RBI for Declaration of Export of Services

Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

Depends upon case to case basis

Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Registration of STPI Unit in India for Software Exports.
Who Should Buy
  • Business or Individual planning to avail incentives for export their software services through STPI.
How It's Done

    • Purchase of Plan
    • Expert Assigned
    • Share the details as requested
    • Preparation of Application Form and Filing with RBI
Documents Required
  1. Company Profile with 5 year Projected financial statements.
  2. Director's profile.
  3. Address Proof (Lease Deed/Rent Agreement etc.)
  4. Copy of MOA/AOA (if any)
  5. Board resolution for reg. with STPI (In case of company)
  6. IEC certificate.
  7. Copies of agreement with customer located outside India.
  8. Other Documents to be shared later on.

Scheme Benefits and Highlights

  • Approvals are given under single window clearance system.

  • An STP unit may be set up anywhere in India.

  • Jurisdictional STPI authorities can clear projects costing less than Rs.100 million with Indian Investment.

  • 100% foreign equity is permitted.

  • All the imports of Hardware & Software in the STP units are completely duty free, import of second-hand capital goods are also permitted.

  • Re-export of capital goods is also permitted.

  • Simplified Minimum Export Performance norms i.e., "Positive Net Foreign Exchange Earnings".

  • Use of computer system for commercial training purposes is permissible subject to the condition that no computer terminals are installed outside the STP premises.

  • Sales in the Domestic Tariff Area (DTA) are permissible.

  • The capital goods purchased from the DTA are entitled for refund of GST.

  • Capital invested by foreign entrepreneurs, know-how Fees, royalty, dividend etc., can be freely repatriated after payment of Income Taxes due on them, if any

  • The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt of a State or Union Territory without payment of any duties after two years of their import.

  • 100 Percent Depreciation on computers and computer peripherals over a period of five years.

Electronic Hardware Technology Park (EHTP) Scheme

The EHTP Scheme is a 100% export-oriented scheme for the development and export of electronics hardware.

Scheme Benefits and Highlights

Units established under EHTP Scheme may carry out the following activities:

  • Manufacture any item of electronic hardware for exports.

  • Manufacture of both hardware and software in an integrated manner for exports.

  • R&D activity, maintenance, testing and calibration services for electronics products meant for exports.

    • EHTP units may import all types of goods, including capital goods free of duty as defined in the Export Import (EXIM) Policy, required by it for manufacture, services, production and processing or in connection therewith.

    • The units shall also be permitted to import goods, including capital goods, free of cost or on loan from clients required for the approved activity.

    • EHTP units may procure goods required by them for manufacture, services, production and processing or in connection therewith, duty free, from bonded warehouses.

    • Simplified minimum export performance norms i.e. “Positive Net Foreign Exchange Earnings”.

Objectives of STPI

Software Technology Parks of India (STPI) is a premier S&T organization under Ministry of Electronics and Information Technology (MeitY) engaged in promoting IT/ITES Industry, innovation, R&D, start-ups, product/IP creation in the field of emerging technologies like IoT, Blockchain, Artificial Intelligence (AI), Machine Learning (ML), Computer Vision, Robotics, Robotics Process Automation (RPA), Augmented & Virtual Reality, Animation & Visual effect, Data Science & Analytics for various domains like Gaming, FinTech, Agritech, MedTech, Autonomous Connected Electric & Shared(ACES) Mobility, ESDM, Cyber Security, Industry 4.0, Drone, Efficiency Augmentation, etc.

STPI is establishing CoEs/Technology incubators for building India’s leadership in the above mentioned technology areas across the country in a collaborative manner. Till date, STPI has launched the following 22 Centres of Entrepreneurship (CoEs):

STPI is aspiring to become the largest technology startup ecosystem in the country and has been endeavouring to transform the country into a software product nation as envisaged in National Policy on Software Products (NPSP) 2019. In order to achieve this, STPI has evolved a collaborative model wherein government, industry, academia, and other stakeholders are playing a vital role for providing end-to-end support to startups. Aligned with this vision for promoting R&D, innovation, product & IPR creation, STPI is providing state-of-the-art infrastructure, skilling, mentoring, market connect and other necessary support pan-India to startups.

STPI has also embarked on launching Next Generation Incubation Scheme (NGIS), a futuristic incubation scheme to offer comprehensive support & services and extend seed funding to startups from 12 STPI incubation facilities pan-India at Agartala, Bhilai, Bhopal, Bhubaneswar, Dehradun, Guwahati, Jaipur, Lucknow, Prayagraj, Mohali, Patna & Vijayawada under a common umbrella. To further strengthen the startup ecosystem in the country, STPI has set up RF Lab, EV Lab, AV Lab, IoT Lab, MoCap Lab, AI/DA Lab, Innov IoT Lab, CV/AI Lab, ESDM Lab, Health Informatics Lab, MediElectronics Lab, VR/AR Lab, Fintech SandBox, FabLab, SMARTLab, and Atal Incubation Centre (AIC) to enable startups leverage these facilities for building innovative technology products and solutions in an indigenous manner.

Since its inception in 1991, STPI has been working towards equitable and inclusive IT-led growth pan-India which in turn has helped promoting Software exports, Science, Technology & Innovation (STI) and Software product development. With 11 jurisdictional directorates and 63 centres, STPI has expanded its presence pan-India to support IT/ITeS Industry. Working closely with all stakeholders, STPI has played a key role in transforming the country as the preferred IT destination, a fact that aptly proven by the stupendous growth in exports by STPI-registered units from Rs. 52 crores in 1992-93 to Rs. 6,28,330 crores in 2021-22, which is approx. 50% of the national software exports and 2.3% of India’s GDP. The first historic event that triggered the high-octane growth of IT Industry in India was the establishment of three Software Technology Parks (STPs) at Bengaluru, Bhubaneswar and Pune in 1989. Consequently, in 1991 these three STPs were merged to create a single entity Software Technology Parks of India.

To promote the development and export of software and software services including Information Technology (I.T.) Enabled Services / Bio-IT.

To provide statutory and other promotional services to the exporters by implementing Software Technology Park/ Electronics and Hardware Technology Park Schemes and other such schemes which may be formulated and entrusted by the Government from time to time.

To provide data communication services including value added services to IT / IT Enabled Services related industries.

To promote micro, small and medium entrepreneurs by creating conducive environment for entrepreneurship in the field of IT / IT Enabled Services.

Functions of STPI

  • To Perform all functions in the capacity of the successor to the erstwhile Software Technology Park Complex which were taken over by the Software Technology Parks of India
  • To Establish and manage the infrastructural resources such as integrated infrastructure including International communication / Data center / Incubating facilities etc. for 100% export oriented units and to render similar services to the users other than exporters.
  • To Undertake other export promotional activities such as technology assessments, market analysis, market segmentation as also to organize workshops/exhibitions/seminars/conferences etc.
  • To Facilitate specialized training in the niche areas to meet the above objectives.
  • To Work closely with respective State Government and act as an interface between Industry and Government.
  • To Promote secondary and tertiary locations by establishing Software Technology Parks of India presence to promote Software Technology Park / Electronics Hardware Technology Park Scheme, and promotional schemes announced by Government.
  • To Promote entrepreneurship through incubation programmes / seed funds / IP development and other awareness programmes.
  • To Assist State Governments in formulating IT policies and liaison for promoting the IT industries in respective states to achieve an exponential growth of exports.
  • To Promote quality and security standards in the I.T industries.
  • To Work jointly with venture capitalists for providing financial assistance to the IT industries.
  • To Provide Project Management and Consultancy services both at national and international level in the areas of expertise of Software Technology Parks of India.

Service Charges Levied for Non STPI Registered Units

Export Contract or Sale of Software

Service Charge Annually (In Rs and Lakhs)

12.50 Lakhs

4000

12.50- 25 Lakhs

8000

Above Rs.25 Lakhs – Rs.50 Lakhs

16000

Above Rs. 50 Lakhs – Rs. 3 Crore

55000

Above Rs. 3 Crore – Rs. 10 Crore

1,10,000

Above Rs.10 Crore – Rs. 25 Crore

225000

Above Rs.25 Crore – Rs. 50 Crore

250000

Above Rs. 50 Crore – Rs. 100 Crore

350000

Above Rs. 100 Crore – Rs. 500 Crore

575000

Above 500 Crore – Rs. 1000 Crore

600000

Above Rs. 1000 Crore

650000