STPI Scheme

STPI Scheme
Image

STPI Scheme

The Software Technology Parks Scheme under the IT Ministry Govt. of India is a 100% Export Oriented Scheme for undertaking Software Development/IT enabled services for Export using Data Communication links or in the form of physical exports including export of professional services.

Scheme Benefits & Highlights

The STPI scheme continues to be one of the most attractive options for IT and software companies due to its wide range of benefits:

  • 100% customs duty exemption on imports of capital goods and raw materials.
  • Equipment can be imported on loan or lease basis.
  • All relevant equipment/goods including second hand equipment can be imported (except prohibited items).
  • 100% GST exemption on indigenous procurement.
  • Green card enabling priority treatment for government clearances / other services.
  • 100% Foreign Direct Investment permissible through 'Automatic Route' of RBI.
  • Sales in the DTA (Domestic Tariff Area) up to 50% of the foreign exchange earned by the unit.
  • Units can be set up anywhere in India.
  • Units need to achieve a positive NFE (Net Foreign Exchange).

Who Can Register Under the STPI Scheme?

The scheme is ideal for businesses engaged in:

Software development: Application development, product development, enterprise solutions.

IT-enabled services (ITES): Call centers, BPOs, data centers, medical transcription.

Professional services exports: Consulting, technical support, training.

Tech startups and SMEs: Looking to access infrastructure and fiscal benefits.

Whether you are a startup, a mid-sized IT firm, or a global enterprise setting up operations in India, the STPI scheme provides a level playing field for export-focused IT/ITES businesses.

STPI Registration Process

While the scheme offers multiple benefits, STPI registration requires careful documentation and adherence to compliance norms. As experienced STPI Consultants, we guide you through the following steps:

Application filing: Submission of application to the STPI authority with project report, company incorporation documents, and board resolutions.

Project report preparation: Includes details of proposed operations, export projections, employment generation, and infrastructure requirements.

Letter of Permission (LoP): On approval, STPI issues a Letter of Permission, which serves as the official approval to operate under the scheme.

Image

Frequently Asked Questions

1. What is STPI Registration?

STPI registration is the process of registering your IT/ITES unit with the Software Technology Parks of India (STPI) to avail fiscal and operational benefits.

2. Who can apply under the STPI scheme?

Any company engaged in software development, IT-enabled services, or export of professional services can apply.

3. How long does STPI Registration take?

Typically, the process takes 4–6 weeks, depending on documentation and state-level office processing.

4. Can startups apply for STPI Registration?

Yes, the scheme is open to startups and SMEs, making it highly beneficial for new businesses in the IT sector.

5. Do you provide end-to-end assistance?

Yes, we handle the entire process – from documentation and submission to approvals and ongoing compliance support.

6. What are the key benefits of registering under the STPI Scheme?

Benefits include duty and GST exemptions, 100% FDI through automatic route, and flexible location setup across India.

7. Is STPI Registration mandatory for IT companies?

ANo, but it’s highly recommended for export-oriented IT/ITES units to enjoy fiscal and compliance benefits.

8. What documents are required for STPI Registration?

Generally, company incorporation documents, project reports, export projections, and details of directors are required.

9. Do you assist with ongoing compliance after registration?

Yes, we handle project filings, renewals, audits, and all periodic submissions to STPI.

10. What happens if compliance is delayed or missed?

Delays can result in penalties or cancellation of benefits, but we ensure that timelines are always met.

11. Can existing IT companies migrate to STPI benefits?

Yes, existing units can apply if they meet the eligibility and export requirements under the scheme.