- What is STP and what are the advantages of becoming a STP unit?
- Who can become a STP unit and how?
- Do I need to submit any project proposal to STPI?
- What kind of investments are allowed?
- What is the minimum time frame it takes to become a STP unit?
- What is a bonded warehouse?
- Can I operate from a different location?
- Being a STP unit, can I take up domestic projects?
- What is Capital Goods (CG)?
- What is the process to be followed after I become a STP unit?
- Can I expand my operation whenever the need arises?
- What is an IE Code?
- What is a DTA?
- What is import and how can I do the same under STP?
The Software Technology Park (STP) 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.
- The major attraction of this scheme is single point contact service to the STP units.
- STP units are exempted from payment of corporate income tax upto 2010.
- 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
- A branch office of Foreign Company
In order to become certified member unit under STP scheme, approval from the competent authority is required. The following steps are involved for obtaining approval:
- An application in the prescribed format for registering and establishing a STP unit is to be submitted to Software Technology Parks of India.
- The application should be along with the details of the Software Project in terms of strengths, area of expertise, marketing arrangement, business plans, means of finance.
Yes, along with the STP application a detailed project proposal/report covering the details on area of expertise, core competency, marketing arrangement, business plans and means of finance needs to be submitted.
100% Foreign Direct Investment, NRI-Repatriable, NRI-Non Repatriable, Resident Holding and combination thereof is allowed
Depending on the pattern of the investment the following time frame is involved
Type of investment Authority for Approval Time
100% Resident Holding Director, STPI One Week
100% Foreign Direct Investment FIPB 4 to 6 Weeks
Yes operations under the STP Scheme can be carried out from any location in the country.
Yes, subject to meeting the Minimum Export Performance norms, STP unit can do business in the DTA.
Q. What is Capital Goods (CG)?
Capital Goods is the Hardware and infrastructure the unit is envisaging to procure for a value by the way of import, to set up the STP.
Subsequent to the approval granted by STPI, the approved unit will be signing a legal agreement, with a list of capital goods and Indigenous purchases for attestation to obtain Private Bonded Warehouse License from Customs Department.
A unit operating under STP scheme can always expand its operations or move to a new location
Importer Exporter code is a unique code number issued/required to every Importer-Exporter. An IE code be obtained by the companies operating under STPI by filling necessary application.
The units operating under STP Scheme can access Domestic Tariff Area (DTA) up to the level of 50% of the worth of software exported in value terms.
A unit operating under STP Scheme can import capital goods (i.e., Computer Hardware & Software and basic infrastructure support) without paying any Customs Duty, as may be levied to the importer in normal cases.
Incubation at STPI-Bangalore
Q1.Who can apply for the Incubation facility at STPI-Bangalore?
Any new Indian company, who is into innovative Technology/ Service and whose date of incorporation is within a year from the date of application for the Incubation facility at STPI, is eligible for availing the Incubation facility. The contact details and the Company profile have to be sent across. If the Company profile complies with the above criteria, then the company would be intimated accordingly.
Q2.How to apply for the Incubation facility?
Any company fulfilling the above criteria can request for the Application form from the group mentioned below and submit it to STPI for further approval from the competent authority:
Software Technology Parks of India
The company may pay a visit to STPI to have a tour of the Incubation facility.
Q3.What are the documents required for availing the Incubation facility?
The company needs to submit the hardcopies of the MoA and AoA of the Company to STPI, before executing the License agreement.
Q4.What is the License Term for availing the Incubation facility at STPI?
The license term is initially for a period of 11 months which is extendable by 6 months twice.
Q5.What is the tariff for the Incubation facility?
Rs.5,000/- per work station per month, which includes electrical power, work place, air-condition and internet connectivity (32Kbps per Workstation).
Q6.What are the facilities provided in the Incubation?
- 19 incubating rooms of varying capacity - 5 seaters to 18 seaters.
- 3 meeting rooms
- Voice and data connectivity
- Common Library and General Utilities.
- Hardware Support & Services
- Training room / Auditorium for 100 people
- Integrated Data Centre / Server Room facility
- Business Support Services: Accounting, HR, Legal & Administrative Support
Q7.Is PC/ System provided by STPI at the Incubation facility?
No, PC / Desktop/ Laptop has not been provided at the Incubation facility, as most of the companies prefer to work using their own Laptops.
Q8.How the License Term of an Incubation unit can be terminated?
A notification has to be sent to STPI at least one month in prior, requesting for the termination of the license term. All dues would have to be cleared before the termination of license. Any damages caused to the infrastructure, during the operation of the company at specific Incubation unit, would be charged accordingly.