- 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 2011.
- 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.
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.