STPI Registration Overview

STPI (Software Technology Parks of India) Registration is a government initiative under the Ministry of Electronics and Information Technology (MeitY) aimed at promoting software exports from India. Through the STP Scheme, IT and ITeS companies can avail themselves of several tax, infrastructure, and operational benefits. It helps businesses streamline their international trade and compliance while enhancing credibility.

Key Features

• Duty-Free Imports: STPI units can import hardware and software without paying customs duties. This includes second-hand capital goods and allows for re-export of capital goods.
• Tax Exemptions: Units are eligible for tax exemptions, including 100% income tax exemption for a specified period.
• Simplified Export Norms: Units must achieve "Positive Net Foreign Exchange Earnings" as the minimum export performance criterion.
• Domestic Operations: Sales in the Domestic Tariff Area (DTA) are permissible, subject to certain conditions.
• GST Refunds: Capital goods purchased from DTA are entitled to a refund of Goods and Services Tax (GST).
• Depreciation Benefits: 100% depreciation on computers and computer peripherals over a period of five years.
• Repatriation of Earnings: Capital invested by foreign entrepreneurs, know-how fees, royalty, and dividends can be freely repatriated after payment of applicable taxes .

Special Eligibility (For Registration)

• Must be engaged in software development/IT services/ITES/export • Should have a business model focused on software/IT exports • Valid legal entity (Private Limited, LLP, etc.) • Physical office space or plan to acquire it • Capable of complying with periodic reporting

📄 Documents Required for STPI Registration

To register as an STP unit, the following documents are typically required: • Application form
• Certificate of Incorporation (for companies)
• Articles of Association and Memorandum of Association
• Monthly, Quarterly, and Annual Progress Reports
• Audited Financial Statements
• Manpower Plans
• Business Plans
• Details of Foreign Collaborators
• Internet Service Provider (ISP) invoice
• Rent Agreement
• SOFTEX Form
• Master Service Agreements (MSA) and other service agreements
• Employee details and wage bill
• Balance Sheet
• Fund Flow Statement
• Any other documents prescribed in the application form

🛠 Steps to Register as an STP Unit

1. Visit the STPI Online Portal: Go to stpionline.stpi.in.
2. Login: Use the credentials provided via email to log in.
3. Change Password: Update the system-generated password.
4. Select Unit Type: Choose "STP" under the Unit Management System.
5. Fill Application: Complete the application form with all required details.
6. Submit Documents: Upload the necessary documents.
7. Legal Agreement: Upon approval, sign a legal agreement and obtain a Private Bonded Warehouse License from the Customs Department .

✅ Compliance Requirements for STP Units

STP units must adhere to the following reporting and compliance obligations:

Compliance Type	Frequency	Description
Monthly Performance Report (MPR)	Monthly	To be submitted by the 7th of every month
Quarterly Report (QPR)	Quarterly	Includes export data, manpower, etc.
Compliance Type	Frequency	Description
Annual Performance Report (APR)	Annually	Details financials, exports, infrastructure, etc.
Softex Forms Submission	Ongoing	For foreign remittance and RBI compliance
IT Returns, GST Returns, TDS	As per law	Statutory financial returns
Customs Reporting	Periodic	For bonded goods and NFE calculation

Objectives of STPI

The primary objectives of STPI are:

• Promotion of Software Exports: Encourage and promote the export of software and IT-enabled services from India.
• Infrastructure Support: Provide state-of-the-art infrastructure facilities and other support services to software companies.
• Entrepreneurship Development: Foster entrepreneurship and innovation in the IT sector.
• Employment Generation: Create employment opportunities in the IT sector.

Frequently Asked Questions (FAQs)