Software Technology Parks of India

Posted on November 23, 2022

Software Technology Parks are an organization under the The Ministry of Electronics and Information Technology (MeitY).

These parks were created to focus on a diverse range of IT related subjects.

The STPI was established in 1991 by MeitY. The main object of STPI is exporting software products from India.

There are 62 Centres of STPI. Its headquarters are in Delhi.

Function of STPI

STPI covers a wide range of IT related topics. Some of the subjects covered are given below –
Artificial Intelligence (AI)
Block Chain
Internet of Things (IoT)
Machine Learning (ML)
Cmputer Vision
Robotics
Augmented Reality
Data Science and Analytics

STPI works are distributed across several domains. The common areas where STPI has reach are –
FinTech
EduTech
AgriTech
MedTech
Cyber Security
Drone technology

Benefit of registering with STPI

STPI provides infrastructure for IT start ups. They also help with skilling, mentoring and market connect.

There are two types of registrations, STPI unit and non-STPI unit. A company registered as an STPI unit does not have to pay import duties.

The company can show the import invoices to STP and get approval, and the custom duty will be waived. Re-export of capital goods is also permitted.

Companies can also accept 100% foreign direct investment. Foreign investors get to repatriate proceedings from their investments after payment of income tax ( if any ).

Sales in domestic service areas are permitted.

Companies also get to write off monetary value of goods with 100% depreciation in about five years.

Any IT company which does exports through data communication links, must submit a softext form. The designated authority in this case is STPI.

How to obtain STPI registration

Registration of new unit under STPI is online and can be availed here – https://stpionline.stpi.in/unit/jindexr

Following items will be needed –

  1. Informaion on Profile of the company and 5 years projected financials.
  2. Profile of the Director or the owner.
  3. Authorised Dealer code from your bank (where you have current account).
  4. Proof of physical address
  5. Copies of Memorandum or Association or Article of Association ( if any )
  6. The Board resolution for registration with STPI
  7. The Import Export Code Certificate
  8. Agreement copies with the customer located outside India

The Authorised Dealer code is a fourteen digit numerical code provided by your bank where you have current account. The Memorandum of Association or Article of Association is applicable for a regiatered company.

The Board Resolution is a document providing proof that your company board has agreed for registering with STPI. Of course it is applicable in case of a registered company with a board only.

The Import Export Code (IEC) certification is a mandatory identification number for any imports or exports. This number of issued by the Directorate of Foreign Trade (India).

All the required documents should be signed and sealed with self attestations. You also have to pay a processing fee, the details of which can be obtained from this site – https://stpi.in/

The STPI certificate is valid for three years from the date of issuance and can be renewed.

Annual Fee of STPI

STPI charges an annual fee which varies depending on the turnover of the company per annum. You can find the details of rates on STPI websites of the respective region.