Software Technology Park Scheme

The Software Technology Park (STP) Scheme is one of the four schemes implemented for the development of the software sector in India. Along with the other schemes, the STP scheme was launched under the Ministry of Electronics and Information Technology. STP scheme has been funded by the Indian Government to promote EOUs and Export Processing Zones (EPZ) and the concept of Science Parks / Technology Parks, operating elsewhere in the world). The Scheme aims at industrial development of the country through the creation of an environment conducive to technology-based industry and encouraging entrepreneurship amongst the disadvantaged groups/regions.

The Objective of the Scheme

The objective of the Software Technology Park Scheme (STPS) is to promote the development and commercialization of software products in a global network. The STP scheme is a 100% export-oriented scheme for the development and exports of computer software, including the export of professional services using communication links or physical media. In simple words, the objective of the STP Scheme is to facilitate the development and expansion of computer software export potential of the Indian Information Technology (IT) industry, to increase the contribution of IT-enabled Services towards India’s exports, and to help in the country’s economic growth.

Eligibility of the Scheme

• An Indian company
• A subsidiary of a foreign company
• A branch office of a foreign company

Benefits of the Scheme

• The approved company can establish an STP unit anywhere in India
• Jurisdictional STPI authorities clear projects costing less than Rs.100 million with Indian Investment
• 100 % Foreign Equity will be permitted
• The STP units will be entirely exempt from import duty on their purchases of hardware and software. Second-hand capital goods will also be permitted
• Re-Export of capital goods will also be permitted
• The use of computer systems for commercial training purposes will be permissible, provided that no computer terminals are installed outside the STP premises
• The sales in the domestic tariff area (DTA) are limited to 50 percent of the value of exports.
• Capital goods purchased from the domestic tariff area (DTA) will be exempt from excise duty, and also entitled to reimbursement of central sales tax.
• Computers and their accessories can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public-funded research establishments, organizations of the government of India, or a state or union territory without fulfillment of any duties after two years from the date of importation.

Documents Required to Become a Member

To gain certification under the STP Scheme, permission from the competent authority-the Director of STPI Mumbai is required. The following documents are required for obtaining this permission:

• Gist of application
• Application in triplicate
• Project report
• Board resolution
• Memorandum or Articles of association
• Export order/contract or MOU
• List of Directors
• Importer – Exporter Code number
• Proof of STP location premises ( e.g. Leave and license)
• Valid data communication proof (e.g. Receipt of payment, service acceptance letter)

Where to Apply: https://www.startupindia.gov.in/content/sih/en/government-schemes/software-technology-park-scheme.html

Software Technology Park Scheme Details

Processing Fees: Rs. 2500.00

Scheme Validation: Still Active

Service charges on the basis of projected exports: