Software Technology Parks of India
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About Software Technology Parks of India
Looking to achieve rapid growth in India’s booming IT and IT-enabled services (ITES) sector? Software Technology Parks (STPs) present a highly effective solution. These specialized zones offer attractive incentives such as tax benefits, full foreign ownership, and simplified operational procedures, making them ideal environments for IT businesses to scale and succeed. Exploring STPs can help enterprises unlock the immense potential of India’s IT ecosystem.
As per prevailing regulations under RBI Master Circular No. RBI/2013-14/14 dated 1st July 2013, RBI Circular No. 80 dated 15th February 2012, and RBI Circular No. 43 dated 13th September 2013, any company exporting IT or ITES services through data communication links is required to submit the Softex Form for certification. To obtain Softex certification from STPI (the designated authority), companies must become STP members either by registering under the STP scheme or by enrolling as a Non-STP unit with STPI. Notably, companies registered under the STP scheme enjoy additional benefits beyond Softex certification.
Any company, partnership firm, or proprietorship engaged in export-oriented computer software development or IT-enabled services may register as a Non-STP unit under STPI solely to avail Softex certification. To obtain Non-STP registration, the applicant must submit a duly completed application along with supporting documents to the jurisdictional Director, STPI, along with a processing fee of Rs. 1,000 payable via demand draft in favour of the Director, STPI.
A Letter of Permission (LOP) for Non-STP registration is issued for a validity period of three years. During the final three months prior to the LOP’s expiry, the Non-STP unit must approach the Director, STPI for renewal. No fees are applicable for the renewal of the LOP.
Non-STP units are required to register each export contract prior to submitting the corresponding Softex form. Additionally, the unit must furnish details of projected imports for the upcoming financial year and pay the applicable STPI service charges.
Upon successful registration as a Non-STP unit, the company is issued a Registration Certificate by the respective jurisdictional STPI Director, valid for a period of three years. Applications for renewal must be submitted at least three months before the registration expires.
Once registered with STPI as a Non-STP unit, companies become eligible to submit Softex forms for certification in accordance with prevailing RBI guidelines. However, it is mandatory for Non-STP units to register each export contract in advance before submitting the Softex form related to that contract.
The objectives of the Software Technology Parks of India are:
The objectives of the Software Technology Parks of India (STPI) are designed to foster growth in the IT and IT-enabled services (ITES) sector:
- Promote Software Development & Exports: Facilitate the growth and export of software, software services, IT/ITES, and Bio-IT solutions.
- Support Exporters: Provide statutory, administrative, and promotional services through STP/Electronics and Hardware Technology Park schemes or other initiatives entrusted by the Government.
- Data Communication Services: Offer advanced data communication solutions, including value-added services, for IT and ITES industries.
- Encourage MSMEs: Support micro, small, and medium enterprises by creating a conducive environment for entrepreneurship in IT and ITES sectors.
To apply for STP registration, applicants must submit a covering letter along with the following mandatory documents:
- A demand draft for Rs. 2,500 + GST in favour of “STPI – Hyderabad”
- Project report detailing the proposed IT/ITES unit
- Projected balance sheet for the next 5 years
- Projected cash flow statement for the next 5 years
- Memorandum of Association (MOA) & Articles of Association (AOA)
- Board resolution authorizing the signatory for submitting the documents
- List of Board of Directors
- Proof of a separate bank account exclusively for the STP unit (Banker’s certificate)
- Copy of the unit’s PAN card
- Copies of PAN cards of all directors
- Copies of passports of all directors
- Copy of IEC (Import Export Code)
- Profile of all directors
- Copy of lease deed or sale deed for the proposed STP unit location
- Details of export orders in hand or in the pipeline
STP Fees Slab as Per Project Export
Service charges for Non-STP units will be determined based on the value of the registered contracts. The service charge slabs for different export values are as follows:
| Export Turnover (Per Annum) | Annual STPI Service Charge |
|---|---|
| Up to Rs. 12.5 lakhs | Rs. 4,000 + GST |
| Up to Rs. 25 lakhs | Rs. 8,000 + GST |
| Rs. 25–50 lakhs | Rs. 16,000 + GST |
| Rs. 50–300 lakhs | Rs. 55,000 + GST |
| Rs. 3–10 Cr. | Rs. 1,10,000 + GST |
| Rs. 10–25 Cr. | Rs. 2,25,000 + GST |
| Rs. 25–50 Cr. | Rs. 2,50,000 + GST |
| Rs. 50–100 Cr. | Rs. 3,50,000 + GST |
| Rs. 100–500 Cr. | Rs. 5,75,000 + GST |
| Rs. 500–1000 Cr. | Rs. 6,00,000 + GST |
| Above Rs. 1000 Cr. | Rs. 6,50,000 + GST |
Registration Duration
The India BPO Promotion Scheme (IBPS), launched under the Digital India Programme, aims to incentivize the creation of 48,300 BPO/ITES seats across India. The scheme allocates seats to each state proportionally based on its population, with a total outlay of Rs. 493 Crore.
IBPS is designed to strengthen infrastructure and manpower capacity in smaller cities, fostering the next wave of growth led by the IT and ITES sectors in India.
Salient Features:
Key Features of the India BPO Promotion Scheme (IBPS)
- Financial Support: Provides up to 50% of the expenditure incurred on BPO/ITES operations towards capital expenditure (CAPEX) and/or operational expenditure (OPEX) on admissible items, with an upper limit of Rs. 1 Lakh per seat.
- Special Incentives: Targeted support for the employment of women and specially-abled persons.
- Employment Generation: Incentives for creating jobs beyond targets and promoting wider dispersal within the state, including rural areas.
- Support for Local Entrepreneurs: Encourages the growth and participation of local business owners.
- Special Consideration: Provided for hilly states such as Himachal Pradesh, Jammu & Kashmir, and Uttarakhand.
The India BPO Promotion Scheme (IBPS) has the potential to generate approximately 1.5 lakh direct employment opportunities, assuming three-shift operations. In addition, it is expected to create a significant number of indirect jobs, contributing to overall economic growth and skill development in the sector.