STPI stands for 'Software Technology Parks in India.' It falls under the purview of The Ministry of Electronics and Information Technology. Software Technology Parks (STP) are a completely export-oriented scheme for the development and export of computer software via data communication connection or physical media (including export of professional services). Apart from STP businesses, which are obliged by law to get STPI registration, Non-STP entities involved in software exporting are also required to register themselves as a Non-STPI unit in order to obtain the Softex certification.
Reasons for non-STP registration
When physical goods are exported they go through customs and this is how they are tracked. As software is not a physical good in the traditional sense, Softex forms are used to keep a track on the total software exported in a given time period. Therefore, Softex forms are the equivalent of a customs form in the IT space. Even transactions less than $25,000 have to be required as per the law and as such non-STPI registration is mandatory.
There is no import or customs charge.
Through the automated procedure, the unit can get 100 percent FDI (Foreign Direct Investment).
Benefits from income tax and other government programmes
Allows you to take advantage of government incentives for software exports
Ensures proper adherence to the legislation
Any India company, subsidiary of a foreign company, or branch office of a foreign company can apply for STPI status. To register, one simply has to visit https://stpionline.stpi.in/unit/jindex.php and click on 'Register as New Unit'. Upon completing the required steps (entering organisation name, contact person, phone number, email id), the user must then login and select the appropriate unit (STP or EHTP or Non-STP or Incubation or Startups under the Unit Management System.)
The following are the documents required
Certificate of Incorporation in case of the Company
Articles of Association and Memorandum of Association (AOA and MOA)
Monthly Reports, Quarterly Reports and Annual Performance Reports
Workings related to profit and loss accounts
Audited Financial Statements
Man Power Plans
Future Plans of the Business
Details of the Foreign Collaborator
Invoice Copy related to Internet Service Provider
Copy of the Rent Agreement
Master Service Agreements (MSA) and other Forms of Services Agreement
Information pertaining to the number of employees and the wage bill
Information on the Time Frame
Fund Flow Statement
Any other Document which is prescribed under the application Form
Monthly Progress Reports
Quarterly Progress Reports
Annual Progress Reports
Maintenance of Sales
Maintenances of Fixed Asset Registers
Maintenance of Foreign Inward Remittance Certificate file (FIRC) & Bank Realization Certificate (BRC) file and Maintenance of Contract file.