India is a global IT hub, and companies in the Information Technology (IT) and Information Technology Enabled Services (ITES) sectors benefit from special government support. One of the most important initiatives to boost this sector is the Software Technology Parks of India (STPI) scheme. STPI helps IT/ITES companies gain fiscal benefits, infrastructure support, and easier exports through a recognized setup.

If you are running or planning to set up an IT/ITES business that involves software development, BPO, call centers, or tech-enabled services, registering with STPI can bring you various benefits.

This article explains the registration process, legal provisions, eligibility, required documents, and answers common questions in simple words.

Legal Basis of STPI Registration

The STPI scheme was introduced by the Government of India under the Ministry of Electronics and Information Technology (MeitY) in 1991. It was notified under:

• Foreign Trade Policy (FTP) 2015-2020

• Income Tax Act, 1961 (Section 10A for legacy units)

• Software Technology Parks of India (STPI) Autonomous Society Rules

STPI operates under Section 25 of the Companies Act, 1956 (now Section 8 of the Companies Act, 2013), being a non-profit organization.

What is STPI and What Does It Offer?

Software Technology Parks of India (STPI) is an autonomous body under MeitY that supports IT/ITES units by providing tax exemptions, infrastructure, and export benefits. It operates Technology Parks in various cities across India and offers single-window services to help tech companies grow and export their services globally.

Who Needs IT/ITES STPI Registration?

Companies offering IT/ITES services such as software development, mobile app development, BPO, KPO, IT consulting, or data processing can register under the STPI scheme. If your company is engaged in 100% export of software services or products, you are eligible to apply for this scheme.

Benefits of STPI Registration

• Duty-Free Import Companies can import capital goods without customs duty, making operations cost-effective for startups and growing tech firms.

• Single-Window Clearance STPI provides clearances under one roof, making it easier to handle documentation, licensing, and statutory filings.

• Income Tax Benefits (legacy units) Older units registered before 2011 enjoyed tax exemptions under Section 10A of the Income Tax Act.

• Infrastructure Support STPI centers offer plug-and-play office space, high-speed internet, and data communication facilities at subsidized rates.

• Simplified Exports STPI helps companies file Softex forms and obtain clearance for software exports efficiently.

• Foreign Exchange Management The scheme allows 100% Foreign Direct Investment (FDI) through automatic route under RBI and FEMA regulations.

Types of STPI-Registered Units

There are two primary types:

• STP (Software Technology Park) Units These are 100% export-oriented units engaged in development or export of software and IT services.

• Non-STP Units These are IT/ITES companies operating in STPI parks without opting for the export scheme benefits.

Eligibility Criteria for STPI Registration

• The company must be registered in India under the Companies Act.

• The entity must be engaged in software development or IT-enabled services.

• 100% of services must be exported to claim STP unit status.

• A detailed business plan must be submitted for approval.

Documents Required for STPI Registration

• Certificate of Incorporation Mandatory document proving that the company is legally registered under the Companies Act.

• Memorandum & Articles of Association These documents define the company’s business objectives and internal operational rules.

• Board Resolution A resolution authorizing a director or representative to act on behalf of the company.

• Project Report It includes company profile, business model, investment plan, and export projections.

• Lease Agreement Proof of business premises either owned or leased by the applicant company.

• Director KYC Documents Includes ID proof, address proof, and PAN of directors and promoters.

• Audited Financial Statements For existing businesses, the last two years’ audited accounts are required.

• Application Form The prescribed form available on the STPI website must be filled and submitted online.

Step-by-Step Process for STPI Registration

Step 1: Company Setup

Incorporate a private limited or limited company under the Companies Act in India.

Step 2: Choose Location

Decide on operating from your own premises or within a notified STPI center.

Step 3: Prepare Application

Download the STPI registration form from your regional STPI website and complete all sections.

Step 4: Project Approval Committee (PAC)

The application is reviewed by a committee to assess business viability and export capacity.

Step 5: Sign Legal Agreement

Once approved, a legal agreement is signed between the company and STPI authority.

Step 6: Bonding with Customs

Execute a Legal Undertaking (LU) and Custom Bond under Section 65 of the Customs Act, 1962.

Step 7: Start Operations

Once bonded and approved, begin IT/ITES operations as a registered STP unit.

Post-Registration Compliances

• Quarterly Reports STPI units must file performance and progress reports every quarter.

• Softex Filings Export of software services must be reported in Softex forms as per RBI guidelines.

• Statutory Audit Ensure books are audited regularly and meet STPI reporting requirements.

• Renewal of Bond The customs bond must be renewed as per the tenure agreed with the authority.

Termination or Exit from STPI Scheme

If a company wants to exit the STPI scheme:

• It must inform STPI authorities and settle customs duties (if any).

• Assets imported under duty exemption must either be paid for or re-exported.

• Exit compliance requires de-bonding certification and closure of STPI agreements.

FAQs on STPI Registration

- What is STPI registration?

STPI registration allows IT/ITES companies to operate under a scheme designed for 100% software exports.

- Is STPI registration mandatory for all IT companies?

No, only companies seeking STPI export benefits and duty exemptions need to register.

- How long does it take to get STPI registration?

It typically takes 30–45 working days after submission of complete documents.

- Can a startup apply for STPI registration?

Yes, as long as the business model involves export of software or IT-enabled services.

- Are there any income tax exemptions now under STPI?

Section 10A exemptions were available until 2011. New units do not receive income tax holidays.

- What is the role of the Project Approval Committee?

The PAC evaluates your business proposal and recommends whether to approve your registration request.

- Can a company apply for both SEZ and STPI benefits?

No, STPI and SEZ benefits are mutually exclusive; you must choose one.

- Can a company with domestic clients register under STPI?

No, STPI units must primarily export 100% of their services or products.

- What is a Softex form?

Softex form is used to report export of software services and submit details to STPI and RBI.

- Is foreign investment allowed in STPI units?

Yes, 100% Foreign Direct Investment (FDI) is allowed in STPI units under automatic route.

Conclusion

IT/ITES registration with STPI opens up opportunities for software exporters to access infrastructure, compliance support, and government benefits. For businesses aiming to scale globally, especially in the tech space, STPI offers a solid administrative framework. From customs duty benefits to regulatory clearances, the STPI scheme can help transform a regular IT business into an export-focused, globally active entity.