Software Technology Park (STP) Scheme

Brief

The STP Scheme is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media. As a unique scheme, it focuses on one sector, i.e. computer software. The scheme integrates the government concept of 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world.

Eligibility

• Company Registration: Registered under the Companies Act, 2013, or as a Limited Liability Partnership (LLP).
• Minimum Export Turnover : At least 50% of the annual turnover must be earned from export of software or IT services, hardware exports, or AVGC content.
• Technology Focus : Primarily engaged in development and/or delivery of technology-driven services or products.
• Other Compliance : Meet additional criteria related to net positive foreign exchange earnings, minimum investment in infrastructure, and adherence to statutory regulations.

Fund / quantum

• The STP scheme primarily offers indirect financial benefits through :
• Duty exemption on import of hardware and software
• Tax benefits
• Single window clearance
• Infrastructure facilities

Tenure

• Active

Benefit tags

• Facilitation Benefits

• Benefits of Software Technology Scheme :
• Projects that cost Rs.100 million or less with Indian investment are cleared by jurisdictional software technology park scheme authorities.
• It permits 100 percent foreign equity.
• All hardware and software imports into STP units are duty-free, and the import of second-hand capital goods is also permitted.
• Capital goods re-export is permitted.
• Capital goods purchased from the Domestic Tariff Area are eligible for benefits such as excise duty exemption and reimbursement of Central Sales Tax.
• Capital invested by foreign entrepreneurs, such as know-how fees, royalties, and dividends, can be freely repatriated after payment of income taxes due.

• Company Registration: Registered under the Companies Act, 2013, or as a Limited Liability Partnership (LLP).

• Minimum Export Turnover : At least 50% of the annual turnover must be earned from export of software or IT services, hardware exports, or AVGC content.

• Technology Focus : Primarily engaged in development and/or delivery of technology-driven services or products.

• Other Compliance : Meet additional criteria related to net positive foreign exchange earnings, minimum investment in infrastructure, and adherence to statutory regulations.

• The STP scheme primarily offers indirect financial benefits through :

• Duty exemption on import of hardware and software

• Tax benefits

• Single window clearance

• Infrastructure facilities

• Active

Online / portal

Official application / information link: https://stpi.in/en/stp-scheme

Source listing: https://www.startupindia.gov.in/content/sih/en/government-schemes.html