Non STP Registration

Non STP Registration

The Software Technology Parks of India (STPI) have formed with the primary motive to promote technology and software in India. The export of technology and software products comes within the ambit of this. Any unit claiming some form of benefits have to go for Non STPI registration. It is crucial to go for this form of registration to claim certain benefits.

Package Inclusions
  • Procedure for Non STPI Registration
  • Liaising with the regulatory authorities for registration process
  • Difference between STP registration and non STPI registration
  • Preparation of other reports
  • End-to-End Documentation Support
Non STP Registration

Non-STPI Registration- An Overview

The Software Technology Parks of India have been set up with the primary motive of export of software products and services. This body was set up the Ministry of Communication and Information Technology, Department of Electronics and Information Technology. (MeitY). Such initiatives have been brought out by the government of India to export and promote software products.

Non STPI registration is required for all entities that want to export some form of software outside India. Such form of registration is required when companies want to export some form of software from the country. When goods are exported from India they would pass through normal customs. This is applicable for physical goods.

However, when software products are exported by the country there are specific requirements which have to be complied by companies and other forms of entities. Software that is exported from India has to go through a particular form. Such form is known as the SOFTEX Form.

This form is utilised by businesses that want to export software outside India. Such initiative was introduced by the Reserve Bank of India (RBI). This circular was brought out in 13 September 2013 that for any form of export of software will have to declare the software that is exported outside the country. This would be for any software transactions lesser than USD 25,000. Hence all entities have to first register as a Non STPI unit.

Benefits of Non STPI registration

An entity can claim the following benefits of Non STPI registration:

Benefits of Non STPI registration

Software Export-

Any form of entity can claim the benefits of software export by registering themselves as a Non STPI Unit. When they register themselves as a Non STPI unit, then they would have to file the SOFTEX form with the RBI to be compliant with the law related to export of software.

Compliance with Law-

Being registered as a Non-STPI unit would give the entity additional compliance with the RBI. All entities which export software outside India have to be compliant with the rules related to customs law. Hence such units would be compliant with such laws.

Incentives for Software Export-

Registering as a Non-STPI unit would also have other forms of added benefits such as government incentives related to software exports.

Which Entities are allowed to be registered as Non-STPI Units?

The following entities can be registered as Non-STPI units:

Which Entities are allowed to be registered as Non STPI Units

Regulatory Authority/ Body for Non STPI registration

The primary regulatory authority for Non STPI registration is the Software Technology Parks of India (STPI). This body is an independent and autonomous body started by the Ministry of Electronics and Information Technology. The primary purpose of this body is to ensure that software is exported in compliance with the regulatory authorities in India. The RBI brought out the initiative of SOFTEX for export of software across India.

Eligibility Criteria for Non STPI registration

The applicant has to satisfy the following eligibility criteria for Non STPI registration:

An Entity-

To be eligible to register as a Non STPI unit, first and foremost the entity has to comply with the requirements of the STPI. Any form of entity can register as a non STPI unit.

Export of Software-

The entity has to have some form of software which can be exported outside the country. Software would include any form of technology which has some form of data communication. Any software in the data communication format would be eligible for export. This would also be applicable to any form of software below the value of USD 25,000.

Compliant with Laws-

The applicant has to also comply with the requirements of the RBI from time to time for the export of software outside India. Apart from RBI compliance, the applicant has to comply with the requirements of the STPI from time to time.

Procedure for Non STPI Registration in India

Any applicant who wants to export software outside India has to comply with the requirements of the RBI and STPI. The following procedure has to be adopted for Non STPI Registration:

  • The company or entity has to register with the STPI (Software Technology Parks of India) by submitting the application form (which is present in Annexure-I). This form has to be submitted to the director of the STPI. Along with this application, the processing fees of Rs. 1000/- has to be paid in the form of Demand Draft (DD) in favour of the Director.
  • After this process is complete the application would be scrutinised and the unit would be provided with a certificate. This certificate of registration is present in Annexure II which has a validity of three years. If an applicant has to go for STPI renewal, then the same must be done in the centre.
  • Before three months of the expiry of the certificate, the application for renewal for the same must be submitted.
  • However before being registered with the STPI, Non-STPI units would have to submit quarterly returns and annual returns in their respective formats (Annexure III and Annexure IV).
  • Once such units are registered, they would be able to submit requirements as per the SOFTEX forms. However, Non-STPI registered units would have to first submit export contracts of each individual software (which is present in Annexure V) before submitting the SOFTEX forms.
  • Any form of service charges which is levied on Non-STP units would be determined on the basis of the contracts which are considered.
  • The basis of SOFTEX is determined on the basis of slabs of the financial year. If the slab for a particular year is ended then the deposit has to be paid for the next slab.

What are the Post Compliance Requirements for Non STPI registered Units?

The following compliances have to be followed by Non STPI registered Units:

  • Non STPI units have to submit quarterly and annual reports as per the formats which are prescribed under Annexure III and Annexure IV.
  • Whenever a unit is registering as a Non-STPI then compliance has to be met as per the requirements of the RBI. This would also be considered when the SOFTEX Form has to be submitted.
  • Service Charges have to be paid to be in compliance with the requirement of the STP.
  • The non-STP unit shall be required to retain 20% of the service charges deposited in case the forms are required to be returned for non-certification of the Softex forms.

Service Charges Levied for Non STPI Registered Units

Annexure VI has the list of service charges which are levied for Non-STPI Units:

Export Contract or Sale of Software

Service Charge Annually (In Rs and Lakhs)

12.50 Lakhs

4000

12.50- 25 Lakhs

8000

Above Rs.25 Lakhs – Rs.50 Lakhs

16000

Above Rs. 50 Lakhs – Rs. 3 Crore

55000

Above Rs. 3 Crore – Rs. 10 Crore

1,10,000

Above Rs.10 Crore – Rs. 25 Crore

225000

Above Rs.25 Crore – Rs. 50 Crore

250000

Above Rs. 50 Crore – Rs. 100 Crore

350000

Above Rs. 100 Crore – Rs. 500 Crore

575000

Above 500 Crore – Rs. 1000 Crore

600000

Above Rs. 1000 Crore

650000

Documents Required for Non STPI Registration

  • Certificate of Incorporation of the Company
  • In case the entity is a partnership then the partnership deed must be submitted
  • In case the entity is a Limited Liability Partnership then a copy of the LLP agreement must be submitted
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Information on the Company which include background of the promoters
  • Future Plans
  • Manpower Plans of the Company
  • List of Capital Goods which are considered for procurement from India as well as abroad
  • Details of any form of Foreign collaborator
  • Details and Information related to the Floor Plan of the Unit
  • Any other information which is prescribed as per the requirements

How to reach Enterslice for Non STPI Registration

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Frequently Asked Questions

Usually it takes about 10 working days to secure this form of registration.

The Softex Form can be submitted in the following ways: quadruplicate, either in hard copy or in soft copy.

This form has to be submitted 30 days from the date of raising a particular invoice in the last month. If there are multiple invoices which are filed in the month, then the particulars related to softex can be submitted in Excel Format.

Yes as per the RBI circular which was dated in the year 2013 all companies that carry out any data communication services with a view of exporting such services would be required to comply with submitting the above form.

If the company is registered as a Non STP unit, then they would have to register each of their export contracts prior to submission of Softex against that contract.

Yes once a company is registered as a Non-STP unit, the certificate would be valid for a period of 3 years.

Yes the operations of a non STP unit can occur from any part of the county. However, the registration of the Non STPI unit has to take place from a particular location.

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