Non-STPI Registration

Non-STPI registration is crucial for businesses involved in exporting software or IT-enabled services. Non-STPI is an abbreviation for Non-Software Technology Parks of India. It is a registration procedure that enables companies to receive advantages for their software exports and also assists them in accessing Government incentives related to software exports. Any type of organization is eligible for Non-STPI registration as long as it possesses software that can be exported from India. On the other hand, all software companies located in India are required to undergo STPI registration, which operates under a 100% export-focused policy. Entities that are not a part of the Software Technology Parks (STP) can also be eligible for registering as Non-STPI units to receive Softex certification. The registration certificate remains effective for three years, with units needing to file quarterly and annual returns before renewal. Non-STP entities are required to pay a service fee that fluctuates based on the value of registered contracts, and the collection by STPI is categorized by slabs. In general, companies seeking to export software and receive benefits must have Non-STPI registration.

Purpose of Non-STPI Registration

The primary objective of Non-STPI Registration is to access the different advantages and incentives offered by the Indian government to boost technology and software exports from India. STPI benefits can only be claimed by units that are registered with STPI. The process of registering for Non-STPI requires working with regulatory bodies and distinguishing between STPI and Non-STPI registration.

Entities that qualify for Non-STPI Registration are any company or partnership firm engaged in creating export-focused computer software/IT-enabled services. STPI registration is required for companies that engage in IT/ITES exports via data communication links, by the RBI Master Circular on Softex Certification. Hence, obtaining Non-STPI registration is essential for companies that wish to export software products and services.

Non STPI Registration offers advantages such as tax benefits, duty-free imports of hardware and software, and more affordable bandwidth prices. Non-STPI units are also eligible to receive various government incentives and benefits, including reimbursement for export promotion, exemption for purchasing land and buildings, and investment in research and development. Non-STPI registration is crucial for software exports, allowing companies to access government incentives and enhance their competitive edge in the international market.

Entities in the IT and ITeS sectors can enjoy various advantages by opting for Non-STPI registration. Included are the following:

• Services exported from India are exempt from paying service tax.
• Exclusion from paying income tax on revenue generated from exporting software development.

Waiver of customs duty for imported goods needed for software development.

• Exclusion from central excise duty payment for domestically produced goods essential for software development.
• High-speed data communication links can be easily accessed.
• Access to facilities for incubation and additional support services offered by STPI.

In summary, Non-STPI Registration is a beneficial opportunity for companies in the IT and ITeS industries who want to export software from India. It provides numerous tax breaks and eligibility for multiple support services offered by STPI.

Any type of organization is eligible for Non-STPI registration. Yet, this organization must possess a certain structure of software that is allowed to be sent outside of India. The entity is also required to meet the following criteria:

• The minimum net worth required is INR 50 lakh.
• The turnover from the previous financial year must be at least INR 1 crore.
• The previous fiscal year must have had a favourable net profit.
• A minimum of two employees is required.

• Company PAN Card
• Articles of Association (AOA) and Memorandum of Association (MOA) 
• Certificate of Incorporation
• Board Resolution Authorizing the Director / Authorized Signatory to the Application Form and sign other relevant documents
• Company Declaration
• Premises Lease/Lease Agreement
• PAN Card, Aadhaar Card, Passport/Driving License of Director/Initiated signatory.

All applicants wishing to export software from India must meet the RBI and STPI regulations. The steps outlined below must be followed for Non STPI Registration.

• The organization must register with STPI (Software Technology Parks of India) by completing the application form found in Annexure I. This paperwork needs to be turned in to the head of the STPI. The processing charges are also required in conjunction with this application. A payment of 1000/- must be made through a Demand Draft (DD) payable to the Director.
• Once the process is finished, the application will undergo examination and the unit will receive a certificate. The validity of this registration certificate, found in Annexure II, is three years. When a candidate needs to renew their STPI, they must do so at the center.
• The renewal application must be submitted three months before the certificate expires.
• Before obtaining registration with the STPI, Non-STPI units will need to provide quarterly reports and annual reports in the specified formats (Annexure III and Annexure IV).
• After registration, these units can submit their requirements using the SOFTEX forms. Nevertheless, non-STPI registered units must initially provide export contracts for each software listed in Annexure V before submitting the SOFTEX forms.
• The service fees imposed on Non-STP units will be determined according to the contracts that are taken into account.
• The foundation of SOFTEX is established according to the financial year slabs. If the slab for a specific year is completed, the payment for the next slab must be made.

Post Compliance Requirements of NON-STPI Registered Units

Non-STPI registered units must adhere to the following compliances:

• STPI units are required to submit quarterly and annual reports in the formats specified in Annexure III and Annexure IV.
• If a unit is classified as Non-STPI, it must adhere to RBI's requirements for compliance. This aspect must also be taken into account when submitting the SOFTEX Form.
• Payment of Service Charges is necessary to meet the STP's requirement. 
• The unit not certified by STP must keep 20% of service charges if Softex forms need to be returned for non-certification.

The STPI license in India is advantageous for companies involved in software exports as it offers specific benefits and government perks. Nevertheless, it is important to acknowledge that the certificate of registration granted through Non STPI registration remains valid for three years. Upon expiration of the validity period, the unit must also renew its registration. It is crucial to remember this key factor to keep enjoying the advantages of Non-STPI registration, such as claiming perks for software exports and accessing government incentives. Furthermore, Non STPI units must also pay a service fee to STPI, based on the value of contracts recorded by the unit. Keeping a close eye on the expiration date is crucial for making sure benefits are renewed and continued on time. By following the correct guidelines and procedures, entities involved in software exports can potentially benefit from incentives through Non-STPI registration.

Service Charge Payable by Non–STPI Units 

STPI will charge a specific fee from Non-STPI units for services provided. The service charge to be paid is based on different slabs according to the value of contracts registered by Non-STPI units. The relevant service charge can be found in the table below-

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