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Registration Procedure for Softex Certification with Software Technology Parks of India (STPI)
Overview
Companies involved in software development, IT, or IT-enabled services (ITES) can register with STPI under the Non-STP (Software Technology Parks) scheme for Softex certification. This certification is essential for companies exporting software and IT services.
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The Software Technology Parks of India (STPI) plays a critical role in promoting the IT and IT-enabled Services (ITES) industry in India. As an autonomous society under the Ministry of Electronics and Information Technology (MeitY), STPI focuses on fostering innovation, research, and development in cutting-edge technologies. Established in 1991, STPI has been instrumental in enhancing the export of software and supporting the growth of the technology sector in India. STPI's activities span across various emerging technologies, including IoT, Blockchain, AI, ML, and others. It also supports start-ups and product/IP creation in areas such as FinTech, Agritech, MedTech, Cybersecurity, Industry 4.0, and more. With its headquarters in New Delhi and over 60 centers across India, STPI has a widespread presence, making it a pivotal organization in the country's technological advancements. |
Steps for Registration
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Online Application Submission
- Companies must submit their application online through the STPI portal: https://stpionline.stpi.in.
- After filling out the application and uploading the required documents, a hard copy of the application, along with all the supporting documents duly self-attested by the Authorized Signatory, must be submitted to the STPI office.
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Required Supporting Documents
- Company Documentation:
- Memorandum and Articles of Association: Founding documents of the company.
- Board Resolution: Authorizing the establishment of the Non-STP unit and appointing authorized signatories.
- Promoter/Director/Partner Profiles: Background and identification details of key individuals in the company.
- Government Registration:
- Import Export Code (IEC): Required for all exporters.
- Permanent Account Number (PAN): Tax identification for the company.
- Company and Project Details:
- Project Report or Company Profile: Overview of the company and its projects.
- Lease/Rental Agreement: Proof of office space, documented on legal paper.
- Additional Forms:
- Form 32/Dir. 12: Details of appointment or resignation of directors.
- Form 18/INC 22: Address proof of the company.
- Bank Certificate: With Authorized Dealer (AD) code mentioned.
- Company Documentation:
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Application Fee
- A non-refundable processing fee of ?1180 (?1000 + 18% GST) must be paid. Payment can be made via UPI or Demand Draft (DD) in favor of “The Director STPI Bengaluru.”
- The payment receipt should be attached to the application.
Approval Process
- Once the application and documents are submitted, STPI will scrutinize them. If everything is satisfactory, the company will be registered under STPI for Softex certification, and a Registration Certificate will be issued.
Important Guidelines for Non-STP Units
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Certificate Validity and Renewal:
- The registration certificate is valid for three years. Companies must apply for renewal three months before the expiry of the certificate.
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Reporting Requirements:
- Registered Non-STP units must submit quarterly and annual reports to their respective STPI centers.
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Softex Certification:
- Non-STP units are entitled to submit Softex forms for certification of software exports as per RBI guidelines. Each export contract must be registered with STPI before submitting the Softex forms.
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Service Charges:
- Service charges for Non-STP units are based on the annual export turnover. The company must pay these charges in advance, based on projected exports for the financial year.
- If Softex forms are not certified due to incomplete information, STPI retains 20% of the service charges paid.
Service Charge Slabs for Non-STP Units
| Annual Export Turnover | Annual Service Charge |
|---|---|
| Up to Rs 12.50 Lakhs | Rs 4,000 |
| Rs 12.5 Lakhs – Rs 25 Lakhs | Rs 8,000 |
| Rs 25 Lakhs – Rs 50 Lakhs | Rs 16,000 |
| Rs 50 Lakhs – Rs 3 Crores | Rs 55,000 |
| Rs 3 Crores – Rs 10 Crores | Rs 1,10,000 |
| Rs 10 Crores – Rs 25 Crores | Rs 2,25,000 |
| Rs 25 Crores – Rs 50 Crores | Rs 2,50,000 |
| Rs 50 Crores – Rs 100 Crores | Rs 3,50,000 |
| Rs 100 Crores – Rs 500 Crores | Rs 5,75,000 |
| Rs 500 Crores – Rs 1000 Crores | Rs 6,00,000 |
| Above Rs 1000 Crores | Rs 6,50,000 |
Note: The service charges mentioned above are exclusive of GST.
Here is the relevant FAQ in a simplified table format:
| Question | Answer |
|---|---|
| Who can become a NON-STP unit under STPI and how? | Any company, partnership firm, or proprietorship involved in export-oriented software development or IT-enabled services can register as a NON-STP unit by submitting an application with supporting documents and a processing fee to STPI. |
| Is it mandatory for IT/ITES export companies to register as a NON-STP unit under STPI? | Yes, companies exporting IT/ITES through data communication links must register as a NON-STP unit with STPI to obtain SOFTEX certification, as per RBI guidelines. |
| What is the procedure for renewal of the Letter of Permission (LoP) after it expires? | The LoP is valid for 3 years. Renewal should be applied for within the last three months before expiry. There are no charges for renewal. |
| What is the processing time for registration of a Non-STP unit? | 10 working days from the submission of a complete application with supporting documents and processing fee. |
| What is the procedure for certifying SOFTEX forms from STPI once registered as a Non-STP unit? | Non-STP units must register each export contract before submitting SOFTEX forms. They must also submit projected imports for the next financial year and pay the applicable STPI service charges. |
| What is the proof of Non-STP registration? | A Registration Certificate with a validity of 3 years is issued by the jurisdictional STPI Director. Renewal must be applied for three months before expiration. |
| Can a Non-STP operate from any location in the country? | Yes, Non-STP operations can be carried out from any location in India, but registration must be done with the respective jurisdictional STPI Centre. |
| What are the entitlements of Non-STP registration? | Non-STP units can submit SOFTEX forms for certification as per RBI guidelines. Each export contract must be registered before submitting SOFTEX forms. |
| What is the mode of submission of SOFTEX? | SOFTEX forms can be submitted in soft copy or in hard copy in quadruplicate as per RBI guidelines. |
| Does the unit get back all four copies of SOFTEX forms after certification by STPI? | After certification, the distribution is as follows: Original to RBI, Duplicate to the unit, Triplicate to the Authorized Dealer (through the unit), and Quadruplicate is retained by STPI. |
| What is the frequency of submission of SOFTEX? | A monthly SOFTEX can be filed for all invoices raised in a month. It must be filed within 30 days from the date of the last invoice raised in that month. |
| What happens if the unit fails to submit SOFTEX forms on time to STPI? | The unit should approach the regional RBI office to get the delay condoned before submitting SOFTEX forms to STPI. |
| Who allots the SOFTEX numbers, STPI or RBI? | SOFTEX numbers are allotted by RBI. Both STP and Non-STP units can generate SOFTEX numbers online from the RBI website. |
| What is the time frame for certification of SOFTEX by STPI? | 30 days from the date of submission of a complete SOFTEX form with requisite documents. |
| What are the charges for certification of SOFTEX by STPI? | Service charges are based on the value of registered contracts, with different slabs for different export values. |
| What is the payment mode for service charges? | Service charges can be paid via Banker's Cheque, Demand Draft, Account Transfer, RTGS, NEFT, or wire transfer in favor of the Director, STPI. |
| What happens if the certified SOFTEX value exceeds the projected value for a particular year? | If the certified SOFTEX value exceeds the projected value, the unit must pay charges applicable to the next slab with due adjustment for the amount already paid. |
| Under what circumstances should the unit go for cancellation of SOFTEX form? | The unit should seek cancellation if the transaction/invoice does not receive remittance due to reasons like credit notes, penalties, or project cancellations. Approval must be obtained from RBI before reporting the cancellation to STPI. |
| What happens to the service charges paid in case of non-certification of SOFTEX by STPI? | STPI retains 20% of the service charges in the event of non-certification due to non-submission of required details. |
| What is the procedure for cancellation of certified SOFTEX forms? | Units must approach the regional RBI office for cancellation of certified SOFTEX forms. |
| Is there any reporting required by the Non-STP units? | Yes, Non-STP units must submit quarterly and annual reports to the respective STPI centers in the prescribed format. |
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Article Compiled by:-
~Mayank Garg
+91 9582627751
(LegalMantra.net Team)
Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including Newspapers, Journals, Bare Acts, Case Materials , Charted Secretary, Research Papers etc.