Difference Between STPI and Non-STPI Registrations

Difference Between STPI and Non-STPI Registrations

Blog Article

When setting up an IT or software export business in India, understanding the difference between STPI and Non-STPIregistrations is crucial. Here's a simple guide to help you decide which one suits your business.

What is STPI?
The Software Technology Parks of India (STPI) is a government initiative to promote software exports. Key benefits include:

Tax Exemptions: Corporate income tax exemption for a specified period.
Duty-Free Imports: No duties on hardware and software imports.
Domestic Projects: Can undertake domestic projects subject to export norms.
To become an STPI unit:

Submit an application with project details.
Sign a legal agreement upon approval.
Obtain a Private Bonded Warehouse License.
What is Non-STPI?
Non-STPI registrations cater to IT/ITES companies not primarily focused on exports but still compliant with regulations.

Key benefits include:

Softex Certification: Essential for compliance with RBI when exporting via data communication.
Process: Submit an application with documents and a fee. Renewal needed every three years.
Key Differences
Target Audience: STPI for export-oriented companies; Non-STPI for IT/ITES without primary export focus.
Tax Benefits: STPI offers tax exemptions; Non-STPI doesn't.
Import Benefits: STPI allows duty-free imports; Non-STPI does not.
Compliance: STPI requires a Private Bonded Warehouse License; Non-STPI requires Softex certification compliance.
Conclusion
Choose STPI registration if your focus is on software export for tax and import benefits. Opt for Non-STPI if your business involves IT/ITES services but isn’t primarily export-oriented.

Understanding these differences helps you align your business with regulatory requirements effectively.