NON-STPI REGISTRATION

Any business entity which is into the development of Export-oriented Computer Software/IT Enabled Services is required to register itself as a NON-STP unit under STPI to avail Softex certification.
Further, as per RBI Master Circular, Softex Certification is mandatory for any company that does IT/ITES exports through Data communication links.
For Non-Filing of Softex, funds received from outside India are treated as General Income rather than Export Income. Additionally, bankers may issue a letter for holding your account. This will lead to a violation of FEMA Regulations.

To comply with Softex Certification requirements, the business entity must be registered as a Non-STPI Unit.

Eligibility Criteria for Non-STPI Registration

Any type of organization is eligible for Non-STPI registration, provided it possesses a structure capable of exporting software outside India. The entity must meet the following criteria:

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

Non-STPI registration Benefits:

Entities in the IT and ITeS sectors can enjoy various benefits by opting for Non-STPI registration. These include:

1. Exemption from Service Tax on services exported from India.
2. Income Tax Exemption on revenue generated from software development exports.
3. Waiver of Customs Duty for imported goods required for software development.
4. Exemption from Central Excise Duty on domestically produced goods essential for software development.
5. Easy Access to High-Speed Data Communication Links.
6. Access to Incubation Facilities and additional support services offered by STPI

Procedure for obtaining STPI/ Non-STPI Registration

STEP 1 – Visit site https://stpionline.stpi.in/unit/jindex.php.

STEP 2 – Click on ‘I want to register as New Unit’.

STEP 3 – User application form will be displayed, wherein, following details are to be furnished-

1. Select ‘Organisation Type’ from the drop-down list.
2. Select ‘STPI Centre’ from the drop-down list.
3. Enter Organisation Name’, ‘Contact Person’, ‘Contact Person Mobile No.’, ‘Contact Person Email ID’ and comments, if any.

STEP 4 – On successful registration, ‘Login ID’ and ‘Password’ will be sent the registered email ID.

STEP 5 – Enter the ‘Login ID’ and ‘Password’ as made available via registered email ID.

STEP 6 – Enter the ‘New Password’ and ‘Confirm New Password’ to change the system generated password.

STEP 7 – Select appropriate Unit i.e., STP or EHTP or Non-STP or Incubation or Startups under the Unit Management System.

STEP 8 – Further details will be displayed based on the type of unit selected at STEPS above. Accordingly, fill up the requisite details and submit the form. Important notable points for obtaining registration as ‘Non-STP’ unit-

1. Before obtaining registration, Non-STPI units will have to submit quarterly and annual returns in their particular formats.
2. The applicant will have to pay INR 1,000 + GST as application fees.
3. The certificate of registration will be valid for a period of three years.

Commonly Asked Questions and Their Answers Regarding Non-STPI Registration and Softex Submission

In order to assist IT/ITES companies involved in software exports, particularly those not registered under the STP scheme, we have compiled a list of frequently asked questions along with their comprehensive answers. These cover a wide range of topics including registration requirements, renewal procedures, Softex form submission, entitlements, and applicable service charges. The intent is to provide clear guidance on regulatory compliance, operational flexibility, and financial obligations related to Non-STPI registration under the Software Technology Parks of India (STPI).

FAQ’s

1. Is it mandatory for IT/ITES companies into exports to get registered as NON-STP under STPI?
   1. Yes,As per RBI Master Circular No. RBI/2013-14/14 dated 1st July 2013 (Para B 15), RBI Circular No.80 dated 15th February 2012, and Circular No.43 dated 13th September 2013, any company exporting IT/ITES via data communication must submit Softex Forms to STPI (Designated Authority).
   2. To do this, the company must register as either an STP or NON-STP unit.
2. What is the procedure to renew a Non-STP unit Letter of Permission (LoP) after 3 years?
   1. LoP is valid for 3 years.
   2. During the last 3 months before expiry, the Non-STP unit should approach STPI for renewal.
   3. No charges apply for renewal of LoP.
3. How to certify Softex forms after Non-STP registration?
   1. Each export contract must be registered prior to Softex submission.
   2. Also, the unit must submit projected exports for the next financial year and pay applicable STPI service charges.
4. What is the proof of NON-STP registration?

A Registration Certificate (valid for 3 years) is issued by the jurisdictional STPI Director.
Renewal should be applied for 3 months before expiry.

5. Can a NON-STP operate from any location in the country?

Yes,Operations can be carried out from any location, but registration must be done with the respective jurisdictional STPI Centre.

6. What are the entitlements of NON-STP registration?

Registered NON-STP units are entitled to submit Softex for certification as per RBI guidelines.
However, they must register each export contract before submitting Softex.

7. Is Softex submission by NON-STP units mandatory?

Yes,As per RBI Master Circular No. RBI/2013-14/14 dated 1st July 2013, Circular No.80 dated 15th February 2012, and Circular No.43 dated 13th September 2013:

1. Any company who does IT/ITES exports through Data communication links needs to submit the Softex to Designated Authority for certification.
2. Softex must be filed within 30 days from the date of the last invoice raised in that month.

8.what are the Service Charges Payable by Non-STPI Units

1. STPI collects a specific service charge from Non-STPI units. The charge is based on a slab system, determined by the value of export contracts registered during the financial year.
2. Annual Service Charges Based on Export Turnover: