Software Technology Parks of India (STPI) is an autonomous society under the Ministry of Communication and Information Technology, Department of Electronics and Information Technology, Government of India. It has been established to boost software exports from India by providing essential infrastructural and regulatory support. STPI administers the STP (Software Technology Park) and EHTP (Electronic Hardware Technology Park) schemes, enabling IT and ITES businesses to operate seamlessly while enjoying various tax and regulatory benefits.

Businesses in Hyderabad that export software or IT-enabled services (ITES) must comply with STPI regulations, including Non-STPI registration and SOFTEX form submission. At VPS & Associates, Hyderabad, we assist companies with STPI registration, Non-STPI certification, SOFTEX form filing, and regulatory compliance to ensure smooth business operations.

Why is Non-STPI Registration Required? Understanding the SOFTEX Form

Unlike physical goods, which pass through customs clearance during export, software is exported digitally via internet or data communication links. To regulate and track software exports, the Reserve Bank of India (RBI) has mandated the submission of SOFTEX forms, which are certified by STPI instead of Customs.

As per the RBI circular dated 13th September 2013, all software exporters, irrespective of transaction value (even below US$25,000), must declare all exports in SOFTEX forms. This makes Non-STPI registration mandatory for any company exporting software or IT services.

At VPS & Associates, Hyderabad, we provide expert services in Non-STPI registration, SOFTEX certification, and regulatory compliance to ensure your business remains fully compliant with RBI and STPI norms.

Benefits of Becoming an STP Unit

The Software Technology Park (STP) scheme is a 100% export-oriented initiative designed to promote software development and exports through digital channels or physical media. Key benefits of STP registration include:

• Single-Window Clearance: STPI provides a centralized point of contact for all approvals.
• Duty-Free Imports: All hardware and software imported by STP units are exempt from customs duties.
• Import of Used Capital Goods: Second-hand equipment can be imported without additional restrictions.
• Exemption from Certain Local Taxes: Various state and central tax benefits may be available.
• Flexibility in Operations: STP units can operate across different locations without additional formalities.

Who Can Apply for STP Registration?

The following entities can register as an STP unit in Hyderabad:

• Indian Companies involved in IT/software exports.
• Subsidiaries of Foreign Companies operating in India.
• Branch Offices of Foreign Companies engaged in software development and exports.

To register as an STP unit, companies must:

1. Submit an application to Software Technology Parks of India (STPI).
2. Provide detailed project information, including expertise, business model, financial sources, and marketing strategy.
3. Obtain approval from the competent authority for STP unit certification.

Once approved, the company is eligible to avail STP benefits and must comply with periodic reporting and SOFTEX form submission requirements.

What is a Bonded Warehouse?

A Private Bonded Warehouse is a facility approved by Customs Authorities where STP units can store imported goods without paying duties until they are used for software export processing. This helps businesses optimize cash flow and reduce upfront costs.

Can STP Units Undertake Domestic Projects?

Yes, STP units can execute domestic projects, provided they meet the Minimum Export Performance (MEP) norms. A specific percentage of revenue must come from exports, while the remaining portion can be derived from domestic business operations.

Who Can Register as a Non-STP Unit?

Any company, partnership firm, or sole proprietorship engaged in IT/software development or IT-enabled services (ITES) exports can register as a Non-STP unit under STPI. This registration is required to obtain SOFTEX certification, which is mandatory for reporting software exports to RBI.

As per RBI Master Circular No. RBI/2013-14/14 (dated 1st July 2013), all IT/ITES businesses exporting services via data communication links must submit SOFTEX forms for certification. This requires registration as either:

• An STP Unit (Software Technology Park Unit)
• A Non-STP Unit under STPI

Renewal of Non-STPI Registration – Letter of Permission (LoP)

A Letter of Permission (LoP) for Non-STP units is valid for 3 years. Businesses must apply for renewal within the last three months before expiration by submitting a request to the Director of STPI. No renewal charges are applicable.

Filing and Submission of SOFTEX Forms

• Companies must submit a consolidated monthly SOFTEX report in an RBI-prescribed Excel format for all invoices generated within a month.
• The SOFTEX form must be filed within 30 days from the last invoice date.
• If a company fails to file SOFTEX forms on time, it must approach the regional RBI office to get the delay formally condoned before submitting it to STPI.
• RBI is responsible for issuing SOFTEX numbers, which both STP and Non-STP units can generate online through RBI’s portal.

For consultation on SOFTEX filing, Non-STPI registration, and STPI compliance, reach out to VPS & Associates, Hyderabad.

Other Mandatory Business Registrations in Hyderabad

Apart from STPI registration, businesses in Hyderabad must also comply with other statutory registrations, including:

• GST Registration – Mandatory for businesses with annual turnover exceeding the prescribed limit.
• Shops & Establishments Act (Telangana) – Required for businesses operating within Telangana.
• Professional Tax Registration – Applicable to salaried professionals and business entities.
• MSME (Udyam) Registration – Benefits for Micro, Small & Medium Enterprises (MSMEs).
• Employees’ Provident Fund (EPF) Registration – Required for establishments with 20+ employees.
• Employees’ State Insurance (ESI) Registration – Mandatory for companies with 10+ employees.
• Import Export Code (IEC) – Required for businesses involved in import/export activities.
• Trade License (GHMC) – Necessary for commercial operations in Hyderabad.