STPI Registration Procedure - Mumbai

STPI Registration Procedure 

Important aspects of the application form are: 

• => Company profile
• => Capital structure
• => Pattern of Shareholding in the paid up capital
• => Projection for capital goods requirement
• => Manpower Projections
• => Export earnings
• => Foreign collaborations.
• => Area of expertise.
• => Estimated time frame for commencement of operation and exports
• => Communication requirement
• => Space requirement / Built –up land.

List of Enclosures

Following copies of documents shall be the enclosures:

1. Memorandum & Articles of Association for registered firms (public and private limited)
2. Partnership Deed for partnership firms
3. Board Resolution:


1. Board resolution copy mentioning the willingness to get registered with STPI as an 100% exporting unit. Also, mention the name of the authorized signatory to sign all the relevant documents.
2. For maintaining separate books of accounts for the unit under STP Scheme as per Para 6.11.1 of Foreign Trade Policy-chapter 6.
3. For maintaining distinct identity as per Para 6.11.1 of Foreign Trade Policy-chapter 6.
4. Permanent Account Number - (Enclose copy)
If it is not available, kindly apply to Income Tax office of the respective area. 

1. Importer-Exporter Code (IEC) - Enclose copy.
If not available, apply to Director General of Foreign Trade (DGFT).

Following documents are required for IEC application:
a. Covering letter on the letter head of the firm to STPI & DGFT
b. Application Form consisting of:

  1. Appendix 1-A
  2. Attestion of the photograph by the banker
  3. One extra photograph

c. Demand Draft for Rs.1,000 in favour of 'Joint Director General of Foreign Trade, Mumbai'
d.Banker Certificate. e. Copy of Permanent Account Number (PAN)
f. Declarations on company letter head:


• There is no non-resident interest / investment in the Firm / Co.
• The Proprietor / Partner / Director / Karta of the Firm / Co. is/are not associated as Proprietor / Partners / Directors / Karta in any other Firm/Co. which is in the caution list of RBI.
• /We hereby certify that none of the Director / Partner / Proprietor / Karta of the Firm / Co. is a Director / Partner / Proprietor / Karta of the Firm/Co. which has come to the Adverse notice of DGFT.

g. In case of NRI interest / investment - submit copy of RBI approval
h. The acknowledged copy of application to DGFT should be enclosed.


1. Banker's Certificate:

A certificate from your bank covering duration of maintaining company account with the Bank.


2. RBI permission in case of Foreign Equity:

100% foreign equity investment in the companies is permissible under the 'Automatic Route' of RBI. The company has to intimate RBI and a copy should be submitted to STPI.


3. Form 32 giving List of Directors on Board:

Submit Copy of Form 32 certified by Registrar of Companies. Applicable in case of Private / Public Ltd companies.


4. List of Directors / Partners with specimen signature:

List of Directors / Partners of the company with names, addresses, contact numbers, email, specimen signature. For proprietary concern, details of proprietor.


5. Project Report:

There is no prescribed format for project report. Following are some important aspects to be covered in the Project Report :

a. Background of company and promoters.
b. Area of expertise in software development and IT-enabled services.
c. Profiles of key personnel in the organisation.
d. Strengths and achievements of the company like potential market for software     products / project developed by the company and in-house expertise in the area of     specialization.
e. Financial arrangements and feasibility of the proposed setup.
f. Marketing tie-up, if any.
g. Export performance for last three years in cases of existing firms & last years     Balance Sheet.
h. Export Orders in hand / in pipe-line / under registration.
i. Brochures of the software products / company or Annual Report for the previous    year.

Others :
• Space.
• Wage Bill.
• Manpower Used(Manhours/Months/Years).
• Type of work.
• Type of people working.
1. Project Manager
2. Project Leader
3. Senior Programmer
4. Junior Programmer/Operators


6. Export Order:


STP registration can also be obtained even without submitting the export order. But, it is preferable to have export order in hand at the stage of STP registration. If available, submit copy of any of the following:


• Export order
• Contract
• Purchase Order
• Agreement signed with the foreign client


Company may also provide details of the export orders in pipeline in case of non-availability of any firm order in hand.


7. Proof of Premises:


STP unit can operate from owned or leased/rental premises.
- For owned premises, submit Sale deed.
- For leased/rental premises, submit Leave and License Agreement.
- Floor plan of the proposed STP premises to be attached.


8. List of proposed Plant & Machinery in Four Copies


List of proposed Plant & Machinery signed by authorized person on the company letterhead. The projections viz. Imports and Indigenous purchases mentioned in the list should be as per the application form.


9. Application Processing Fees and Annual Service Charges


Application processing fees and 3 years advance Annual Service Charges considering the projected export turnover.

The revised annual service charges are effective from January 2010:

Application Processing Fees	Rs. 2,500/-
Export Turnover as per Invoice raised	Amount of Annual Service Charges
Exports upto Rs. 25 lakhs per annum	Rs. 8,000.00/-
Exports above Rs. 25-50 lakhs per annum	Rs. 16,000.00/-
Exports above Rs. 50 lakhs-3 Crore per annum	Rs. 55,000.00/-
Exports above Rs. 3 crore-10 crore per annum	Rs. 1,10,000.00/-
Exports above Rs. 10 crore-25 crores per annum	Rs. 2,25,000.00/-
Exports above Rs. 25 crore-50 crores per annum	Rs. 2,50,000.00/-
Exports above Rs. 50 crore-100 crores per annum	Rs. 3,50,000.00/-
Exports above Rs. 100 crore-500 crores per annum	Rs. 5,75,000.00/-
Exports above Rs. 500 crore-1000 crores per annum	Rs. 6,00,000.00/-
Exports above Rs. 1000 crores per annum	Rs. 6,50,000.00/-

The payment should be in form of Demand Draft in favour of "Software Technology Parks of India",payable at Mumbai by Mumbai units, Pune by Pune unit and payable at other respective locations"

Note: While filling up the projections etc. It is suggested that the applicant should be in touch with STPI officials for proper guidance for submission of application

STPI-Mumbai will process the application and letter of approval will be issued. Application processing time frame is three days.

STP Scheme Duration:

The STP scheme duration is valid for five years.
Following are the mandatory requirements of STP Registration:
1. Legal Agreement with STPI.
2. Custom Bonding.
3. Minimum Export Obligation.
4. Commencement of Commercial Production.
5. Reports.

1. Legal Agreement with STPI

Legal Agreement is mandatory as Commitment for fulfillment of Terms and Conditions of letter of approval. It will be executed for granting five years of operations. The Legal Agreement will be executed on Rs. 50/- Stamp Paper. It should be signed by the duly authorized person in STP premises.

2. Custom Bonding

Every STP unit is required to get the premises (the STP location) custom bonded either it avails the benefits of Customs Duty (Import) /Excise Duty (Indigenous) exemption or not.

At present, custom bonding is a mandatory requirement.

Units operating under the STP scheme, require a private bonded warehouse license under Section 58 of the Customs Act 1962, and with a bond manufacturing facility under section 65. 

Procedure for Custom Bonding

Application for Custom Bonding is to be made to the Jurisdictional Asst. Commissioner of Customs in the prescribed format Customs will issue "Private Bonded Warehouse License"

The application should be submitted with the copies of the following documents :

• Application for Custom Bonding.
• Copy of STPI - MUMBAI Approval Letter
• Copy of Green Card issued by STPI MUMBAI.
• List of proposed Plant & Machinery of Capital Goods attested by STPI.
• Agreement with STPI for Export Commitment.
• Process of Manufacture (Software Development Process).
• Self Removal Procedure (S.R.P.) approval request letter.
• Supplementary Terms and Conditions, duly accepted by us on Rs. 100/- Stamp Paper to be notarise.
• Solvency Certificate.
• B – 17 Bond on Rs. 100/- Stamp Paper to be notarise.
• Affidavit on Rs. 100/- Stamp Paper to be notarise.
• Insurance for Fire & Burglary. (Policy in the name of Commissioner of Customs, Mumbai, A/c – Company name with STP Unit address).
• Bank Guarantee.
• Declaration for Custom.
• Memorandum and Articles of Association.
• Lease Agreement of Premises or Ownership supporting details.
• Ground Plan of Premises.
• List of Directors with Specimen signatures.
• Copy of Importer Exporter Code No.
• Copy of Permanent Account No. (PAN No.).
• Authorized Signatory Board Resolution / Authority Letter

B-17 Bond

It is a general bond to be executed with surety / security. The B-17 Bond has to be executed at 25% of the custom duty value. Where the units are unable to give surety they can execute the bond with the security for 5% of the value of the bond in the form of Bank Guarantee on stamp paper of Rs. 100/-

• Solvency certificate for Rs.10 Lacs from Bank - It is a certificate issued by the banker of the STP Unit in lieu of a Rs.10 Lacs Fixed Deposit Account maintained by the unit with the banker stating the financial fitness of the company up to the limit of Rs.10 Lacs to meet the financial obligation if any without any obligation or liability on the banker.
• Affidavit on Rs.100/- stamp paper - An affidavit is an undertaking given by the STP unit to Customs stating that none of the Directors or Partners or CEO's or Proprietor is/are involved in Customs & Excise duty evasion cases or any other smuggling activities.
• Supplementary Terms and Conditions to Customs by the unit, printed on Rs.100/- stamp paper. 

Inspection of Premises

Before issuing the Bond License, an inspection of premises is conducted by Customs. The requirement for issuing the Bond License under Section 58 and 65 of Customs Act 1962 are :

• Adequate arrangement for light
• All windows, ventilation, space to be properly barred/secured with strong shutters that can be fastened firmly from inside.
• Arrangement for locking door firmly from security point of view.
• Precaution against fire.
• Dry & Airy
• Insurance Policy favoring Commissioner of Customs for the Bond value covering Fire and Burglary.
• Single door Entry and Exists.

3. Minimum Export Obligation

As per the Import-Export Policy, 2002-2007, EOU/EHTP/STP Unit shall be a net foreign exchange earner. Net Foreign Exchange (NFE) earning shall be calculated cumulatively for a period of five years from the commencement of production, according to the formula as under:

Positive NFE = A - B > 0

A : FOB value of exports by the EOU/EHTP/STP unit.
B : is the sum total of the CIF value of all imported inputs and the CIF value of all imported capital goods, and the value of all payments made in foreign exchange by way of commission, royalty, fees, dividends, interest on external borrowings during the first five year period or any other charges. "Inputs" mean raw materials, intermediates, components, consumables, parts and packing materials.

4. Commencement of Commercial Production

STP unit has to commence it's commercial production within the stipulated time frame according to the application form. After commencing the operations, the STP member should intimate in writing to STPI.

5. Reports

Export Import Performance report :

1. Monthly Basis. (Download)2. Quarterly Basis. (Download)3. Annually Basis. (Download)4. Any other reports as and when required.
Reports should be submitted online at STP Member

On Going Activity - STPI Certification

During the STP membership duration (five years), STPI will offer the following services :

• Issuance of certificates & permission.

Import Certificate, Excise exemption, Procurement certificate, Transfer of capital goods, Capital Goods (CG) Enhancement, Change of name, Change of location, Expansion of STP location, Permission for DTA Sales, Permission for Re-export, Permission for De-bonding, etc.


• Approval of Contracts / Export Orders etc. with foreign clients.
• Software Exports Certification
• CST Reimbursement
• Marketing Guidance
• Various circulars guidelines etc. 

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