STP Scheme


The STP Scheme is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media. As a unique scheme, it focuses on one sector, i.e. computer software. The scheme integrates the government concept of 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world. The unique feature of the STP scheme is the provisioning of single-point contact services for member units, enabling them to conduct exports operations at a pace commensurate with international practices.


  • Approvals are given under single window clearance system.

  • An STP unit may be set up anywhere in India.

  • Jurisdictional STPI authorities can clear projects costing less than Rs.100 million with Indian Investment.

  • 100% foreign equity is permitted.

  • All the imports of Hardware & Software in the STP units are completely duty free, import of second-hand capital goods are also permitted.

  • Re-export of capital goods is also permitted.

  • Simplified Minimum Export Performance norms i.e., "Positive Net Foreign Exchange Earnings".

  • Use of computer system for commercial training purposes is permissible subject to the condition that no computer terminals are installed outside the STP premises.

  • Sales in the Domestic Tariff Area (DTA) are permissible.

  • The capital goods purchased from the DTA are entitled for refund of GST.

  • Capital invested by foreign entrepreneurs, know-how Fees, royalty, dividend etc., can be freely repatriated after payment of Income Taxes due on them, if any

  • The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt of a State or Union Territory without payment of any duties after two years of their import.

  • 100 Percent Depreciation on computers and computer peripherals over a period of five years.

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