SOFTWARE TECHNOLOGY PARK OF INDIA
Foreign Company Registration
Post Incorporation Compliance
Indian Ministry of Electronics and Information Technology established a society, Software Technology Parks of India (STPI) with the purpose of encouraging, promoting and boosting export of software from India. STPI provides consulting, training and implementation services. Services include system integration, installation, operations, network design, maintenance of application networks and facilities in varied areas. It is an export oriented scheme targeting the development and export of computer software including export of professional services..
Documents for the application to the STPI to set up a 100% EOU include:
1. Application form in the prescribed form.
2. Memorandum and Article of Association.
3. Board Resolution (BR) for setting up STPI Unit and persons authorized to sign and submit the application form.
4. Resume of person heading the operation / CEO.
Detailed project report/ business plan consist of:
- Company profile.
- Promoters background.
- Units Area of expertise/Services offered.
- Marketing Strategy / marketing Arrangements.
- Manpower plan.
- Future plans.
- Brief write up on the parent company and the activities proposed to be carried out by the Indian entity (In case foreign equity participation)
- List of capital goods proposed to be procured from abroad and within India.
- Details of foreign collaborator (whether financial or technical)
- Copy of floor plan of the unit certified by an architect.
- Copy of the rent agreement, if any.
- Copy of invoice of the Internet service provider.
Financials statement like:
- Cost of project & means of finance
- Projected profit and loss account
- Projected balance sheet
- Projected cash flow/fund flow statement
- Export workings as per transfer pricing guidelines where ever applicable
- Financials for a 5 year period projecting income from operations, capital expenditure & cash flows
- Detail for aggregate foreign exchange comings & outgo for first 5 years
- Detail for estimated numbers of employees and wage bill for first 5 years.
Other documents like:
- Copy of service agreement signed with parent company / clients / PO with clients / master service agreement.
- Initial application processing prescribed fee
- Advance service charges at the time of executing the legal agreement
- Service to be paid annually as per the following slabs:
- Annual charges for 3 years are payable in advance.
- At the time of signing the legal undertaking, the unit is needed to pay additional fees as per the turnover achieved, if the achieved turnover is more than the projected turnover.
Note: Once the legal agreement has been executed then a request letter has to be sent to STPI for the issue of the Green Card.