Goa Chamber of Commerce & Industry (GCCI)

Information Technology has been identified as one of the growth areas by the government of Goa. IT units can derive additional benefits if they are registered under STPI.

NOTE: To register a STPI Goa unit, for further information, contact GCCI IT Committee member Mr Sanjiv Nadkarni on mobile no.9923796952, Email: sanjivnadkarni@hotmail.com.

FAQ’s

Who should register under STPI?
This depends on the business plan of a unit. This scheme is meant for export oriented units. If major portion of your business is going to come from domestic sales, then this is not the scheme for you.

What are the key benefits of STPI scheme?
The key benefits are as follows.

• 100% Income Tax Holiday as per section 10A of the IT Act. (Foreign Currency Earnings).
• 100% Customs duty exemption on imports.
• 100% excise duty exemption on indigenous procurement.
• Central Sales Tax reimbursement on indigenous purchases.
• Green card enabling priority treatment for Government clearances.

Can an STPI registered unit do domestic sale?
Yes. In a year, you are permitted to do domestic sale up to 50% of your foreign currency earning in the previous year. This requires prior permission of STPI.

What is the procedure for becoming STPI member?
There are a number of action items to be completed before you apply for the membership.

1. Obtain Permanent Account Number (PAN) of your company from the Income Tax office .
2. Obtain Importer-Exporter Code (IEC) from Director General of Foreign Trade .
3. Get RBI permission in case of foreign equity.
4. Prepare a project report in specified format.

The report should cover following.

1. Background of company and promoters
2. Area of expertise in software development and IT-enabled services
3. Profiles of key personnel in the organization
4. Strengths and achievements of the company like potential market for software products, projects developed by the company and in-house expertise in the area of specialization
5. Financial arrangements and feasibility of the proposed setup
6. Marketing tie-up, if any.
7. Export performance for last three years in cases of existing firms & last years Balance Sheet
8. Export Orders in hand / in pipeline / under registration.
9. Brochures of the software products / company or Annual Report for the previous year
10. Space Requirement / Built up Land.
11. Manpower: Type of people working
    1. Project manager
    2. Project leader
    3. Senior programmer
    4. Junior programmer / Operators
12. Wage Bill

5. Export Order
It is preferable to have export order from foreign client in hand. However application for membership can also be made without the export order.

6. Sale deed of owned premises or lease deed of rental premises. Floor plan is essential.

Once you are ready with above, you can submit membership application in prescribed format. You also have to give a presentation about your business plan to the Director STPI.

Guidelines to complete the Application Form

Important aspects of the application form are:

1. Company profile.
2. Capital structure.
3. Pattern of Shareholding in the paid up capital.
4. Projection for capital goods requirement.
5. Manpower Projections.
6. Export earnings.
7. Foreign collaborations.
8. Area of expertise.
9. Estimated time frame for commencement of operation and exports.
10. Communication requirement.
11. Space requirement / Built –up land.

List of Enclosures

Following copies of documents are required.

1.  Memorandum & Articles of Association. For registered units (Public and Private Limited)
2. Partnership Deed. For partnership firms
3. Board Resolution
   – Board resolution copy mentioning the willingness to get registered with STPI as 100% exporting firm. Also, mention the name of the authorized signatory to sign all relevant documents.
   – For maintaining separate books of accounts for the unit under STP Scheme as per Para 6.11.1 of Foreign Trade Policy -chapter 6.
   – For maintaining distinct identity as per Para 6.11.1 of Foreign Trade Policy -chapter 6.This is not applicable in case of Partnership Firm or Proprietary concern.
4. Permanent Account Number (PAN)
5. Importer-Exporter Code  (IEC).
6. Banker’s Certificate –  A certificate from your bank covering duration of maintaining company account with the Bank.
7. 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.
8. 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.
9. List of Directors / Partners with specimen signature. List of Directors / Partners of the company with names, addresses, contact nos, email, specimen signature.
10. Project Report.
11. Export Order with Foreign Client.
12. Proof of Premises.
13. List of proposed Plant & Machinery in Three Copies.
14. Application Processing Fees and Annual Service Charges. Application processing fees and 3 years advance Annual Service Charges considering your projected export turnover.

Application Processing FeesRs. 2,500/-

Are there any specific requirements to be fulfilled on getting the Letter of Approval?

Letter of approval is basically the permission to start the operations. The unit has to execute a legal agreement with STPI. This clears the way to apply for Bonded Warehouse license to the divisional office of your Customs/Excise range.

It is important to note that you must commence production within two years of Letter of Approval., otherwise the permission lapses. Once you commence the production, you have to report the export details to STPI through monthly, quarterly and annual reports. The unit has obligation to meet minimum export commitment as mentioned in the Letter of Approval and should be a net foreign currency earner over a cumulative period of five years.