S.T.P Scheme for Software Companies

Start-up software companies often provide solutions that ease the working and processes of other companies. However, in order to provide effective solutions, they require technical efficiency, knowledge, hardware and finances. To encourage start-ups to export computer software and professional services of global standards, the government has initiated the Software Technology Parks Scheme.


The Software Technology Parks scheme by the government promotes the export of computer software and professional services. This scheme enables start-ups to import duty-free hardware and software solutions that will enable them to deliver software and services that meet international quality standards.


How can a software company benefit from this scheme?

A software company can benefit from this scheme in the following ways:

  1. Approval to set-up an STP unit anywhere in India
  2. Single window clearance system for approvals
  3. Authorisation to re-export capital goods
  4. 100% foreign equity
  5. Ease in importing duty-free hardware and software, and second-hand capital goods
  6. Access to computer system for training purposes
  7. Central Sales Tax reimbursement on indigenous items procurement
  8. Central Excise Duty Exemption in full on indigenous procurement
  9. Up to 50% of export in value terms if sales are made in Domestic Tariff Area (DTA)
  10. 100% depreciation on capital goods over a period of five years
  11. Authorisation to donate computer peripherals to recognised non-commercial education institutions, registered charitable hospitals, public libraries, public funded research and development institutions, organisations of Government of India, or Government of a State or Union Territory without payment of duty after two years of their import

Eligibility Criteria:

Who is eligible to apply for this scheme?

The following companies are eligible to apply for this scheme:

  • Indian software companies
  • A subsidiary of a foreign company
  • A branch office of a foreign company


How can a start-up software company apply for this scheme?

Start-up software companies can apply for this scheme online here.

In order to become a certified member under the STP scheme, the application for this scheme needs to be sent to the Director, Software Technology Parks of India to seek approval for the same.

Documents Required:

What documents are required to apply for this scheme?

The following documents are required to apply for this scheme:

  • A gist of the application form
  • Three copies of the application form
  • Project report
  • Board resolution
  • Memorandum or articles of association
  • Export order/contract or MOU
  • List of directors
  • Importer – exporter code number
  • Proof of STP location premises (example, leave an license)
  • Valid data communication proof (example, receipt of payment, service acceptance letter)
  • Bank certificate 

For further queries and guidelines with regards to this scheme, click here.

Accelerate your start-up with the Technology Incubation and Development of Entrepreneurs (TIDE) Scheme

An idea has the potential to change the world. If you too have an idea that can revolutionize the technological industry, the Technology Incubation and Development of Entrepreneurs (TIDE) Scheme will be of use to you.


The Technological Incubation and Development of Entrepreneurs (TIDE) scheme aims to assist institutions of higher learning to strengthen their Technology Incubation Centres. This scheme acts as an accelerator for technology-based start-ups and provides MSMEs guidance and funding on implementing their brainchild.


What are the benefits offered under this scheme?

The following are the benefits offered under this scheme:

  • Each institute has a kitty of ₹155 Lakhs. They can use up to ₹125 lakhs for providing financial support
  • An MSME can rent operating space for a period of up to 2 years (extendable by one year)
  • Further financial support may be sought in the form of a soft loan of up to ₹25 lakhs over two (or three) years’ period (subject to satisfactory performance). The amount sanctioned would be up to a maximum of 80% of the project cost of the incubating company
  • A 50% refund of the financial support is given at the end of two (or three) years and the remaining 50% is given as equity to the TIDE center, which can be encashed at the time of valuation

Eligibility Criteria

What is the eligibility criteria for this scheme?

An MSME is eligible to apply for the scheme if the start-up is in the field of electronics and IT.

List of Technology Incubation’s and Development centers

What is the list of Technology Incubation and Development centers?

The list of premier institutes that are affiliated with this program can be found here.

Documents Required

What are the documents required to apply for this scheme?

The following documents are required to apply for this scheme:

  • Submission of detailed techno-commercial proposal, including a business plan by prospective entrepreneur(s) before host institutions IITs, IIMs, NITs, IIITs, and other premier institutes
  • Approval by the Management Board of TIDE to support a prospective entrepreneur
  • On formation of a company and signing an agreement with TIDE

To refer to the list of TIDE start-ups click here.

For further details on this scheme, kindly click here.