Frequently Asked Questions about NON STPI License in India
1. What is a NON STPI License?
A NON STPI License is a license provided by the Government of India to entities that conduct business operations outside the Software Technology Parks of India (STPIs). It allows them to establish and operate information technology (IT) or IT-enabled services (ITeS) units within the domestic tariff area (DTA) of India.
2. Who can apply for a NON STPI License?
Any entity, including private companies, public limited companies, partnership firms, and proprietary concerns, can apply for a NON STPI License.
3. Why would a company need a NON STPI License?
Companies that conduct IT or ITeS operations outside STPIs but still want to avail certain benefits, incentives, or exemptions provided by the Government of India may require a NON STPI License. This license enables them to enjoy these benefits without being located within an STPI.
4. What are the benefits of obtaining a NON STPI License?
Some benefits of obtaining a NON STPI License include income tax exemptions, customs duty exemptions, and eligibility for reimbursements related to export promotion. Additionally, it provides an opportunity to be part of the growing IT ecosystem in India and access a skilled workforce.
5. How can a company apply for a NON STPI License?
To apply for a NON STPI License, the company must submit a detailed application to the respective unit approval committee (UAC) of the Software Technology Parks of India (STPI). The application should include information regarding the company's current operations, proposed activities under the NON STPI License, and its eligibility for the license.
6. Is there a specific time frame for obtaining a NON STPI License?
The time frame for obtaining a NON STPI License can vary depending on various factors, including the completeness of the application and the due diligence process. Generally, it takes around 2 to 4 weeks for the STPI to review and process the application.
7. Can a company hold both an STPI and a NON STPI License simultaneously?
Yes, a company can hold both an STPI and a NON STPI License simultaneously if it has operations in both STPI and non-STPI areas. This allows the company to enjoy the benefits specific to each license.
8. Is there any renewal requirement for a NON STPI License?
Yes, a NON STPI License needs to be renewed periodically. The renewal process involves submitting the necessary documents and information to the STPI along with the renewal application.
9. What happens if a company fails to renew its NON STPI License?
If a company fails to renew its NON STPI License within the specified time frame, it may lose the benefits and incentives associated with the license. The company may also face penalties or other legal consequences as per the relevant regulations.
10. Can a company convert its NON STPI License to an STPI License?
Yes, a company can apply for the conversion of its NON STPI License to an STPI License. The process involves submitting an application to the respective STPI along with the required documentation. The conversion is subject to the fulfillment of the eligibility criteria set by the STPI.