There is a 100% tax exemption U/S 10 A of the Income tax Act, 1961 with respect to profits earned by 100% Export Oriented Unit upto 31-03-2009 registered with the software technology parks of India (STPI).
Application to Software Technology Parks of India (STPI) to set up a 100% Export Oriented Unit (EOU).
Documents to include:
Application Form in the prescribed form.
Memorandum and Article of Association.
Board Resolution for setting up STP Unit and persons authorized to sign and submit the application form.
Resume of person heading the operation/CEO.
Detailed project report/ Business plan consist of:
Units Area of expertise/Services offered.
Marketing Strategy / marketing Arrangements.
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 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 & outgoings 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 fee of INR 2,500. Advance services charges of INR 50,000 at the time of executing the legal agreement.