Approval of STPs Units
Forwarded application for new unit setup in STPS, The Director of STPI will be approve within 2 weeks. Those involving foreign investment not covered under the Automatic Route of RBI
Foreign Investment Application approval Procedure
In Foreign investment upto 100% subject to a investment maximum limit of Rs.600.00 crores in IT industry is permissible under the Automatic Route of RBI. This type investment should be actual remittance of money in foreign exchange as defined in foreign Exchange Management Act.
Foreign investment Exceeding the Limit STPS Permission
The application for registration under the STP Scheme, involving foreign investment over Rs. 600.00 Crores approval will go through the Secretariat for Industrial Approvals, EOU Section of the Ministry of Industry & Commerce.
- Foreign Investments exceeding Rs.600.00 crores in STPs
- Acquisition of shares in an existing company by foreign/NRI/OCBs.
- Foreign investment proposed in actual remittance of funds in foreign exchange.
Legal Agreement between STPI and Unit
The approved STPs unit is required to sign a Legal Agreement (LA) with concerned STPI Centre. This Legal Agreement is mandatory as commitment for fulfillment of terms & conditions of the approval letter (Export obligation etc.).
The Legal Agreement LA will be valid operations for a period of 5 years. The Legal Agreement to be executed on Non-Judicial Stamp Paper of Rs. 50/- procured from the Civil Court under which concerned with STPI Center. Legal Agreement signed by the authorized person along with his Common Seal of the company (in case of 'Limited' Companies). Copy of authority letter (copy of Board Resolution) in respect of 'Authorized Signatory' from the competent authority be enclosed. Each page of the Legal Agreement will be initialed by the Authorized Signatory. After acceptance of Legal agreement will be signed by the authorized signatory of STPI and original kept. A photocopy will be returned to the member unit for record purposes. One copy of Legal Agreement LA will given to the Customs by the unit at the time of Customs Bonding of the premises. the service charges will be applicable along with the Legal Agreement.