Approvals are given under single window clearance scheme.
# A company can set up STP unit anywhere in India
# Jurisdictional STPI authorities clear projects costing less than Rs.100 million with Indian Investment
# 100 Percent Foreign Equity is permitted
# All the imports of Hardware & Software in the STP units are completely duty free, import of second hand capital goods also permitted
# Re-Export of capital goods is also permitted
# Simplified Minimum Export Performance norms i.e. "Positive Net Foreign Exchange Earnings"
# Use of computer system for commercial training purposes is permissible subject to the condition that no computer terminals are installed outside the STP premises
# The sales in the Domestic Tariff Area (DTA) shall be permissible up to 50 Percent of the export in value terms.
# STP units are exempted from payment of corporate income tax up to 2010.
# The capital goods purchased from the Domestic Tariff Area (DTA) are entitled for benefits like exemption of excise Duty & reimbursement of Central Sales Tax (CST)
# Capital invested by Foreign Entrepreneurs, Know-How Fees, Royalty, Dividend etc., can be freely repatriated after payment of Income Taxes due on them
# The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt of a State or Union Territory without payment of any duties after two years of their import
# 100 Percent Depreciation on Capital Goods over a period of five years.