Compliances play a vital role in the export of software products. Adhering to compliances not only ensures that the products are legally compliant but also helps in building a positive image of the company in the international market.
Here are some of the compliance requirements that you need to be aware of for software export from India:
- Obtain an Import Export Code (IEC): An IEC is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) that is mandatory for all importers and exporters in India, including software exporters.
- Comply with the Foreign Exchange Management Act (FEMA): FEMA regulates all cross-border financial transactions in India, including software exports. Under FEMA, software exports are classified as a “service,” and companies must comply with the rules and regulations for service exports.
- Register with the Software Technology Parks of India (STPI): STPI is an agency of the Indian government that provides various services to software exporters, including legal and regulatory compliance support. Registering with STPI can help you streamline your compliance requirements.
- Comply with the Export Control Classification Number (ECCN): The ECCN is a classification system used by the US government to identify the level of export control for various software products. If your software product is subject to ECCN regulations, you need to comply with the US Export Administration Regulations (EAR).
- Comply with the Intellectual Property Rights (IPR) laws: Ensure that your software product complies with IPR laws and regulations, including copyright, trademark, and patent laws.
- Comply with the Information Technology Act (ITA): The ITA governs all electronic transactions in India, including software exports. Ensure that your software product complies with the ITA’s data privacy and security regulations.
- Comply with the tax laws: Ensure that you comply with all tax laws and regulations related to software exports, including income tax, goods and services tax (GST), and customs duties.
It is important to note that compliance requirements for software export may vary based on the country of destination and the nature of the software product. It is recommended that you consult with a legal expert or an experienced software export consultant to ensure that you are in compliance with all relevant regulations.