SubsidyAndhra Pradesh Innovation Society (APIS) / ITE&C Dept., Govt. of Andhra Pradesh

AP IT & Innovation Policy — IT Company Incentives

Capital investment subsidy and employment incentives for IT and ITeS companies setting up or expanding in Andhra Pradesh under the AP IT Policy 2021–24. Capital subsidy of 20–30% on IT infrastructure, capped at ₹75L. Employment incentive of ₹3,000 per incremental IT employee per month for 3 years. Vizag, Amaravati, Tirupati, and Kurnool are priority IT clusters with enhanced rates. AP is actively developing its IT ecosystem post-bifurcation and offers competitive terms relative to more established states.

Maximum amount
₹75.0L
Typical payout
₹20.0L
Processing time
20–40 weeks
Application window
Rolling — apply before commencing IT operations in AP.

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Eligibility criteria

Company type
Private Limited, LLP
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
Andhra Pradesh
Sectors
saas, ai, fintech, healthtech, edtech, iot, deep_tech, bpo, ites

Documents required

1
Entity Incorporation Certificate
Certificate of Incorporation confirming entity is a Pvt Ltd or LLP. Only formally incorporated entities are eligible — proprietorships and partnerships are not eligible for IT Policy incentives.
Tip: Ensure an AP branch or registered address is established. The AP-based operational unit is what is assessed for incentives, not the HQ registered address.
2
IT Investment Project Report
Project report covering: IT infrastructure investment plan (servers, networking, licensed software); AP cluster location (for rate determination — Vizag/Amaravati/Tirupati/Kurnool get enhanced rate); employment plan with 3-year headcount projections (minimum 50 net new employees for capital subsidy); and 5-year revenue/cost projections.
Tip: Specify the AP location precisely — being in a priority IT cluster adds 10% to the capital subsidy rate. Get the cluster classification confirmed in writing by ITE&C before submitting.
3
AP IT Office Premises Proof
Registered lease, APSFL building allotment, or APIIC IT park allotment for the AP IT office in a notified IT cluster (Vizag/Amaravati/Tirupati/Kurnool preferred). ITE&C verifies physical AP operations are genuine.
Tip: APIIC IT park allotment is the gold standard — it simultaneously confirms AP location and cluster classification. A co-working space in a notified area may qualify with an NOC from the space operator.
4
IT Equipment and Software Invoices
Original purchase invoices for servers, networking equipment, and licensed software installed at the AP unit post-policy registration. Only assets registered before commencement qualify for capital subsidy.
Tip: Cloud computing subscriptions under 12 months may not qualify as capital assets. Perpetual licensed software is more straightforwardly eligible. Retain originals for ITE&C site inspection.
5
EPF/ESIC Records — AP Establishment
EPFO Electronic Challan Cum Returns (ECRs) for the AP-specific establishment code, showing net new employees at the AP unit. ITE&C cross-verifies employment incentive claims against EPFO AP records.
Tip: Register with EPFO under a separate AP establishment code before hiring. A national consolidated EPFO code does not allow location-specific headcount verification for the AP employment incentive.
6
CA Certificate — IT Investment and Employment
CA certificate covering: (1) capital investment in eligible IT assets at the AP unit (for capital subsidy claim); and (2) net incremental employees above baseline (for employment incentive claim), certified with UDIN.
Tip: File separate CA certificates for the capital and employment components if timing of claims differs. UDIN is mandatory. ITE&C processes claims sequentially so the capital claim should be filed before employment incentive claims start.
7
Audited Financial Statements
Audited accounts for the most recent financial year of the claiming entity.
Tip: New AP units without a full year may submit CA-certified provisional accounts.
8
Certificate of Commencement of IT Operations
Commencement certificate issued by DIC or self-certified with ITE&C acknowledgement, confirming the start date of IT operations at the AP unit. This date triggers the incentive period.
Tip: Apply for commencement certification within 30 days of starting operations. The commencement date determines the baseline headcount for the employment incentive.
9
Bank Account Details (Cancelled Cheque)
Cancelled cheque for entity current account for subsidy and employment incentive disbursement.
Tip: Account in entity name. IFSC and account number must match portal submission exactly.

How to apply for AP IT Policy

1
Register on AP iPass portal before commencing IT operations — submit project details including investment plan and employment projections for in-principle approval.Open portal
2
Receive in-principle approval from ITE&C, then set up the IT office in the AP cluster, hire employees, and install IT infrastructure.
3
Obtain commencement certification from DIC within 30 days of starting operations.
4
File annual capital subsidy claim (with CA certificate, IT asset invoices, commencement cert) and employment incentive claim (with CA headcount certificate, EPF ECRs).
5
ITE&C reviews claims and conducts site visit — disbursement within 12–16 weeks. Employment incentive payable annually for 3 years from commencement.

Frequently asked questions

Who is eligible for AP IT Policy?

AP IT Policy is available to Private Limited, LLP companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Andhra Pradesh.

How much funding does AP IT Policy provide?

AP IT Policy provides up to ₹75.0L. Most applicants receive around ₹20.0L.

How long does AP IT Policy approval take?

The typical processing time from submission to disbursement is 20–40 weeks.

Is AP IT Policy currently accepting applications?

Yes, AP IT Policy is currently active and accepting applications. Application window: Rolling — apply before commencing IT operations in AP..

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Information is based on publicly available scheme guidelines. Always verify with official sources before applying.