SEZs (Special Economic Zones) are duty-free spaces where enterprises which gets recognition as SEZ units operate business in a more liberal environment. Entities within SEZs are offered assistance through foreign contributions without much government interference.

SEZ within notified geographical region operate business  with more liberty with respect to economic laws, tax laws, commercial laws, corporate laws, including limited or no tariff implications from Central or State Government. The basic goal behind setup of these zones is the flourishment of Indian enterprises with foreign investments without hassles of different legislations and the exemption from mandatory compliances.

However, SEZs in India are treated as foreign territories in Indian legislations which impose taxes and tariffs for transactions between domestic businesses and SEZ Units.

Forming SEZ or Registering as SEZ Unit in India

A SEZ in India can be established by complying to the rules and regulations of the Special Economic Zone Act, 2005. It can either be jointly or severally formed within the customs boundariesas notified by the Central Government, State Government, any individual (including private or public limited company, proprietorship or partnership ) or by any foreign company in India.

A SEZ in India can be formed for any of the following purposes.

• Manufacturing or rendering of Goods or Services;
• Establishing a Free Trade Zone;
• Serving as a Warehousing Sector;
• Export of Goods or Services;
• Serving Goods or Services to other SEZs;
• Offshore banking

Each SEZ can establish and operate in association with government-owned, privately owned enterprises or can be wholly managed by group of private companies or government entities together.

For registering as a SEZ unit, an application to the concerned jurisdiction Development Commissioner is to be submitted. Each such application shall be reviewed by State Approval Committee. Based on such recommendation, the Development Commissioner may approve or reject such application.

Why Register a SEZ Unit in India?

SEZ units are entitled for multi – incentives and policy benefits from government. Besides, the common benefits announced for SEZs through legislations they receive consistent performance benefits at different intervals also.

Some earmarked incentives for SEZ units include:

• Tax Exemptions (Income Tax, GST etc);
• Exemption from State or Central Tariff Authority (Export duties, Custom Charges, etc);
• Duty Drawbacks and Developer Schemes;
• Foreign Direct Investment (FDI) Approvals;
• Licence Approvals;
• Land Acquisition Approvals and State Permission;
• Easy approvals for Banking, Insurance and Commercial borrowings;
• Budget Benefits, Subsidies, and Special Finance Schemes.

What you get in SEZ Compliance Services from MN & Associates?

Envisaged by government benefits and schemes for SEZs, enterprises those opting ‘to become a SEZ member or requiring to form a SEZ in India have to undergo multiple Central and State Approvals by sufficing statements, declarations, and a list of documents.

We at MN & Associates, have offer a composite SEZ Compliance Service package in which you get assistance that include but do not limit to:

• SEZ Formation in India;
• Registration, closure, merger, de-merger and other arrangement of SEZ/SEZ Units;
• Ministerial, Central and State Approvals;
• Drafting and filing of documents, declarations, trade agreements, project reports, etc;
• Tax return filing and alliedcompliance;
• FDI/RBI/FEMA compliance;
• Land, plant or project approvals, etc;
• Licensing and legal registrations;
• Arbitration / Litigation services;
• Export/Import legislations;
• Corporate compliance and much more.