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SEZs- Tatasteelsez

Through simplification of procedures along with single window processes, the Special Economic Zone or SEZ provides hassle-free environments for investors. This helps in attracting foreign investments to the economic landscape of India, which is vital to the nation’s growth. Let’s delve further into the basics of SEZs and the formalities involved in establishing a unit in SEZ in India.

What are SEZs?

Special Economic Zones are investor-friendly, hassle-free industrial zone nested inside a country. The trade laws and economic laws governing SEZ are different from the country’s financial regulations. Besides attracting investors, the SEZ’s also assist in the formulation of job opportunities and development of infrastructural facilities. The benefits of SEZ include:

  • Tax benefits
  • Liberal labour regulations
  • Single window clearance
  • Exemption from sales tax, MAT and Service taxes.

What are the procedures involved in establishing a unit in SEZ?

  1. A company intending to open an SEZ should first apply with the Development Commissioner’s office at SEZ.
  2. For registration, the application company should create an account with the SEZ online system.
  3. The new user application form is presented, and applicants are required to fill the application with all essential details.
  4. Submission of Form F and all other documents listed as ‘Additional documents’. These include:
    • Copy of the PAN Card of the company
    • Project report
    • A copy of the board resolution
    • Form INC 22
    • Form 32
    • Copies of registered partnership deed
    • Complete audited balance sheet
    • Lists of the goods and raw material that are imported
    • IT returns for the past three years
    • Residential proof, PAN and IT returns details of all partners involved
    • Undertaking all the applicable norms for environment and pollution control of the proposed project
    • Shareholding details
    • A provisional offer of space from developer or co-developer for five years.

Besides the documents mentioned here, the F form that is submitted must be duly signed in all pages by the partners of the applying company.

  1.  If the DC is dissatisfied with any of the documents submitted in point 4, the applicants will be entitled to rectify it accordingly to avoid rejection.
  2. Once all rectifications are made, The DC office further scrutinizes through the documents and approves the applicant the permission to build a unit in SEZ.
  3. Applicants will be then required to pay the registration fee.
  4. The unit will be expected to enter into a lease agreement with the DC of SEZ. A physical copy of the lease deeds should also be submitted to the DC office.
  5. Units can further commence their unit production. However, the dates of production and date of incorporation should be intimated to the DC office.

Final thoughts

Through a unit at the SEZ India invest region, the benefits are manifold, which includes labour regulations and tax benefits. With simple procedures and documents, units can establish itself in the SEZ region.

Through simplification of procedures along with single window processes, the Special Economic Zone or SEZ provides hassle-free environments for investors. This helps in attracting foreign investments to the economic landscape of India, which is vital to the nation’s growth. Let’s delve further into the basics of SEZs and the formalities involved in establishing a unit in SEZ in India.

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