India is among the foremost Asian countries United Nations agency have thought-about the concept of putting in place AN Export process Zone (EPZ) model to push country’s exports. to draw in additional foreign investment and supply AN internationally competitive and trouble free surroundings for export promotion in Asian nation, Special Economic Zone (SEZ) was introduced. within the year 2000, with AN beginning of SEZ policy, Asian nation had begun to run on the trail of success.
Initially, the SEZ policy was enclosed beneath foreign foreign policy 2000. The policy was enforced through piecemeal and circumstantial amendments to totally different laws, besides government orders. so as to beat these drawbacks and to allow a stable long run policy framework with minimum regulation, the Special Economic Zone Act, 2005 was introduced. The Act provided broad legal framework, covering all vital legal and restrictive aspects of SEZ development further as for units in operation in SEZs.
SEZ may be a specific exempt district and shall be deemed to be foreign territory for the needs of trade operations and duties and tariffs. In different word, SEZ may be a nation-state that has economic laws totally different from the country’s economic laws. SEZs are established in many countries, as well as China, India, Jordan, Poland, Kazakhstan, Philippines and Russia.
Main objectives of building a SEZ
- Generating further economic activity
- Promoting exports of products and services
- Promoting investments from domestic and foreign sources
- Creation of employment opportunities
- Development of infrastructure facilities
- Exposure to technology and world market
Benefits and incentives of putting in place a business unit in an exceedingly SEZ
- Tax edges (tax holidays, taxation exemptions, etc.)
- Liberal labor rules
- Exemption from excise and impost on procural of capital assets, expendable stores, raw-materials from domestic market
- Streamlined procedures for obtaining approvals (online / single window)
- Liberal approach in foreign direct investments
- Increased capital account fungibility
- Relaxed export regulation
- Full return of profits
- Non-applicability of connected environmental laws
Setting up a unit in SEZ
A company aiming to setup unit in an exceedingly specific SEZ must apply with the various Development Commissioner’s (DC) workplace of SEZ zone. To file AN application, company must fill the Form-F, stipulated by SEZ rules. The candidates filing the shape, must submit this manner on-line through SEZ on-line system victimization module New Unit Application (NUA).
The steps for NUA area unit as summarized below:
1. making user ID: this can be the initial stage for putting in place a SEZ unit. For putting in place a replacement unit in SEZ, the user, for the aim of registration, shall login to SEZ on-line system and build a replacement user ID.
2. Raising NUA request: when registration, users area unit needed to fill a “new user application” providing the required details which incorporates general details of company, details of administrators, item / product, during which the corporate deals in, and different details like investments, equity, for-ex, soul and selling collaborations of the corporate.
3. Submitting Form- F and different documents: more during this procedure, candidates got to transfer the below listed documents with a crammed kind – F, as mentioned in “Add Documents” field. These noncommissioned documents have to be compelled to be submitted physically in DC’s office:
- Copy of incorporation certificate, Articles and memoranda of Association of the corporate
- Demand draft of authority 5000/- in favor of “The Pay & Accounts Officer.
- Copy of company’s profile, directors’ profile and project report
- Copy of board resolution
- List of foreign and autochthonal capital product
- Form eighteen and thirty two filed with mythical monster
- Copy of residential proof and identity proof of administrators
- Income tax returns of last three years
- Copy of audited financials
- Copy of IEC of the corporate
- Copy of PAN of the corporate
- Copy of term sheet for incubation premises
- Copy of term sheet for main premises
- Letter for selling / redemption arrange
- List of administrators with their details
- Letter mentioning web site and e-mail address
- Undertaking for pollution management
- Affidavit
Along with these documents, soul must submit kind – F containing the main points of NUA.
4. Rectification of deficiencies: If the DC doesn't get glad with the submitted documents, he might raise a requirement for extra documents. In case, the request is shipped back by DC workplace and also the demand is raised from DC workplace, soul shall submit the documents at intervals the stipulated
5. Approval of request: when verification of all the documents submitted and different needs consummated by soul, DC is allowed to approve the request of NUA. more the approval, AN e-mail are going to be sent to soul on the registered e-mail describing the supplementary
6. Payment of registration fee: when approval from DC workplace, a link for payment of registration fee are going to be enabled; enquiring some details for payment. On payment of fee, NSDL direction Ltd. (NDML) representative can verify receipt of payment and can authorize the payment upon verification of valid payment entry in SEZ on-line system. Upon authorization of payment, soul will produce administrator and operational users IDs.
7. Submission of lease deed details to DC’s workplace for approval: when acceptance of letter of approval, the unit is predicted to enter into a lease agreement with the developer of the SEZ during which it's commencing business. when getting in the agreement, the unit can have to be compelled to enter the lease deed details within the SEZ on-line system and submit it on-line to the DC’s workplace. The unit shall even have to submit a duplicate of the lease deed to the DC’s workplace in physical kind.
8. Intimation of date of commencement: As before long because the unit commences production, the date of commencement of production has got to be intimated to the DC’s workplace. The unit shall on-line intimate the date of incorporation through SEZ system. additionally, the DC may additionally need the unit to submit supporting documents in physical kind.
For the Fact: As of March 2018, 223 SEZs area unit operative and a huge 419 SEZs are approved.
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