SEZ Scheme
The Government of India had introduced SEZ Act in the year 2005 with a view to provide an internationally competitive environment for exports. The objectives of SEZs include making available goods and services free of taxes and duties supported by integrated infrastructure for export production, expeditious and single window approval mechanism and a package of incentives to attract foreign and domestic investments for promoting export-led growth. Under the Act, SEZ could be set up either jointly or severally by the Central Government, State Government, or any person (including a private or public limited company, partnership or proprietorship).
- for manufacture of goods,
- for rendering services,
- for both manufacturing of goods and for rendering services; or as a Free Trade and Warehousing Zone.
Scheme Benefits & Highlights:
- Duty free import of raw materials & capital goods for development, operation and maintenance of SEZ units.
- Exemption from payment of Goods & Service Tax (GST).
- External commercial borrowing by SEZ unit allowed up to US $ 500 million in a year
- Single window clearance for Central and State level approvals.
- No license is required for import, including second hand machineries.
- Units need to achieve a positive NFE (Net Foreign Exchange).
Why SEZs Matter for Businesses
Apart from being tax-saving zones, SEZs are hubs that integrate infrastructure, logistics, and fiscal benefits to help businesses scale globally. For IT companies, manufacturers, exporters, and service providers, setting up in an SEZ means lower operational costs, simplified compliance, and faster clearances. SEZs encourage innovation, boost productivity, and facilitate cross-border trade without heavy regulatory burdens.
The Role of an SEZ Consultant
While SEZs offer attractive incentives, navigating the complex application and compliance process can be overwhelming. This is where an SEZ Consultant adds value. From assessing project eligibility to drafting applications, securing approvals, and ensuring compliance with SEZ Act provisions, consultants simplify the process and reduce risks of rejection or delays.
Our team specialises in SEZ Unit Registration Services, helping businesses (whether small startups or large corporates) seamlessly set up and operate within SEZs.
Frequently Asked Questions
1. What is an SEZ?
Special Economic Zones (SEZs) are dedicated areas set up to promote exports by providing tax exemptions, duty-free imports, and world-class infrastructure. The Government of India introduced the SEZ Act, 2005 to create an internationally competitive environment and attract both foreign and domestic investment.
2. Who can set up an SEZ unit?
An SEZ unit can be established by the Central Government, State Government, or private entities including companies, partnerships, or proprietorships.
3. Is there any export obligation under the SEZ Scheme?
Yes. Units operating under the SEZ Scheme must achieve a positive Net Foreign Exchange (NFE) over a specified block period. This means that the value of exports must be greater than the value of imports, ensuring the scheme promotes genuine export-led growth.
4. What types of businesses benefit most from the SEZ Scheme?
Manufacturing companies, IT/ITES firms, pharma and biotech industries, engineering units, and even trading companies can benefit from SEZ incentives. The scheme is versatile and supports both goods and services exports.
5. What is the process for SEZ registration?
The registration process involves identifying the right SEZ location, preparing the application with project details, obtaining approvals from the Development Commissioner, and fulfilling compliance requirements. Our SEZ Unit Registration Services provide end-to-end support for a smooth setup.
6. How long does it take to register an SEZ unit?
The timeline varies depending on the type of business, documentation readiness, and approval speed from authorities. On average, it can take a few weeks to a few months.
7. Can second-hand machinery be imported under the SEZ Scheme?
Yes. The SEZ Scheme allows duty-free import of both new and second-hand machinery, provided the equipment is not under the prohibited category of imports.
8. Why do I need professional SEZ services?
The SEZ Scheme involves multiple approvals, compliance checks, and documentation. Errors or delays can result in penalties or missed benefits. Partnering with an experienced SEZ Consultant ensures your SEZ registration is smooth, compliant, and aligned with your long-term business strategy.