Procedure for Seeking Letter of Approval in SEZ
[RULE 18 & 19]
IT companies who have been allotted land
RGCTP (SEZ) are required to submit application to the
Development Commissioner NOIDA in the formal prescribed at
Form F of the SEZ Rules, 2006, in five copies, with a
copy to the Developer, alongwith the following documents :-
A DD amounting to Rs.5,000/- in favour of 'Pay &
Accounts Officer, Ministry of Commerce & Industry,
Department of Commerce' payable at 'New Delhi'.
Complete Project Report giving therein promoters
bio-data, manufacturing process, cost of the project,
means of financing etc.
Copy of Memorandum & Articles of Association in case of
Pvt. Ltd. Of Public Ltd. Company.
Copy of Registered Partnership Deed in case of
Copies of Passport, PAN and last three years' Income Tax
Returns in respect of Directors/Partners/Proprietor, as
the case may be.
Copy of buy-back agreement/marketing tie up, if any.
Copy of Importer Exporter Code (IEC), if already
obtained from O/o the DGFT, alongwith copy of
application filed with the concerned issuing authority.
Copies of PAN alongwith last three years' audited
Balance Sheets in respect of existing business, if any.
Copy of Provisional Offer of Allotment of space from the
The Approval Committee may approve or
reject a proposal placed before it within fifteen days of
its receipt. However, where the approval is to be granted by
Board of approvals, the Board shall approve or reject a
proposal within forty five days of its receipt.
On approval of a proposal, Development
Commissioner shall issue a Letter of Approval (LOA) in
Form-G, for setting up of the unit in SEZ.
The LOA shall remain valid initially for
one year for the purpose of implementation, which may be
extended further by the Development Commissioner for valid
reasons for a further period not exceeding two years. Once
the unit commences production the LOA shall be valid for
five years from the date of commencement of production or
service activity and is shall be construed as a license for
all purposes related to authorized operations.
[RULE 11 (6)]
After obtaining LOA from the Development
Commissioner, the unit shall approach the developer of that
SEZ, in which the unit is to be set up, for allotment &
possession of space. Only units having valid LOA may be
allotted space in the processing area of SEZ by developer on
lease basis and the lease period shall be co-terminus with
the validity of LOA.
For availing exemptions, drawbacks and
concessions for authorized operations, the unit shall
execute a Bond-cum-LUT in
Form-H of the SEZ Rules on Rs.
100/- stamp paper, which shall be jointly accepted by the
Development Commissioner and by the Specified Officer. The
Bond-cum-LUT shall accompany the following :-
Copy of Board Resolution/Authority in favour of
Residence & Identity Prof of witnesses as well as
Chart showing calculation of bond amount as per Rule
22(iv) (b) of the SEZ Rules, 2006.
In case of Pvt. Ltd. Or Public Ltd. Company, common seal
is to be affixed on Bond-cum-LUT.
Stamp Paper is to be bought and notarized from the
concerned State Govt. in which the SEZ is situated.
Address of operational website.
[SECTION 51 of the SEZ Act]
Besides, wherever required, units in SEZ
are to obtain necessary registration/approvals/clearances/NOC
as per relevant Rules/Laws of the concerned State Government
e.g. Trade Tax, Power, Pollution Control, Labour etc.
Incentives & Facilities available to
Units in SEZ
Exemption from duties on procurement / import of goods
required for development, operation and maintenance of
the authorized operations.
Exemption from Service Tax.
Exemption from payment of Stamp Duty.
Exemption from Central Sales Tax against Form - I.
100% exemption from Income Tax for first five years
under section 10AA of the Income Tax Act, 50% for next
five years and 50% of the ploughed back export profit
for next five years.
Single window clearance for Central and State level
Exemption from Value Added Tax (VAT) and Electricity