Special Economic Zone - SEZ in India

Special Economic Zone - SEZ in India were introduced to provide an internationally competitive and hassle-free climate for export promotion in India. SEZ in India is established through the Special Economic Zone (SEZ) Act, 2005. The SEZ Act provides for drastic simplification of procedures and for single window clearance on matters relating to Central as well as State Governments. In this article, we look at the basics of SEZ in India and the advantages of setting up a business in an SEZ.

SEZ Act in India

Special Economic Zone - SEZ in India are established through the SEZ Act, 2005. The main objectives of the SEZ Act are:

Generation of additional economic activity
Promotion of exports of goods and services
Promotion of investment from domestic and foreign sources
Creation of employment opportunities
Development of infrastructure facilities

Advantages of Setting up a Business in an SEZ

The following are some of the advantages and incentives offered for those units in an SEZ in India:

Exemption from Central Sales Tax
Exemption from Service Tax
Single window clearance for Central and State level approvals
Exemption from State sales tax and other levies as extended by the respective State Governments
Duty-free import / domestic procurement of goods for development, operation and maintenance of units in SEZ
Exemption from minimum alternate tax under section 115JB of the Income Tax Act
100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first five years, 50% for next five years thereafter and 50% of the reinvested export profit for next five years
External commercial borrowing by SEZ units up to USD500 million in a year without any maturity restriction through recognized banking channels

List of SEZ in Chennai & Tamil Nadu

TCS Siruseri | IT/ITES
Elcot Sholinganallur | IT/ITES
DLF Info City Porur | IT/ITES
Mahindra Chengleput | IT / Hardware / Bio - information
MEPZ Special Economic Zone Chennai | Multiproduct
Tril Info Park Taramani | IT/ITES
Sipcot Oragadam | Electronics & Hardware
IG3 Infra Limited (ETL Infrastructure Services Limited) Thoraipakkam | IT/ITES
CHIL Coimbatore | IT/ITES
ETA Techno Navalur | IT/ITES
Nokia Sriperumbudur | Telecommunication Equipments
Cognizant Siruseri | IT/ITES
Sipcot Gangaikondan | Transport
Mahindra Chengleput | Auto Ancillaries
Shriram Properties and Infrastructure Private Limited Chennai | IT/ITES
Cheyyar SEZ | Footwear
Syntel Siruseri | IT/ITES
Hexaware Technologies Limited Siruseri | IT/ITES
Elcot Coimbatore | IT/ITES
L & T Shipbuilding Kattupalli | Engineering
Synefra Construction Ltd. (Suzlon Infrastructure Ltd.) Coimbatore | Engineering
Flextronics Technologies (India) Private Limited Sriperumbudur | Electronics Hardware
Sicpot Hi-Tech Sriperumbudur | Electronics Hardware
Mahindra Chengleput | Apparel & Fashions
AMRL Nanguneri | Multi-product
Sipcot Perundurai | Engineering
New Chennai Cheyyur | Engineering
J. Matadee Mannur | Footwear
Pearl City CCCL Tuticorin | Food Products
Elcot Trichy | IT/ITES
Span Ventures Coimbatore | IT/ITES
Sipcot Ranipet | Engineering
Elcot, Ilandhakulam Ilanthakullam | IT/ITES
New Chennai Cheyyur | Multi Services
IG3 Infra Limited Uthukuli | Textile
Estintia IT Park formerly known as (L & T Arun Excello) Chennai | IT/ITES

List of SEZ in Bangalore and Karnataka

Manyata Embassy Business Park SEZ Bangalore | IT/ITES
Pritech Park SEZ (Primal Projects Limited) Bangalore | IT/ITES
International Technology Park Limited Bangalore | IT/ITES
Wipro Limited (Sarjapur) | IT Karnataka
Wipro Limited (Electronic City) Bangalore | Information Technology
Bagmane SEZ Bangalore | IT/ITES
Cessna SEZ Bangalore | IT/ITES
Global Village formerly Tanglin SEZ | IT/ITES
Gopalan Enterprises Private Limited (Global Axis-Hoodi) | IT/ITES
Divyasree Technopark Krishnarajapuram | IT/ITES
Vrindavan Tech Village SEZ Bangalore | IT/ITES
Mangalore SEZ | Petro Chemicals and Petroleum Products
RMZ Ecoworld Karnataka | IT/ITES
HCL Technologies Bangalore | IT/ITES
BIOCON SEZ Bangalore | Biotechnology

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Frequently Asked Questions

Common questions about Special Economic Zones in India for Business Growth.

A Special Economic Zone (SEZ) in India is a specifically demarcated duty-free enclave treated as a foreign territory for trade operations and duties. SEZs are established through the SEZ Act, 2005 with the objective of promoting exports, generating employment, and attracting investment.

The main objectives of the SEZ Act in India are generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities, and development of infrastructure facilities.

Some key advantages of setting up a business in an SEZ in India include exemption from Central Sales Tax and Service Tax, single window clearance for approvals, exemption from State sales tax and other levies, duty-free import/procurement of goods, exemption from Minimum Alternate Tax, and 100% Income Tax exemption on export income for the first 5 years.

Units in an SEZ in India are offered tax incentives such as exemption from Central Sales Tax, Service Tax, State sales tax, and other levies. They also enjoy 100% Income Tax exemption on export income for the first 5 years, 50% for the next 5 years, and 50% of the reinvested export profit for the following 5 years.

Units in an SEZ in India can import goods duty-free for development, operation, and maintenance purposes. This duty-free import/domestic procurement of goods is one of the key advantages offered to businesses in SEZs.

Yes, SEZ units in India are allowed external commercial borrowing up to USD 500 million in a year without any maturity restriction through recognized banking channels.

One of the major advantages of setting up a business in an SEZ in India is the provision for single window clearance for Central and State level approvals, which simplifies the process of obtaining necessary clearances.

Yes, SEZs in India cater to various sectors and industries, including IT/ITES, electronics and hardware, engineering, biotechnology, telecommunications, automotive, apparel, and footwear, among others.

Some of the major SEZs in Chennai and Tamil Nadu include TCS Siruseri, Elcot Sholinganallur, DLF Info City Porur, Mahindra Chengleput, MEPZ Special Economic Zone Chennai, Tril Info Park Taramani, Sipcot Oragadam, and IG3 Infra Limited (ETL Infrastructure Services Limited) Thoraipakkam.

IndiaFilings can assist with starting a business in an SEZ in India or registering a Private Limited Company. They offer advisory services to guide businesses through the process of setting up operations in an SEZ.