Special Economic Zones (SEZ) of India | Make in India
For IT or BPO Offshore Centers & Manufacturing
SEZ gelp you maximize benefit for Offshore Centers
A Special Economic Zone (SEZ) is a geographical region that that is treated as deemed foreign territory. SEZs carry multiple incentives as compared to the remaining domestic tariff area (DTA), which makes them suitable for locating 100% exporting units. India has specific laws for its SEZ.
SEZ in India are spread all over the country and available in almost all major tire1 and tire2 Cities and IT Industry clusters. Tire1 Cities being Bangalore, Delhi-Noida-Gurgaon (Delhi National Capital Region), Chennai, Pune, Mumbai, Hyderabad. Tire 2 Cities are Trivandrum, Kochi, Chandigarh, Jaipur, Gandhinagar, Coimbatore, Bhubeneshwar, Nagpur etc.
One can setup an IT and BPO Offshore center or a manufacturing plant in a SEZ. Such production untis setup in a SEZ are termed as SEZ units. SEZ unit can be setup in any Special Economic Zone (SEZ) established and notified by Government of India.
There are both Government and private players having developed SEZs with world class infrastructure.
There are sector specific SEZs also. Such as there are notified IT ans ITeS (BPO) SEZs. A large number of Captive Offshore Centers of foreign companies as well as lot of Indian IT companies have SEZ units operating under these Special Economic Zones specific to IT and ITeS.
Similarly there are multi sector SEZs also. Manufacturing operations can be setup in these SEZs. Also IT and ITeS operations can be setup in multisector SEZs.
Also a private company can set-up a captive SEZ of its own or become a co-developer with an existing private SEZ.
Why setup in SEZ?
A business can set-up an offshore center or a manufacturing operations to provide service to its global business from India, this service which may be a Software Development, Software/application maintenance, Software product development IT infrastructure or a BPO service (called in Indian legal parlance IT enabled service (ITeS)) or making and selling a product from Indian to rest of world. All these transactions are treated as exports from India.
SEZ is a 100% exported oriented scheme to promote exports from the country. As an SEZ unit the offshore center is entitled to various benefits.
Tax Incentives and facilities offered to the SEZs
The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-
- 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years. (You pay 18.5% Minimum Alternate tax in place of Approx 33% corporate Income tax), there is 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
- 100% Duty free import of capital goods for authorised operation of SEZ unit
- 100% GST exempted on domestic procurement of goods and services authorised operation of SEZ unit
- 100% repatriation of profits after payment of divident distribution tax
- External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels, allowing units to avail low interest rate borrowing at international market rate.
- Single window clearance for Central and State level approvals.
- Exemption from State stamp duty in many State Governments.
How we help in setting up SEZ operations?
Our services include end-to-end consulting and project management support to set up the offshore center according to your requirements. We help you in setting up a SEZ unit in four phases covering six modules as follows:
For an over view on our Framework of end-to-end service on setting up your delivery centers or production units please visit the following links.
- Captive Offshore Center in Special Economic Zones
- Managed Offshore Center in Special Economic Zone
- A manufacturing plant under Make in India plan
For Managed Offshore Center in Special Economic Zones, we provide in a similar manner that we provide in general open market operation. for Managed Offshore Center.
In Case of Captive Offshore Center we execute the end-to-end setup in an integrated framework where each of the below given module passes through the above four stages of Plan>Design>Establish>Manage.
SEZ units service is recommended for clients looking for long-term value.