SEZ and STPI Registrations



SEZ & STPI – UNITS Schemes:

Our team has specialist in setting up SEZ – Unit and STPI - Unit approvals in India. STPI scheme, the 100% Export Oriented Unit scheme is made for setting up of software development and IT Enabled Services (ITES) firm in India for 100% Export. A distinctive feature of this STP/EHTP scheme is that it provides single point contact services for STPI member units, which enables them to conduct exports operations at a pace commensurate with global standards. The Directors of STPI administers this scheme. The STPI scheme offers Income Tax Holiday as per section 10A of the IT Act and Customs Duty exemptions on Import of Capital equipments and full Foreign Direct Investments (FDI) permissible through ‘Automatic Route’ of Reserve Bank of India and number of services exemptions. Our dedicated team for STPI unit provides a “Single Window Solutions”

STPI Scheme:

The 100% Export Oriented Unit scheme (STP scheme) is made for setting up of software development and IT Enabled Services (ITES) firm in India for 100% Export. A distinctive feature of this STP/EHTP scheme is that it provides single point contact services for member units, which enables them to conduct exports operations at a pace commensurate with global standards. The Directors of STPI administers this scheme.

STPI Scheme Benefits & Highlights:

  • Income tax holiday as per section 10A of the IT Act.
  • Customs duty exemption on imports of capital equipments and the equipments can also be imported on loan or lease basis.
  • All relevant equipments/goods, including second hand equipment, can be imported (except the prohibited items).
  • Full excise duty exemption on indigenous items procurement.
  • Central Sales Tax reimbursement on indigenous items procurement.
  • Green card enabling priority treatment for government clearances or other services.
  • Full Foreign Direct Investment (FDI) permissible through 'Automatic Route' of RBI.
  • Sales in the DTA (Domestic Tariff Area) up to 50% of the foreign exchange earned by the STP/EHTP unit.
  • Complete depreciation on capital goods over a period of five years.
  • Software units may also use the computer system for training purpose (including commercial training).

Special Economic Zone - SEZ

India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 200

Today Andhra Pradesh, INDIA has emerged as a location for knowledge – driven, skill – based and high value investments. In order to sustain the seamless growth in the State, Government of Andhra Pradesh has embarked upon promotion of Special Economic Zones (SEZs).

SEZs are specifically delineated enclaves treated as foreign territory for the purpose of industrial, service and trade operations, with relaxation in customs duties and a more liberal regime in respect of other levies, foreign investments and other transactions.

Incentives and facilities offered to the SEZ - Units

The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-

  • Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
  • 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
  • Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
  • External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
  • Exemption from Central Sales Tax.
  • Exemption from Service Tax.
  • Exemption from VAT
  • In – House Customs Clearance
  • Single window clearance for Central and State level approvals
  • Exemption from State sales tax and other levies as extended by the respective State Governments.