| 1. What is a Special Economic Zone (SEZ)? |
| SEZs are specifically demarcated areas within the country where raw materials and capital goods can be imported duty free from abroad or the domestic market and a special package of tax holiday and incentives are given with a view to boost exports from the home country. Manufacturing and Services operations are allowed in a SEZ. |
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| 2. Who can establish SEZs? |
| Any private/public/joint partnership company or State Government or its agencies can set up a Special Economic Zone (SEZ). |
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| 3. Where is the complete SEZ Policy contained ? |
| The complete SEZ policy is contained in the SEZ Act of India 2005. This can be downloaded from the website www.sezindia.nic.in along with the rules of the Act. |
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| 4. Is 100 % Foreign Direct Investment allowed in the SEZ? |
| Yes. FDI companies can also repatriate dividend subject to dividend tax. (Currently 10 %). Each year a minimum 10 % of profits must be transferred to the general reserve and the balance can be allocated by the company. |
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| 5. Who is responsible for the maintenance of the SEZ |
| The Developer is responsible for the maintenance of the SEZ. The Development Commissioner monitors the performance of the Developer. |
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