Free Zones in India (SEZs)

Since 2003, Healy Consultants has been assisting our multinational Clients set up companies in India. An increasingly attractive option for foreign investors is the India Special Economic Zone (SEZ) company. There are currently 238 SEZs across India in 15 states.
business registration in India's free zone

  • Advantages of setting up an India SEZ company

    1. 100% tax deduction on export profits for the first five years, 50% tax deduction for the next 10 years and a 50% tax deduction on re-invested export profit for the following five years;
    2. Exemption from i) minimum alternative tax ii) central sales tax (CST) iii) services tax (ST) and iv) dividend distribution income;
    3. Duty exemption for goods imported for development, operation and maintenance of the SEZs;
    4. Miscellaneous incentives, including exemption from custom duties, excise duties and value added tax (VAT), depending on the state in which the SEZ is located;
    5. Up to US$500 million annually can be borrowed without any restriction on maturity date through recognised financial institutions;
    6. Pro-business infrastructure, including simpler licensing and regulatory procedures.
  • Best uses of an India SEZ company

    1. Many foreign investors set up an India SEZ to conduct export activities;
    2. The India SEZ company is ideal for companies importing raw materials, due to favourable import duties;/li>
    3. Information Technology (IT) firms;
    4. The states of Tamil Nadu, Gujarat and Maharashtra are popular locations to set up an India SEZ company. Visit this page to view a comparison of the best Indian states in which to do business.
  • Comparison of major states operating SEZs in India

    Summary at a GlanceTamilnaduGujaratMaharashtra
    Number of SEZs?362026
    FTZs used mostly by which industry?IT/ITESMulti-product, IT/ITESIT/ITES
    Average annual Industrial space rent / 1000 sq. m.US$10,000US$10,000US$18,000
    How long to set the company up?3 months2 months3 months
    How long to open company bank account?4 weeks4 weeks4 weeks
    Quality of UtilitiesGoodGoodSatisfactory
    Can sign sales contracts with Indian Clients?YesYesYes
    Allowed to invoice India Clients?YesYesYes
    Corporate tax payable in India on export revenue?0%0%0%
    Corporate bank accountSBIHSBCCitibank
    Physical office space required?YesYesYes
    Industrial space availabilityManyManyMany
    Allowed to import raw materials?YesYesYes
    Allowed to export goods?YesYesYes
    Wholly foreign owned?YesYesYes
    Can the entity hire expatriate staff in India?YesYesYes
    Minimum number of directors222
    Minimum number of shareholders111
    Individual shareholders allowed?YesYesYes
    Corporate shareholders allowed?YesYesYes
    Corporate director(s) allowed?NoNoNo
    Public register of shareholders and directorsYesYesYes
    LLC company allowed?YesYesYes
    Can apply for immigration visas?YesYesYes
    Annual audited financial statements to be submitted?YesYesYes

Frequently asked questions

Contact us

For additional information on our free zone company registration services in India, please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon