Sez

Others 778 views 3 replies

Ramesh Kandaswamy

Associate

25 Points Joined October 2007

Dear All,

I have a query relating to setting up SEZ unit

The company has purchase a land in SEZ location in the name of existing company XX Ltd subsidiary of ZZ Pte.

Now, the management has decided to form a new company called YY Ltd which will also be the subsidiary of ZZ Pte to carry out the SEZ operations which were earlier planned to be executed by XX Ltd. All SEZ applicabtion has been filed in the name of XX Ltd.

How should the company now request the SEZ board to transfer the SEZ benifit entitlement from XX Ltd to YY Ltd consequent to the restructring decisions of the management.?

Replies (3)

Kolluru Krishna Murty

Partner

315 Points Joined December 2011

Normally in SEZ operations you have to have a SPV(Special Purpose Vehicle)to carry on the business in SEZ.

So if YY Ltd or ZZ Ltd is formed like that ,whichever is formed under the conditionality of the MOU only would be allowed to transfer the properties and benifits and not others.

kkm

Ramesh Kandaswamy

Associate

25 Points Joined October 2007

Thank you sir, The new company YY Ltd is going to be formed like a SPV. However, the land for SEZ has been purchsed by XX Ltd (an existing company which is not a SPV) and all application has been processed in the name of XX Ltd only. Now I want to know the procedure to transfer the SEZ benifit entitlement from XX Ltd to YY Ltd after YY Ltd (SPV) is formed.

Also, Is it compulsory that SEZ unit should only be a SPV. Can't an existing company have a seperate SEZ division if they can maintain seperate books of accoutns of SEZ division to show the authorities, the export & related profits of SEZ seperately from the total turn over and profits of the company