Procedure for filing LOA renewal application for units of a Special
Every unit should obtain permission by way of Letter of Approval from the Development Commissioner(DC) to setup their business and operate in a Special Economic Zone. LOA is valid for a period of 5 years and when this period is coming to a close, application for renewal of the LOA has to be submitted to the DC. As per the current requirements, every unit shall apply for renewal of LOA at least before 60 days of expiry of the existing LOA. In this article, you will find the procedure for filing the LOA renewal application with the SEZ.
Procedure for filing LOA renewal application for units of a Special Economic Zone:
Step 1 Preparation of documents for submission:
The following documents are to be prepared and submitted with the officer while filing the application with DC.
- Annexure-XI—LOA Renewal application form
- Annexure-1—Existing details of 5 years foreign inflow and outflow.
- Annexure-2—Additional details
- Projected Profit and Loss and Balance sheet for the next 5 years
- Annual performance reports of all the 5 years duly attested by a chartered accountant
- Copy of willingness letter from Co-Developer
- Copy of Bond cum legal undertaking (BLUT)
- Copy of Initial LOA
- RCMC renewed certificate for the year of application
- Unjust enrichment certificate from a chartered accountant
Step 2 Filing an online renewal application:
An online renewal application has to be filed through “SEZ-Online” portal. The procedure for the same has been mentioned below.
- Create “Maker” and “Approver” credentials and assign the LOA renewal functionality using admin credentials. If the credentials are already created, make sure the LOA renewal functionality has been assigned.
- Login through “Maker” credentials and click on the LOA renewal option.
- Fill the requisite information, attach the required documents and submit the application to approver for review.
- Login through Approver credentials and click on Inbox to find the application submitted through “Maker” credentials.
- Review the application and submit using Digital Signature of the authorized representative registered on the SEZ portal.
Step 3 Submission of hard copies to the officer for approval:
After submission of online application, hard copies of all the documents submitted on the SEZ portal along with the online form filed (Form-F1) signed by authorized representative have to be submitted to the SEZ office.
Step 4 Response to deficiency if any:
Sometimes, we might provide incomplete information or might miss out some of the documents in our submission. In case of any deficiencies issued by the department, the unit has to respond for the same and also should provide the information through mail or submitting the hard copies physically to ADC/DC. On response to the deficiency with the requisite information, the officer will verify and consider the submission.
Important documents to be prepared:
Annexure-1: Existing details of five years foreign outflow and inflow
The details of foreign outflow due to import of goods or services and the details of foreign inflow against exports made by the unit for the last 5 years are to be submitted in a summary view in this annexure. An important point to be remembered is the details as per annexure should match with the Annual performance reports filed for all the years of the existing block.
Projected financial statements for the next 5 years
The entity has to estimate their financial performance for the next 5 years and should submit projected financial statements i.e., Profit and loss, Balance sheet.
Annexure-I and XI: LOA renewal application and additional details
The following sections are required to be filled in the LOA renewal application:
- Details of existing and proposed investments in the capital goods.
- Details of existing and proposed investments in raw materials.
- Details of existing and proposed employment.
- Projected inflow and outflow of foreign exchange.
“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of situation.”