The above are some of the key chords that a SEZ developer could find. The detail and paperwork are certainly much more numerous than what is mentioned in this article, the depth of which must be visible as soon as the practitioner is working on a SEZ development project. First, to establish an SEZ, depending on whether it is a unique or multi-product product in nature, somewhere between 10 hectares (e.g. B an IT/ITES SEZ) to 1000 hectares (for a multi-sector SEZ) of unpolluted and adjoining surfaces must be the property of the developer. Land acquisition activity has always been a sensitive subject and even the governments of the federal states have been prevented from carrying out, effective from April 2007, a compulsory acquisition of land for the creation of SEZ. In some parts of the country with their own land ownership rules, development agencies may own the land and lease it to SEZ developers owned by the CSS for all practical purposes. There may be two contracts, a construction contract and a rental deed. The work contract could be awarded on the basis of the lump sum, which will be set at a minimum price of about 4 years, known as the construction period, from the signing of the co-developer contract. This is one of the most important legal contracts that a developer is expected to execute as the main revenue creation in the SEZ business model.
Holder, which received LOA from the Development Commissioner, addresses the developer and signs a Letter of Intent (MOU) that covers initial business requirements, such as land area, rental rent and other general conditions. After the first commercial down payment to the developer and the approval of District Collector for the lease of land, a final lease agreement will be agreed and signed. The company that builds the production facility of goods or services on a given land of a negotiated area and a site located inside the processing area, which was leased with the developer. The group will be responsible for meeting net foreign exchange requirements (DFNs) that will be made possible by the export of goods or services. The rental agreement would be an annual rent on, say, one Sq.M per year, as agreed between the developer and the co-developer for a certain period, we say 99 years as the lease term from the date of lease Deed`s execution. The developer, as part of the infrastructure development, may be required to hire consultants for master business plans, EPC contractors, legal teams, accountants and corporate secretaries for contract structuring and compliance, as well as various other office administration providers. Similarly, the development company must execute employment contracts for SEZ`s staff and development. On the basis of the incentive and the structural context, Chart 1 illustrates the general legal framework, applicable laws, actors and key contracts associated with it, which participate in the creation and implementation of an SEZ –  FOB exports minus imports from CIF (taxguru.in/corporate-law) The promoter executes the memorandum and the statutes as well as the company`s shareholders` pact, which was created as a business model specifically for the purposes of the SEZ.