Any individual, co-operative society, company or partnership firm can file an application for setting up of Special Economic Zone. The application is to be made in Form-A to the concerned State Government and the Board of Approval (BOA) in the Department of Commerce, Government of India. However the application would be considered by the BOA only when the State Government recommendation is received.

A SEZ or FTWZ other than a SEZ for IT/ITES, Biotech or Health (other than hospital) service, shall have a contiguous land area of 50 hectares or more. In case a SEZ is proposed to be set up in Assam, Meghalaya, Nagaland, Arunanchal Pradesh, Mizoram, Manipur, Tripura, Himachal Pradesh, Uttarakhand, Sikkim, Goa or in a UT, the area shall be 25 hectares or more. 

There shall be no minimum land area requirement for setting up a SEZ for IT/ITES, Biotech or Health (other than hospital) services but the minimum built up processing area requirement shall be applicable as per SEZ (3rd Amendment) Rules, 2019 notified vide notification dated 17.12.2019.

Once the BOA gives formal approval and the concerned Development Commissioner gives an inspection report certifying the contiguity and vacancy of the area, the area is notified as SEZ.

A proposal shall be made by the developer in Form ‘A’ and be submitted to the concerned Development Commissioner (DC) (as specified in Annexure-III of the SEZ Rules), who, shall forward it to the Board of Approval (BOA) within 15 days with his inspection report, State Government’s recommendation and other details to be furnished for issue of notification for declaration of an area as SEZ (specified under rule 7.) 

The State Government shall forward the proposals to BOA along with its recommendations, within 45 days of receipt of such proposal. If the BOA approves a proposal received, the person shall obtain concurrence of the State Government within 6 months from the date of such approval. While forwarding a proposal, the State Government shall ensure that the requirements for establishment of SEZ (under Rule 5 of SEZ Rules) have been complied with and shall attach copies of relevant notifications issued by it in this regard. 

The central government shall within a period of 30 days of the communication received grant either a formal or an in-principle approval.