EOU Registration (Letter of Permission) in Chennai
Set up your Export Oriented Unit the right way. We assess eligibility, prepare the project proposal for the Development Commissioner, support you before the Units Approval Committee, and guide the legal undertaking and customs bonding that follow the Letter of Permission.
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EOU Registration (Letter of Permission) in Chennai
RoC Chennai — 26, Haddows Road, Nungambakkam, Chennai – 600006 · roc.chennai@mca.gov.in
Madras High Court
33 (Tamil Nadu) · state tax portal
Tamil Nadu levies Professional Tax (max ₹2,400/year). Applicable to companies, firms, and self-employed professionals.
Tamil Nadu Shops and Establishments Act, 1947
Applicable — contributed annually, in December.
Anna Salai, Guindy, Porur, Sholinganallur, OMR
Chennai is India's manufacturing and IT hub — home to automobile giants, IT parks, and a thriving MSME sector. Tamil Nadu's business-friendly policies make it attractive for both manufacturing and services.
EOU Registration (Letter of Permission) in brief
Who it applies to, what it costs, how long it takes and which law governs it — before the details.
An Export Oriented Unit (EOU) is a manufacturing or service unit set up under Chapter 6 of the Foreign Trade Policy 2023 that commits to export its output and earn positive Net Foreign Exchange (NFE). In return it can import and procure inputs and capital goods without payment of duty, subject to the scheme’s conditions. The unit applies to the jurisdictional Development Commissioner (DC); approval is given by the Units Approval Committee (or the Board of Approval in other cases) and conveyed by a Letter of Permission (LoP). The unit then executes a Legal Undertaking with the DC and completes customs bonding before operations start.
- Professional Fee
- Custom quote
- Governing Policy
- FTP 2023, Chapter 6
- Authority
- Development Commissioner
- Approval
- Letter of Permission (LoP)
- Undertaking
- Legal Undertaking with DC
- Customs
- Bonding of premises
- Obligation
- Positive NFE
- Prerequisite
- Valid IEC
- Policy
- Foreign Trade Policy 2023, Chapter 6
- Procedure
- Handbook of Procedures, Chapter 6
- Approval
- Letter of Permission
- Authority
- Development Commissioner / UAC
- Parent Act
- FT (D&R) Act, 1992
- Last Reviewed
- 23 Sep 2026
What Is EOU Registration (Letter of Permission)?
A quick, plain-language explanation before the details.
An EOU is an export-focused factory or service unit that gets duty relief on its imports and domestic procurement, in exchange for exporting and earning more foreign exchange than it spends.
The EOU scheme is governed by Chapter 6 of the Foreign Trade Policy 2023 and Chapter 6 of the Handbook of Procedures, issued by DGFT under the Foreign Trade (Development and Regulation) Act, 1992. Customs and GST aspects are governed by the relevant customs notifications and the CGST Act, 2017.
Applications are handled by the jurisdictional Development Commissioner (the DC of the SEZ zone covering your location), under the Department of Commerce. Approval is by the Units Approval Committee, or by the DC after clearance by the Board of Approval where required.
The LoP carries an initial period to build the plant and commence production, which can be extended on valid grounds. After production starts, the approval runs for a fixed block of years and can be extended by the DC if the unit opts to continue.
Is This Service Right for You?
Ideal for
- Manufacturers planning a dedicated export plant outside an SEZ
- Existing DTA units wishing to convert into an EOU
- Software, IT-enabled and other service exporters (STP/EHTP route alongside)
- Agro-processing, food and horticulture exporters with export-focused capacity
- Gems, jewellery, textile and engineering exporters with large import content
- Groups weighing EOU against SEZ, MOOWR or Advance Authorisation
You may need this if
- You want to set up a unit that exports its production from any location you choose
- Your inputs and capital goods are largely imported and duty cost matters
- You can commit to positive Net Foreign Exchange over the approval period
- You need a Letter of Permission before importing machinery for the project
- You want to convert an existing DTA unit into an EOU
- You need help with the LUT, bonding and post-approval permissions from the DC
Not sure if you need this?
Talk to an Expert →Why Set Up as an Export Oriented Unit?
The EOU scheme lets an export-focused business operate from a location of its choice while buying inputs and capital goods without the duty cost. Here is why businesses still choose it.
Talk to an EOU Setup Expert →Duty Relief on Inputs
Raw materials, components, consumables and capital goods can be imported or procured from the DTA without payment of duty, subject to scheme conditions.
Location of Your Choice
Unlike an SEZ unit, an EOU can be set up anywhere in India, on owned or eligible leased premises approved by the DC.
Export-First Operations
The LoP authorises your export activity, projected exports and NFE, giving a clear framework for overseas buyers and banks.
Permitted DTA Sales
Within the limits and conditions of the FTP, an EOU can sell a part of its output in the domestic market on payment of applicable duties.
Deemed Export Supplies
Supplies from the DTA to an EOU can qualify as deemed exports, which helps domestic vendors supply you on competitive terms.
Conversion of Existing Units
An existing DTA unit can apply to convert into an EOU, subject to the conditions set out in the FTP and Handbook of Procedures.
Simple, Transparent Pricing
Custom quote for your case
Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.
Who Can Apply?
Eligibility checklist
- A valid Import Export Code (IEC) in the applicant’s name
- A viable project with projected exports and positive NFE
- Investment in plant and machinery meeting the FTP threshold (unless exempt)
- Separate, earmarked premises — owned or on an eligible lease
- Trading-only activity is not eligible; manufacture or services are
- Sector-specific and environmental clearances where applicable
Everything You Need. One Professional Team.
Feasibility Review
Compare EOU with SEZ, MOOWR and Advance Authorisation for your product, markets and import content.
Eligibility Check
Confirm investment threshold, premises, NFE projection and sector conditions before filing.
Project Proposal
Prepare the application in the prescribed form with the project report, export and NFE projections.
DC Filing Support
Coordinate submission with the jurisdictional Development Commissioner’s office.
UAC Presentation
Prepare you for the Units Approval Committee and respond to its observations.
Legal Undertaking
Guide execution of the Legal Undertaking with the DC after the LoP is issued.
Customs Bonding
Coordinate the bonding and customs formalities needed before duty-exempt imports.
Post-Approval Permissions
Support extensions, broad-banding, DTA sale permissions and performance reporting.
What You’ll Receive
What Documents Are Required for EOU Approval?
The DC looks at who you are, whether the project is viable and export-focused, and whether the premises qualify. Keep clear scans (PDF/JPG) ready — we collect everything securely over WhatsApp or email.
Applicant & Entity
Identity & registration proof- Import Export Code (IEC) certificate
- PAN and constitution documents — Certificate of Incorporation, LLP agreement or partnership deed
- GST registration certificate (where applicable)
- Board resolution / authorisation for the signatory
Project & Finance
Viability proof- Detailed project report with items of manufacture or services
- Projected exports and NFE for the approval block
- List of capital goods and raw materials to be imported or procured
- Means of finance and investment in plant and machinery
Premises & Clearances
Site & statutory proof- Ownership or lease documents for earmarked premises
- Site plan and layout of the proposed unit
- Pollution control consent / other sector clearances as applicable
- Industrial licence or IEM details where required
NFE drives the approval
The Net Foreign Exchange projection is central to the proposal. We build it from realistic export and import numbers so the LoP conditions are achievable.
Separate earmarked premises
An EOU needs separate, earmarked premises for each LoP. Leases from private parties must meet the minimum lease conditions in the Handbook of Procedures.
Investment threshold
The FTP sets a minimum investment in plant and machinery for EOUs, with exemptions for certain sectors. We check where your project stands before filing.
Email & digital signature
The Legal Undertaking is executed only when the unit has a permanent email address and digital signature. We make sure these are ready in advance.
Don’t have all the documents?
We’ll identify what your case needs →How to Set Up an EOU (Step by Step)
The proposal is filed with the jurisdictional Development Commissioner and decided by the Units Approval Committee.
Scheme fit & eligibility
We compare EOU with SEZ, MOOWR and other schemes, and confirm investment, premises and NFE feasibility.
Project proposal
Prepare the application in the prescribed form with the project report, export plan, NFE and import list.
Filing with the DC
Submit the proposal to the jurisdictional Development Commissioner with supporting documents.
Units Approval Committee
The UAC (or the BoA where required) considers the proposal. We prepare responses to any observations.
Letter of Permission
On approval, the DC issues the LoP specifying items, capacity, exports, NFE and conditions.
LUT, bonding & start-up
Execute the Legal Undertaking, complete customs bonding and begin duty-exempt imports and production.
How Long Does EOU Approval Take?
| Stage | Expected Time |
|---|---|
| Feasibility, project report & document collection | Depends on project readiness |
| Filing with the DC & Units Approval Committee review | As per the UAC meeting schedule |
| LoP issue, Legal Undertaking & customs bonding | Subject to DC and Customs processing |
The timeline depends on how complete the project report is, whether sector-specific clearances are needed, the Units Approval Committee’s meeting schedule and any observations raised. Proposals needing Board of Approval clearance or an industrial licence take longer.
Key Dates — At a Glance
| Frequency | What Is Due |
|---|---|
| Quarterly | File quarterly progress reports with the DC · Reconcile imports and domestic procurement · Track exports against the LoP projections |
| Annually | File the Annual Performance Report with the DC · Review NFE position for the block period · Maintain stock and consumption accounts for customs |
| Event-Based | Seek permission for DTA sales beyond routine limits · Apply for broad-banding, capacity expansion or location change · Seek extension of the LoP before it lapses |
| Ongoing | Keep bonded premises and records audit-ready · Track DGFT public notices and DC instructions · Plan exit or de-bonding in line with the procedure |
Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.
Doing It Yourself vs TaxClue
Doing It Yourself
- Decide alone between EOU, SEZ and MOOWR
- Build NFE projections without a model
- Draft the application and annexures yourself
- Track UAC meetings and observations
- Work out the Legal Undertaking and bonding steps
- Handle customs formalities for the first imports
- Risk LoP conditions you cannot meet later
With TaxClue
- Scheme comparison before you commit
- NFE and export plan built on real numbers
- Application reviewed before submission
- UAC observations answered by our team
- Legal Undertaking and bonding guided
- Post-approval permissions supported
- A compliance calendar for the approval block
Skip the guesswork.
Let an expert handle it →What happens next
Common Mistakes That Delay Your Application
TaxClue reviews your documents before filing to reduce avoidable errors.
What Compliance Applies After EOU Approval?
Quarterly
- File quarterly progress reports with the DC
- Reconcile imports and domestic procurement
- Track exports against the LoP projections
Annually
- File the Annual Performance Report with the DC
- Review NFE position for the block period
- Maintain stock and consumption accounts for customs
Event-Based
- Seek permission for DTA sales beyond routine limits
- Apply for broad-banding, capacity expansion or location change
- Seek extension of the LoP before it lapses
Ongoing
- Keep bonded premises and records audit-ready
- Track DGFT public notices and DC instructions
- Plan exit or de-bonding in line with the procedure
Penalties & Consequences
What is at stake if you do not comply
- Duty benefits recovered with penalty if NFE turns negative
- Imports blocked where the LUT or bonding is incomplete
- LoP lapses if production does not start and no extension is sought
- Unauthorised DTA sales attract duty demands and action under the FTP
Regulatory Updates 2025–26
- 31 Dec 2025: DGFT Public Notice No. 41/2025-26 inserted Para 6.41 and Appendix 6N in the Handbook of Procedures, standardising permissions issued by Development Commissioners to EOUs.
- 2026: The EOU scheme continues under Chapter 6 of the Foreign Trade Policy 2023, administered by the jurisdictional Development Commissioners.
Why Businesses Choose TaxClue
CA / CS Team
Qualified professionals with hands-on FTP, customs and GST experience for export units.
Scheme Comparison
We weigh EOU against SEZ, MOOWR and Advance Authorisation before you commit.
Always Updated
We track DGFT public notices, Handbook changes and DC instructions.
Fully Online
Most work happens over WhatsApp / email, with coordination for any office visits.
Transparent Fees
A clear quote upfront — government fees at actuals, zero hidden charges.
Post-Approval Support
Performance reports, extensions and DTA permissions after the LoP.
Your Documents Deserve Professional Care
- Project and financial documents handled under confidentiality
- Access limited to the team working on your file
- Communication over secure digital channels
- Documents retained only as long as needed for compliance
Frequently Asked Questions
What is an Export Oriented Unit (EOU)?
Who approves an EOU application?
What is a Letter of Permission (LoP)?
Is there a minimum investment to set up an EOU?
Can a trading business become an EOU?
What is Net Foreign Exchange (NFE) and why does it matter?
What is the Legal Undertaking for an EOU?
Does an EOU need customs bonding?
How long is an EOU Letter of Permission valid?
Can an EOU sell in the domestic market?
EOU vs SEZ unit — which is better?
EOU vs MOOWR — what is the difference?
Can an existing DTA unit convert into an EOU?
What reports must an EOU file after approval?
Have the EOU procedures changed recently?
Official Sources & Legal References
Every regulatory detail on this page is drawn from primary policy and official government sources. Verify them directly:
- Foreign Trade Policy — DGFTChapter 6 of FTP 2023 sets out the EOU, EHTP, STP and BTP schemes
- Appendix 6D — Format of Letter of PermissionDGFT standard format of the LoP issued to an EOU
- EOU FAQs — Noida SEZ (Development Commissioner)Official FAQs from a Development Commissioner’s office on EOU setup and operation
- Special Economic Zones in India — Department of CommerceBoard of Approval agendas and minutes, including EOU matters
Related Guides
EOU Registration (Letter of Permission) Resources — All Free
Set Up Your EOU — Fully Managed
Expert-managed EOU setup — scheme comparison, project proposal, Development Commissioner filing, UAC support, Legal Undertaking and customs bonding, end to end. Consultation, transparent fees, zero hidden charges.
Talk to an EOU Setup Expert →