Notified Zones

We welcome all innovative & technology enterprises & developers:

New and emerging technologies

Science and/or Technology Institutions

Science Cities and Technopolis

Technology Startups, SMEs, Incubators and Accelerators

High-Tech Electric and Electronics Production Industry

Research and Development Centers and / or Clusters

Technology related Business Process Outsourcing Centers and Global Service Centers

Technology investments related to venture capital, private equity, hedge funds, and financial institution

Information Technology and Communication Technology Industry

New and emerging technologies

Science and/or Technology Institutions

Science Cities and Technopolis

Technology Startups, SMEs, Incubators and Accelerators

Technology Startups, SMEs, Incubators and Accelerators

High-Tech Electric and Electronics Production Industry

Research and Development Centers and / or Clusters

Information Technology and Communication Technology Industry

Technology investments related to venture capital, private equity, hedge funds, and financial institution

Technology related Business Process Outsourcing Centers and Global Service Centers

INCENTIVES

Exemption from all taxes under the Income Tax Ordinance, 2001

Tax on profits & gains, income tax, turnover tax, withholding tax, capital gains tax, income tax & withholding tax on dividend income.

Tax on Import of Capital Goods

Exemption from Customs Duty on all Capital Goods under Customs Act 1969.

Exemption from Property Tax

Subject to the Capital and Provincial Development Authorities.

Exemption from Sales Tax under the Sales Tax Act, 1990

Subject to Federal and Provincial Tax Collection Authorities.

Special Forex Currency Account

Fully Repatriable Investment, Profits and Dividends

Overseas payments permitted without any constraints

Ease of Opening and Maintaining Forex Accounts

Eligibility Criteria

Zone Developers will be evaluated based on their technical and financial proposals. The interested applicants are requested to refer to Annexure I, II,
III, and V of the Special Technology Zones Authority (Qualification and Approval) Rules, 2021 for a detailed overview of the selection criteria and Guidelines for Zone Developers.

Application Guidelines

What are the criteria to be selected as Zone Developer?
  • The Applicant is required to be registered as a legal entity incorporated under the laws of Pakistan as a special purpose company.
  • Foreign legal entities who wish to apply for a license, however, prior to final submission of the application, such foreign legal entities will be required to incorporate special purpose company registered in Pakistan for consideration and evaluation by STZA
What are the Zone Developer Application Categories?

Applications for grant of licenses to Zone Developers, for development, operation, and management of STZs in either of the following categories:

    • Where an applicant owns the parcel of land equal to or greater than 5 acres or intends to build infrastructure equal to or greater than 250,000 sq ft on a land parcel:
    • Where an applicant owns the partial built-up structure or a complete built-up structure equal to or greater than 250,000 sq. ft.
What are the required documents for submission of Zone & Zone Developer Applications?
  • Application Cover Letter
  • Application Checklist
  • Financial Proposal
  • Technology ecosystem proposal/economic impact
  • Legal documentation (incorporation documents, Shareholding pattern/ ownership structure, NTN Certificate, Non-encumbrance certificate, List of any financings and/or loan obtained, Board resolution/ corporate approvals/ authority letter, consents from regulators/NOCs, All title/ ownership documents, Undertaking on the stamp-paper)
What are the required documents for Technical Proposal for submission of Zone & Zone Developer Applications?
  • Partnership Document
  • Feasibility study
  • Environmental Impact Assessment
  • Zone Development Plan
  • Schematic Master Plan
  • Experience of the Applicant
  • Details of the Proposed Zone
What is the Zone Developer Application fee?
The Application Fee for a Zone Developer is PKR 2,000,000/-.
How to submit the Zone Developer Application?
  • Applications shall be submitted on STZA’s website at www.stza.gov.pk, along with all supporting documentation. Unless otherwise notified, three (3) physical copies of the identical online Application along with all supporting documentation must be submitted to STZA within five (5) days of submission of the online Application (including any additional information as may be required from time to time); failure to submit physical copies of the Application may result in the Application being discarded, at the discretion of STZA. The Applicant shall receive an acknowledgement of Application from STZA upon receipt of the electronic and physical copies of the Application.
  • In event of a conflict or contradiction in the contents of the electronic and manual submissions, the contents of the electronic submission shall be considered authoritative and shall take precedence over any manual submission.
  • Applications in physical form should be sent to the following address, unless otherwise specified on STZA’s website: One Window Department Special Technology Zones Authority 16th Floor, New State Life Tower Blue Area, Islamabad
Can I withdraw the Zone Developer Application?

An Applicant may withdraw an Application at any time by providing a written Application to STZA, specifying the reasons and justification for withdrawal of the Application. In case an Applicant withdraws its Application, the paid Application fee shall not be refunded. STZA shall not be liable in any manner whatsoever in respect of the decision of the Applicant for withdrawal of the Application, and the sole responsibility and any liabilities in respect thereof shall solely rest with the Applicant.

A new Application for a license with the same or similar purpose by the Page 5 of 23 same Applicant may only be filed after a lapse of six (6) months from the date of confirmation of withdrawal of the Application.

  • The Applicant is required to be registered as a legal entity incorporated under the laws of Pakistan as a special purpose company.
  • Registered as a legal entity incorporated under the laws of Pakistan.
  • Foreign legal entities required to incorporate special purpose company registered in Pakistan for consideration and evaluation.
  • The land parcel equal to or greater than 5 acres or intends to build infrastructure equal to or greater than 250,000 sq ft.
  • The partial built-up structure or a complete built-up structure equal to or greater than 250,000 sq. ft.
  • Applicants will be required to file Zone Applications for notification of land parcels or built-up infrastructures as STZs along with Zone Developer Applications for development, operations and management of such notified Zones.
  • Application Cover Letter

  • Application Checklist

  • Financial Proposal

  • Technology ecosystem proposal/economic impact

  • Legal Documentation (incorporation documents, Shareholding pattern/ ownership structure, NTN Certificate, Non-encumbrance certificate, List of any financings and/or loan obtained, Board resolution/ corporate approvals/ authority letter, consents from regulators/NOCs, All title/ ownership documents Undertaking on the stamp-paper).

  • Partnership Document
  • Feasibility study
  • Environmental Impact Assessment
  • Zone Development Plan
  • Schematic Master Plan
  • Experience of the Applicant
  • Details of the Proposed Zone
  • The Application Fee for a Zone Developer is PKR 2,000,000/-.
  • An applicant needs to submit online application though One Window Portal.
  • An applicant needs to submit physical copies of application to STZA main office.
  • An applicant needs to submit (3) physical copies of the application to STZA’s main office.
Note: Submission of both online and physical application is necessary for further processing.
  • An applicant can withdraw application after specifying the reason and justification.
  • Same Applicant can file after a lapse of six (6) months from the date of confirmation of withdrawal.
  • In case an Applicant withdraws its Application, the paid Application fee shall not be refunded.

FAQs

What is a Zone Developer?

The term refer to any public, private, or public-private Person responsible for development, operation or management of the whole, or a part of STZ and Licensed by the Authority as such, and includes a Co-Zone Developer who acts as a partner of the Zone Developer. The Zone Developer shall lease or rent out its facility to licensed Zone Enterprises. The Zone Developer will be responsible for the supervision of activities in its specified area in STZ, and monitoring compliance with the development agreements, Licenses, and the applicable Rules and Regulations notified by the Authority. A Zone Developer can also engage in technology business operations, however, shall separately apply for Zone Enterprise license.

What are the criteria to be selected as a Zone Developer?

Zone Developers will be evaluated based on their technical and financial proposals. For a more detailed framework, please refer to following documents available on official website:

  1. STZA (Qualification and Approval) Rules, 2021.
  2. Application Guidelines for Zone Developers.
If a group of companies (a collection of parent and subsidiary companies) want to apply for a license, would they have to do so separately or can they apply collectively as a group?

The companies concerned may form a new company with a back-end joint venture or shareholders agreement to join a STZ, or one of the companies may become the Zone Developer and the others may join as Zone Enterprises under the umbrella of that Zone Developer. The structuring of companies is entirely up to the businesses intending to apply for licenses in a STZ. However, it shall be noted that the incentives will only be applicable to that legal entity or set of legal entities which are licensed by the Authority and are operating within the STZ, activities being carried outside of STZ shall not be subject to any incentives.

What will STZA One Window Facility do?

The One Window facility will comprise of relevant entities of Federal, Provincial or Local Governments, for facilitation of the Zone Developers and Zone Enterprises to lodge standardized information and documents with a single-entry point to fulfill the requirements under the STZA Act, Rules or Regulations including the establishment, development, execution, operations, functioning and management of STZs. The facility is currently under development and once completed, it will provide a single physical and digital interface for submission of all applications and various facilitation requests to STZA including submission of applicable fees. The facility will be integrated with other government departments to automate and streamline the provision of Government services to the end users. Applicants and licensees will be able to track and monitor the status and outcome of their requests online through their respective accounts on the STZA’s One Window portal without the requirement for physically visiting Government offices, where possible.

Would there be absolute/complete exemption on all taxes once licensed by the STZA?

No. The tax benefits that would be provided to Zone Developers and Zone Enterprise are explicitly mentioned in sections 20 and 21 of the Special Technology Zones Act, 2021 and shall become operational only after appropriate legislative amendments relating to the incentives are made under applicable tax laws such as Income Tax Ordinance, Sales Tax Act etc.

At present, the following tax incentives are available for successful applicants under STZA:

f. Profit and gains are exempted from tax for a period of 10 years under the Income Tax Ordinance, 2001.

g. Minimum turn over tax is exempted for a period of 10 years under the Income Tax Ordinance, 2001.

h. Dividend and long-term capital gains of venture capital funds from their investment in Zone Enterprises only are exempted from tax for a period of 10 years under the Income Tax Ordinance, 2001.

i. Customs Duties, income tax and sales tax are exempted on import of capital goods for a period of 10 years under the Customs Act, 1969, Income Tax Ordinance, 2001 and Sales Tax Act 1990.

j. Zone Enterprises and Zone Developers are eligible for opening of Special Forex Accounts under the State Bank of Pakistan regulations which provided certain benefits to its holders including no requirement of conversion of US Dollars to PKR.

Would incentives given by STZA be applicable in the Provinces too?

Yes. The tax incentives granted under STZA license would be applicable in all STZs established by the Authority across Pakistan. In addition, Provinces are at liberty to provide additional tax incentives through changes in their respective tax laws. These will be updated on our website from time to time as they are announced by the Provinces.

Will companies be exempt from Provincial sales tax on services if they are operating in Provinces?

At present, the companies falling under the STZA regime are not exempted from Provincial taxes including Provincial sales taxes.

How many floors are permitted to build for the offices?
According to initial layout plan of Islamabad Technopolis, the FAR is 1:4 with 50% ground coverage, production zone 1:2 with 60% ground coverage, residential 1:4 with 50% ground coverage and commercial 1:5 with 70% ground coverage.
When do the tax benefits commence?
The tax exemptions and other benefits under the Act, Rules and other documents will only commence from the date of grant of license in case of Zone Enterprises, and from the date of signing of Development Agreement in case of Zone Developers. A Zone Enterprise or Zone Developer will not be allowed to claim exemptions retrospectively.
How do I submit an Application for a Zone Developer or a Zone Enterprise?

Applications shall be submitted through the One Window Application Portal on STZA’s website at www.stza.gov.pk, along with all supporting documentation. Additionally, three (3) physical copies of the identical online application along with all supporting documentation must be submitted to STZA within five (5) days of submission of the online application; failure to submit physical copies of the application may result in the application being discarded or put on hold, at the discretion of STZA.

For Islamabad and all provinces of Pakistan, Applications in physical form should be sent to the following address, unless otherwise specified on STZA’s website:

One Window Department
Special Technology Zones Authority
16th Floor, New State Life Tower
Blue Area, Islamabad

Can I withdraw my Application?

If an applicant is desirous of withdrawing an application, the applicant shall inform STZA in writing with reasons for such withdrawal in writing as per the prescribed methodology under applicable regulations. It shall be noted that the application fee submitted shall not be refunded to the applicants in such a case. 

What is the procedure for processing of Applications?
All applications filed to STZA go through an initial screening process at the One Window Department. Subject to completion of checklist documents, the applications are evaluated by evaluation committees.

Guidelines for Zone Developer Applications

Registered as a legal entity incorporated under the laws of Pakistan

Foreign legal entities required to incorporate special purpose company registered in Pakistan for consideration and evaluation

  • The land parcel equal to or greater than 5 acres or intends to build infrastructure equal to or greater than 250,000 sq ft

  • The partial built-up structure or a complete built-up structure equal to or greater than 250,000 sq. ft.

  • Application Cover Letter

  • Application Checklist

  • Financial Proposal

  • Technology ecosystem proposal/economic impact

  • Legal documentation (incorporation documents, Shareholding pattern/ ownership structure, NTN Certificate, Non-encumbrance certificate, List of any financings and/or loan obtained, Board resolution/ corporate approvals/ authority letter, consents from regulators/NOCs, All title/ ownership documents

  • Partnership Document
  • Feasibility study
  • Environmental Impact Assessment
  • Zone Development Plan
  • Schematic Master Plan
  • Experience of the Applicant
  • Details of the Proposed Zone

The Application Fee for a Zone Developer is PKR 2,000,000/-.

  • Submission through portal

  • Submission of physical copies

  • Specifying the reasons and justification for withdrawal

  • Same Applicant can file after a lapse of six (6) months from the date of confirmation of withdrawal.

APPLY NOW

Get your license today to contribute towards the technological growth of Pakistan.

Name:

LEOS Technology Zone

Location:

Lehtrar Road, Nilore, Islamabad

Area:

225,562 Sq Ft 19.23 acres.

Declared on:

8th November 2024

POC Name:

Muhammad Asad Saleem

POC Email:

Name:

Khanpur Industrial Project

Location:

Haripur, KPK

Area:

199,174 Sq Ft of existing and proposed infrastructure ,197 Acres.

Declared on:

12th September 2024

POC Name:

Asif Iqbal CFO/Company Secretary

Name:

Capital Smart Technology Zone (Silicon Village), Rawalpindi

Location: