Local service development - Existing application packages

I am currently working on to onboard the local service development feature for WebMethods. To start using this feature, we need the application packages to be available on SVN.

I have a question on how to onboard these existing application packages on SVN.
Check out-check in feature wont work on .zip of package directly? So do I need to extract these packages first and then manually upload them on SVN?

What is the standard process followed when we are on boarding the existing application packages for local service development?
If there is new package needs to be created, procedure is pretty straight forward. but need to understand how it will work for existing application packages.

Please have a look at the below.

Yes, you need to extract them to check them into SVN. But again if you exising packages, all you can commit them from Designer Workstation. Of course if the number of packages are more then you can any VCS client to commit them together.