# Treelife - GIFT City > GIFT City – Gujarat International Finance Tec-City, Gandhinagar The new pathway to go Global GET IN TOUCH WITH US What is GIFT City? Gujarat International Finance Tec-City (GIFT City) is --- ## Pages - [Gift IFSC](https://gift.treelife.in/about-gift-ifsc/): The International Financial Services Centres Authority (IFSCA) has been established on April 27, 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar in Gujarat. - [Home](https://gift.treelife.in/): Gujarat International Finance Tec-City, Gandhinagar is designed to be India's first smart city, with a focus on the finance and IT sectors. The city aims to attract major national and international financial activities - [Resources](https://gift.treelife.in/resources/): Explore Treelife's curated collection of articles, reports, and blogs on GIFT City, covering regulatory insights, tax benefits, and setup guidance. Ideal for businesses and investors navigating India’s premier financial hub. --- ## Posts - [International Bullion Exchange (IBX) at GIFT City - Complete Guide](https://gift.treelife.in/international-bullion-exchange-ibx-at-gift-city/): Introduction to IBX at GIFT City What is the International Bullion Exchange (IBX)? The International Bullion Exchange (IBX) is India’s... - [Starting a Bullion Trade in GIFT City (2025)](https://gift.treelife.in/starting-a-bullion-trade-in-gift-city/): Are you looking to venture into the lucrative world of bullion trading in India? The India International Bullion Exchange (IIBX)... - [CBDT Notifies TDS Exemption for Payments to IFSC Units (Effective from July 1, 2025) ](https://treelife.in/news/cbdt-notifies-tds-exemption-for-payments-to-ifsc-units-effective-from-july-1-2025/) - [IFSCA Approves "Platform Play" for Fund Management Entities at GIFT IFSC](https://treelife.in/news/ifsca-approves-platform-play-for-fund-management-entities-at-gift-ifsc/) - [Payment Service Providers (PSPs) in GIFT City IFSCA](https://gift.treelife.in/psp-in-gift-city/): Overview of GIFT City and IFSC What is GIFT City? GIFT City (Gujarat International Finance Tec-City) is India’s leading financial... - [IFSCA Notifies Updated Regulations for Capital Market Intermediaries in IFSC](https://treelife.in/news/ifsca-notifies-updated-regulations-for-capital-market-intermediaries-in-ifsc/) - [IFSCA Eases Staffing Requirements for GRCTCs in IFSCs](https://treelife.in/news/ifsca-eases-staffing-requirements-for-grctcs-in-ifscs/) - [Family Office in GIFT IFSC & Setting up FIF](https://gift.treelife.in/family-office-in-gift-ifsc/): The Indian government has recently relaxed the regulations for family offices in the International Financial Service Centre (IFSC), making it... - [IFSCA Introduces Co-Investment Framework for Venture Capital and Restricted Schemes in GIFT IFSC](https://treelife.in/news/ifsca-introduces-co-investment-framework-for-venture-capital-and-restricted-schemes-in-gift-ifsc/) - [The Debt Market at IFSC: Key Insights & Trends (2024-2025)](https://treelife.in/reports/the-debt-market-at-ifsc/) - [IFSCA Set to Streamline Ancillary and TechFin Services Framework!](https://treelife.in/news/ifsca-set-to-streamline-ancillary-and-techfin-services-framework/) - [Income Received in GIFT IFSC: Taxed in India? An Anomaly Worth Noticing](https://treelife.in/quick-takes/income-received-in-gift-ifsc-taxed-in-india-an-anomaly-worth-noticing/) - [How Foreign Companies Can Enter India via GIFT City IFSC](https://gift.treelife.in/how-foreign-companies-can-enter-india-via-gift-city-ifsc/): Why Foreign Companies Are Eyeing GIFT City India is rapidly positioning GIFT City IFSC (International Financial Services Centre) as a... - [GIFT City vs Dubai DIFC vs Singapore: Which One is Best for Your Business?](https://gift.treelife.in/gift-city-vs-dubai-difc-vs-singapore/): When expanding globally, choosing the right financial hub is crucial for success. The three prominent financial centers—GIFT City (India), Dubai... - [What is the IFSCA? Everything You Need to Know](https://gift.treelife.in/what-is-the-ifsca-everything-you-need-to-know/): What is IFSCA? (International Financial Services Centres Authority) The International Financial Services Centres Authority (IFSCA) is a unified regulatory body... - [GIFT IFSC Licensing Process: Step-by-Step Legal Guide (2025 Edition)](https://gift.treelife.in/gift-ifsc-licensing-process/): What is GIFT City and Why is It Important? GIFT City, short for Gujarat International Finance Tec-City, is India’s first... - [IFSCA Unveils Transition Framework for Fund Managers Under New 2025 Regulations](https://treelife.in/news/ifsca-unveils-transition-framework-for-fund-managers-under-new-2025-regulations/#new_tab) - [IFSCA Revises Fee Structure for GIFT IFSC Entities, Effective Immediately](https://treelife.in/news/ifsca-revises-fee-structure-for-gift-ifsc-entities-effective-immediately/#new_tab) - [Role of GIFT City in India’s Stock Market & Trading Regulations](https://gift.treelife.in/role-of-gift-city-in-india-stock-market-trading-regulations/): What is GIFT City and GIFT IFSC? GIFT City (Gujarat International Finance Tec-City) is India’s first operational smart city and... - [What is an IFSC Banking Unit (IBU) & How It Works?](https://gift.treelife.in/what-is-an-ifsc-banking-unit-ibu-how-it-works/): What is an IFSC Banking Unit (IBU)? An IFSC Banking Unit (IBU) is a specialized branch of a bank that... - [IFSCA Amends Corporate Governance Guidelines for GIFT IFSC Finance Companies, Exempts Treasury Centres](https://treelife.in/news/ifsca-amends-corporate-governance-guidelines-for-gift-ifsc-finance-companies-exempts-treasury-centres/#new_tab) - [IFSCA Updates Framework for Global/Regional Corporate Treasury Centres (GRCTCs), Enhancing Regulations](https://treelife.in/news/ifsca-updates-framework-for-global-regional-corporate-treasury-centres-grctcs-enhancing-regulations/#new_tab) - [Private Equity & Venture Capital in GIFT City](https://gift.treelife.in/private-equity-venture-capital-in-gift-city/): Introduction India’s financial services landscape is undergoing a silent revolution — and at its heart lies GIFT City (Gujarat International... - [GIFT City Tax Exemptions for Foreign Investors, NRIs & Companies](https://gift.treelife.in/gift-city-tax-exemptions-for-foreign-investors-nri-companies/): What is GIFT City? Gujarat International Finance Tec-City (GIFT City) is India’s first International Financial Services Centre (IFSC), strategically developed... - [Zero Tax Benefits in GIFT City: All You Need to Know](https://gift.treelife.in/zero-tax-benefits-in-gift-city-all-you-need-to-know/): Overview of GIFT City What is GIFT City? Gujarat International Finance Tec-City, commonly known as GIFT City, stands as a... - [Legal & Compliance Requirements for Business Registration in GIFT City](https://gift.treelife.in/legal-compliance-requirements-for-business-registration-in-gift-city/): Why GIFT City is Ideal for Your Business Setup GIFT City (Gujarat International Finance Tec-City) is India’s premier international financial... - [Benefits of Setting Up a Business in GIFT City IFSC](https://gift.treelife.in/benefits-of-setting-up-a-business-in-gift-city-ifsc/): GIFT City (Gujarat International Finance Tec-City) IFSC (International Financial Services Centre) is quickly emerging as one of India’s most promising... - [SEBI Proposes Removal of NOC Requirement for Stock Brokers in GIFT IFSC](https://treelife.in/news/sebi-proposes-removal-of-noc-requirement-for-stock-brokers-in-gift-ifsc/#new_tab) - [GIFT City Liquor Permit: Is Alcohol Allowed in Gujarat’s Financial Hub?](https://gift.treelife.in/gift-city-liquor-permit/): Introduction to Liquor Laws in Gujarat Gujarat has been a dry state since 1960, enforcing strict prohibition under the Gujarat... - [Navigating the New Cyber Security Framework in GIFT IFSC](https://treelife.in/news/navigating-the-new-cyber-security-framework-in-gift-ifsc/#new_tab) - [GIFT SEZ Compliances - A Complete List](https://treelife.in/compliance/gift-sez-compliances/#new_tab) - [From Fees to Tokenization: Key IFSCA Updates You Should Know](https://treelife.in/news/from-fees-to-tokenization-key-ifsca-updates/#new_tab) - [GIFT City Ecosystem for Startups - A Complete Guide in 2025](https://gift.treelife.in/gift-city-ecosystem-for-startups/): GIFT City – A Hub for Innovation and Entrepreneurial Spirit Nestled amidst the Sabarmati River and flanked by the historic... - [A Complete Guide on GIFT City Regulations - 2025](https://gift.treelife.in/a-complete-guide-on-gift-city-regulations/): The world of finance is constantly evolving, seeking new hubs to foster innovation and growth. In India, a shining beacon has emerged: Gujarat International Finance Tec-City (GIFT City). - [IFSC notifies updated FME Regulations](https://treelife.in/news/ifsc-notifies-updated-fme-regulations/) - [Clarification on usage of SNRR Accounts for IFSC units](https://treelife.in/news/clarification-on-usage-of-snrr-accounts-for-ifsc-units/) - [Insights from the Gujarat GCC Policy 2025-30 Launch](https://treelife.in/news/insights-from-the-gujarat-gcc-policy-2025-30/) - [Resident Individuals to open Foreign Currency bank Accounts (FCA) with IBUs in IFSCs](https://treelife.in/news/resident-individuals-to-open-foreign-currency-bank-accounts-fca-with-ibus-in-ifscs/#new_tab) - [Navigating GIFT City: A Comprehensive Guide to India’s First International Financial Services Centre (IFSC)](https://treelife.in/reports/navigating-gift-city-a-comprehensive-guide/) - [IFSCA releases consultation paper seeking comments on draft circular on “Principles to mitigate the Risk of Greenwashing in ESG labelled debt securities in the IFSC”](https://treelife.in/news/ifsca-releases-consultation-paper-seeking-comments/) - [What are Capital Market Intermediaries (CMI)?](https://gift.treelife.in/what-are-capital-market-intermediaries-cmi/): Capital Market Intermediaries (CMI) are vital to the financial ecosystem, acting as facilitators between clients and regulators. They ensure smooth transactions, uphold market integrity, and contribute to the efficient functioning of capital markets. In this post, we explore the various types of CMIs and their roles, with a special focus on their operations within the GIFT IFSC ecosystem. - [100% NRI Investments now permitted in FPIs based in GIFT IFSC](https://treelife.in/news/100-nri-investments-now-permitted-in-fpis-based-in-gift-ifsc/#new_tab) - [The Era of International Businesses in GIFT City - An Exploration](https://gift.treelife.in/the-era-of-international-businesses-in-gift-city/): The Rise of GIFT City: An International Financial Hub in the Making Nestled between Ahmedabad and Gandhinagar, Gujarat, lies a... - [Setting Up AIF in GIFT City - A Detailed Investment Guide](https://gift.treelife.in/setting-up-aif-in-gift-city-a-detailed-investment-guide/): Overview of GIFT City as a Financial Hub Gujarat International Finance Tec-City (GIFT City) stands as a pioneering endeavor, harmoniously... - [Setting Up a Company or Business in GIFT CITY - Registration, Process, Eligibility](https://gift.treelife.in/setting-up-a-company-or-business-in-gift-city-registration-process-eligibility/): Positioned at the heart of Gujarat, India, the Gujarat International Finance Tec-City (GIFT City) stands out as an exemplary destination for businesses aiming to leverage India's burgeoning potential in the financial markets. - [Key Highlights from GIFT IFSC Q4 - 2024](https://gift.treelife.in/key-highlights-from-gift-ifsc-q4-2024/): We at Treelife are thrilled to share the latest statistics from the International Financial Services Centres Authority ( ) 4 2024. This comprehensive snapshot showcases the remarkable growth and activity across various sectors within the GIFT IFSC - [Fintech Startups and Companies in GIFT City - Explained](https://gift.treelife.in/fintech-startups-and-companies-in-gift-city/): India’s Financial Gateway: GIFT City Beckons Fintech Startups With a keen eye on the future, the Indian government is actively... - [GIFT City - The Epicenter of Global Financial Hub in India](https://gift.treelife.in/gift-city-the-epicenter-of-global-financial-hub-in-india/): Nestled between the bustling city of Ahmedabad and Gujarat’s capital, Gandhinagar, lies a project unlike any other in India –... - [GIFT City Stamp Duty Exemption - All you Need to Know](https://gift.treelife.in/gift-city-stamp-duty-exemption-all-you-need-to-know/): Introduction Gujarat International Finance Tec-City (GIFT City), situated in Gandhinagar, represents India’s pioneering stride into establishing an international financial services... - [The Rise of Mutual Fund Businesses in GIFT City](https://gift.treelife.in/the-rise-of-mutual-fund-businesses-in-gift-city/): A New Hub Emerges for Indian Mutual Funds The Indian financial landscape is witnessing a significant shift. Mutual funds, which... - [GIFT City and its Tax Implications: A Deep Dive](https://gift.treelife.in/gift-city-and-its-tax-implications-a-deep-dive/): GIFT City: India’s Gateway to a Global Financial Future The global financial landscape thrives on vibrant hubs that facilitate international... - [The Rise of Insurance in GIFT City - Understanding IIOs](https://gift.treelife.in/the-rise-of-insurance-in-gift-city/): The Rise of Insurance sector business in GIFT City GIFT City, a visionary project spearheaded by the Indian government, is... - [Gujarat's IT and ITeS Policy : A Robust Framework for Sector Growth](https://gift.treelife.in/gujarats-it-and-ites-policy-a-robust-framework-for-sector-growth/): Gujarat’s IT and ITeS incentive policy, in effect until 2027, is pivotal in driving the sector forward. Here’s what you... - [Simplified Banking in GIFT IFSC for Foreign Companies](https://gift.treelife.in/simplified-banking-in-gift-ifsc-for-foreign-companies/): Historically, the PAN (Permanent Account Number) requirement has been a significant obstacle for foreign companies wishing to establish bank accounts... - [Fintech Opportunities in GIFT City: A New Era of Innovation](https://gift.treelife.in/fintech-opportunities-in-gift-city-a-new-era-of-innovation/): The rapidly evolving financial landscape has placed India on the map for its forward-thinking initiatives. The International Financial Services Centre... - [FinTech Incentive Scheme](https://gift.treelife.in/fintech-incentive-scheme/): On February 2nd, 2022, the International Financial Services Centres Authority (IFSCA) issued a notification introducing the “FinTech Incentive Scheme”. 1.... - [GIFT City: Catalyzing India's Startup Revolution](https://gift.treelife.in/gift-city-catalyzing-indias-startup-revolution/): Gujarat International Financial Tec-City (GIFT City) stands as an emblem of India’s proactive approach to contemporary finance and business. Positioned... - [GIFT City: An Opportunity for Indian FinTechs](https://gift.treelife.in/gift-city-an-opportunity-for-indian-fintechs/): India’s financial and technological ecosystem has been expanding exponentially, and the newest feather in its cap is the Gujarat International... --- ## Faqs - [Are entities in GIFT IFSC treated as a resident in India?](https://gift.treelife.in/faq/are-entities-in-gift-ifsc-treated-as-a-resident-in-india/): From an Income-tax perspective, entities in GIFT IFSC are “resident” in India while from an exchange control perspective, entities in... - [How many approvals does one need to obtain to operate in GIFT IFSC?](https://gift.treelife.in/faq/how-many-approvals-does-one-need-to-obtain-to-operate-in-gift-ifsc/): As of now, approval is needed from the SEZ authorities and the IFSCA authorities for operating in GIFT IFSC. A... - [Is the AIF regulated by GIFT IFSC?](https://gift.treelife.in/faq/is-the-aif-regulated-by-gift-ifsc/): Unlike SEBI’s domestic AIF regulations where the fund (AIF) seeks registration with SEBI, under the IFSCA regulations, the fund management... - [What is the difference between fintech and techfin under the GIFT IFSC framework?](https://gift.treelife.in/faq/what-is-the-difference-between-fintech-and-techfin-under-the-gift-ifsc-framework/): Fintech: This refers to emerging financial technologies and innovations that drive new business models, applications, processes, or products in areas... - [Who are the real estate developers in GIFT City?](https://gift.treelife.in/faq/who-are-the-real-estate-developers-in-gift-city/): There are multiple real estate developers offering office space in GIFT City. There are also a few Plug N Play... - [Why should a business set up its operations in the GIFT City IFSC?](https://gift.treelife.in/faq/why-should-a-business-set-up-its-operations-in-the-gift-city-ifsc/): Entities in GIFT City’s IFSC benefit from a favorable regulatory environment, tax incentives, robust infrastructure, and easy access to a... - [Are there special regulatory provisions for businesses in GIFT City's IFSC?](https://gift.treelife.in/faq/are-there-special-regulatory-provisions-for-businesses-in-gift-citys-ifsc/): Yes, businesses in GIFT City’s IFSC are governed by a separate regulatory framework crafted by the IFSC Authority, ensuring a... - [What kind of tax incentives does GIFT City's IFSC offer?](https://gift.treelife.in/faq/what-kind-of-tax-incentives-does-gift-citys-ifsc-offer/): Companies in GIFT City’s IFSC enjoy various tax benefits, including lower tax rates, exemptions from several duties, and other incentives... - [How does GIFT City's IFSC compare with other global financial hubs?](https://gift.treelife.in/faq/how-does-gift-citys-ifsc-compare-with-other-global-financial-hubs/): GIFT City’s IFSC is strategically designed to offer services at par with global financial hubs. Its state-of-the-art infrastructure, streamlined regulatory... - [How is your pricing model?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy/): Treelife offers a flexible and transparent pricing model tailored to the specific needs of your business. Our pricing is structured... - [Are there any hidden fees or additional costs?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy/): No, Treelife believes in transparency and ensures there are no hidden fees or unexpected charges. All costs are clearly outlined... - [What is the typical turnaround time for your services?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy/): The turnaround time for our services depends on the complexity and scope of the project. During the initial consultation, we... - [What is your payment schedule?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy/): Our payment schedule is designed to be convenient and flexible. Typically, we operate on a milestone-based payment system, where payments... - [How can I pay you?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy/): Treelife accepts various payment methods to ensure ease and convenience for our clients. You can pay us via bank transfer,... - [Can Treelife assist with international market entry?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy/): Yes, Treelife offers extensive support for businesses looking to expand globally. Our services include jurisdiction evaluation, regulatory assessment, and execution... - [Can Treelife assist with setting up a business in India?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy/): Yes, Treelife provides end-to-end support for setting up a business in India. Our services include market entry strategy, company registration,... - [I am based out of a location where Treelife doesn't have an office, how do we work?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy/): Treelife operates seamlessly with clients across various locations whether domestic or international through virtual communication and collaboration tools. We conduct... - [What tools or technologies are you equipped with?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy/): Treelife is equipped with a comprehensive technology stack to ensure effective and efficent way to deliver our services. For bookkeeping,... - [Who will manage my account?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy/): Your account will be managed by a dedicated SPOC who will be your primary point of contact. This person will... - [Do I need to physically sign any documents?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy/): No, physical signatures are generally not required. Treelife uses secure electronic signature platforms to facilitate the signing of documents, making... - [How do you ensure data security and confidentiality?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy/): Treelife prioritizes the security and confidentiality of your data. We use secure servers, encryption, and access controls to protect your... - [What is transaction services?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy/): Our transaction services encompass advisory and documentation support for various financial transactions, including private equity/venture capital (PE/VC) deals, mergers and... - [Do you help in raising funds?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2/): Yes, Treelife assists startups and businesses in raising funds. We provide comprehensive support, including preparation of investor-ready documents, due diligence,... - [What sets Treelife apart from other service providers?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-4/): Treelife stands out due to our integrated approach, combining legal, financial, and compliance expertise under one roof. Our personalized service... - [What is your experience of working with investors and AIFs?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-5/): Treelife has a robust track record of working with investors and Alternative Investment Funds (AIFs). We offer comprehensive support for... - [Have you worked with startups before?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-6/): Yes, we have extensive experience working with startups across various industries. We understand the unique challenges faced by startups and... - [What is the profile of the members working at Treelife?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-7/): Our team at Treelife comprises experienced professionals with diverse backgrounds in finance, law, compliance, and business advisory. Each member brings... - [What does Treelife do?](https://gift.treelife.in/faq/this-is-what-we-do/): Treelife provides comprehensive legal, financial, and compliance services tailored to the needs of startups, investors, and businesses. Our services include... - [I am just a startup, I need all services, can you help me?](https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8/): Absolutely! Treelife specializes in supporting startups with a wide range of services. From legal support and virtual CFO services to... --- # # Detailed Content ## Pages --- ## Posts - Published: 2025-06-30 - Modified: 2025-07-22 - URL: https://gift.treelife.in/international-bullion-exchange-ibx-at-gift-city/ - Categories: Resources - Tags: IBX, IBX at GIFT City, International Bullion Exchange, International Bullion Exchange at GIFT City Introduction to IBX at GIFT City What is the International Bullion Exchange (IBX)? The International Bullion Exchange (IBX) is India’s pioneering platform for trading physical gold and silver. Located at GIFT City, Gandhinagar, this exchange is designed to offer an efficient, transparent, and seamless trading experience for bullion dealers, jewellers, and institutional investors. IBX plays a crucial role in providing a well-regulated marketplace for gold and silver transactions, focusing on: Efficient Price Discovery: Ensures that market prices reflect fair value through transparent and competitive trading. Responsible Sourcing: Guarantees that the bullion traded on the exchange adheres to ethical sourcing standards, supporting sustainable practices. High-Quality Bullion Trading: Facilitates the buying and selling of high-purity gold and silver, meeting international quality standards. IBX enables direct imports of gold, allowing TRQ holders to bypass intermediaries, thus eliminating additional costs and delays. The TRQ Gold import process offers a reduced 5% customs duty and removes the need for blocking a 1% customs duty bond. This provides a seamless, cost-effective way to import bullion. The IBX Ecosystem serves as a centralized hub for bullion trading in India, enhancing the ease of gold and silver imports and exports, while also positioning India to become a significant player in global bullion markets. Significance of IBX for India and Global Bullion Trade India is the second-largest consumer of gold globally, making its bullion market one of the most influential in the world. Despite its high consumption, India has historically lacked control over global bullion price setting. The launch of IBX addresses this challenge and enables India to: Position India as a Price Setter: By facilitating direct trading of bullion, IBX allows India to influence global gold and silver prices, rather than relying on international exchanges. Enhance Global Market Integration: IBX connects India to the global bullion market, enabling international traders and institutional investors to directly participate in Indian bullion trade, thus increasing liquidity and market depth. Boosting India's Role in Global Bullion Trade: IBX provides India with a strategic advantage in bullion trading, reinforcing its position as a global leader in the precious metals market. IBX further strengthens India’s position by offering TRQ holders the ability to import gold directly without intermediary steps, exempted from the IGCR rule, and only paying 5% customs duty instead of the regular rate. This unique benefit enhances India’s role in the global bullion market. IBX's integration into the global trading system is an essential step in India’s aspiration to be a key player in global bullion markets. With a platform that offers transparency and integrity, it stands as a pivotal milestone in India’s journey toward becoming a global bullion hub. Overview of GIFT City and Its Role in IBX GIFT City, short for Gujarat International Finance Tec-City, is a state-of-the-art financial district located in Gandhinagar, Gujarat. It serves as the foundation for India’s first International Financial Services Centre (IFSC). This strategic location hosts several financial institutions, including IBX, and offers a range of benefits: Hub for Financial Services: GIFT City is designed to be a global financial services hub, attracting investors, traders, and financial institutions worldwide. International Standards: GIFT City is built with world-class infrastructure that adheres to international standards, providing an optimal environment for IBX to operate and grow. Seamless Regulatory Environment: The IFSCA (International Financial Services Centres Authority) regulates all operations within GIFT City, ensuring smooth operations for IBX participants and fostering trust among global investors. The International Financial Services Centres Authority (IFSCA) regulates IBX registration process, ensuring that only qualified jewelers and registered IFSCA entities can import bullion directly through IBX. The IFSCA’s streamlined processes support both market participants and customs clearance, enabling smoother bullion imports. The strategic location, combined with advanced infrastructure, makes it an ideal place for IBX to lead India’s bullion trading sector and integrate seamlessly with global financial markets. Role of IFSCA in Regulating IBX at GIFT City What is IFSCA and Its Regulatory Role for IBX? The International Financial Services Centres Authority (IFSCA) is the primary regulatory body overseeing operations within International Financial Services Centres (IFSCs) in India, including IBX at GIFT City. IFSCA ensures that all financial activities conducted in IFSCs adhere to global standards of transparency, security, and efficiency. Its role in regulating IBX is pivotal for maintaining the credibility and smooth functioning of the exchange. Key responsibilities of IFSCA in regulating IBX include: Ensuring Compliance: IFSCA ensures that IBX and its participants comply with all applicable regulations related to gold and silver trading, customs duties, and taxation. Market Efficiency: The authority monitors the exchange to ensure that trading practices are efficient, transparent, and free from manipulation. Promoting Responsible Trading: IFSCA enforces strict guidelines on responsible sourcing of bullion, ensuring that the precious metals traded on IBX meet international ethical standards. IFSCA’s regulatory framework provides confidence to investors and market participants, ensuring that all activities on IBX are fair, secure, and compliant with global financial practices. GIFT City as a Hub for Financial Services Financial and Tech Services Hub: A Global Financial Center GIFT City (Gujarat International Finance Tec-City) is India’s flagship project to develop an integrated global financial services hub. Designed with state-of-the-art infrastructure, GIFT City is set to become a central player in the global financial landscape by hosting India's first International Financial Services Centre (IFSC), where IBX operates. This strategic location offers a wide range of services, including finance, banking, insurance, and technology, making it an attractive destination for international investors and businesses. Key Features of GIFT City as a Financial Services Hub: Multi-Service SEZ: GIFT City is a Special Economic Zone (SEZ) that offers a one-stop solution for all financial services, from banking to fintech, enabling smooth and cost-efficient operations for entities like IBX. World-Class Infrastructure: GIFT City is equipped with high-quality infrastructure that supports the needs of global businesses, including financial institutions and technology firms. Regulated by IFSCA: The IFSCA regulates all entities operating in GIFT City, ensuring adherence to international standards and fostering investor confidence. GIFT City’s Role in IBX Growth Enhanced Connectivity: GIFT City’s strategic location makes it an ideal gateway for global bullion trading, helping IBX attract international participants and bullion traders. Global Financial Integration: As a hub for international financial services, GIFT City facilitates the integration of India’s bullion market with global financial systems, allowing foreign traders to easily engage with Indian bullion markets through IBX. The Launch of IBX: A Game Changer for India’s Bullion Market Prime Minister’s Launch of IBX On July 29, 2022, the Prime Minister of India officially launched the India International Bullion Exchange (IBX), marking a transformative step in the country’s bullion market. This initiative aims to streamline the gold and silver trading process, empower qualified jewellers, and position India as a more influential player in the global bullion market. The launch of IBX reflects India’s vision of becoming a key player in setting global bullion prices while addressing the long-standing challenges in the import and export of bullion. The IBX platform provides a regulated marketplace for bullion trading, offering transparency and efficiency.   As part of the TRQ onboarding process, IBX simplifies bullion imports through the Customs EDI Gateway (ICEGATE), and qualified entities can avail direct imports. Custom House Agents (CHA) can assist with the customs clearance, ensuring compliance with GST regulations and reducing time delays. Key Benefits for Bullion Dealers and Qualified Jewellers The India International Bullion Exchange (IBX) provides a range of benefits that make it an ideal platform for bullion dealers and qualified jewellers. From transparent pricing to flexible trading options, IBX empowers market participants to operate more efficiently in the bullion market. 1. Direct Import of Bullion Before the introduction of IBX, qualified jewellers had to rely on intermediaries for bullion imports, which often led to higher costs and delays. With IBX, qualified jewellers can now directly import bullion, streamlining the process and reducing reliance on middlemen. Faster Import Process: Jewellers can now directly source gold and silver from international suppliers. Cost-Effective: Eliminates intermediaries, lowering the overall cost of imports. Ethical Sourcing: Ensures that the bullion is sourced responsibly, in line with global OECD Due Diligence Guidance. 2. Enhanced Trading Opportunities IBX provides bullion dealers and qualified jewellers with the ability to trade on a globally recognized platform, with the added advantage of competitive pricing. Global Exposure: IBX connects Indian traders with global market participants, offering access to international pricing and liquidity. Increased Trading Flexibility: Dealers can now trade in a range of gold and silver products that meet international standards. Access to Competitive Rates: IBX offers pricing that is competitive with other international exchanges, providing an opportunity for better trading margins. 3. Transparency and Compliance IBX operates with full regulatory oversight by IFSCA, ensuring that all transactions are conducted transparently and in compliance with international financial and regulatory standards. Secure Transactions: Ensures that bullion transactions are safe and meet regulatory requirements. Price Transparency: Facilitates fair price discovery through competitive and transparent market pricing. Future Prospects of IBX in the Global Bullion Market 1. Fostering Price Discovery As India’s first International Bullion Exchange, IBX plays a crucial role in enabling price discovery for gold and silver traded within India. By offering a transparent and accessible platform for international and domestic traders, IBX helps in setting fair market prices that reflect global demand and supply dynamics. Market Liquidity: By connecting domestic and global buyers and sellers, IBX increases the liquidity in India’s bullion market. Competitive Pricing: With the integration of international markets, IBX ensures that India can influence global bullion pricing. 2. New Investment Opportunities IBX opens the door to new investment opportunities for investors, dealers, and jewellers, both domestically and internationally. The platform enables access to gold and silver trading in various contract sizes and forms, offering flexibility for different types of investors. Investment in Bullion Financial Products: Investors can engage in a variety of financial products related to precious metals. Global Participation: IBX attracts international investors, providing them with direct access to India’s bullion market. 3. A Hub for International Bullion Trading IBX has the potential to become a global hub for bullion trading, bringing together traders and investors from around the world. This will help strengthen India’s position in the global bullion market, with GIFT City serving as a strategic location for global bullion trade. How Does IBX Work? The India International Bullion Exchange (IBX) simplifies the process of trading gold and silver by providing a transparent and efficient platform. To import bullion, TRQ holders must be registered with IFSCA, complete their ICEGATE registration, and work with Custom House Agents (CHA) for smooth customs processing. Additionally, IBX ensures that fund transfers to the clearing system are seamless, providing an efficient trading environment. Below is a clear step-by-step guide on how IBX works, from setting up accounts to executing trades. The Process Flow for Trading on IBX Step 1: Open a Trading Account To start trading on IBX, the first step is to open a trading account with any registered trading member authorized by the exchange. This account will provide you with access to the IBX platform. Requirements: Complete KYC (Know Your Customer) formalities and submit identification documents. Purpose: The trading account gives you the ability to place buy and sell orders on the IBX platform. Step 2: Open a Demat Account with IIDI (India International Depository IFSC Limited) After setting up your trading account, the next step is to open a Demat account with IIDI (India International Depository IFSC Limited). This account will hold your Bullion Depository Receipts (BDRs), which represent the gold and silver traded on IBX. Requirements: Provide your personal details and KYC documents to IIDI. Purpose: The Demat account securely holds your BDRs, which are linked to the physical bullion stored in authorized vaults. Step 3: Transfer Funds and Initiate Trade Once your accounts are set up, you need to transfer funds into the IBX clearing system through an AD Bank which will issue Bullion Depository receipts. This ensures that you have the necessary capital for buying bullion. How it Works: Transfer funds from your bank to AD... --- - Published: 2025-06-30 - Modified: 2025-07-22 - URL: https://gift.treelife.in/starting-a-bullion-trade-in-gift-city/ - Categories: Resources - Tags: bullion trade, bullion trading, setting up bullion trading, setting up bullion trading in gift city, starting bullion trading, starting bullion trading in gift city Are you looking to venture into the lucrative world of bullion trading in India? The India International Bullion Exchange (IIBX) in GIFT City, Gujarat, is rapidly emerging as the premier gateway for efficient and compliant bullion trade in GIFT City. This comprehensive guide will walk you through everything you need to know about setting up bullion trade in GIFT City in 2025. Why GIFT City is the Premier Destination for Bullion Trading for 2025 GIFT City (Gujarat International Finance Tec-City) is rapidly solidifying its position as the go-to hub for starting bullion trading and setting up bullion trade in India. Designed as a global financial services center, it offers unparalleled advantages for businesses looking to engage in the precious metals market, making it the strategic choice. Strategic Advantages for Bullion Businesses Global Access & Time Zone Advantage: GIFT City's strategic geographical location offers a crucial time zone advantage, facilitating seamless global bullion trade operations across major markets, from East to West. This reduces operational overlaps and extends trading hours. Robust Regulatory Framework: Regulated by the International Financial Services Centres Authority (IFSCA), GIFT City provides a transparent, secure, and conducive environment for setting up bullion trading. IFSCA's clear guidelines foster trust and efficiency in all bullion-related activities. World-Class Infrastructure: Investing in bullion trade in GIFT City means access to state-of-the-art infrastructure. This includes advanced trading platforms, secure vaulting facilities for physical bullion, and comprehensive financial services, ensuring efficient and safe operations. Streamlined Direct Import Gateway: The presence of the India International Bullion Exchange (IIBX) within GIFT City acts as a direct import gateway for bullion into India. This significantly simplifies and accelerates the process of setting up bullion trade and importing precious metals, cutting down on logistical complexities. IIBX: Your Gateway to India's Bullion Market Central to starting bullion trading in GIFT City is the India International Bullion Exchange IFSC Limited (IIBX). Launched in July 2022, IIBX is conceptualized as the principal entry point for bullion imports into India, fostering a world-class ecosystem for bullion trading, investment in related financial products, and secure vaulting services within the IFSC. Core Features of the India International Bullion Exchange IFSCA Regulation: IIBX operates under the strict oversight of the IFSCA, ensuring high standards of transparency, market integrity, and compliance for all participants engaged in bullion trading. Strong Institutional Backing: Promoted by India's leading market infrastructure institutions, including NSE, INDIA INX (a subsidiary of BSE), NSDL, CDSL, and MCX, IIBX provides a robust and reliable platform for setting up bullion trading. Innovative Settlement & Payouts: IIBX is recognized for its "Global First Initiatives," notably the "Every 30 minutes Settlement of BDR (Bullion Depository Receipts)" and direct pay-outs to buyers. This rapid settlement process enhances liquidity and operational efficiency for bullion trade. USD-based Hedging: Entities can leverage USD-based pricing for gold futures on IIBX. This feature eliminates the need for establishing overseas subsidiaries for hedging operations, simplifying risk management for those starting bullion trading and wanting to hedge their price risk. Who Can Participate in Bullion Trading at IIBX in GIFT City? The India International Bullion Exchange (IIBX) in GIFT City is designed to be an inclusive platform, welcoming a diverse range of participants keen on setting up bullion trade in GIFT City. Understanding the various roles is key to leveraging the opportunities presented by this thriving ecosystem for starting bullion trading. Key Players in the IIBX Ecosystem For those considering setting up bullion trading, IIBX accommodates several categories of entities, each with distinct functions and specific onboarding requirements: Qualified Jewellers (QJ): Qualified Jewellers (QJ) are entities actively engaged in the precious metals business under specific ITS(HS) codes, and they must meet defined net worth and turnover criteria to participate in bullion trading on the IIBX. To qualify, a QJ must have a minimum net worth of ₹25 crore, as per its latest audited financial statement. The net worth is calculated by adding the paid-up share capital, reserves created from profits, and securities premium account, while deducting accumulated losses and unamortized expenditures. Additionally, QJs must ensure that 90% of their average annual turnover over the past three years comes from dealings in precious metals. They are empowered to import both gold and silver directly through IIBX and can hold Tariff Rate Quotas (TRQs). Furthermore, QJs must provide a net worth certificate from a practicing Chartered Accountant, Cost Accountant, or Company Secretary, and comply with the 'fit and proper' criteria under Regulation 51(2) of the IFSCA (Bullion Exchange) Regulations, 2020. Tariff Rate Quota (TRQ) Holders: These are entities holding valid India-UAE TRQ licenses or authorizations from the Directorate General of Foreign Trade (DGFT). Their primary advantage is the ability to import UAEGD gold under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) at a concessional customs duty. Gold and Silver Futures Hedgers: This category includes domestic residents (excluding individuals) who have exposure to gold and silver price fluctuations. IIBX offers a dedicated platform for them to hedge their price risk using gold and silver futures contracts. Other Bullion Market Stakeholders: Beyond these primary categories, the IIBX ecosystem also facilitates participation from a broader range of crucial entities, including: Refiners Bullion Dealers Bullion Importers Jewellery Exporters Special Category Clients (SCCs) International Clients Each of these participant types contributes to a robust and dynamic environment for bullion trading in GIFT City, fostering liquidity and diverse market activities. Step-by-Step Guide: How to Start Bullion Trading in GIFT City (2025) Setting up bullion trade in GIFT City is a structured process, tailored to whether your primary focus is physical bullion import/trade or hedging. Follow these precise steps to establish your presence and begin starting bullion trading through the IIBX ecosystem. Path 1: For Physical Bullion Traders (Qualified Jewellers & TRQ Holders) If your aim is to import and trade physical gold and silver, this is your direct route for setting up bullion trading in GIFT City. 1. IFSCA Notification & IIBX Membership Application: Action: Submit your application and all required documents via the IIBX Membership Portal. This formal application initiates your recognition as a Qualified Jeweller (QJ) or Valid India-UAE TRQ Holder by IFSCA. Key Purpose: Official acknowledgment and regulatory approval to commence bullion trade. 2. Demat Account Setup with IIDI: Action: Open a Demat Account with India International Depository IFSC Limited (IIDI) once your IFSCA notification is received. Key Purpose: Essential for holding Bullion Depository Receipts (BDRs) electronically, crucial for seamless trading and settlement. 3. Trading and Clearing Account Setup: Action: Obtain your Legal Entity Identifier (LEI) and Unique Client Code (UCC), then set up accounts with an IFSCA-registered member. Key Purpose: Provides direct access to execute trades and manage clearing on the IIBX platform. 4. Submit TRQ Certificate (If Applicable): Action: If you are a TRQ holder, submit your valid TRQ Certificate to both IIBX and IIDI. Key Purpose: Formalizes your eligibility for concessional customs duties under the Tariff Rate Quota. 5. ICE Gate Registration: Action: Register your entity on the ICE Gate portal. Key Purpose: Mandatory for all customs clearance procedures related to your bullion imports. 6. Port Registration: Action: Register your TRQ at your designated import port. Key Purpose: Ensures proper recognition and processing of your import quota at the point of entry. 7. Engage a Custom House Agent (CHA) (Recommended): Action: Consider hiring a CHA to assist with customs clearance processes. Key Purpose: Streamlines complex import procedures and ensures compliance. 8. Connect with an IFSCA Registered Vault Partner: Action: Establish a relationship with an authorized vault partner in GIFT City. Key Purpose: Secure physical storage, delivery, and management of your imported bullion within SEZs. Path 2: For Bullion Futures Hedgers If your goal is to manage price risk exposure to gold and silver, follow this streamlined approach for setting up bullion trading for hedging. 1. AD Bank US Dollar Limit Sanction: Action: Obtain US Dollar remittance limits approved by your Authorized Dealer (AD) Bank. Key Purpose: Required for domestic entities to conduct USD-denominated hedging activities via IIBX Gold and Silver Futures. 2. Trading and Clearing Account Setup with IFSCA-Registered Member: Action: Once limits are sanctioned, open a Trading and Clearing Account with any IFSCA-registered Bullion Trading/Clearing Member. Key Purpose: Provides direct access to the IIBX platform for executing your hedging strategies. (Note: Direct onboarding with IIBX itself is not required for hedgers; membership with a registered entity suffices. ) By following these targeted steps, both physical traders and hedgers can efficiently navigate the process of setting up bullion trade in GIFT City and capitalize on the opportunities within the IIBX ecosystem. Top Benefits: Importing TRQ Gold through IIBX for Bullion Trading Setting up bullion trade in GIFT City and leveraging the India International Bullion Exchange (IIBX) offers substantial advantages, particularly for importing Tariff Rate Quota (TRQ) gold under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). These benefits are designed to streamline operations, reduce costs, and enhance efficiency for those starting bullion trading. Unlocking Efficiency and Cost Savings in Bullion Trade Exemption from IGCR Rule: A key benefit for bullion trade in GIFT City is the non-applicability of the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (IGCR Rule). As per Notification No. 66/2023-Customs, if the importer and the TRQ holder are the same entity, direct import through IIBX means exemption from this rule. Only 5% Customs Duty & No 1% Bond: Importers of TRQ gold through IIBX benefit significantly by paying only 5% customs duty. Crucially, there's no requirement to block an additional 1% of the Customs Duty value as a bond with Customs, nor do holders need to deposit this 1% with intermediaries. This directly impacts the capital required for setting up bullion trading. Seamless TRQ Imports for Qualified Jewellers (QJs): Qualified Jewellers can import their TRQ gold through IIBX without the need for additional re-registration for TRQ, simplifying the process of starting bullion trading. Improved Working Capital Management: Eliminating the necessity for upfront payment of customs duty and various premiums allows businesses to manage and allocate their working capital more efficiently across all operations. This is a significant financial advantage for setting up bullion trade. Every 30 Minutes Credit of Bullion Depository Receipts (BDRs): IIBX leads globally by crediting BDRs to clients' Demat accounts within just 30 minutes. This facilitates same-day import of gold/silver into the Domestic Tariff Area (DTA) once BDRs are credited and customs processes are cleared, drastically speeding up bullion trade cycles. Flexibility and Convenience in Pricing Lower Lot Sizes: IIBX contracts accommodate purchases as low as 100 grams under the UAEGDTRQ GOLD T+0 contract, and 1 Kg under other quantities. This provides unparalleled flexibility and convenience for diverse trading strategies when setting up bullion trading. Low Transaction Charges: IIBX offers highly competitive and very low transaction charges, ensuring a cost-effective environment for all bullion trading activities. Regulatory Landscape for Bullion Trading in GIFT City (2025) Setting up bullion trade in GIFT City necessitates a clear understanding of its robust regulatory framework. Adherence to guidelines set by the International Financial Services Centres Authority (IFSCA) and the Ministry of Finance ensures transparent and compliant operations for all participants. Key Regulations Governing Bullion Trade at IIBX IFSCA & Ministry of Finance Oversight: These bodies establish the foundational rules, ensuring a secure and reliable environment for bullion trading within the IFSC. Customs Act, 1962 & Recent Amendments: Compliance is crucial with the Customs Act, particularly amendments like Notification No. 66/2023-Customs. This notification clarified that the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022, are not applicable when the importer and TRQ Holder are the same entity, streamlining bullion trade imports. India-UAE CEPA & TRQ Gold: The Comprehensive Economic Partnership Agreement (CEPA) with the UAE offers an annual Tariff Rate Quota (TRQ) for gold, providing a 1% customs duty concession. For Fiscal Year 2025-26, the TRQ gold quota stands at 180 tonnes, a significant incentive for setting up bullion trading. Updated Import Duty: The import duty on TRQ Gold is set at 5%, effective from July 23rd, 2024, providing a... --- - Published: 2025-06-17 - Modified: 2025-07-22 - URL: https://gift.treelife.in/psp-in-gift-city/ - Categories: Resources - Tags: Payment Service Providers, Payment Service Providers in GIFT City, Payment Service Providers in GIFT City IFSCA, Payment Service Providers in GIFT IFSC, Payment Service Providers Regulation in GIFT City, PSP in GIFT City, PSP in GIFT IFSC, Setting up Payment Service Providers in GIFT City, Setting Up Payment Service Providers in GIFT IFSC Overview of GIFT City and IFSC What is GIFT City? GIFT City (Gujarat International Finance Tec-City) is India's leading financial hub, designed to offer world-class infrastructure for financial institutions. Located in Gujarat, it aims to create a competitive environment for banking, insurance, capital markets, and fintech. GIFT City provides access to modern technology, regulatory flexibility, and a conducive business ecosystem for global financial services. Role of IFSCA in GIFT City The International Financial Services Centres Authority (IFSCA) is the regulatory body overseeing financial services in GIFT City. IFSCA promotes and regulates financial services in the city, ensuring a global-standard environment with tax benefits and simplified compliance processes. By fostering an efficient regulatory framework, IFSCA attracts international businesses and investors to set up operations in GIFT City. Significance of Payment Service Providers (PSPs) in the Evolving Fintech Landscape Payment Service Providers (PSPs) play a pivotal role in the rapidly growing fintech ecosystem in India, particularly in GIFT City. PSPs are critical in facilitating secure and seamless digital transactions, both domestically and internationally. As India moves towards becoming a digital-first economy, PSPs are at the heart of this transformation, enabling businesses and consumers to conduct transactions more efficiently and securely. Key Functions of PSPs in Fintech: Payment Processing: PSPs ensure smooth, real-time payments across various channels (e. g. , mobile wallets, online payments, and cross-border remittances). Security and Compliance: PSPs maintain high standards of security protocols and adhere to regulatory norms to safeguard financial data and prevent fraud. Global Reach: With GIFT City's global outlook, PSPs in the region can offer cross-border payment solutions, connecting international markets with India's growing digital economy. Financial Inclusion: By enabling easy access to digital payments, PSPs contribute to financial inclusion, allowing a broader segment of the population to engage in the digital economy. As the fintech space evolves, GIFT City has emerged as a prime location for both international and domestic PSPs to operate and grow, thanks to its robust regulatory environment, tax incentives, and access to a wide range of financial services. Understanding Payment Service Providers (PSPs) What are Payment Service Providers (PSPs)? Payment Service Providers (PSPs) are intermediaries that enable businesses and consumers to conduct digital financial transactions securely and efficiently. PSPs handle the complexities of payment processing, ensuring seamless transactions between buyers, sellers, and financial institutions. They play a vital role in facilitating e-commerce, mobile payments, and international transactions, serving as the backbone of today’s digital payment ecosystem. In simple terms, PSPs provide the technology and infrastructure necessary for processing payments, whether through credit cards, digital wallets, bank transfers, or other methods. As digital payments become more common, the role of PSPs becomes even more critical in ensuring secure, timely, and efficient transactions. Role of PSPs in the Global and Indian Financial Ecosystem PSPs are integral to both the global and Indian financial systems, enabling businesses to accept payments from customers worldwide. The role of PSPs includes: Facilitating cross-border payments: PSPs bridge the gap between different countries and currencies, allowing businesses to engage in international trade and customers to make payments seamlessly. Driving digital payments growth: With the shift to digital platforms, PSPs are central to enabling online transactions, particularly in the context of cross border remittances, escrow services, etc. PSPs are essential for extending India’s digital payment revolution at a global stage, considering the success of platforms like Google Pay, PhonePe, and Paytm which has led to a surge in online transactions domestically. . Different Types of PSPs in GIFT City PSPs come in various forms, each offering a specific set of services to meet the needs of businesses and consumers. Here are the primary types: Cross border Remittance Service Providers Cross border Remittance service providers enable cross-border money transfers, helping individuals send money to their families or businesses to transfer payments internationally. E-money issuance Services E-money issuance services allow users to store, send, and receive funds digitally. These platforms can be used for online shopping, bill payments, and peer-to-peer transfers. Merchant Acquisition services Merchant acquisition services the processing of card payments for businesses. They enable businesses to accept payments via credit or debit cards through Point-of-Sale (POS) systems or online payment systems. Escrow Services These are services where a third party holds funds in a secure account until the transaction conditions are met. Significant Payment Service Providers (SPSPs) Significant Payment Service Providers (SPSPs) are entities that have a major impact on the market, either due to their size, scale, or operational reach. These PSPs are subject to stricter compliance and oversight standards to ensure that their operations remain transparent and secure. Conditions for PSPs to be Designated as Significant PSPs: CriteriaConditionThresholdPayment ServicesThe PSP must provide one or more payment services (excluding e-money account issuance service)$2 million (for one service) or $4 million (for two or more services)E-money Account Issuance ServiceIf the provider offers e-money account issuanceAverage daily value of all e-money stored exceeds $3 millionE-money Issuance ServiceIf the provider offers e-money issuance serviceAverage daily value of e-money issued exceeds $3 million Note: All thresholds are calculated based on averages over a calendar year. The values are measured in Specified Foreign Currency. Regular Payment Service Providers (RPSPs) Regular Payment Service Providers (RPSPs) are entities that offer designated payment services but do not meet the criteria to be classified as significant PSPs. These providers contribute to the financial ecosystem by offering various payment services but do not have the same level of operational impact as significant PSPs. Eligible Activities of RPSPs: Account Issuance Service (including e-money account issuance) E-money Issuance Service Escrow Service Cross-Border Money Transfer Service Merchant Acquisition Service RPSPs can still play a pivotal role in the economy by enabling small to medium-sized businesses to accept payments digitally and offer financial services in niche markets. Net worth  Type of ProviderInitial Net Worth RequirementNet Worth Requirement by 3rd Financial YearRegular Payment Service ProviderRegular Payment Service ProviderUSD 100,000 (or equivalent in a specified foreign currency)USD 200,000 (or equivalent in a specified foreign currency)Significant Payment Service ProviderUSD 250,000 (or equivalent in a specified foreign currency)USD 500,000 (or equivalent in a specified foreign currency) Setting Up Payment Service Providers (PSPs) in GIFT City 2025 - Steps Setting up a Payment Service Provider (PSP) in GIFT City involves a structured process with several steps. Each step is crucial for ensuring legal compliance and operational readiness. This guide outlines the steps involved in setting up a PSP in GIFT City, starting from engaging with regulators to commencing operations. STEP 1: Pre-Registration Process Discuss Use Case with Regulators Initial Consultation: Before applying, businesses must first discuss their use case with the regulators, ensuring that the business model complies with GIFT City’s regulatory framework. Engaging with regulators early ensures that the proposed operations align with the requirements set by the International Financial Services Centres Authority (IFSCA). Name Reservation for New Company Legal Requirements for Name Registration: The name must be unique and should not conflict with existing entities. It should also align with GIFT City's branding guidelines. Steps to Reserve a Company Name in GIFT City: Choose a Name: Select a name that reflects your business type and aligns with the brand of GIFT City. Apply Online: Submit your application via the SWIT portal (GIFT City’s official registration platform). Approval: Once approved, the name will be reserved for a specified period during which company incorporation must be completed. Premises Allotment and Issuance of PLOA (Possession Letter of Allotment) Role of SEZ Developer: The SEZ developer plays a crucial role in providing the land and premises within GIFT City. They will assist in the allocation of office space and ensure the property adheres to SEZ regulations. How to Obtain PLOA in GIFT City: Submit Application: Apply for office space allocation through the SEZ developer. Document Submission: Provide necessary documents such as your company’s incorporation certificate and proof of address. Receive PLOA: Once approved, you will receive the Possession Letter of Allotment (PLOA), confirming your right to occupy the premises. Incorporation of the Company Legal Structure for Setting Up a PSP: Most PSPs opt for a Private Limited Company or Limited Liability Partnership (LLP) as the legal structure. Essential Documents Required: Memorandum of Association (MoA) and Articles of Association (AoA) Identity and address proofs of directors Business plan outlining the services offered PLOA from the SEZ developer STEP 2: Application and Approval Process Application Before SEZ (IFSCA Admin) and IFSCA via SWIT Portal Detailed Explanation of the Application Procedure: Submit Application: Submit the detailed application via the SWIT portal, describing your business and the proposed PSP operations. Application Form: Provide information about your company, key personnel, business structure, and services. Key Documents Required: Company incorporation certificate PLOA Business plan and financial details KYC details for directors and shareholders Review and Grant of In-Principle Approval What is In-Principle Approval, and Why is it Crucial? : In-principle approval is a preliminary step by IFSCA that confirms the initial acceptance of the business model and operations plan, moving the application closer to final approval. Timeline and Expected Steps Post-Approval: Approval Timeline: The in-principle approval process typically takes 4 to 6 weeks. Post-Approval Steps: After obtaining in-principle approval, businesses must meet certain regulatory requirements to advance to the final approval stage. STEP 3: Final Approval and Certification Complying with IFSCA Conditions for Final Approval Key Conditions to Be Met for Final Certification: Ensure compliance with all IFSCA regulatory requirements. Submit final documentation, including tax filings, operational plans, and internal controls. Role of IFSCA in Ensuring Compliance: IFSCA conducts thorough checks to ensure that your company complies with financial, operational, and data security regulations. Granting of Certificate of Authorisation (Final Approval) What Does the Certificate of Authorisation Signify? : The Certificate of Authorisation signifies that the PSP is fully authorized to operate within GIFT City under IFSCA’s regulations. Post-Approval Steps and Timelines: Upon receiving the Certificate of Authorisation, PSPs can begin their operations. However, they must meet final operational readiness checks within six months. STEP 4: PSP Operation Commencement in GIFT City Commencing Operations Within Six Months Overview of Operational Readiness: After final approval, PSPs must ensure that all operational infrastructure, such as payment systems and customer support, is set up and functioning. Final Checklist for Beginning PSP Services in GIFT City: Install technology infrastructure (payment gateways, security systems, etc. ) Set up a local team for operations and customer service Test payment systems and security protocols Complete all legal and tax registrations to comply with GIFT City regulations Payment Service Providers(PSPs) Regulation in GIFT City Regulatory Framework for Payment Service Providers in GIFT City GIFT City offers a comprehensive regulatory framework designed to support Payment Service Providers (PSPs), governed by the International Financial Services Centres Authority (IFSCA). This framework aims to foster innovation while ensuring PSPs comply with global standards for financial services. IFSCA Regulatory Guidelines for PSPs Overview of IFSC Regulations for PSPs: IFSCA provides a flexible yet robust regulatory structure for PSPs, offering a favorable environment for businesses engaged in payments, remittance services, e-wallets, and digital financial services. The regulations are tailored to ensure that PSPs operate efficiently, with a focus on financial integrity, consumer protection, and market stability. Key Compliance Requirements for PSPs in GIFT City PSPs must meet specific compliance obligations to operate in GIFT City: Know Your Customer (KYC): PSPs must implement strict KYC protocols to verify the identities of customers and prevent fraud. Anti-Money Laundering (AML): PSPs are required to have measures in place to detect and prevent money laundering activities. Data Security: Compliance with data protection laws is essential, ensuring customer data is secure and transactions are protected. Operational Requirements: PSPs must establish robust financial systems to handle transactions, settlements, and reconciliations efficiently. Payment Service Providers' Operational Requirements Mandatory Licenses and Registrations: PSPs must obtain licenses from IFSCA to provide payment services, including remittance and digital wallet operations. Ongoing Compliance and Reporting Obligations: PSPs in GIFT City must adhere to ongoing reporting and audit requirements, including regular financial disclosures, compliance reports, and updates on operations. Regular inspections by IFSCA ensure that PSPs remain compliant with all regulatory standards.... --- - Published: 2025-05-28 - Modified: 2025-07-22 - URL: https://gift.treelife.in/family-office-in-gift-ifsc/ - Categories: Resources - Tags: family office in gift, family offices in gift ifsc The Indian government has recently relaxed the regulations for family offices in the International Financial Service Centre (IFSC), making it an attractive option for wealthy families looking to manage their wealth and invest globally. Family offices in IFSC can set up a Family Investment Fund (FIF), which is a self-managed fund that can pool money from a single family and invest in a variety of assets, including equities, debt, and real estate. However, before getting into the benefits and details, it is important to understand what is a Family Office and What is IFSC What is a Family Office? A family office is a privately held company that handles investment management and wealth management for a wealthy family with the goal being to effectively grow and transfer wealth across generations. Family offices can be either single-family offices or multi-family offices. A single-family office is owned and operated by a single family, while a multi-family office is owned and operated by multiple families. What is International Financial Service Centre (IFSC)? An International Financial Services Centre (IFSC) is a special economic zone that is designed to attract foreign investment in financial services. An International Financial Services Centre (IFSC) caters to customers outside the jurisdiction of domestic economy. Such centres deal with the flow of finance, financial products and services across the borders. The IFSC offers a wide range of financial services, including Banking, Insurance, Asset management, Commodity trading, Derivatives trading, Foreign exchange trading, Stock broking. IFSC typically offer a number of benefits to financial institutions, such as: Favourable Tax Regime Liberal Regulatory Environment Strong Infrastructure Skilled Workforce An IFSC as envisaged under the Indian context “is a jurisdiction that provides financial services to non-residents and residents (institutions) in any currency other than Indian Rupee (INR)” An IFSC is set up to undertake financial services transactions that are currently carried on outside India by overseas financial institutions and overseas branches/ subsidiaries of Indian financial institutions. Residential Status of Units in IFSC Under Foreign Exchange Management regulations (FEMA) – Treated as Non-Resident Under Income tax laws – Treated as Resident IFSC in India The first IFSC in India is the Gujarat International Finance Tec-City (GIFT City), which is located in Gandhinagar, Gujarat. GIFT City was established in 2015 and it is currently home to over 100 financial institutions. In India, an IFSC is approved and regulated by the Government of India under the Special Economic Zones Act, 2005. Government of India has approved GIFT City as a Multi Services Special Economic Zone (‘GIFT SEZ’) and has also notified this zone as India’s IFSC. The launch of the IFSC at GIFT City is the first step towards bringing financial services transactions relatable to India, back to Indian shores Family Offices in India and Family Investment Funds India’s financial wealth is projected to reach USD $5. 5 trillion by 2025, at a growth rate of 10% annually. India is also witnessing a surge in US-dollar millionaires, expected to double by 20262. As a result, there is a growing need for family offices. The IFSCA has provided formal recognition to family offices through the IFSCA (Fund Management) Regulations, 2025, encouraging Indian family offices to establish FIFs in GIFT City to compete globally with hubs like Singapore and Dubai. As per FM Regulations, FIF and Single family is defined as follows: TermsDescriptionFamily Investment FundA self-managed fund pooling money only from a single family and has been set up in terms of International Financial Services Centre Authority (Fund Management) Regulations, 2025Single FamilyA group of individuals who are the lineal descendants of a common ancestor and includes their spouses (including widows and widowers, whether remarried or not) and children (including stepchildren, adopted children, ex nuptial children); Single family shall also include entities such as sole proprietorship firm, partnership firm, company, LLP, trust or a body corporate, in which an individual or a group of individuals of a single family exercises control and directly or indirectly hold substantial economic interest “substantial economic interest” shall mean at least 90% economic interest, as demonstrated by FIF in an appropriate manner to the satisfaction of IFSCA which may, inter alia, include: – % of shareholding in case of a company with share capital; or right to exercise control in case of a company without share capital; – % share of profits in case of partnership firm and LLP; – % of beneficial interest specified in trust deed in case of a determinate trust; or pro-rata share in the trust property in case of an indeterminate trust; or – any other manner as may be demonstrated to the satisfaction of IFSCA Key Aspects of an FIF TermsParticularsRegistrationFIF to be registered with IFSCA as an Authorized Fund Management Entity (FME)Possible FormFIF can be incorporated in any of the following forms : – Company or – Trust* or – LLP * In case of a trust, the following needs to be kept in mind:  (a) beneficiaries should be identifiable in the Trust deed (though not specifically named) (b) each beneficiary’s share should be capable of being determined based on the provision/formula mentioned in the trust deed (should not be at the discretion of the trustee) (c) any addition of further contributors to the Trust in addition to the initial contributors, shall not make the existing beneficiaries unknown or their shares indeterminate. Minimum CorpusMinimum corpus requirement is USD 10 million to be met and maintained within 3 years from registrationTenureThe tenure of the FIF can be open ended or close ended depending on family requirementsInvestment LimitsFor Resident Individuals -To invest under LRS which is capped at USD 250,000 per person per financial year. For Indian Entity – 50% of the net worthUndertaking to POBefore the FIF commences investment activities, all individuals of a single family who contribute to the FIF directly or indirectly, shall give an undertaking to the Principal Officer, to the effect that they understand the risks, costs and benefits of investing in the FIF and that the usual investor protection measures such as disclosures, regulatory inspection and supervision, etc. , may not be available to the same extent to the FIF as they are to other schemes in IFSC. BorrowingFIF may borrow funds or engage in leveraging activities as per their risk management policySetting up additional invesmtent vehiclesFIF may set-up additional investment vehicles (company / LLP / Trust / other form as specified by IFSCA) subject to prior approval of IFSCA and payment of fee as applicable to a FIF. Such additional vehicles shall also be considered as part of the FIF for the purpose of meeting the requirements specified in the regulations Tax and Exchange Control Regulations TermsParticularsTaxation of Income100% exemption of Business income for 10 consecutive years out of 15 years Capital gain on investments can be characterized as business profits, subjectiveMAT/AMTWhere FIF set up as a company – No MAT Where FIF set up as an LLP – AMT of ~10. 48% (including surcharge and cess)TCSTCS provisions should not apply to OPI remittances (other than LRS)Amount of InvestmentFor individuals – LRS limits of USD 250,000 per annum For unlisted company / LLP / firms – Can invest upto 50% of networth under OPI (Refer Annexure 3 for more details) Pre-Requisites for FIF Application 1. Principal officer (PO) The applicant shall designate a principal officer who shall be responsible for overall activities of the FME including but not limited to fund management, risk management and compliance. PO to be based out of IFSC PO to meet following experience: A professional qualification or post-graduate degree or post graduate diploma (minimum 1 year in duration) in finance, law, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognised by Government or a recognised foreign university or institution or association or a CFA or a FRM from Global Association of Risk Professionals; and An experience of at least 5 years in related activities in the securities market or financial products including in a portfolio manager, fund manager, investment advisor, broker dealer, investment banker, wealth manager, research analyst, credit rating agency, market infrastructure institution, financial sector regulator or consultancy experience in areas related to fund management, such as deal due diligence, transaction advisory or similar activities (consultancy experience will be considered for a maximum period of 2 years and experience in other areas shall be required for at least 3 years). Any changes to PO to be intimated to IFSCA 2. Other Personnel FIF is required to appoint other personnel commensurate to the size of its operations and activities. 3. Fit and Proper The Applicant, PO, directors/ partners/ designated partners, key managerial personnel and controlling shareholders shall be fit and proper persons, at all times. A person shall be deemed to be a fit and proper person if :- such person has a record of fairness and integrity, including but not limited to- financial integrity; good reputation and character; and honesty such person has not incurred any of the following disqualifications – the person has been convicted by a court for any offence involving moral turpitude or any economic offence or any offence against securities laws; a recovery proceeding has been initiated against the person by a financial regulatory authority and is pending; an order for winding up has been passed against the person for malfeasance; the person has been declared insolvent and not discharged; an order, restraining, prohibiting or debarring the person from accessing or dealing in financial products or financial services, has been passed by any regulatory authority, and a period of three years from the date of the expiry of the period specified in the order has not elapsed; any other order against the person, which has a bearing on the securities market, has been passed by the Authority or any other regulatory authority, and a period of three years from the date of the order has not elapsed; the person has been found to be of unsound mind by a court of competent jurisdiction and the finding is in force; the person is financially not sound or has been categorized as a wilful defaulter; the person has been declared a fugitive economic offender; or any other disqualification as may be specified by the Authority. 4. Infrastructure FIF should have necessary infrastructure like adequate office space, equipment, communication facilities and manpower to effectively discharge its activities The infrastructure requirements should be commensurate to the size of its operations in IFSC The office should be dedicated, secured and accessible only by authorised persons of the FIF 5. Period of Validity The certificate of registration of FIF would remain valid for such period as may be specified by IFSCA unless it is suspended or cancelled by IFSCA or surrendered by FIF and taken on record by IFSCA Sharing Economic Interest with Stakeholders An FIF cannot seek money from individuals / entities outside of the single family. However, FIF may share economic interest with its employees, directors, FME or other persons providing services to the FIF, as per its internal policy to reward the persons providing services to the FIF or to align the interest of such persons with those of the FIF. The FIF may accept contributions from the aforementioned persons for the limited purpose of granting economic interest to them, which in no case shall exceed an aggregate of 20% of FIF’s profits. Also, such external persons should be informed of the risks of investment in the FIF. Exit for stakeholders with Economic Interest Exit may be offered by any person / group of persons from the single family who already holds interest in FIF Price for acquisition should not be less than the price determined by an independent third-party service provider such as a fund administrator or custodian registered with the IFSCA, a valuer registered with IBBI or such other person as may be specified by IFSCA. Such service provider shall take into account the following factors: highest price paid by any person for acquiring any interest in FIF during the last 12 months; the... --- - Published: 2025-04-21 - Modified: 2025-07-22 - URL: https://gift.treelife.in/how-foreign-companies-can-enter-india-via-gift-city-ifsc/ - Categories: Resources - Tags: Foreign Companies Can Enter India via GIFT City, foreign companies in gift city Why Foreign Companies Are Eyeing GIFT City India is rapidly positioning GIFT City IFSC (International Financial Services Centre) as a compelling destination for foreign investment, offering global companies an opportunity to enter the Indian market through a highly regulated, tax-efficient, and globally competitive ecosystem. India’s Push to “Onshore Offshore” Financial Services For decades, Indian capital and talent have flowed to offshore financial hubs like Singapore, Dubai, and Hong Kong. GIFT City was envisioned to reverse this trend — creating a world-class, onshore hub with offshore benefits. Backed by the IFSCA, India’s first unified financial regulator, GIFT City enables foreign investors to operate in USD, enjoy SEZ-level benefits, and avoid regulatory fragmentation. The strategy is clear: onshore the offshore—whether it's fund management, insurance, fintech, or aircraft leasing. Rising Interest Post-2019 Reforms A wave of regulatory reforms since 2019, including introduction of provisions pertaining to direct listing of Indian companies on IFSC exchanges in 2024, expansion of scope for permissible investments by alternative investment funds (AIFs), and enhanced currency derivative trading, have drastically improved ease of doing business for foreign players. As of December 2024, over 766 entities have set up operations in GIFT City, including global banks, asset managers, and fintech startups. These policy moves have cemented GIFT City’s position as India’s international financial hub for MNCs looking for long-term exposure in South Asia. GIFT City vs Other International Financial Centres Compared to established IFCs like DIFC (Dubai), Singapore, or Hong Kong, GIFT City offers: Unified regulation under IFSCA, vs multi-regulator complexity elsewhere Significant tax holidays (10-year), vs standard tax regimes in DIFC/Singapore SEZ infrastructure with smart city planning Lower setup and compliance costs Access to Indian talent pool at globally competitive rates With political stability, a booming domestic market, and high digital penetration, GIFT City gives MNCs a strategic base to scale both into India and across emerging Asia. What Is GIFT City IFSC? GIFT City IFSC, or the International Financial Services Centre in Gujarat International Finance Tec-City, is India’s flagship global financial hub designed to attract foreign investment and international financial institutions. It functions as a foreign jurisdiction on Indian soil, enabling cross-border financial services with regulatory, tax, and operational advantages. Definition and Background Established in 2015, GIFT City IFSC is a part of a multi-services SEZ in Gandhinagar, Gujarat, aimed at providing a globally competitive financial ecosystem. It is India’s first and only active IFSC, developed to rival international hubs like Dubai International Financial Centre (DIFC), Singapore, and Hong Kong. The IFSC allows entities to deal in foreign currencies, access global capital markets, and conduct offshore transactions—without being subject to India’s standard financial regulations like FEMA. Role of IFSCA: India’s First Unified Regulator In 2020, the International Financial Services Centres Authority (IFSCA) was established as the sole regulator for all financial activities in GIFT City IFSC. It consolidated powers from four Indian regulators—RBI, SEBI, IRDAI, and PFRDA—creating a one-stop regulatory body to ease operations and reduce red tape. IFSCA's mandates include: Regulating financial products and services in IFSC Granting licenses across sectors (banking, funds, insurance, fintech) Driving innovation via the FinTech Sandbox and Innovation Hub Creating a globally aligned, transparent, and agile financial regime Regulatory Independence & Global Appeal What sets GIFT City IFSC apart is its regulatory autonomy. Under the IFSCA Act, GIFT operates with its own rulebook—allowing faster approvals, minimal compliance bottlenecks, and zero overlap with domestic financial laws unless specifically notified. This makes GIFT City ideal for: Global banking units Foreign portfolio investors (FPIs) Offshore funds Insurance and reinsurance branches Digital asset experiments (under sandbox) Overview of Key Sectors Operating in GIFT City IFSC SectorOpportunities in IFSCBankingOffshore Banking Units (IBUs), trade finance, ECBs, global treasury centers, structured deposits, and FPI services for NRIsCapital MarketsInternational stock exchanges (NSE IFSC, India INX), debt and derivative listing, Depository, Clearing Corporations, and DR tradingInsuranceIndian & Foreign insurers, global reinsurers, captive insurance, and cross-border underwriting through IFSC Insurance Offices (IIOs)Asset ManagementFund Management Entities (FMEs), Alternate Investment Funds (AIFs), Mutual Funds, Angel & VC Schemes, Family Investment FundsFintechRegulatory sandbox, cross-border digital lending, payment innovation, account issuance, e-money, escrow, and merchant acquisition servicesLeasingAircraft and ship leasing with tax exemptions, redomiciling structures, and safe harbor rulesSustainable FinanceESG debt listings (USD 15. 4 Bn cumulative), green fund incentives (fee waivers for 1st 10 ESG funds), and regulatory framework to combat greenwashingAllied/Support ServicesGlobal in-house centers, legal & consultancy services, accounting & audit, education, R&D, and fintech accelerators As of December 2024, GIFT City houses 2 international stock exchanges, 16 insurance entities, 25 insurance intermediaries, 139 fund management entities, 198 registered fund schemes, and a growing number of fintechs and banks operating through International Banking Units (IBUs). Benefits of Setting Up in GIFT City IFSC for Foreign Investors Setting up in GIFT City IFSC offers foreign investors a range of regulatory, tax, and operational benefits designed to match or surpass global financial hubs like Dubai and Singapore. Here’s why global businesses are choosing GIFT City: 1. Tax Incentives 100% tax holiday for 10 consecutive years out of 15 No capital gains tax in certain cases, securities transaction tax (STT), or stamp duty Exemption from GST on export services from the IFSC SEZ 2. Currency Flexibility Conduct transactions in freely convertible foreign currencies like USD, EUR, etc. Indian residents and NRIs can open foreign currency accounts within IFSC 3. Regulatory Ease under IFSCA Single-window approval system for all financial licenses IFSCA acts as the sole regulator—combining powers of RBI, SEBI, IRDAI, and PFRDA Faster approvals and reduced compliance 4. Global Access with No FEMA Restrictions No Indian exchange control laws (FEMA) apply within the IFSC Offshore clients and contracts can be serviced seamlessly Ideal for cross-border funds, loans, derivatives, and insurance 5. World-Class Smart City Infrastructure Located in a dedicated SEZ zone with Grade A office spaces Plug-and-play commercial spaces, global connectivity, and 24x7 utility services Close proximity to Ahmedabad International Airport Who Can Set Up in GIFT City IFSC? GIFT City IFSC is open to a wide range of international businesses looking to access the Indian and global markets through a tax-efficient, regulation-light environment. Here's a quick overview of who can set up operations in India’s international financial hub: Foreign Banks Can establish IFSC Banking Units (IBUs) Offer services like offshore lending, trade finance, and treasury operations Regulated by IFSCA Banking Regulations Insurance and Reinsurance Companies Can open IFSC Insurance Offices (IIOs) or reinsurance branches Allowed to underwrite cross-border risks and global policies Benefit from capital requirement relaxations and tax exemptions Fund Managers: AIFs, Mutual Funds & PMS Set up Alternative Investment Funds (AIFs), Mutual Funds, and Portfolio Management Services Enjoy zero capital gains tax, 10-year tax holiday Can raise capital globally and invest in India and abroad Fintech Firms Eligible to operate under the IFSCA FinTech Sandbox Engage in cross-border payments, digital lending, tokenization, and neo banking Access to Innovation Hub, relaxed net worth norms for startups Aircraft & Ship Leasing Companies Allowed to lease aircraft, engines, and maritime assets Benefit from zero GST, no withholding tax, and faster depreciation Easy registration with IFSCA + DGCA Holding Companies & Treasury Units Global companies can set up treasury centers or regional HQs Manage group finances, intercompany loans, hedging, and liquidity Use GIFT IFSC as a global financial control tower Legal Structures Available to Foreign Companies in GIFT City IFSC Foreign companies looking to enter India via GIFT City IFSC can choose from a variety of flexible legal structures, each tailored to specific business models and regulatory needs. Here are the key options: Company (Private/Public Ltd. with ‘IFSC’ suffix) Incorporate a company under the Companies Act, 2013 with “IFSC” in the name Must have a registered office in the GIFT City SEZ Enjoy relaxations under company law: no CSR for 5 years, fewer compliance burdens Suitable for full-scale operations like funds, banks, insurers, fintechs Most common entry route for foreign investors setting up a new entity Branch Office Foreign companies with an existing presence can open a branch in GIFT City Treated as a non-resident unit under FEMA No prior RBI approval needed; governed by IFSCA regulations Ideal for banks, insurance offices, and global service units Efficient structure for expanding global operations into India LLP (Limited Liability Partnership) Registered under the LLP Act, 2008 Offers flexibility with less compliance than a company Can be used by consulting, advisory, and fintech entities Eligible for SEZ benefits and IFSCA registration Good fit for capital-light or partnership-driven businesses Foreign Portfolio Investor (FPI) Entities FPIs can register in GIFT City IFSC via SEBI or IFSCA Invest in Indian securities, derivatives, and listed instruments Benefit from tax exemptions on capital gains, stamp duty Can pool funds globally and route them via IFSC Preferred by institutional investors and hedge funds Investment Fund Vehicles (AIFs & Mutual Funds) Register as Alternative Investment Funds (Cat I, II, III) or IFSC Mutual Funds Allowed to raise funds from global investors Can invest in India, global markets, or both No GST on management fees, no capital gains tax on offshore investments Over 198 funds are already operating in GIFT City as of December 2024. (Source: IFSCA) Step-by-Step Process to Set Up in GIFT City IFSC Foreign businesses planning to enter India through GIFT City IFSC can follow a streamlined process facilitated by the IFSCA's single-window clearance system. Here's a quick step-by-step guide: 1. Present Your Business Use Case Begin with an in-person or virtual meeting with officials from IFSCA and GIFT City to demonstrate your business model and explain how it aligns with IFSC objectives. 2. Secure Office Space Identify and finalize office space within the GIFT SEZ area. Sign an agreement with a developer and obtain the Provisional Letter of Allotment (PLOA). 3. Submit Applications Prepare and submit two parallel applications: SEZ application to the GIFT City Administrator for unit setup approval IFSCA application for business registration or license 4. UAC Hearing IFSCA will schedule a Unit Approval Committee (UAC) meeting to evaluate your proposal. Be prepared to present your business case and respond to queries. 5. Receive Approvals Upon approval, the Administrator will issue a Letter of Approval (LOA) for SEZ operations. Simultaneously, IFSCA will provide in-principle registration approval. 6. Fulfill Compliance Requirements Submit: Bond-cum-LUT to the Administrator Obtain Eligibility Certificate from IFSCA Complete essential registrations: RCMC, IEC, GST, etc. 7. Open Bank Accounts Set up your Foreign Currency and SNRR (Special Non-Resident Rupee) accounts in GIFT IFSC and obtain final IFSCA approval. 8. Launch Operations Once all approvals and compliance requirements are fulfilled, you're ready to kickstart operations from your GIFT IFSC unit. Key Regulatory Bodies & Licenses Required in GIFT City IFSC One of the biggest advantages of operating in GIFT City IFSC is the presence of a single unified regulator—IFSCA, which simplifies compliance and speeds up approvals across sectors. Here’s a breakdown of the key licenses required by sector: SectorRegulatorLicense/Registration RequiredBankingIFSCAIFSC Banking Unit (IBU) LicenseCapital MarketsIFSCABroker/Dealer Registration, Clearing Member License, Market Infrastructure Institution (MII) Registration (for exchanges, clearing corps, depositories)InsuranceIFSCAIFSC Insurance Office (IIO) Approval / Registration for Insurers, Reinsurers, and IntermediariesFunds & Asset ManagementIFSCAFund Management Entity (FME) Registration, AIF/MF Scheme Approval, PMS LicenseFintech & Payment ServicesIFSCARegulatory Sandbox Registration, Payment System Provider Authorization, Account Issuance / E-Money LicenseLeasing (Aircraft/Ship)IFSCA + GIFT SEZRegistration as Finance Company/Unit; No Objection/Approval for Aircraft or Ship Leasing BusinessAllied ServicesIFSCA/GIFT SEZRegistration under support services (legal, audit, R&D, global in-house centers) as per business activity Banking: IBU License Banks—both Indian and foreign—can set up IFSC Banking Units (IBUs) to conduct offshore lending, trade finance, and treasury operations. No CRR/SLR requirements, full foreign currency operations, and no priority sector norms. Capital Markets: Broker/Dealer License Entities participating in international exchanges (India INX, NSE IFSC) need to register as brokers, dealers, or clearing members with IFSCA. Allowed to trade in global stocks, bonds, derivatives, DRs, and commodities. Insurance: IIO Approval Foreign insurers and reinsurers must obtain IFSCA approval to operate as an IFSC Insurance Office (IIO). Engage in cross-border reinsurance, captive insurance, and global underwriting from India. Funds: AIF / Mutual Fund Registration Fund managers can launch: Alternative Investment Funds (AIFs) – Cat... --- - Published: 2025-04-15 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-city-vs-dubai-difc-vs-singapore/ - Categories: Resources - Tags: gift city vs dubai difc, gift city vs dubai ifsc vs singapore, gift city vs dubai vs singapore, gift ifsc vs dubai difc vs singapore When expanding globally, choosing the right financial hub is crucial for success. The three prominent financial centers—GIFT City (India), Dubai International Financial Centre (DIFC), and Singapore—each offer unique benefits to businesses. GIFT City is India's first International Financial Services Centre (IFSC), providing tax exemptions, cost-effective operations, and access to India’s rapidly growing market. It's ideal for sectors like fintech, banking, and insurance. Dubai International Financial Centre (DIFC) offers a tax-free environment, minimal bureaucracy, and serves as a gateway to the Middle East, Africa, and Asia. It’s well-suited for businesses in real estate, logistics, and trade. Singapore is a global financial hub known for its stable economy, low corporate taxes, and strategic location in Southeast Asia, making it perfect for banking, investment, and insurance firms. Importance of Choosing the Right Financial Center Selecting the right hub depends on your target market, tax incentives, and business needs. Whether it's GIFT City’s emerging market access, Dubai’s strategic location, or Singapore’s established infrastructure, the right choice can significantly impact your business’s global success. What is GIFT City? GIFT City (Gujarat International Finance Tec-City) is India’s first International Financial Services Centre (IFSC), located in the state of Gujarat. It is an ambitious project designed to establish India as a global financial hub, offering businesses a world-class environment with tax incentives and cutting-edge infrastructure. GIFT City is strategically positioned to attract global financial services companies, providing them with the tools they need to operate efficiently and competitively on the world stage. Key Advantages for Businesses Tax Exemptions: One of the most compelling reasons to set up operations in GIFT City is the tax benefits. Companies operating in GIFT City enjoy 100% tax exemptions for up to 10 years, making it a highly cost-effective option for businesses, particularly those in financial services. Regulatory Framework: GIFT City offers a simplified, investor-friendly regulatory framework that makes it easier to set up and run a business. The International Financial Services Centres Authority (IFSCA) oversees the regulation of businesses, ensuring compliance with global standards while maintaining flexibility to meet local needs. State-of-the-Art Infrastructure: GIFT City is equipped with world-class infrastructure, including advanced IT systems, high-speed connectivity, and top-tier office spaces. The city also boasts modern amenities, a skilled workforce, and robust transportation networks, which are critical for businesses looking to thrive in a global environment. Government Incentives: The Indian government has committed to making GIFT City a world-class financial hub by offering numerous incentives, including tax holidays, low-cost financing options, and support for startups in financial technologies and related fields. Focus on Key Sectors GIFT IFSC offers a wide range of opportunities for financial institutions, fintechs, and allied service providers. Here are the major sectors permitted to set up operations: 1. Banking Both Indian and foreign banks can operate, offering offshore banking services in foreign currency under a liberalised regulatory framework. 2. Insurance Insurers, reinsurers, and intermediaries—both Indian and international—can offer life, general, and composite insurance services tailored for global markets. 3. Asset Management Entities like Alternate Investment Funds (AIFs), Portfolio Managers, Wealth Managers, Pension Funds, and Fund Management Entities (FMEs) can domicile and operate from GIFT IFSC. 4. Capital Markets A full spectrum of market infrastructure is allowed—stock exchanges, brokers, depositories, clearing corporations, and bullion trading members can function under IFSC norms. 5. Payment Services Services such as cross-border remittances, e-money issuance, merchant acquisition, escrow, and account opening are permitted, facilitating global fintech operations. 6. Allied/Support Services Global capability centers, aircraft and ship leasing, legal and consultancy firms, fintech hubs, audit/accounting services, R&D units, and educational institutions can establish a presence to support core financial activities. Dubai International Financial Centre (DIFC): A Growing Financial Hub DIFC is a critical component of Dubai’s ambition to become a leading global financial hub. Positioned in the heart of the UAE, Dubai offers a unique combination of business-friendly regulations, tax incentives, and world-class infrastructure, making it an ideal destination for companies seeking access to international markets. Key Features of Dubai as a Global Financial Center Tax-Free Zones: Dubai’s tax-free zones are one of the most attractive features for businesses operating within Dubai. Companies in these zones benefit from zero personal income tax, zero corporate tax, and no value-added tax (VAT) on most goods and services. These tax incentives significantly reduce operational costs, making it an appealing destination for multinational companies. Business-Friendly Regulations: Dubai operates under a streamlined regulatory framework that makes it easier for businesses to set up and run. The Dubai International Financial Centre (DIFC) offers a well-established legal system, based on common law, that is aligned with international standards. This ensures a stable and transparent environment for businesses to operate while also offering flexibility for startups and growing companies. Major Benefits for Businesses Access to Global Markets: Dubai’s strategic location between Europe, Asia, and Africa provides businesses with unparalleled access to global markets. It is a gateway to the Middle East and North Africa (MENA) region, making it an ideal hub for companies looking to tap into emerging markets in the region. Additionally, Dubai’s status as an international trade and financial center means that businesses can easily connect with partners, investors, and clients worldwide. Networking Opportunities: Dubai is home to a large, diverse community of international businesses, financial institutions, and investors, making it an ideal location for networking and business development. The presence of global companies, as well as industry-specific events and conferences, provides ample opportunities for companies to connect, collaborate, and expand their reach. World-Class Infrastructure: Dubai is renowned for its state-of-the-art infrastructure, including world-class office spaces, advanced technology, and top-tier transport facilities. Dubai benefits from this infrastructure, providing businesses with modern office spaces, high-speed internet, and efficient logistics. The city is also home to Dubai International Airport, one of the busiest international airports globally, offering easy access to business leaders and professionals from around the world. Singapore: The Premier Financial Hub in Asia Singapore has long been recognized as one of the world’s leading financial hubs, offering a stable and thriving environment for international businesses. As a global financial center, Singapore attracts companies from all over the world, especially in the banking, investment, insurance, and financial services sectors. Known for its strong regulatory framework and world-class infrastructure, Singapore continues to be a top choice for businesses looking to expand in Asia and beyond. Strong Regulatory Environment Singapore’s regulatory environment is one of the key factors that has contributed to its success as a financial hub. The country’s Monetary Authority of Singapore (MAS) ensures that the financial system remains stable, transparent, and in line with global standards. Businesses operating in Singapore benefit from a legal system based on English common law, providing clarity and predictability in business dealings. This high level of regulation fosters investor confidence, making Singapore an attractive location for international companies seeking a secure and reliable financial environment. Global Business Connectivity Singapore’s global business connectivity is another major reason why it remains a top financial hub. Located at the crossroads of Asia-Pacific, Singapore provides businesses with easy access to key markets in Southeast Asia, China, and India. The country’s strong network of trade agreements, including free trade agreements (FTAs) with major economies, allows businesses to operate seamlessly across borders, facilitating regional and global trade. The Singapore Exchange (SGX) is also a significant asset, offering companies the opportunity to list and raise capital. Singapore’s connectivity is further enhanced by its advanced transportation and logistics infrastructure, including Changi Airport, one of the busiest international airports in the world. Key Advantages for International Businesses Tax Policies: One of the standout features of Singapore as a financial hub is its favorable tax policies. The country offers one of the most competitive corporate tax rates in the region, capped at 17%, with tax incentives available for certain industries and activities, such as startups, research and development, and fintech. Additionally, Singapore has a network of double tax treaties with over 80 countries, which helps businesses avoid double taxation and promotes cross-border investments. Strategic Location: Singapore’s strategic location makes it an ideal base for companies looking to access the rapidly growing Asia-Pacific region. It is a gateway to ASEAN, as well as a key link for trade between the East and West. Businesses in Singapore can tap into one of the world’s most dynamic and diverse markets, offering abundant opportunities for growth and expansion. Robust Financial Services Ecosystem: Singapore boasts a robust financial services ecosystem that supports businesses in banking, investment, asset management, and insurance. The country is home to numerous global banks, financial institutions, and insurance companies, making it an attractive destination for international firms looking for a strong and interconnected financial system. Singapore also leads in emerging financial technologies, such as blockchain, cryptocurrencies, and digital payments, positioning itself as a key player in the future of global finance. GIFT City vs DIFC vs Singapore: Key Comparisons When choosing the right financial hub for your business, tax benefits, ease of doing business, and sector-specific advantages are key considerations. Here’s a quick breakdown of how GIFT City, DIFC, and Singapore compare across these essential factors. Comparison Table of Difference between GIFT City, DIFC and Singapore FeatureGIFT CityDIFCSingaporeTax Exemptions100% for up to 10 years0% for qualifying income from Free Trade Zones, no personal taxAttractive tax rates, double taxation treatiesOperational CostsLowModerateHighGST ExemptionsNo GST on financial services provided to IFSC entitiesNo GST on most servicesGST exemptions for qualifying services Tax Benefits & Incentives GIFT City: Tax Exemptions: GIFT City offers 100% tax exemptions for up to 10 years, making it an incredibly cost-effective choice for businesses. This provides a strong incentive for companies in sectors like fintech, insurance, and banking. Operational Costs: Lower operational costs in GIFT City make it an attractive destination for startups and international firms looking to operate in India’s growing market. Dubai: Tax-Free Zones: Dubai provides tax-free zones, which include no corporate tax and no personal income tax for companies operating within the zones. This makes Dubai one of the most tax-efficient locations for international businesses. Tax Exemptions: International firms can benefit from additional tax exemptions, including exemptions on profits and income derived from activities in the Dubai International Financial Centre (DIFC). Singapore: Tax Rates: Singapore offers attractive tax rates, with a corporate tax rate of 17%—one of the lowest in Asia. Additionally, businesses can enjoy tax incentives such as reduced tax rates for certain qualifying activities and industries. Double Taxation Treaties: Singapore has a network of over 80 double taxation treaties, allowing businesses to avoid double taxation and benefit from lower tax rates on foreign income. GST Exemptions: Certain services in Singapore, such as financial services, benefit from GST exemptions, making it a favorable environment for companies in the finance sector. Ease of Doing Business GIFT City: Simplified Regulations: GIFT City offers a simplified regulatory framework, which reduces bureaucracy and compliance costs. It is designed to support global businesses, particularly in sectors like fintech, banking, and insurance. Compliance Costs: The regulatory framework is designed to be cost-effective, making it an ideal location for businesses looking to minimize their compliance burden while accessing the Indian market. Dubai: Quick Setup: The process of setting up a business in Dubai is quick, with minimal bureaucracy and efficiency in registration. Dubai’s infrastructure and business-friendly environment make it easy for international businesses to enter and operate. Business-Friendly: Dubai’s low regulatory friction and efficient setup process make it ideal for businesses that need to get up and running quickly. Singapore: World-Class Business Environment: Singapore boasts a world-class ease of doing business and consistently ranks high on global business indices. However, the operational complexity and costs can be higher compared to GIFT City and Dubai, particularly for startups or smaller companies. Regulatory Requirements: Singapore’s regulatory system is well-established but can be more complex and demanding compared to other financial hubs, which may require businesses to navigate additional layers of compliance. Sector-Specific Benefits GIFT City: Ideal for Fintech and Emerging Sectors: GIFT City is particularly well-suited for fintech, aviation leasing, and insurance sectors. The city provides tax incentives and a growing infrastructure that aligns with India’s emerging financial markets. Indian Market... --- - Published: 2025-04-15 - Modified: 2025-07-22 - URL: https://gift.treelife.in/what-is-the-ifsca-everything-you-need-to-know/ - Categories: Resources - Tags: GIFT IFSCA, International Financial Services Centres Authority, What is the IFSCA What is IFSCA? (International Financial Services Centres Authority) The International Financial Services Centres Authority (IFSCA) is a unified regulatory body established by the Government of India to oversee and develop financial products, services, and institutions in India’s International Financial Services Centres (IFSCs). IFSCA plays a central role in transforming GIFT City IFSC into a global hub for offshore and cross-border financial transactions. It brings under one roof the regulatory powers that were earlier divided among entities like the RBI, SEBI, IRDAI, and PFRDA. Date of Establishment IFSCA was officially established on April 27, 2020, under a special legislation to streamline the regulation of India's IFSC ecosystem. Statutory Basis The authority derives its powers from the International Financial Services Centres Authority Act, 2019, passed by the Indian Parliament. This Act provides the legal framework for IFSCA to function independently and efficiently as a unified regulator. Headquarters: GIFT City, Gujarat IFSCA is headquartered in Gujarat International Finance Tec-City (GIFT City), located in Gandhinagar, Gujarat. GIFT City is India's first operational IFSC and a strategic project aimed at attracting global financial players to India. Why Was the IFSCA Established? The International Financial Services Centres Authority (IFSCA) was created to simplify and strengthen the regulatory environment for India’s International Financial Services Centres (IFSCs), especially within GIFT City Gujarat. Fragmented Regulatory Oversight Before IFSCA, financial activities in IFSCs were governed by multiple domestic regulators: RBI – for banking operations SEBI – for capital markets IRDAI – for insurance services PFRDA – for pension-related products This led to overlapping jurisdictions, compliance complexity, and regulatory delays—hindering the ease of doing business in GIFT IFSC. Need for a Unified Regulator To resolve these challenges, the Government of India passed the IFSCA Act, 2019, creating a single-window regulator—IFSCA. It now oversees all financial sectors in the IFSC, including: Banking Insurance Capital markets Asset management FinTech This unified approach allows for faster decision-making, streamlined licensing, and integrated supervision—all under one roof. Boosting Ease of Doing Business & Global Competitiveness IFSCA plays a pivotal role in positioning GIFT City IFSC as a competitive alternative to other global financial hubs like Dubai, Singapore, and London. By enabling innovation, offering regulatory clarity, and reducing compliance burden, IFSCA enhances India’s global financial footprint. Key Functions and Powers of IFSCA The International Financial Services Centres Authority (IFSCA) serves as the single regulatory body for all financial services in India’s IFSCs, with a special focus on GIFT City IFSC, Gujarat. It not only regulates but also fosters growth, innovation, and global competitiveness in the offshore financial ecosystem. Here’s a breakdown of IFSCA’s core functions: FunctionDescriptionRegulatory AuthorityIFSCA oversees and regulates activities across banking, insurance, securities markets, asset management, and fintech in IFSCs. Development RoleEncourages innovation, supports startups, and develops the ecosystem to attract global financial institutions to GIFT City Gujarat. International CollaborationWorks with foreign regulators and global institutions to align IFSC practices with international standards and best practices. Dispute ResolutionProvides a dedicated mechanism to resolve financial disputes within IFSCs quickly and transparently, improving trust and ease of doing business. Licensing AuthorityGrants approvals and licenses to banks, insurers, asset managers, brokers, and other intermediaries operating in GIFT IFSC. IFSCA’s powers make it a one-stop regulatory gateway for international finance, helping position GIFT City IFSC as a leading offshore financial hub in Asia. Organizational Structure of IFSCA The International Financial Services Centres Authority (IFSCA) is structured to effectively oversee and develop financial services within India's International Financial Services Centres (IFSCs), particularly at GIFT City, Gujarat. Governance Structure IFSCA's governance comprises specialized departments, each focusing on distinct financial sectors: Department of Banking Supervision: Led by Pradeep Deo, this department manages the supervision of IFSC Banking Units (IBUs) and Finance Companies. Department of Capital Markets: Under the leadership of Pradeep Ramakrishnan, it oversees corporate finance, market infrastructure institutions, and investment funds. Department of Insurance and Pension: Headed by K. Mahipal Reddy, responsible for regulating insurance and pension services within IFSCs. Department of Metals and Commodities: Also led by Pradeep Ramakrishnan, focusing on market development and regulation of commodities trading. Department of Development: Managed by Dipesh Shah, this department promotes the development of financial markets and international affairs. Department of General Administration: Overseen by Praveen Trivedi, handling administration, human resources, and finance. Department of Technology: Led by Joseph Joshy C J, focusing on information technology and fintech initiatives. Department of Policy and Legal Affairs: Also under Praveen Trivedi, addressing legal policies and investor protection. Department of Regulatory Policy and Regulatory Affairs: Responsible for regulatory cooperation and risk-based supervision. Each department contains divisions dedicated to specific functions, ensuring comprehensive oversight and development within their respective domains. Chairperson and Members The authority is led by a Chairperson appointed by the Government of India, supported by members representing various financial sectors. As of August 1, 2023, Shri K. Rajaraman has assumed the role of Chairperson. With nearly 35 years in various leadership roles within the Government of India and the Government of Tamil Nadu, his prior position was as Secretary to the Government of India in the Department of Telecommunications. Under Shri K. Rajaraman's leadership, IFSCA continues to enhance the regulatory framework, fostering innovation and global competitiveness within GIFT City IFSC. Where is IFSCA Located? The Role of GIFT City IFSC The International Financial Services Centres Authority (IFSCA) is headquartered in GIFT City, Gujarat—India’s first operational International Financial Services Centre (IFSC). Strategically developed to compete with global financial hubs, GIFT City plays a pivotal role in India’s international finance ambitions. Overview of GIFT City Gujarat Gujarat International Finance Tec-City (GIFT City) is a state-of-the-art financial and smart city project located between Ahmedabad and Gandhinagar. Spread over 886 acres, it integrates commercial, residential, and recreational zones with world-class urban planning. Designed around the “walk-to-work” concept, GIFT City offers a seamless ecosystem for global financial institutions, tech companies, and professionals. It is India’s answer to international financial hubs like Dubai, Singapore, and London. Why GIFT City Was Chosen as India’s First IFSC India selected GIFT City to host its first International Financial Services Centre due to its strategic location, advanced infrastructure, and supportive regulatory environment. Key Reasons: Proximity to major cities: Located close to both Ahmedabad (business hub) and Gandhinagar (administrative capital). Integrated smart city model: Combines housing, business, and lifestyle amenities in one location. Special Economic Zone (SEZ) benefits: Offers a globally competitive environment with relaxed regulations. Strategic Advantages of GIFT City IFSC Setting up within GIFT City IFSC comes with multiple benefits for global businesses, investors, and fintech innovators: 1. Attractive Tax Incentives 100% income tax exemption for any 10 out of 15 years No GST on specific financial services Exemptions from securities transaction tax and commodity transaction tax 2. World-Class Infrastructure 24x7 power supply and advanced utilities High-speed connectivity and smart building systems Environmentally sustainable urban design 3. Regulatory Ease and Unified Compliance Single-window regulatory approval by IFSCA Simplified licensing for banks, insurers, capital market intermediaries, fintech, startups, etc. Faster operational setup and lower compliance burden By establishing its headquarters in GIFT City Gujarat, IFSCA is positioned at the heart of India’s growing international finance ecosystem—empowering GIFT City IFSC to become a globally recognized destination for cross-border finance and innovation. IFSCA Regulations and Regulatory Framework The International Financial Services Centres Authority (IFSCA) plays a pivotal role in building a transparent, innovation-driven, and globally competitive regulatory environment within GIFT City IFSC, Gujarat. Since its establishment, IFSCA has issued several sector-specific regulations to promote seamless cross-border finance and attract global institutions. Sectors Eligible to Operate in GIFT IFSC GIFT City’s IFSC is India’s gateway for global financial services, enabling a host of entities to operate with regulatory ease and global competitiveness. Below are the core sectors permitted to set up within the IFSC: 1. Banking Institutions Indian and international banks can establish offshore units to provide a wide range of foreign currency banking services. 2. Insurance Players Life and general insurers, reinsurers, and licensed intermediaries—both domestic and foreign—can offer insurance solutions for international clients from GIFT IFSC. 3. Investment & Fund Management Fund managers, AIFs, wealth managers, pension funds, custodians, and trustees can register and manage global capital from the IFSC. 4. Securities & Capital Market Infrastructure Entities like stock exchanges, brokers, depositories, clearing corporations, and bullion market members can establish operations under the IFSC regulatory regime. 5. Digital & Cross-Border Payment Services Authorized players can offer e-money issuance, escrow services, merchant acquiring, and cross-border remittance solutions with regulatory clarity and global reach. 6. Enabling & Ancillary Services The IFSC also welcomes global in-house centers, aircraft and ship leasing companies, fintech labs, law and consultancy firms, auditors, academic institutions, and R&D setups. Major Reforms Under IFSCA IFSCA Banking Regulation, 2020 This was one of the first comprehensive regulations rolled out by the Authority. It provides a legal framework for: Setting up and operating IFSC Banking Units (IBUs) Foreign currency lending and deposits Cross-border trade finance Client confidentiality and risk management These regulations position GIFT IFSC as a preferred offshore banking destination for global banks and corporate treasury operations. IFSCA (Issuance and Listing of Securities) Regulation, 2021 The IFSCA (Issuance and Listing of Securities) Regulations, 2021 streamline and unify the framework for issuing and listing securities on IFSC-based exchanges such as India INX and NSE IFSC. Key Features: Direct Listing of Indian and Foreign Companies: Indian public companies, REITs, and InvITs can now directly list their securities on IFSC exchanges without the need for overseas listing vehicles. Framework for Debt and Depository Instruments: Enables listing of bonds, non-convertible debentures, and depositary receipts in a simplified manner. Foreign Issuer Access: Regulatory clarity has been extended to foreign companies and institutional investors, improving access to Indian capital markets via the IFSC route. Why It Matters: This regulatory update has unlocked new capital-raising opportunities for both Indian and global players while strengthening GIFT IFSC’s role as an international listing hub—bringing it closer to becoming a regional rival to established financial centers like Singapore and Dubai. What Makes IFSCA Unique? The International Financial Services Centres Authority (IFSCA) is unlike any other regulator in India’s financial ecosystem. Designed to support GIFT City IFSC, it brings together diverse regulatory functions under a single authority—something never done before in the country. India’s First Unified Financial Regulator IFSCA marks the first time India has created a single regulator to oversee multiple sectors—banking, insurance, capital markets, asset management, and fintech—exclusively within International Financial Services Centres. Previously, institutions in IFSCs had to interact with multiple regulators like RBI, SEBI, IRDAI, and PFRDA. IFSCA eliminates this fragmentation, offering a one-stop regulatory framework that enhances ease of doing business in GIFT City Gujarat. A Catalyst for FinTech Innovation One of IFSCA’s standout features is its Regulatory Sandbox, which enables startups and financial innovators to test new technologies and business models in a live environment with controlled risks. This sandbox approach promotes the development of: Blockchain-based solutions Cross-border payment systems Digital wealth platforms Tokenized assets and digital lending models With a focus on emerging tech, IFSCA is helping GIFT City IFSC evolve into a global FinTech hub. Enabling Global Capital Raising in India IFSCA has created a favorable ecosystem for foreign and domestic entities to raise capital from international investors via the IFSC stock exchanges—namely India INX and NSE IFSC. With its progressive regulations, IFSCA allows: Direct listing of Indian and foreign companies Issuance of foreign currency bonds, REITs, and depository receipts Participation by Qualified Foreign Investors (QFIs) and institutional players This is a game-changer for India’s capital markets and positions GIFT City IFSC as a competitive platform for global fundraising. Sectors and Entities Regulated by IFSCA The International Financial Services Centres Authority (IFSCA) serves as the single-point regulator for a wide range of financial services within GIFT City IFSC, Gujarat. Its mandate spans across multiple verticals, ensuring a well-regulated, globally aligned, and innovation-friendly ecosystem for international finance. Sectors and Entities Regulated by IFSCA The IFSCA acts as the unified regulator for financial activities within GIFT City IFSC, Gujarat. With its progressive and globally benchmarked framework, IFSCA oversees a broad range of financial and allied services aimed at creating a... --- - Published: 2025-04-11 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-ifsc-licensing-process/ - Categories: Resources - Tags: GIFT IFSC Licensing, GIFT IFSC Licensing Process What is GIFT City and Why is It Important? GIFT City, short for Gujarat International Finance Tec-City, is India’s first operational International Financial Services Centre (IFSC), located in Gandhinagar, Gujarat. It was built to rival global financial hubs like Singapore and Dubai, offering a world-class ecosystem for financial and professional services. Governed by IFSCA – India’s Unified Financial Regulator GIFT City IFSC is regulated by the International Financial Services Centres Authority (IFSCA), which serves as a single-window regulator for all financial activities banking, capital markets, insurance, fintech, and more, streamlining compliance and approvals. SEZ vs DTA: The Two Zones Within GIFT City GIFT City is divided into two parts: SEZ (Special Economic Zone) – For export-oriented units eligible for tax benefits DTA (Domestic Tariff Area) – For serving Indian domestic clients, without SEZ incentivesChoosing the right zone is crucial based on your business model and target market. Who Can Set Up in GIFT IFSC? Entities across a wide range of financial and allied sectors are permitted to establish operations in GIFT IFSC. These include: 1. Banking Indian banks Foreign banks 2. Insurance Indian & Foreign Insurers Indian & Foreign Reinsurers Indian & Foreign Intermediaries 3. Asset Management Pension Fund Services Alternate Investment Funds (AIFs) Investment Advisers Wealth Management Portfolio Managers Custodial Services Trust Services Fund Management Entities (FMEs) 4. Capital Markets Stock/Commodity Exchanges Clearing Corporations Depositories Brokers Registrar/Share Transfer Agents Bullion Trading Members and Clearing Members 5. Payment Services Account issuance services (including e-money account issuance) E-money issuance services Escrow services Cross-border money transfer services Merchant acquisition services 6. Allied/Support Services Global in-house centres Aircraft Leasing & Financing Ship Leasing FinTech Hub Accounting & Audit Services Legal & Consultancy Services Educational Institutions R&D Services Note: This is a concise list for easier presentation purposes. Pre-Licensing Considerations Before applying for a GIFT City license, it’s essential to understand the eligibility criteria, setup options, and tax benefits available. Who Can Apply? Entities eligible to set up operations in GIFT IFSC include: Indian companies and LLPs Foreign companies setting up branches or subsidiaries Banks, NBFCs, insurers, fintechs, and fund managers GIFT IFSC welcomes both startups and global institutions under the unified IFSCA framework. Minimum Capital Requirements Capital norms vary based on the regulation under which registration is sought. For instance, FME (Non-retail) are required to have a minimum net worth of USD 500,000, aircraft leasing / ship leasing players intending to do operating lease activities are required to have net worth of USD 0. 2 million. Check IFSCA regulations for your specific sector. Office Space Options All businesses must lease commercial space within GIFT City. Plug-and-play offices – Quick and cost-effective for startups Custom-built units – Ideal for larger enterprises needing long-term setups SEZ vs DTA – What to Choose? SEZ Zone: For IFSC related activities; offers tax incentives and duty-free imports DTA Zone: For businesses serving domestic Indian clients and exploring benefits under Gujarat state’s IT/ITeS policy / GCC Policy. Key Tax Benefits in GIFT IFSC 100% income tax exemption for 10 consecutive years out of 15 years No GST on services exported from SEZ units No securities transaction tax, commodity transaction tax and other transaction charges No stamp duty on certain transactions GIFT IFSC offers one of the most attractive tax regimes in India for global-facing businesses. Step-by-StepProcess for setting up operations in IFSC Setting up a business in GIFT IFSC is governed by a clear and structured process involving both the International Financial Services Centres Authority (IFSCA) and the SEZ Administrator. Here's how the journey typically unfolds: A. Preliminary Steps: Business Use Case & Office Space Before initiating incorporation, companies must: Engage with IFSCA/GIFT Officials Schedule an in-person or virtual meeting to present the business use case and understand regulatory expectations. Secure Office Space in GIFT SEZ Identify suitable commercial space (plug-and-play or custom fit-outs) within the GIFT SEZ. Finalize terms with the SEZ developer. Obtain a Provisional Letter of Allotment (PLOA) – a key prerequisite for the approval process. B. Entity Incorporation (India or IFSC) Choose a legal structure: Private Limited Company / Public Company LLP Branch Office (for foreign entities) Then, proceed to: Register with the Registrar of Companies (RoC) via the MCA portal; or Use an existing entity to seek registration in IFSC. Foreign companies may set up either a branch or subsidiary under FEMA guidelines. C. Application via IFSCA’s Single Window IT System (SWIT) Submit a consolidated application through IFSCA’s Single Window IT System (SWIT) for: SEZ Unit Approval (Form F to Administrator IFSCA); and IFSCA Registration/Licensing Key documents include: PLOA Certificate of Incorporation & PAN Detailed Project Report (DPR) Board Resolutions Financials or Net Worth Declarations Once submitted: The applicant is invited for a Unit Approval Committee (UAC) meeting to present and discuss the proposal. D. Post-Approval & Licensing Upon UAC approval: Receive a Letter of Approval (LOA) from the Administrator. Obtain in-principle approval from IFSCA. Execute the Lease Deed with the developer to finalize office space. Submit the Bond-cum-LUT (BLUT) for inward supplies from DTA without GST. Obtain necessary registrations: Eligibility Certificate from IFSCA GST, IEC, RCMC (as applicable) E. Final IFSCA Approval & Operationalization Open Foreign Currency and SNRR bank accounts. Submit a Commencement of Business Letter to IFSCA along with: First client invoice Proof of payment receipt Once reviewed and approved, you’re all set to begin operations and export services from GIFT IFSC. Licensing Timeline & Costs Understanding the cost and timeline involved in setting up a business in GIFT IFSC is crucial for proper planning and execution. Here's a breakdown of key steps, estimated timelines, and associated costs: StepEstimated TimelineCost (Approx. )Entity Registration10–15 days₹10,000–₹25,000 (RoC & legal fees)Office Space Allotment1–2 weeks₹135–₹140/sq ft/month (varies by developer)SEZ Unit Approval2–4 weeks₹5000 initially and ₹25000 for acceptance of LOA (No govt fees)IFSCA Registration4–8 weeksBased on activity type Note: Timeframes may vary depending on documentation readiness, business category, and regulator response times. Cost Drivers to Watch For: Office fit-outs (if opting out of plug-and-play) Professional/legal advisory for compliance IFSCA registration fees (higher for financial services) With government-backed ease of doing business and fast-track timelines, GIFT IFSC offers one of the most efficient regulatory frameworks in India for global-facing businesses. Key Authorities and Portals Setting up and operating a business in GIFT IFSC involves coordination with several key authorities. Each plays a distinct role in the incorporation, approval, licensing, and compliance journey. 1. International Financial Services Centres Authority (IFSCA) The IFSCA is the unified regulator for all financial activities in GIFT City, including banking, insurance, capital markets, fintech, and asset management. It grants licenses to Alternative Investment Funds (AIFs), Portfolio Managers, Insurers, Fintech startups, and more. It also supervises ongoing compliance, business conduct, and disclosure norms. All license applications and filings are made via the official portal: https://www. ifsca. gov. in 2. IFSCA Single Window IT System (SWIT) Digital portal for consolidated SEZ Unit approval and IFSCA licensing Simplifies the application, registration, and compliance tracking process SWIT is the one-stop system for business setup in GIFT City SWIT Portal – Access via IFSCA site 3. Registrar of Companies (RoC) – MCA Portal Before entering the GIFT ecosystem, you must incorporate an entity under Indian company law. Businesses can register as Private Limited, LLP, or Foreign Branch/Subsidiary Registration is done via the Ministry of Corporate Affairs (MCA) portal https://www. mca. gov. in Compliance After Licensing After obtaining approvals and licenses, businesses must meet regular compliance obligations under both IFSCA and SEZ frameworks to retain operational and tax privileges. 1. IFSCA Regulatory Compliance IFSCA mandates ongoing reporting to ensure transparency and regulatory oversight: Periodic filings of financial statements and business reports Adherence to KYC/AML norms, especially for financial entities like AIFs, fintechs, and brokers Governance disclosures for fund managers, insurers, and listed entities Additional guidelines may apply depending on the sector (banking, insurance, etc. ) 2. SEZ Compliance Requirements Operating in the SEZ zone of GIFT City brings tax and duty advantages but with responsibilities: Monthly Performance Report (MPR): Captures monthly operational metrics for review by the Development Commissioner. Service Export Reporting Form (SERF): Filed monthly by service-exporting units to report the nature and value of exports. Annual Performance Report (APR): Summarizes yearly financials and Net Foreign Exchange (NFE) earnings, assessed by the Unit Approval Committee. Investment & Employee Report: Discloses capital invested and jobs created, highlighting the unit’s economic contribution. NSDL Portal Renewal & AMC Fee: Timely renewal and AMC payment are essential to maintain access to the SEZ Online portal for all compliance filings. 3. Transaction-Based Reporting Requirements Apart from regular filings, SEZ units must comply with specific transaction-related obligations: Import Clearance: Follow SEZ customs procedures for importing goods/services, ensuring proper documentation. IGST Exemption Filings (DTA Procurement): File necessary declarations to claim IGST exemption on goods/services procured from the Domestic Tariff Area. Execution of Bonds/Undertakings: Depending on the transaction, additional Bond-cum-Legal Undertakings may be required under SEZ rules. 4. Tax Exemption Documentation One of the key attractions of GIFT City is its tax incentives, but these require ongoing compliance: Renew Eligibility Certificates for 100% income tax exemption (10 out of 15 years) Maintain proof of export of services to continue GST exemptions Track procurement and input services for zero-rated tax treatment Pro Tip: Missing compliance deadlines can result in suspension of tax benefits or even deregistration. Engage a professional firm or use compliance automation tools to stay ahead. Common Challenges & How to Avoid Them While GIFT City offers a streamlined setup process, businesses often face avoidable delays due to common mistakes. Here’s what to watch out for and how to overcome them. 1. Incomplete Documentation Issue: Many applications are delayed or rejected due to missing or improperly prepared documents, especially during the SEZ approval and IFSCA registration stages. Solution: Prepare a full documentation checklist before starting Get board resolutions, project reports, financials, and ID proofs verified in advance Use professional assistance for filing Form FA and IFSCA application on SWIT portal 2. Delay in Office Space Allotment Issue: Without a confirmed Provisional Letter of Allotment (PLOA), SEZ unit approval cannot proceed. Delays in finalizing space often stall the process. Solution: Engage early with GIFT SEZ developers Choose plug-and-play offices if speed is a priority Lock in PLOA before initiating other applications 3. Lack of Sector-Specific Legal Advice Issue: GIFT City has sector-specific licensing requirements, especially for AIFs, insurers, banks, and fintechs. Generic advisors may miss critical compliance steps. Solution: Hire legal and compliance experts with GIFT City or IFSC experience Review the latest IFSCA circulars and guidelines before applying Tailor your licensing and structuring approach to your industry Pro Tip: A well-prepared setup can cut the total registration timeline in half from 8–10 weeks to just 4–5 weeks. In conclusion, setting up a business in GIFT City IFSC offers unmatched advantages global market access, 100% tax exemptions, and a streamlined licensing process under unified regulation by the IFSCA. While the registration journey involves multiple steps, understanding the process, choosing the right zone (SEZ or DTA), and ensuring compliance can unlock tremendous value for startups, fintechs, AIFs, insurers, and global firms alike. With the right guidance and preparation, businesses can turn GIFT City into a strategic gateway for international expansion, innovation, and long-term growth. --- - Published: 2025-04-10 - Modified: 2025-07-22 - URL: https://gift.treelife.in/role-of-gift-city-in-india-stock-market-trading-regulations/ - Categories: Resources - Tags: Role of GIFT City in India’s Stock Market What is GIFT City and GIFT IFSC? GIFT City (Gujarat International Finance Tec-City) is India’s first operational smart city and home to the country’s only International Financial Services Centre (IFSC). Strategically located between Ahmedabad and Gandhinagar, it’s designed to rival global financial hubs like Singapore, Dubai, and London. Launched in 2015, GIFT IFSC serves as a special financial zone for conducting international transactions in foreign currency, primarily catering to non-resident investors and global institutions. Why GIFT IFSC is a Game-Changer for India’s Stock Market: Unified Regulatory Authority: The IFSCA (International Financial Services Centres Authority) combines powers of RBI, SEBI, IRDAI, and PFRDA, ensuring seamless operations across sectors like stock trading, banking, insurance, and fintech. Attractive Tax Benefits: Capital gains on many IFSC-traded securities are tax-exempt for non-residents; no STT, CTT, or stamp duty applies. Global-Standard Infrastructure: Features like District Cooling Systems, underground utility tunnels, and Tier-IV data centers make it a future-ready hub. Extended Trading Hours: With 20+ hours of daily market access, IFSC exchanges cater to global time zones, attracting overseas investors. GIFT City is the gateway for India’s integration with global capital markets, offering a low-friction, high-efficiency ecosystem for cross-border financial services. Why GIFT City Matters for India’s Stock Market GIFT City IFSC (International Financial Services Centre) is emerging as a cornerstone of India’s capital market modernization. By offering world-class infrastructure, global-standard regulations, and investor-friendly policies, it is redefining how and where capital is raised, invested, and traded. Bringing Offshore Trading Back to India Historically, a significant volume of Indian equity derivatives—especially NIFTY contracts—were traded on the Singapore Exchange (SGX) due to its favorable regulatory environment. This meant billions in trading turnover and fees were flowing offshore. With the introduction of GIFT Nifty in July 2023 via the NSE IFSC-SGX Connect, that activity is now onshore in India, but still accessible globally. GIFT Nifty operates for 20+ hours a day, covering time zones from Tokyo to New York, making it the preferred venue for offshore investors looking to trade Indian equities. Attracting Foreign Portfolio Investors (FPIs) and Eligible Foreign Investors (EFIs) GIFT IFSC has become a gateway for international capital flows into India. It welcomes: Foreign Portfolio Investors (FPIs) registered with SEBI Eligible Foreign Investors (EFIs) from FATF-compliant jurisdictions Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) Non resident investors enjoy: Zero capital gains tax on many securities No requirement for a PAN or Indian tax return (subject to conditions) No Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), or stamp duty The result is a cost-effective, compliance-light, and tax-optimized investing environment that attracts hedge funds, sovereign wealth funds, family offices, and more. Ease of Doing Business: Streamlined Entry for Market Participants Setting up operations in GIFT City is far more seamless than in mainland India. Thanks to IFSCA’s unified regulatory framework, entities benefit from: Single-window clearance for approvals and compliance Remote broker-dealer model (proposed), allowing foreign brokers to operate without physical presence Lower minimum capital and net worth requirements for intermediaries Quick onboarding for: Broker-dealers Fund managers Custodians Investment advisors Additionally, the Segregated Nominee Account (SNA) structure makes it easier for FPIs to invest via authorized brokers without needing individual registration, mirroring global norms like the omnibus account system. In essence, GIFT City is bringing back lost market share, drawing in global capital, and reducing red tape for market participants. Key Stock Market Platforms in GIFT City GIFT City IFSC is home to cutting-edge trading platforms that are shaping India’s global financial future. With USD-denominated products, extended trading hours, and a tax-optimized structure, these exchanges offer unmatched access to India’s markets for both domestic and foreign investors. Major Stock Exchanges in GIFT IFSC ExchangeParent EntityKey ProductsNSE IFSCNational Stock Exchange (NSE)GIFT Nifty, currency derivatives, commoditiesIndia INXBombay Stock Exchange (BSE)Global equities, stock derivatives, debt securities NSE IFSC is the only platform where the GIFT Nifty (formerly SGX Nifty) is now traded, offering 20+ hours of market access across global time zones. India INX supports trading in over 50 U. S. stocks, global indices, and offers access to green bonds, Eurobonds, and Masala Bonds. Both platforms operate under the IFSCA and are built to international standards with low latency, zero STT, and minimal compliance hurdles for foreign investors. Other Trading Platforms in GIFT City Indian International Bullion Exchange (IIBX) India’s first international bullion exchange allows trading of physical gold and silver, with participation from nominated banks, bullion dealers, and foreign entities. It brings transparency and efficiency to the precious metals market. GIFT City’s stock market ecosystem is designed to attract offshore investors, boost Indian capital markets, and offer a globally competitive trading environment. Major Trading Products Offered in GIFT IFSC The Gujarat International Finance Tec-City (GIFT IFSC) has rapidly evolved into a premier destination for diverse financial instruments, catering to both domestic and international investors. SEBI, RBI and IFSCA have also notified relevant amendments permitting listing of shares of Indian companies on IFSC stock exchanges. Below is an overview of the key trading products available: Index Futures & Options GIFT Nifty: Previously known as SGX Nifty, this derivative tracks the NIFTY 50 index and offers extended trading hours to accommodate global investors. S&P BSE Sensex Derivatives: Contracts based on India's benchmark Sensex index, providing exposure to the top 30 companies listed on the Bombay Stock Exchange. Single Stock Derivatives Futures and options on select Indian blue-chip companies, enabling strategies like hedging and speculative trading. Commodity Derivatives Precious Metals: Gold and silver futures and options contracts. Energy: Crude oil futures, allowing participation in global energy markets. Base Metals: Copper futures, among others, catering to industrial commodity traders. Currency Derivatives USD-INR Futures & Options: Facilitating hedging and trading based on the USD to Indian Rupee exchange rate. EUR-USD Futures & Options: Providing exposure to the Euro against the US Dollar, beneficial for international trade participants. Foreign Currency Bonds & Debt Securities Listing and trading of foreign currency-denominated bonds, including Masala Bonds, allowing issuers to raise capital in foreign currencies while offering investors diversified fixed-income opportunities. Depository Receipts NSE IFSC Receipts: Innovative instruments that enable investors to trade in global stocks, such as top-performing U. S. companies, through unsponsored depository receipts. This initiative broadens access to international equities for Indian residents and NRIs under the Liberalized Remittance Scheme (LRS). Benefits of Trading in GIFT IFSC USD-Denominated Contracts: Mitigates currency risk for international investors and aligns with global trading practices. Access to Indian and International Instruments: Offers a diverse portfolio, from Indian equity derivatives to global commodities and currencies. Reduced Transaction Costs: Transactions are exempt from Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), and stamp duty, enhancing cost efficiency. GIFT IFSC's comprehensive suite of trading products, coupled with its strategic benefits, positions it as a compelling hub for global financial activities. How GIFT City Simplifies Stock Market Regulations GIFT City IFSC offers a streamlined and globally competitive regulatory ecosystem that reduces compliance burdens and enhances ease of doing business for market participants. Unified Regulatory Authority: IFSCA At the core of GIFT City’s regulatory advantage is the International Financial Services Centres Authority (IFSCA). Unlike traditional financial hubs in India where regulatory powers are split among SEBI, RBI, IRDAI, and PFRDA, IFSCA combines all financial regulatory powers under one roof. Key Benefits: Faster decision-making Clarity in compliance requirements Reduced duplication across agencies Single-Window Clearance for Market Participants Setting up a financial entity—whether a broker-dealer, fund manager, or custodian—in GIFT City is significantly easier due to the single-window approval system managed by IFSCA. Applicants receive: Consolidated regulatory approvals Simplified onboarding processes Faster go-to-market timelines This makes GIFT City an attractive destination for startups and global institutions alike. Remote Broker-Dealer Model  The IFSCA has implemented a “remote broker-dealer” framework that would allow foreign brokers to: Operate from outside India Offer services on IFSC exchanges Avoid setting up a physical presence This move aligns GIFT City with global offshore financial centers like Singapore and Dubai, while widening international participation in India’s markets. Segregated Nominee Account (SNA) Structure Introduced in 2023, the SNA structure allows Foreign Portfolio Investors (FPIs) to: Invest in IFSC exchanges via registered brokers Skip direct registration with Indian authorities Benefit from omnibus account-like functionality This setup reduces onboarding friction and makes GIFT City’s exchanges more accessible to institutional investors, hedge funds, and sovereign wealth funds. Tax Benefits for Traders and Investors in GIFT IFSC One of the biggest attractions of GIFT IFSC is its tax-efficient environment, designed to compete with leading offshore financial hubs. Investors—especially non-residents—can benefit from significant tax exemptions and simplified compliance, making GIFT City an ideal destination for global capital allocation. For Non-Resident Investors: Maximum Tax Relief, Minimal Compliance 0% Capital Gains Tax Capital gains from trading in derivatives, mutual funds, ETFs, and certain foreign currency-denominated securities listed on IFSC exchanges are fully exempt from tax in India for non resident investors. No PAN or Tax Return Filing Non-residents with no income from India other than capital gains from specified securities from IFSC are: Not required to obtain a PAN Exempt from filing income tax returns, provided they furnish specified details to their broke No GST on Financial Transactions All transactions on IFSC exchanges are exempt from Goods and Services Tax (GST), significantly reducing the cost of doing business. Quick Tax Reference Table for non resident investors Income TypeTax RateCapital Gains (Foreign Securities)ExemptDividend (From IFSC Companies)10% (plus surcharge & cess) By offering zero capital gains tax, no indirect taxes, and light-touch compliance, GIFT City IFSC ensures that traders, investors, and institutions can operate with maximum efficiency and profitability. Foreign Investment in GIFT City Exchanges GIFT IFSC is fast becoming a preferred gateway for foreign investors looking to access Indian financial markets with minimal regulatory hurdles and maximum operational efficiency. Who Can Invest in GIFT City Exchanges? GIFT IFSC allows a wide range of international investors to trade on its platforms, including: Foreign Portfolio Investors (FPIs) registered with SEBI Eligible Foreign Investors (EFIs) from FATF-compliant jurisdictions Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) This inclusive approach is designed to attract a global investor base, from institutional players to high-net-worth individuals (HNIs). Investor-Friendly Compliance Framework Unlike traditional Indian stock exchanges, GIFT City offers significantly lower compliance requirements: No Permanent Account Number (PAN) required for specified capital gains No Indian bank account needed to invest or trade No tax return filing obligation for non-residents under certain conditions Segregated Nominee Account (SNA) structure enables omnibus-like access for foreign funds These features make GIFT City as easy to access as global hubs like Singapore, Dubai, and London — but with direct exposure to India’s growing capital markets. Access to Indian Securities, the Easy Way Through exchanges like NSE IFSC and India INX, foreign investors can trade: Indian equity derivatives (e. g. , GIFT Nifty) Debt securities and bonds Depository receipts of global companies All transactions are settled in USD, avoiding currency conversion risks for foreign players. Direct Listing of Indian Companies in IFSC In a major reform to enhance India’s global financial integration, the Government of India introduced a 2024 amendment that allows Indian public companies to list directly on stock exchanges in GIFT IFSC. What the 2024 Amendment Means Previously, Indian companies could only raise capital in international markets through depository receipts (like ADRs or GDRs). With this policy shift: Indian companies can now list their equity shares directly on IFSC exchanges like NSE IFSC and India INX The listing and trading happen in foreign currency, typically USD Companies gain direct access to offshore investors, including sovereign wealth funds, pension funds, and global asset managers Key Benefits of Direct Listing in GIFT City Raise capital in foreign currency without going through foreign jurisdictions Increased liquidity through participation of global institutional investors Better valuation discovery due to exposure to international markets Enhanced ease of access for global funds that prefer to invest via offshore platforms Reduced costs compared to listing on foreign exchanges like NYSE or LSE Why Global Investors Prefer IFSC Listings USD-denominated shares No capital gains tax on certain securities Long trading hours (20+ hours/day) Zero STT, stamp duty, and other transaction... --- - Published: 2025-04-08 - Modified: 2025-07-22 - URL: https://gift.treelife.in/what-is-an-ifsc-banking-unit-ibu-how-it-works/ - Categories: Resources - Tags: ibu, IFSC Banking Unit, ifsc ibu What is an IFSC Banking Unit (IBU)? An IFSC Banking Unit (IBU) is a specialized branch of a bank that operates within an International Financial Services Centre (IFSC). These units are designed to provide financial services to non-resident individuals and foreign entities, offering a variety of banking and financial products that are not generally available in domestic banking channels. As of December 31, 2024, there are 28 IBUs operating in GIFT IFSC, collectively holding over USD 1 billion in retail demand and term deposits from more than 6,897 Non-Resident Indians and Foreigners . IBUs also enable residents to open Foreign Currency Accounts under the RBI’s Liberalised Remittance Scheme. They are critical for fostering India’s global financial ecosystem, serving as hubs for international finance and facilitating cross-border trade and investment. Definition and Key Features of an IBU An IBU is essentially a banking unit located within an IFSC, such as GIFT City in India, that operates in a foreign-exchange and regulatory framework distinct from domestic banking norms. IBUs are authorized to offer a wide range of services, including offshore banking, trade finance, investment banking, etc. primarily to foreign entities and non-resident Indians (NRIs). Key features of an IBU include: Offshore Banking Services: IBUs offer services that cater to the international market, such as foreign exchange, investment banking, and structured finance. Tax Exemptions: Banks operating within an IBU enjoy certain tax exemptions, which makes the unit more attractive to foreign banks and financial institutions. Regulatory Ease: IBUs operate under a more flexible and simplified regulatory framework compared to domestic banking units, making it easier for foreign financial institutions to establish and run these units. What is the Difference Between an IBU and Traditional Banking Units? Traditional banking units cater to domestic markets and operate under the country's central bank regulations. In contrast, an IFSC Banking Unit is geared towards international operations, offering a more specialized and flexible environment for global financial transactions. Scope of Services: Traditional banks focus on services for domestic clients, while IBUs cater primarily to foreign clients, non-residents, and international businesses. Regulatory Environment: IBUs benefit from a more liberal regulatory framework, allowing foreign banks to operate with reduced bureaucratic hurdles, unlike the stringent regulations in domestic banking. Taxation: IBUs are granted tax exemptions or lower tax rates to attract foreign financial institutions, which is not the case for traditional banks. Core Purpose and Role in International Finance The primary purpose of IBUs is to enhance India's position as a global financial hub. By offering offshore banking services, IBUs attract international capital and financial expertise into India. These units play a significant role in bridging the gap between India and the global financial markets, facilitating: Cross-border Trade and Investment: IBUs provide financial services that promote international trade, investment, and foreign direct investment (FDI) by acting as intermediaries for foreign businesses operating in India. Capital Flow into India: IBUs help in channeling global capital into India’s financial markets and facilitate access to international investors seeking exposure to Indian financial products and services. Global Financial Integration: These units help integrate India’s financial sector with international banking practices and financial markets, increasing India's global financial standing. Legal and Regulatory Framework for IBUs Any Indian or foreign bank (whether having any presence in India or not) can set up an IBU in the IFSC in the form of a branch.   The parent bank must obtain a ‘no-objection’ certificate from the home country regulator and submit undertakings to the IFSCA.   Minimum capital of USD 20 million to be maintained at the parent bank level.   The banking company is required to comply with the prudential directions and instructions issued by the home regulator and ensure that the IBU has access to the parent bank’s liquid assets and financial resources, which are adequate in relation to the nature, size and complexity of the business of the IBU.   IBUs are required to follow Know Your Customer (KYC) norms, combating the financing of terrorism and other anti-money laundering requirements, including reporting requirements issued by the Reserve Bank from time to time unless otherwise specified by the IFSCA. Prudential Relaxations Unlike domestic banks, IBUs are exempt from maintaining the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) mandated by the RBI.   IBUs are required to maintain Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) at the branch level, although with IFSCA's permission, these can be maintained at the parent bank level.   Leverage ratio (LR) for IBUs may be maintained at the parent bank level and subject to the regulations specified by the respective home regulator applicable to the parent bank unless otherwise specified by the IFSCA.   IBUs are required to maintain a retail deposit reserve ratio (RDRR) on a daily basis at 3% of the deposits raised from individuals outstanding as of the end of the previous working day. How Does an IFSC Banking Unit (IBU) Work? An IBU operates within an International Financial Services Centre (IFSC), providing specialized banking and financial services to non-residents and foreign entities. These units are structured to cater to international markets and offer a range of offshore services not available through traditional domestic banking units. The operations and functionality of an IBU play a critical role in integrating India into the global financial system and enhancing cross-border capital flows. Operations and Functionality of an IBU The core functionality of an IBU revolves around providing a flexible, global platform for banking services. IBUs primarily engage in offshore banking and are governed by a set of regulations that encourage foreign investment and simplify international financial operations. Key operational functions include: Cross-border Transactions: IBUs facilitate seamless financial transactions between India and global markets, promoting international trade and investment. Global Investment Services: They offer services like global treasury management, investment banking, and other financial products to international clients. Currency and Risk Management: IBUs manage risks associated with currency fluctuations and market volatility through specialized services like foreign exchange and hedging. Core Banking Activities of an IBU The core banking activities of an IBU are similar to those of traditional banks but with a focus on international clientele and cross-border financial services. These activities include: Deposits and Loans: IBUs offer deposits and loans primarily to foreign clients, businesses, and governments. Foreign Exchange Services: Facilitating the exchange of currencies for international trade and investment. Payment Services: Providing payment solutions for businesses and individuals involved in global transactions. Unlike traditional banks, IBUs operate with fewer regulatory restrictions, enabling them to provide more flexible services tailored to global financial markets. Types of Financial Services Provided IBUs offer a wide range of financial services tailored to foreign clients, non-resident Indians (NRIs), and global businesses. These services are designed to address the unique needs of international clients, which differ significantly from the services offered by domestic banks. Some of the primary financial services provided by IBUs include: Offshore Banking Services: These services are tailored for international clients seeking to open accounts, invest, or borrow in foreign currencies. IBUs act as gateways for global financial transactions and provide a variety of offshore banking products. Foreign Exchange (Forex) Services: IBUs are key players in forex markets, offering foreign exchange services to clients engaged in international trade, investment, and risk management. They also facilitate cross-border remittances and currency conversions for businesses. Derivatives Trading: IBUs offer derivatives products like options, futures, and swaps to hedge against currency and market risks. These services are integral for multinational corporations and foreign investors looking to manage financial risk in volatile markets. Integration with Global Financial Markets One of the main objectives of an IBU is to integrate India into the global financial system. By offering a specialized regulatory framework and operational flexibility, IBUs act as intermediaries that connect international clients with the Indian financial markets. Key integrations include: Cross-border Investments: IBUs facilitate international investments by offering global businesses access to Indian financial products and vice versa. Global Banking Networks: IBUs are integrated into the global banking network, enabling smooth financial transactions and the exchange of capital between India and international markets. Regulatory Compliance with International Standards: IBUs adhere to global financial regulations, ensuring that international investors can trust Indian financial institutions for their operations. IBU Banking Products and Services As of December 2024, 28 IBUs are operational in GIFT City, playing a central role in international finance. These IBUs collectively manage over USD 1 billion in retail demand and term deposits from 6,897 Non-Resident Indians and Foreigners, highlighting growing investor trust in India’s global financial hub . IBUs provide a wide range of specialized banking products designed for international clients, foreign businesses, and high-net-worth individuals. These services are structured to support cross-border trade, global investment, and efficient financial risk management. Offshore Banking Services Offshore banking is the cornerstone of IBUs. These services cater to foreign clients and non-residents managing wealth or business outside their home country. Key offerings include: Foreign Currency Accounts: Allow businesses and individuals to hold and manage funds in any of the 14 freely convertible currencies permitted in GIFT IFSC. International Loans and Credit: Loans offered in global currencies for cross-border business operations. Investment Solutions: Tailored investment products like bonds, mutual funds, and equities for international investors. Foreign Exchange and Derivatives As of Q3 FY 2024-25, IBUs contributed significantly to the overall derivative market in IFSC, with cumulative derivatives trade volume reaching USD 78. 2 billion, and aggregate open interest crossing USD 120 billion . They offer: Currency Derivatives: Futures and options to hedge against exchange rate volatility. Interest Rate Derivatives: Instruments to manage global interest rate exposures. Commodity Derivatives: Products related to commodities like gold and silver to hedge against price swings. Structured Finance, Trade Finance, and Investment Banking Services IBUs are also active in complex financial structuring, cross-border trade financing, and corporate advisory. Core services include: Structured Finance: Asset-backed securities (ABS), collateralized debt obligations (CDOs), and other customized structures. Trade Finance: Solutions such as letters of credit, export/import financing, and forfaiting to facilitate global commerce. Investment Banking: Services like M&A advisory, capital raising, and securities issuance for international expansion or restructuring. Benefits of Setting Up an IFSC Banking Unit Setting up an IBU offers several key benefits, both for foreign banks and financial institutions, as well as for the Indian economy. These advantages make India’s International Financial Services Centres (IFSCs), such as GIFT City, an attractive destination for global financial entities. For Foreign Banks and Financial Institutions 1. Access to Tax Incentives and Exemptions One of the major advantages of setting up an IBU is the tax benefits it offers. IBUs enjoy tax holiday for a 10 year period under section 80LA, making them highly cost-effective for foreign banks and financial institutions. These tax incentives are part of India's strategy to attract global players to its financial markets. 2. Regulatory Flexibility and Ease of Operations IBUs operate under a more flexible regulatory framework compared to traditional banks. This flexibility allows foreign banks to manage operations with fewer bureaucratic hurdles, creating a more efficient environment for international business. The simplified regulatory structure ensures that foreign financial institutions can offer their services with ease, adhering to international standards while reducing compliance costs. 3. Expanded International Market Opportunities IBUs enable foreign financial institutions to access Indian markets and offer their services to global clients. By operating within an IFSC, foreign banks can tap into the growing Indian economy, making it easier to conduct cross-border business. This opens up new international market opportunities for foreign banks to expand their reach and gain access to emerging market sectors. For the Indian Economy 1. Attracting Foreign Investments Setting up IBUs in India plays a significant role in attracting foreign investments. These units make it easier for global investors and multinational companies to engage with India’s financial markets. The presence of IBUs enhances India's attractiveness as a destination for foreign capital, supporting the nation's overall economic growth. 2. Enhancing India's Position as a Global Financial Hub By establishing IBUs, India strengthens its position as a global financial hub. The IFSCs, with their international... --- - Published: 2025-04-07 - Modified: 2025-07-22 - URL: https://gift.treelife.in/private-equity-venture-capital-in-gift-city/ - Categories: Resources - Tags: pe in gift city, Private Equity & Venture Capital in GIFT City, Private Equity and Venture Capital in GIFT City, Private Equity in GIFT City, vc in gift city, Venture Capital in GIFT City Introduction India’s financial services landscape is undergoing a silent revolution — and at its heart lies GIFT City (Gujarat International Finance Tec-City), the country’s first International Financial Services Centre (IFSC). Strategically positioned between Ahmedabad and Gandhinagar, GIFT City is emerging as a new-age offshore hub for global financial institutions, fintech firms, and increasingly, private equity (PE) and venture capital (VC) funds. GIFT City was conceived to onshore global financial flows that previously bypassed India in favor of Singapore, Dubai, or Luxembourg. With the establishment of the International Financial Services Centres Authority (IFSCA) in 2020, a unified regulator for all financial entities in GIFT IFSC, the ecosystem saw a wave of regulatory clarity, ease of doing business, and fiscal incentives — making it especially attractive for alternative investment managers. In recent years, the interest in private equity in GIFT City and venture capital in IFSC has surged. As of end-2024, 139 Fund Management Entities (FMEs) have registered in the IFSC, raising over USD 14. 88 billion in total commitments across various schemes. The appeal? A combination of 10-year tax holiday under Section 80LA, dealing in specified foreign currency, and the ability to access global LPs and institutional capital. Crucially, this growth aligns with the Indian government’s strategic push to reverse externalization or “flipping” — the trend of Indian startups relocating to foreign jurisdictions like Delaware or Singapore for tax and valuation advantages. The IFSCA’s policy and tax reforms aim to position GIFT IFSC as a credible alternative, enabling Indian startups to raise foreign capital while remaining domiciled in India. In short, GIFT City is no longer a vision — it’s fast becoming a global gateway for Indian innovation, capital, and investment opportunities, especially in the private equity and venture capital space. Why GIFT City is Attractive for Private Equity & Venture Capital As global investors look for efficient fund domiciles, GIFT City’s IFSC is fast gaining prominence as a preferred destination for private equity (PE) and venture capital (VC) funds. Backed by a progressive regulatory framework, generous tax benefits, and world-class infrastructure, the benefits of GIFT City for investors are hard to ignore. Tax & Regulatory Advantages GIFT City offers one of the most investor-friendly tax environments in Asia: 100% income tax exemption for PE/VC fund managers and entities for any 10 consecutive years out of 15, under Section 80LA of the Income Tax Act Zero capital gains tax on transfer of specified securities for non resident investors subject to certain conditions in case of investment in a Category III AIF Exemption from key levies: GST on financial services Securities Transaction Tax (STT) Commodity Transaction Tax (CTT) These incentives significantly enhance fund returns and reduce the cost of doing business, especially compared to traditional offshore jurisdictions. Ease of Fund Formation & Operations GIFT City is governed by the International Financial Services Centres Authority (IFSCA) — a unified regulator that simplifies operations through streamlined processes. Single-window clearance for fund managers and entities via the IFSCA Single Window IT (SWIT) portal Introduction of a Common Application Form (CAF) that merges multiple regulatory filings into one, reducing a lot of to and fro. Fast-track fund setup timelines and a pro-business approach compared to jurisdictions like Singapore, Dubai or Luxembourg These steps reduce compliance costs and setup complexity, helping VC and PE firms focus on investing. Currency & Investment Flexibility Another game-changer for global fund managers is unrestricted currency movement: Free repatriation of capital and profits for non-resident investors Transactions allowed in freely convertible foreign currencies, including USD, EUR, GBP, SGD Funds in GIFT IFSC are treated as non-residents under FEMA, enabling seamless global investing and structuring This flexibility makes GIFT IFSC a robust gateway for cross-border investments into and from India. GIFT City vs. Singapore vs. Luxembourg: PE/VC Fund Comparison ParameterGIFT City (India)SingaporeLuxembourgTax on Capital GainsExempt for non resident investors subject to certain conditionsLimited ExemptionVariesTax Holiday on management fees for Fund Manager 10 years (Sec 80LA)VariesVariesCurrency FlexibilityFullFullFullRegulatory EaseSingle-window (IFSCA)ModerateModerateSetup Time4–6 weeks8–10 weeks8–12 weeks This table clearly shows why GIFT City is quickly emerging as a top choice for fund managers seeking cost-efficient, regulation-light, and tax-optimized fund domiciles. Fund Formation in GIFT City: Key Structures Setting up a private equity or venture capital fund in GIFT City has become a streamlined, investor-friendly process. With the IFSCA (Fund Management) Regulations, 2022, the fund ecosystem in the IFSC now rivals global financial hubs in both agility and compliance transparency. Eligible Structures If you're exploring how to set up a PE/VC fund in GIFT City, here are the core options available: Authorised Fund Management Entity (FME): The FME is the central vehicle through which PE/VC fund activities are carried out. It must be registered with IFSCA and meet eligibility criteria related to experience, capital adequacy, and governance. Registered FME non-retail:Registered FME non-retail can launch various fund types under IFSCA, including: Open-ended or close-ended funds Hedge funds Venture capital (VC) funds Alternative Investment Funds (AIFs) — across Category I, II, and III This flexibility allows fund managers to structure vehicles best suited to their investment strategy. Steps to Launch a PE/VC Fund in GIFT City Here’s a simplified roadmap for launching your fund in GIFT IFSC: Incorporate a Legal Entity in the GIFT SEZ (typically as a Company or LLP) Register with IFSCA as a Fund Management Entity (FME) under the FME regulations Launch your fund scheme via a detailed Private Placement Memorandum (PPM) Comply with IFSCA norms on: KYC/AML requirements Valuation methodology Custody, administration, and risk management policies Access to Global Capital One of GIFT City’s standout features is unrestricted access to global investors: No FEMA Restrictions: Funds in GIFT IFSC are treated as non-resident entities, so non-resident investors can freely invest without additional RBI approvals. Indian AIFs Can Invest Freely: GIFT-based funds are excluded from the overseas investment limits imposed by RBI, making them a preferred destination for domestic institutional capital. This open architecture allows GIFT-based funds to pool international and Indian capital seamlessly, giving managers the flexibility to scale globally while operating from India. Opportunities for PE/VC Players in GIFT City As India cements its place as a global innovation hub, GIFT City is rapidly emerging as the go-to destination for private equity and venture capital funds seeking long-term, tax-efficient, and globally integrated platforms. From enabling reverse flipping of offshore entities to channeling ESG capital, GIFT IFSC offers a range of investment opportunities that are reshaping fund strategies in 2025 and beyond. Participation in Indian Startups: Global Access, Local Advantage GIFT City provides a robust route for global capital to participate in Indian innovation, without the constraints of FEMA or domestic AIF limits. VC and PE funds based in GIFT IFSC can: Invest in high-growth Indian startups with minimal regulatory friction Retain foreign domicile benefits while operating in the Indian market Offer global LPs easy exposure to India’s consumption-driven tech ecosystem This makes GIFT IFSC an ideal platform to onshore Indian innovation, without compromising on global scalability. ESG & Impact Investing: The New Frontier in GIFT IFSC India is becoming a leader in climate tech, sustainable mobility, and inclusive finance — and GIFT City is matching this momentum with regulatory support for ESG and impact-focused funds. Green bonds, climate funds, and ESG-aligned VC structures are being increasingly registered at IFSC Funds benefit from: Regulatory recognition Favorable taxation Access to global ESG investors and DFIs This aligns with international capital mandates and opens doors for sustainable PE/VC investment opportunities in GIFT City. Family Offices & Institutional Capital: Growing Momentum High-net-worth individuals (HNIs) and ultra-HNIs are increasingly exploring the GIFT IFSC platform as a potential base for setting up family offices, attracted by tax incentives and the flexibility for cross-border structuring. While this use case is not yet widely operational, it represents a promising option for those looking to optimize wealth management in a globally connected environment. Why it’s gaining interest: Wealth preservation and succession planning benefits Access to global financial products and strategies from within India Growing institutional interest, including pension funds, sovereign wealth funds, and university endowments tapping into Indian growth via GIFT-based platforms This shift reflects the maturing of India’s financial ecosystem, with GIFT IFSC poised to become a central hub for capital pooling and allocation. For global investors focused on cost-efficiency, tax optimization, and scalable fund structures, the opportunities emerging from GIFT City in 2025 signal a transformative phase for fund management in India. Infrastructural Limitations (Non-Core Amenities) From a lifestyle and operational standpoint, non-core infrastructure within GIFT City is still developing. Challenges include: Limited availability of housing, restaurants, entertainment options, and international schools Inadequate public transport connectivity for professionals and visiting investors These factors make it harder to attract top-tier fund managers and global talent to physically relocate or set up operations in the city. Delay in IP Rights Protection & Fintech Startup Recognition Strong intellectual property (IP) protection is critical for VCs investing in tech and innovation-driven startups. However, India still faces: Delays in patent and trademark registrations Limited recognition of software and business method patents Fintech startups seeking regulatory clarity often face inconsistent timelines for approvals and sandbox inclusion under IFSCA These gaps hinder confidence among global VCs and institutional investors. Key Legal & Regulatory Uncertainties Several legal hurdles in IFSC continue to create uncertainty around fund structuring, taxation, and exits: Stamp Duty Exemptions Stamp duty implications on security transfers and restructuring involving GIFT IFSC entities needs to be streamlined further Investors seek clear, centralized guidelines for tax-efficient transactions Exit & Dispute Resolution Mechanisms Absence of a dedicated commercial or arbitration court within GIFT IFSC delays enforcement of shareholder rights Investors demand faster, enforceable exit strategies, especially during cross-border acquisitions or IPOs Addressing these fund structuring issues in India is essential for scaling GIFT City into a global financial powerhouse. The groundwork is strong — but policy clarity, legal modernization, and perception correction will determine its long-term success. Regulatory Landscape: What Fund Managers Must Know As GIFT City cements its position as a global financial gateway, the International Financial Services Centres Authority (IFSCA) plays a pivotal role in defining a clear, agile, and globally competitive regulatory framework. For private equity and venture capital funds, understanding the evolving regulatory landscape in GIFT IFSC is essential to ensure compliance, secure licensing, and unlock the full spectrum of benefits available. Overview of IFSCA (Fund Management) Regulations, 2022 The IFSCA (Fund Management) Regulations, 2022 are a game-changer for fund managers in India. These regulations consolidate and streamline fund formation and operations in the IFSC, creating a single, unified framework for: Fund Management Entities (FMEs) Schemes launched under PE, VC, hedge, or AIF formats Key highlights include: Categorization of FMEs based on risk profile and investment strategy Modular licensing based on fund type and investor class (retail, accredited, or institutional) Explicit recognition for ESG funds and family offices structures Reporting Norms, Audit Standards & AML/KYC Compliance To maintain transparency and global credibility, GIFT City funds are expected to adhere to high compliance standards: Quarterly and annual reporting to IFSCA on fund performance, NAV, and investor activity Appointment of independent custodians, auditors, and fund administrators Robust KYC/AML policies aligned with FATF (Financial Action Task Force) norms Valuation norms for listed/unlisted securities and periodic disclosures to investors These requirements enhance investor confidence and position GIFT IFSC as a credible global fund domicile. Licensing & Fit-and-Proper Criteria To register as an FME in GIFT IFSC, fund managers must meet IFSCA’s fit-and-proper criteria, including: Minimum capital requirement (for example: USD 5,005,000 for FME non-retail) Track record in fund management or financial services No history of regulatory breach or fraud Adequate governance framework, including independent directors for institutional schemes The Common Application Form (CAF) simplifies the end-to-end licensing process, integrating entity registration, FME approval, and scheme launch into a single workflow. Proposed Reforms to Watch: Unlocking Future Potential The regulatory roadmap for GIFT City continues to evolve. Fund managers should track these upcoming reforms aimed at further liberalizing the ecosystem: Listing of Indian companies on IFSC stock exchanges, enabling access to global investors and deeper capital markets Establishment of special courts/arbitration centers... --- - Published: 2025-04-07 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-city-tax-exemptions-for-foreign-investors-nri-companies/ - Categories: Resources - Tags: GIFT City tax benefits, gift city tax benefits for foreign company, gift city tax benefits for foreign investors, gift city tax benefits for nri, GIFT City Tax Exemptions for Foreign Investors What is GIFT City? Gujarat International Finance Tec-City (GIFT City) is India’s first International Financial Services Centre (IFSC), strategically developed to position India as a global financial hub. Located in Gandhinagar, Gujarat, GIFT City operates as a foreign jurisdiction within India, offering global-standard infrastructure, tax-neutral status, and seamless regulatory support. Approved under the Special Economic Zone (SEZ) framework and governed by the International Financial Services Centres Authority (IFSCA), GIFT City is tailored for international investors, Non-Resident Indians (NRIs), and global financial institutions looking to access Indian and international markets efficiently. It hosts leading exchanges like NSE IFSC and India INX, enabling offshore investors to trade in global equities, derivatives, and debt instruments in multiple currencies. Investors benefit from a range of tax exemptions, relaxed regulations, and zero transaction levies—making it a preferred destination for cross-border financial activities. Whether you're an NRI exploring India-centric opportunities or a foreign company seeking to expand in Asia, GIFT City India delivers a compelling mix of investment access, tax incentives, and global connectivity. Why Foreign Investors Are Choosing GIFT City GIFT City (Gujarat International Finance Tec-City) is fast becoming a top destination for international investors, thanks to its liberal policies, tax-efficient environment, and world-class financial infrastructure. Positioned as India’s answer to Dubai and Singapore, GIFT City offers several advantages that attract foreign investors, multinational banks, asset managers, and NRIs. 100% Foreign Ownership Allowed Foreign investors can set up wholly-owned subsidiaries or branches in GIFT City with no requirement for local Indian ownership. This is a major draw for global businesses seeking direct access to India’s growing financial market while maintaining complete control over their operations. Regulated by IFSCA – A Single Unified Authority The International Financial Services Centres Authority (IFSCA) is the sole regulator for all financial services in GIFT City. This reduces regulatory overlap, streamlines licensing, and provides clarity across sectors such as banking, capital markets, insurance, and asset management. The ease of doing business and regulatory transparency are key attractions for foreign players. Seamless Access to Global Markets GIFT City allows investments across a wide spectrum of international financial instruments, including: Global equities (e. g. , US stocks) Debt instruments (e. g. , Masala Bonds, Green Bonds) Currency and commodity derivatives Exchange-traded funds (ETFs) Exchanges like India INX through its Global access platform and NSE IFSC offer trading in over 135 international stocks, and the ability to invest in multi-currency assets, including USD, EUR, JPY, and more. Powerful Tax Incentives & Financial Efficiency One of the biggest reasons foreign investors choose GIFT City is the comprehensive tax benefits: Capital Gains Tax: Exempt for non resident investors Interest Income: Completely tax-free if earned by non-resident from IFSC entities Dividend withholding tax: Capped at 10% for NRIs, compared to up to 20% in mainland India Corporate Tax Holiday: 100% tax exemption for 10 out of 15 years for IFSC units No Securities Transaction Tax (STT) and other charges on trades These incentives significantly reduce the cost of capital and improve post-tax returns for both individuals and corporate investors. Growing Institutional Participation According to recent data (2024), GIFT City hosts over 766 registered entities, including Deutsche Bank, Barclays, MUFG, and several leading Indian banks. The daily trading volumes on India INX and NSE IFSC have seen exponential growth, indicating increased global interest and institutional confidence. GIFT City India offers foreign investors a unique mix of liberal ownership rules, global market access, tax efficiency, and regulatory ease—making it a compelling hub for cross-border finance and offshore investments. GIFT City Tax Benefits: Overview GIFT City (Gujarat International Finance Tec-City) stands out as a tax-efficient destination for global investors, thanks to a range of strategic tax exemptions and incentives offered under Indian tax laws. These benefits make it an attractive alternative to traditional financial hubs like Singapore or Dubai, especially for NRIs and foreign entities seeking better post-tax returns and minimal compliance burden. Key Tax Incentives in GIFT City Zero Tax on Certain Interest Income: Interest earned by NRIs or foreign investors from IFSC entities is fully exempt from tax in India. This is particularly beneficial for global treasury centres / Finance companies for ECB lending to Indian entities. Reduced Dividend Tax (10%) for NRIs: Dividends received from companies or funds operating in GIFT City are taxed at a flat 10% rate for NRIs—lower than the standard 20%+ cess and surcharge applicable in mainland India. No Securities Transaction Tax (STT): Trades executed on GIFT City exchanges (India INX, NSE IFSC) are not subject to STT and other incidental charges, reducing transaction costs and improving overall returns for investors. These benefits collectively enhance investment efficiency, making GIFT City a cost-effective and globally competitive option for cross-border financial transactions. Tax Benefits for Foreign Investors, NRIs, and Companies in GIFT City GIFT City offers a highly attractive tax regime for foreign investors, Non-Resident Indians (NRIs), and international companies, making it one of the most efficient financial zones in India for cross-border investments. These tax incentives not only improve after-tax returns but also simplify compliance and lower transaction costs. Tax Benefits for Foreign Investors & NRIs in GIFT City NRIs investing through GIFT City enjoy multiple tax advantages over traditional investment routes in India: Dividend Income Tax:Dividends received from IFSC-based entities are taxed at a flat 10%, compared to up to 20% in mainland India. Capital Gains:Exempt for non-resident investors on certain specific securities subject to additional conditions Interest Income:Completely tax-free if the interest is earned by NRI from IFSC entity. Zero Stamp Duty & STT:All trades executed on IFSC exchanges are exempt from stamp duty and Securities Transaction Tax, reducing overall investment costs. Tax Benefits Snapshot for NR investors: GIFT City vs Mainland India (Investor-Focused) Income TypeTax Rate in GIFT CityTax Rate in IndiaDividends10%Up to 20%Capital Gains0% in some cases12. 5% – 30%Interest Income0%Up to 30%Stamp Duty0%0. 005% – 0. 015% These tax breaks make GIFT City a preferred investment destination for NRIs and foreign companies looking to maximize returns while maintaining regulatory clarity. Tax Benefits for Foreign Companies in GIFT City Foreign companies and financial institutions setting up operations in GIFT City IFSC enjoy a suite of powerful tax incentives that are designed to lower operating costs, boost profitability, and encourage long-term investment. These benefits position GIFT City as a leading offshore destination in Asia, competing with hubs like Singapore and Dubai. 100% Corporate Tax Holiday for 10 Years One of the most attractive incentives is the 100% tax holiday for any 10 consecutive years out of the first 15 years of operation in GIFT City. This exemption applies to IFSC-registered units, including foreign banks, insurers, fund managers, and fintech companies. No corporate income tax during the selected tax-free period. Offers significant cost savings and competitive positioning for global operations. GST Exemptions for Specified Services Services rendered to or by IFSC entities are exempt from Goods and Services Tax (GST). This further reduces the tax burden and encourages service exports from GIFT City. Capital Gains Tax Exemption Non resident investors are eligible for full exemption on capital gains arising from the transfer of specified securities, such as: IFSC-listed bonds Derivatives Foreign currency-denominated instruments This exemption helps global investors optimize their returns while staying tax-efficient. Regulatory & Operational Ease in GIFT City GIFT City offers unmatched regulatory and operational simplicity for foreign investors and companies, making it an attractive destination for global financial institutions. The unique legal and regulatory framework ensures smoother operations, minimal bureaucracy, and easier compliance for both NRIs and foreign entities. Single Regulator (IFSCA) for All Financial Products GIFT City is governed by a single regulatory body, the International Financial Services Centres Authority (IFSCA). This streamlined regulatory approach ensures clear guidelines, quicker approvals, and reduced complexities for entities operating in sectors such as banking, capital markets, insurance, and asset management. With one governing body for all financial products, investors and companies experience: Unified Compliance: Simplifies operational processes. Faster Approvals: Reduced delays in starting and running businesses. Operates as a Foreign Jurisdiction within India While located in India, GIFT City operates as a special economic zone (SEZ), treating its businesses and financial transactions similarly to those in global financial hubs like Singapore and Dubai. This means that foreign entities can benefit from tax neutrality and access to global markets without facing the usual Indian regulatory constraints. No FEMA Restrictions for Entities in GIFT City Foreign Exchange Management Act (FEMA) restrictions, which usually govern the flow of funds in and out of India, do not apply within GIFT City. This gives foreign investors greater freedom to: Move capital freely across borders Invest in foreign currency-denominated instruments without restrictions This unique feature enhances GIFT City's appeal as a cross-border investment hub. Key Investment Instruments in GIFT City GIFT City offers a wide array of investment opportunities, catering to both global investors and NRIs who are looking to diversify their portfolios. The range of financial instruments available in this International Financial Services Centre (IFSC) allows investors to access both Indian and global markets with tax-efficient benefits. Global Equities & ETFs GIFT City provides easy access to global equities and Exchange Traded Funds (ETFs) listed on international exchanges such as India INX and NSE IFSC. Investors can trade in some of the world’s leading stocks and ETFs, providing diversification across global markets without leaving India’s shores. This is an excellent opportunity for NRIs and foreign investors to take advantage of global growth trends. Debt Instruments (Masala Bonds, Green Bonds) Debt instruments, especially Masala Bonds (rupee-denominated bonds) and Green Bonds, are becoming popular among investors in GIFT City. These bonds are issued in foreign currencies, allowing for diversification in fixed-income portfolios. Masala Bonds offer foreign investors the opportunity to invest in the Indian bond market while mitigating currency risk, as the bonds are issued in Indian rupees. Green Bonds focus on financing sustainable projects, attracting eco-conscious investors looking to back environmentally friendly initiatives. These instruments provide steady income streams with relatively lower risk compared to equities, making them ideal for conservative investors. Derivatives (FX, Commodities, Equity) GIFT City also facilitates trading in derivatives such as foreign exchange (FX) contracts, commodity futures, and equity derivatives. These products provide investors with opportunities to: Hedge against currency fluctuations, commodity price volatility, or market risks. Leverage positions for greater returns, though at higher risk. By offering multi-currency derivatives and cross-border investment options, GIFT City enables both institutional and retail investors to manage risk more efficiently in a globalized financial ecosystem. Sovereign Securities For those seeking safe and low-risk investments, sovereign securities issued by the Indian government are also available in GIFT City. These government bonds are a reliable investment option for risk-averse investors, offering fixed returns and government-backed security. Alternative Investment Funds (AIFs) in IFSC GIFT City’s regulatory framework also allows the creation of Alternative Investment Funds (AIFs), which include hedge funds, private equity funds, and venture capital funds. AIFs in GIFT City are particularly attractive to foreign investors as they provide: Access to high-growth sectors like technology and infrastructure. The opportunity to invest in niche markets with potentially higher returns. AIFs offer a way for sophisticated investors to gain exposure to markets that are typically harder to access or have high barriers to entry. Final Thoughts: Is GIFT City Worth It for Foreign Investors? GIFT City offers a unique combination of tax benefits, regulatory ease, and global market access, making it an attractive destination for foreign investors and NRIs. With incentives like 100% tax holidays, zero stamp duty, low capital gains tax, and simplified compliance, GIFT City provides a cost-effective platform for international businesses and individuals seeking to invest in India. The ability to operate under a single regulator (IFSCA), combined with access to global equities, bonds, and derivatives, further enhances its appeal. For foreign investors looking for a tax-efficient, globally connected financial hub, GIFT City presents a compelling option that blends the best of Indian and international finance. --- - Published: 2025-04-02 - Modified: 2025-07-22 - URL: https://gift.treelife.in/zero-tax-benefits-in-gift-city-all-you-need-to-know/ - Categories: Resources - Tags: corporate tax in india gift city, gift city gujarat tax benefits, gift city gujarat tax benefits aif, gift city india tax benefits, gift city tax, GIFT City tax benefits, tax benefits in gift city Overview of GIFT City What is GIFT City? Gujarat International Finance Tec-City, commonly known as GIFT City, stands as a premier business district in Gandhinagar, Gujarat, uniquely designed to meet global standards in business and technology. This integrated development aims to position India as a global financial hub by attracting financial and IT services companies from around the world. The infrastructure of GIFT City is tailored for high-end corporate activities, featuring world-class facilities including an advanced telecommunications network, power plants, and water management systems, all designed to provide a seamless business environment. The city's strategic importance is enhanced by its status as an International Financial Services Centre (IFSC), which allows it to operate under special economic and regulatory conditions, offering substantial tax benefits and simplified procedures. Comprehensive Tax Benefits in GIFT City Income Tax Exemptions GIFT City offers an array of enticing income tax exemptions that significantly reduce the fiscal burden on businesses operating within its precincts. Key among these is the 100% income tax exemption for eligible businesses for a period of 10 consecutive years within the first 15 years of operation. This incentive is designed to foster rapid growth and ease the initial financial challenges faced by new entrants into the market. The flexibility to select the exemption years provides businesses with the ability to strategize their financial planning to maximize tax benefits based on their revenue cycles. Reduced Minimum Alternate Tax / Alternate Minimum Tax For companies considering a base in GIFT City, the reduced rate of 9% MAT / AMT are particularly compelling. While companies who have opted for beneficial taxation regime as per section 115BAA of the Income-tax Act, 1961 there is no applicability of MAT as well. However, for LLPs the 9% AMT continues to applyThis reduced MAT/ AMT rate bolsters profitability and enhances the competitive edge for businesses operating in international financial services.   GST and Customs Exemptions GIFT City's status as an IFSC also brings GST and customs duty exemptions, positioning it as a highly favorable destination for international trade and services. Services exchanged between units in GIFT City and their international counterparts are exempt from GST, which reduces operational costs significantly. Additionally, the import of goods and services into GIFT City for use in the operations of businesses is free from customs duties subject to certain conditions, making it an optimal site for companies that rely on international supply chains. These exemptions streamline the logistical and financial aspects of running a global business, allowing companies to operate with greater efficiency and reduced overhead costs. The comprehensive tax benefits designed for businesses in GIFT City not only alleviate tax burdens but also strategically position the area as a dynamic hub for global financial services. By capitalizing on these benefits, companies can accelerate growth, maximize profitability, and enhance their competitive advantage in the global marketplace. Income Tax Exemptions: Businesses enjoy a Zero-Tax i. e. 100% income tax exemption for 10 consecutive years out of the first 15 years of operation. Reduced MAT / AMT rate: Entities benefit from a reduced MAT/AMT rate of 9% thereby allowing entities set up as LLP to upstream the profits further without any additional tax outflow. GST and Customs Exemptions: Services between units in GIFT City and international clients are exempt from GST, and imports for business use are free from customs duties subject to certain conditions. Other incentives Moreover, entities engaged in the trading of specified securities on recognized stock exchanges within IFSC are exempt from Dividend Distribution Tax (DDT), further enhancing the post-tax earnings available for reinvestment or distribution to shareholders. Sector-Specific Tax Incentives in GIFT City Banking and Financial Services GIFT City is strategically positioned to bolster the growth of banking and financial services with robust tax incentives. Banks and financial institutions operating within this zone benefit from income tax exemptions for 10 consecutive years, which can be claimed over any 15-year period from the date of commencement. This significant tax relief is designed to attract major global financial entities, fostering a vibrant financial services ecosystem within GIFT City. Insurance and Reinsurance For insurance and reinsurance companies, GIFT City offers a conducive regulatory and tax environment tailored to encourage sectoral growth. These companies benefit from a reduced effective tax rate and GST exemption on operations within GIFT City—including transactions involving reinsurance risk transfer and premium collection—making it a compelling destination for global insurers and reinsurers seeking to expand in the Asia-Pacific region. The simplified regulatory framework further enables greater operational flexibility. Additionally, Budget 2025 has proposed exemption for proceeds from policies issued by IFSC Insurance companies subject to certain conditions. Fund Management Fund Management Entities (FMEs) in GIFT City also enjoy substantial tax benefits. Management fees earned by FMEs from funds are eligible for a 10-year tax holiday (within a 15-year window), and such income is not subject to GST, making it highly efficient for asset managers. Moreover, non-resident investors in a Category III AIF or retail scheme based in GIFT IFSC are exempt from tax on income earned from specific securities, subject to conditions. These include income from: Transfer of Indian securities (excluding shares of Indian companies) Securities issued by non-residents without a Permanent Establishment in India Offshore securities or specified securities traded on IFSC exchanges Income from securitisation trusts taxable under “profits and gains from business” IT and Tech Companies GIFT City has become a hub for IT and tech firms, including startups, thanks to forward-looking tax regimes. These entities enjoy a 100% income tax exemption for up to 10 consecutive years within their first 15 years of incorporation. Additional benefits include capital subsidies and discounts on land and infrastructure as per the Gujarat IT/ITeS Policy (2022–27), fostering an ecosystem conducive to innovation and growth. By offering these sector-specific tax incentives, GIFT City enhances India's global competitiveness and reduces the cost of doing business, making it an attractive destination for diverse industries seeking long-term growth. Banking and Financial Services: Banks and financial institutions enjoy income tax exemptions Insurance and Reinsurance: Insurance entities benefit from reduced effective tax rates and GST exemptions on operations within GIFT City, enhancing the appeal for global insurance and reinsurance businesses. IT and Tech Companies: Tech firms and startups are offered income tax exemption (100% for up to 10 consecutive years out of first 15 years of incorporation), along with subsidies as per Gujarat state government’s IT/ITeS Policy (2022-27). Long-Term Financial Impact of GIFT City's Tax Benefits GIFT City in India has emerged as a formidable competitor to established global financial hubs such as Singapore and Dubai, primarily due to its extensive tax benefits and strategic geographic positioning. Unlike Singapore, where corporate tax rates hover around 17%, and Dubai, known for its tax-free environment but higher operational costs, GIFT City offers a balanced proposition with zero income tax for the first 10 years and significant reductions thereafter. This makes GIFT City an attractive destination for businesses looking to maximize profitability while benefiting from a rapidly growing financial services ecosystem. Furthermore, while Singapore and Dubai both offer robust infrastructures, GIFT City's state-of-the-art facilities are tailored specifically for financial and tech companies, providing a cost-effective base with access to the vast Indian and Asian markets. GIFT City’s comprehensive regulatory framework is designed to facilitate ease of doing business, mirroring the regulatory benefits seen in these other financial centers but with added fiscal incentives. How to Leverage GIFT City’s Tax Benefits Setting Up Business in GIFT City Establishing a business in GIFT City offers substantial financial incentives, streamlined due to a well-structured process. Here’s a step-by-step guide to setting up your company in one of India's foremost economic zones: Determine Eligibility: Verify that your business model aligns with the sectors supported in GIFT City, such as finance, tech, or international trade. Business Registration: Initiate the process by registering your business with the GIFT City Authority. This involves submitting a detailed business plan and undergoing a due diligence process. Obtain Necessary Approvals: Depending on your business type, secure specific approvals from relevant regulatory bodies. Infrastructure Setup: Choose from ready-to-use office spaces or custom-built facilities within GIFT City, which offers world-class infrastructure tailored to the needs of high-tech companies and financial institutions. Tax Registration and Benefits Activation: Register for GST and other tax-related formalities to avail various tax exemptions and benefits. Operational Setup: With infrastructure and approvals in place, you can move towards operationalizing your business, from hiring staff to integrating IT systems. Continuous Compliance: Ensure ongoing compliance with GIFT City’s regulatory standards and guidelines, benefiting from continuous support from the GIFT City Service Bureau. Following these steps will enable your business to leverage GIFT City’s strategic location and tax benefits, setting a strong foundation for growth and profitability. Compliance and Legal Considerations Setting up in GIFT City not only offers tax benefits but also requires adherence to specific legal and compliance standards: Regulatory Compliance: Familiarize yourself with the IFSC Authority regulations, which are designed to be business-friendly yet ensure strict adherence to international financial standards. Financial Reporting: Companies in GIFT City must adhere to international financial reporting standards, ensuring transparency and regular audits are conducted to maintain compliance. Data Protection: Compliance with data protection laws is critical, especially for companies handling sensitive financial data, aligning with global standards like GDPR for European clients. Anti-Money Laundering (AML) Policies: Implement robust AML procedures to prevent, detect, and report potentially suspicious transactions, which is crucial for maintaining financial integrity within GIFT City. Employment Laws: While GIFT City offers flexibility in labor laws to attract international talent, companies must still comply with essential Indian employment regulations regarding wages, hours, and benefits. Understanding and integrating these compliance and legal considerations into your business operations is vital for successful and lawful functioning within GIFT City. This strategic approach not only ensures regulatory compliance but also enhances business efficacy, contributing to a sustainable business model in one of India’s prime economic zones. GIFT City, or Gujarat International Finance Tec-City, offers a compelling array of financial incentives designed to attract businesses and foster economic growth within its state-of-the-art infrastructure. As an International Financial Services Centre (IFSC), it provides significant tax benefits, including income tax exemptions, reduced MAT / AMT rates, and GST and customs duty reliefs. Businesses looking to establish operations in GIFT City can follow a streamlined setup process, from determining eligibility to obtaining necessary regulatory approvals and operationalizing their premises. Additionally, companies must adhere to strict compliance and legal standards, including financial reporting norms, data protection laws, and anti-money laundering policies, to ensure successful integration into this dynamic financial hub. These strategic advantages make GIFT City an attractive destination for companies aiming to expand their footprint in the Asian markets while benefiting from a competitive regulatory and tax framework. --- - Published: 2025-03-31 - Modified: 2025-07-22 - URL: https://gift.treelife.in/legal-compliance-requirements-for-business-registration-in-gift-city/ - Categories: Resources - Tags: gift city compliance requirements, gift city legal requirements Why GIFT City is Ideal for Your Business Setup GIFT City (Gujarat International Finance Tec-City) is India’s premier international financial services hub, offering businesses access to global markets and a robust financial ecosystem. As an International Financial Services Centre (IFSC), it is designed to cater to financial institutions, fintech companies, and multinational corporations seeking to expand their reach. Key Benefits for Businesses Setting Up in GIFT City IFSC Global Market Access: GIFT City connects businesses to international financial hubs, providing seamless access to global markets for cross-border transactions. Tax Incentives and Exemptions: The IFSC offers significant tax benefits, including income tax exemptions for ten years and exemptions from STT, other transaction charges, etc. Financial Infrastructure: With world-class office spaces, data centers, and a well-established financial ecosystem, GIFT City offers an ideal infrastructure for businesses to thrive. However, to fully leverage these benefits, understanding the legal requirements for setting up a business in GIFT City is crucial. Compliance with the International Financial Services Centres Authority (IFSCA) regulations is a fundamental step in the process. The IFSCA ensures that businesses adhere to the highest standards of governance, transparency, and financial integrity, which is essential for maintaining GIFT City’s global reputation. Moreover, navigating the documentation process is just as important. From submitting corporate documents like your Memorandum of Association to ensuring that your business plan aligns with IFSCA’s requirements, understanding each step will help streamline your registration process. Ensuring legal compliance right from the start can prevent delays, reduce the risk of penalties, and ultimately ensure a smooth and successful business setup in GIFT City. Legal Requirements for Setting Up a Business in GIFT City Setting up a business in GIFT City requires adherence to specific legal and compliance requirements to ensure seamless operation within the International Financial Services Centre (IFSC). The International Financial Services Centres Authority (IFSCA) regulates all businesses operating in this zone, ensuring they meet international standards for governance, transparency, and financial integrity. Overview of Regulations The IFSCA regulations govern the entire business landscape in GIFT City, providing a structured framework for establishing businesses. These regulations ensure that businesses comply with global standards for financial services and help maintain the integrity and trustworthiness of the IFSC as a financial hub. Adhering to compliance requirements for setting up in GIFT City is crucial for businesses looking to operate legally and avoid potential penalties. The IFSCA’s guidelines and regulations must be followed during the application, registration, and operational phases of the business. Licensing and Regulatory Framework To operate within GIFT City IFSC, businesses must secure the necessary licenses from IFSCA. This process involves submitting an application detailing the business plan, financial standing, and operational scope. The application is then reviewed by IFSCA to ensure compliance with its regulations. Additionally, businesses must undergo a registration process with IFSCA and other relevant authorities to officially start operations in GIFT City. This includes providing proof of capitalization, ownership structure, and compliance with international financial standards. Documents Required for Setting Up a Business in GIFT City IFSC When planning to establish a business in GIFT City IFSC, it is crucial to have all the necessary documents in place to comply with regulatory requirements set by the International Financial Services Centres Authority (IFSCA). Proper documentation ensures a smooth registration process and helps businesses meet legal compliance standards for operations within this premier financial hub. Document Checklist for Application Corporate Information: Certificate of Incorporation: A document proving that your company is legally registered. Memorandum and Articles of Association: These documents outline the company’s structure, objectives, and operational guidelines. Board Resolution: A formal decision made by the company's board of directors to set up the business in GIFT City, demonstrating the company’s commitment. Financial Documents: Last 3 Years Audited Financial Statements: These statements provide a clear picture of the company’s financial health and track record. Capitalization and Ownership Details: Information on the company’s ownership structure and capital investment to ensure compliance with financial regulations. Compliance & Regulatory Approvals: No Objection Certificate (NOC): If required, an NOC from the home country regulator certifying approval for setting up the business in GIFT City. SEZ Approval and Office Space Allotment: You must provide approval for operating within the Special Economic Zone (SEZ) in GIFT City, along with proof of office space allocation. Promoter & Director Information: PAN and KYC Documents: The Permanent Account Number (PAN) and Know Your Customer (KYC) documents for promoters and directors to verify their identity and financial standing. Information on Management (IOM): The IOM form for promoters and directors is crucial to ensure they meet the “fit and proper” criteria for business operations in GIFT City. Net Worth Certificates: For promoters (if applicable), a certificate proving their financial stability and ability to support the business financially. Business Plan: Business Projections for 5 Years: A comprehensive business plan detailing the company’s projections, including the projected balance sheet, profit, and loss statements for the next 5 years. Balance Sheet and Profit & Loss Statements: These financial documents help demonstrate the business’s projected financial health and growth trajectory. Having these documents required for setting up business in GIFT City IFSC ready is essential for ensuring a quick and successful registration process. Step-by-Step Guide to Registering a Business in GIFT City Setting up a business in GIFT City IFSC offers numerous advantages, including access to global financial markets, tax incentives, and a business-friendly regulatory environment. Below is a step-by-step guide to help you understand the process for setting up your unit in GIFT City IFSC. Step 1: In-Person/Virtual Meeting with IFSCA & GIFT Officials The first step involves an in-person or virtual meeting with the IFSCA (International Financial Services Centres Authority) and GIFT City officials. This meeting serves as an introduction to the setup process and helps demonstrate your business use case for establishing operations within GIFT City IFSC. During this meeting, you will be able to discuss your business objectives and align them with the regulatory framework of GIFT City IFSC. Step 2: Identify Office Space and Obtain Provisional Letter of Allotment (PLOA) Next, you need to identify suitable office space within the GIFT SEZ (Special Economic Zone). Once you have identified and finalized an agreement with the developer, you will receive the Provisional Letter of Allotment (PLOA). The PLOA is a key document authorizing the allocation of office space for your business operations. This is a necessary step before moving forward with the application process. Step 3: Submit SEZ Application and IFSC Registration Application via IFSCA's SWIT Portal After securing your office space, the next step is to submit both the SEZ application to the Administrator (IFSCA) for setting up a unit in GIFT IFSC, as well as the IFSC registration or license application. The submission of these applications can be done through IFSCA's Single Window IT System (SWIT), a unified digital platform designed to streamline and simplify the application process. SWIT integrates various regulatory bodies and facilitates the submission and tracking of applications, ensuring a smooth and efficient process for obtaining necessary approvals. Key Features of SWIT: Unified Application Form: Combines multiple forms into a single application, reducing redundancy. Integrated Approvals: Interfaces with regulatory bodies like SEBI, RBI, and IRDAI for seamless processing. Real-Time Data Validation: Ensures accuracy through real-time validation of PAN, DIN, and CIN. Integrated Payment Gateway: Allows for payment of application fees in INR and USD. DSC Module: Supports Digital Signature Certificate (DSC) functionality for secure submissions. By using SWIT, businesses can significantly reduce the time and complexity traditionally associated with obtaining the necessary approvals and registrations. Step 4: Unit Approval Committee (UAC) Hearing Once the applications are submitted, the IFSCA will invite you to a hearing with the Unit Approval Committee (UAC). This hearing is essential for evaluating your business proposal and determining whether it meets the necessary regulatory criteria to operate within GIFT City IFSC. This step allows you to present your business plan, address any questions or concerns, and gain approval for your business setup. Step 5: Obtain 'Letter of Approval' and In-Principle Approval If the UAC approves your application, the Administrator (IFSCA) will issue a 'Letter of Approval. ' This document officially grants you the permission to proceed with the setup of your unit in GIFT City IFSC. Additionally, the IFSCA will provide you with an in-principle approval, signifying that your business meets all regulatory requirements and is eligible to enjoy the various benefits offered within the IFSC. Step 6: Submit Bond Cum LUT and Obtain Eligibility Certificate After receiving approval, you will need to submit a Bond Cum Letter of Undertaking (LUT) to the IFSCA, affirming your commitment to comply with the regulatory framework of GIFT City IFSC. Along with this submission, you will also need to obtain an Eligibility Certificate from the Administrator. This certificate, along with other necessary registrations such as RCMC (Registration-cum-Membership Certificate), IEC (Import Export Code), and GST registration, will authorize you to legally operate your business in the IFSC. Step 7: Open Foreign Currency and SNRR Bank Accounts Once all the approvals and registrations are complete, the next step is to open the required bank accounts. These include Foreign Currency and Special Non-Resident Rupee (SNRR) bank accounts, which are essential for facilitating smooth international transactions and financial operations. Opening these accounts is critical to ensure seamless cross-border transactions and the efficient flow of funds in and out of the IFSC. Step 8: Kickstart Your Business Operations After completing all the necessary approvals, registrations, and banking arrangements, you are now ready to commence your business operations in GIFT City IFSC. With the necessary infrastructure, regulatory clearances, and financial systems in place, you can begin taking full advantage of the favorable business environment, including access to global financial markets, tax incentives, and a simplified regulatory regime. This marks the official start of your operations, enabling you to grow your business within India's premier financial services hub. Step 9: Issuance of Certificate of Registration (CoR) The final step in the process is obtaining the Certificate of Registration (CoR): Importance of CoR for Legal Operations: The CoR is essential for legally commencing business operations within GIFT City IFSC. It serves as official proof that your business has met all regulatory requirements and is authorized to operate within the IFSC. Compliance Requirements for Setting Up in GIFT City Setting up a business in GIFT City comes with certain compliance requirements that must be maintained throughout the lifecycle of the business. Adhering to these regulations ensures your business operates smoothly and stays in good standing with the International Financial Services Centres Authority (IFSCA). Below are the key compliance obligations that businesses must fulfill in GIFT City. Ongoing Compliance Obligations Regular Filings with IFSCA: Businesses operating within GIFT City IFSC are required to submit regular filings with IFSCA. This includes financial reports such as annual financial statements, balance sheets, and profit and loss accounts. These filings help IFSCA monitor the financial health and transparency of businesses in the zone. Corporate Governance and Transparency Obligations: Businesses must comply with corporate governance standards, which ensure that companies are managed responsibly and transparently. This includes adhering to board meeting requirements, disclosing financial activities, and maintaining proper accounting practices. Transparency is key to maintaining trust and credibility within the financial ecosystem of GIFT City. Adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) Guidelines: As part of global financial standards, businesses in GIFT City must strictly follow AML and KYC regulations. These guidelines are designed to prevent money laundering, terrorist financing, and other illegal activities. This requires businesses to perform due diligence on clients, report suspicious activities, and ensure that their operations do not facilitate financial crimes. Tax Compliance and Reporting: Entities in the IFSC must adhere to tax compliance requirements. GIFT City offers significant tax exemptions, but businesses must still fulfill certain reporting obligations, such as filing tax returns and ensuring compliance with India’s Goods and Services Tax (GST) regulations. Keeping track of tax filings is essential to maintain the financial integrity of your business. Key Periodic SEZ Compliance Obligations for Units in GIFT IFSC... --- - Published: 2025-03-31 - Modified: 2025-07-22 - URL: https://gift.treelife.in/benefits-of-setting-up-a-business-in-gift-city-ifsc/ - Categories: Resources - Tags: benefits of setting up business in gift city, difference between ifsc and gift city, gift city ifsc full form, gujarat international finance tec city gift ifsc, ifsc at gift city, ifsc gandhinagar gift city, ifsc gift city, setting up a business in gift city ifsc, setting up in gift city, setting up in GIFT City IFSC GIFT City (Gujarat International Finance Tec-City) IFSC (International Financial Services Centre) is quickly emerging as one of India’s most promising business destinations. Located in Gandhinagar, Gujarat, GIFT City is designed to be a world-class financial hub offering a wide range of services such as banking, insurance, and capital markets. It provides businesses with access to global markets, enhanced regulatory frameworks, and significant tax incentives, making it an attractive option for entrepreneurs and startups. As India continues to embrace globalization, GIFT City is becoming increasingly important in attracting international investments and fostering business growth. Its modern infrastructure, business-friendly policies, and access to global financial markets position GIFT City IFSC as a key player in India’s economic future. With its focus on tech, finance, and innovation, it is steadily evolving into a go-to location for setting up businesses that aim for both domestic and international expansion. What is GIFT City IFSC? GIFT City (Gujarat International Finance Tec-City) is a modern financial hub located in Gandhinagar, Gujarat. It is designed to cater to the needs of global financial services by offering state-of-the-art infrastructure and business-friendly regulations. One of its key features is the IFSC (International Financial Services Centre), which is a dedicated zone that allows businesses to operate under an international regulatory framework, providing access to global financial markets. The concept of IFSC was introduced to bring India on par with global financial centers like Dubai, Singapore, and London. By offering tax incentives, simplified regulations, and access to international funding, GIFT City IFSC is poised to become a leading financial hub in Asia. Location: Situated in Gandhinagar, Gujarat, GIFT City is strategically positioned to offer easy access to major global markets, making it an attractive destination for businesses seeking international expansion. Establishment and Growth: GIFT City was launched in 2007 with the vision to develop India’s first smart city dedicated to financial services. Since then, it has grown exponentially, with major financial institutions, tech companies, and startups establishing their presence. The development of GIFT City is closely aligned with India’s goal of becoming a global financial powerhouse, enhancing its competitiveness in the international business landscape. Recently, GIFT City made a significant leap in global recognition, ranking 46th in the Global Financial Centres Index (GFCI), a substantial improvement from its previous position of 52nd. This ranking highlights GIFT City’s growing influence in the global financial ecosystem. Furthermore, GIFT IFSC has been recognized as the top center on the Reputation Index among the emerging financial hubs worldwide. With such rapid progress, GIFT City is well on its way to becoming a leading financial hub in Asia, offering a robust infrastructure and business-friendly regulatory environment for both global and domestic players. Key Benefits of Setting Up a Business in GIFT City IFSC Setting up a business in GIFT City IFSC offers a range of compelling benefits, making it an attractive choice for entrepreneurs, investors, and multinational corporations. Here are the key advantages that make GIFT City an ideal destination for business establishment: 1. Access to Global Financial Markets GIFT City IFSC is designed to facilitate global business operations. It allows businesses to tap into international financial markets and offers access to global investors, enabling smoother cross-border trade and investments. Companies based in GIFT City can easily access offshore funds, which is a significant advantage for businesses looking to scale globally. 2. Tax Benefits and Incentives One of the standout benefits of setting up a business in GIFT City IFSC is the tax incentives. Companies operating in IFSC are eligible for substantial tax exemptions which includes tax holiday for up to 10 years on income earned by IFSC entities These make it an incredibly cost-effective location for financial services, startups, and technology firms looking to minimize their tax liabilities. 3. Regulatory Ease and Simplified Compliance The regulatory framework in GIFT City is business-friendly and designed to foster entrepreneurship. The financial services regulations are in line with global standards, providing businesses with a transparent and predictable environment to operate. Compared to traditional business hubs, GIFT City simplifies processes like company registration, compliance, and reporting, saving businesses time and resources. 4. World-Class Infrastructure GIFT City boasts state-of-the-art infrastructure, including smart city technologies, advanced communication networks, and green buildings, all of which help businesses optimize their operations. Additionally, the city is equipped with modern office spaces, IT facilities, and top-tier amenities that cater to the needs of global businesses, ensuring that companies have everything they need to succeed. 5. Cost-Effective Operations Setting up and running a business in GIFT City IFSC is cost-effective due to the city’s focus on minimizing operational expenses. Compared to other Indian cities, GIFT City offers lower operational costs, including lower office rental rates, reduced utility costs, and affordable labor. This makes it an attractive location for businesses looking to optimize their bottom line. 6. Boost to Startups and Innovation GIFT City is also emerging as a hub for startups, especially in sectors like fintech, blockchain, and technology. With its business-friendly policies, global market access, and abundant networking opportunities, it provides a conducive environment for startups to innovate and grow. Moreover, GIFT City offers accelerator programs and venture funding initiatives to help entrepreneurs scale their ventures. Financial and Tax Advantages of GIFT City IFSC One of the most significant attractions of setting up a business in GIFT City IFSC is the financial and tax advantages that it offers. With a range of tax incentives, businesses operating in GIFT City can save significantly, making it an ideal location for entrepreneurs, startups, and financial institutions looking to optimize their tax liabilities. Here's a breakdown of the key financial and tax benefits: 1. Corporate Tax Rates Businesses setting up in GIFT City IFSC can benefit from reduced corporate tax rates, offering a significant advantage over standard tax rates in India. Companies operating within the IFSC may qualify for a tax rate as low as 9% for certain activities, especially those in financial services and technology sectors. However, this reduced rate applies in specific cases and is subject to the provisions of the Alternative Minimum Tax (AMT) or Minimum Alternate Tax (MAT), which ensures that businesses pay a minimum level of tax even if they qualify for the tax incentives. This setup is designed to attract global players while maintaining a balanced tax system. 2. Capital Gains Tax Exemptions One of the standout features of GIFT City is the capital gains tax exemption available to businesses and investors. However, it's important to note that this exemption primarily applies to non-resident investors and is subject to specific conditions. Companies and investors operating in the IFSC can enjoy exemptions from capital gains tax on certain investments, which makes GIFT City an attractive destination for global investors. This is especially beneficial for venture capital firms and private equity investors, as they can reinvest their gains without the usual tax implications, provided they meet the required criteria. 3. GST Exemptions GIFT City also offers significant GST exemptions for businesses. Since every IFSC unit is considered a unit in a Special Economic Zone (SEZ), it is eligible for the same GST benefits as any SEZ unit under Indian GST laws. These exemptions include the reduction or elimination of GST on transactions such as the export of services, financial services, and other activities conducted within the IFSC. This makes GIFT City particularly advantageous for businesses in sectors like banking, insurance, and capital markets, as they can benefit from a simplified GST regime that promotes cross-border transactions and enhances the ease of doing business. 4. No Capital Gains Tax on Offshore Investments For businesses looking to attract offshore funds, GIFT City IFSC offers a significant advantage. Offshore investors enjoy the benefit of no capital gains tax on their returns from investments in businesses operating in the IFSC. This exemption makes GIFT City an attractive option for foreign investors seeking to capitalize on India's growing financial sector while minimizing their tax exposure. 5. Exemptions for Offshore Funds Another key benefit for international businesses and funds is that GIFT City provides specific exemptions for offshore funds, along with a tax-neutral relocation framework. This allows offshore funds to relocate to the IFSC without facing adverse tax consequences, ensuring that they can continue to operate with favorable tax treatment. These funds benefit from exemptions from income tax on certain earnings, enabling offshore investors to structure their investments in a tax-efficient manner while gaining access to India's lucrative financial market. Ease of Doing Business at GIFT City IFSC Setting up a business in GIFT City IFSC is designed to be a seamless process, thanks to its business-friendly policies, simplified regulations, and dedicated support for entrepreneurs. Here's how GIFT City makes it easy to start and grow a business. 1. Business Setup Process: A Step-by-Step Guide Setting up a business in GIFT City IFSC is a streamlined process that offers several advantages, including simplified regulations and financial incentives. Below is a detailed, step-by-step guide on how to establish your unit within the GIFT City IFSC framework: Step 1: In-Person/Virtual Meeting with IFSCA & GIFT Officials The first step involves a meeting with IFSCA (International Financial Services Centres Authority) and GIFT City officials. This meeting can be conducted either in person or virtually to demonstrate your business use case for GIFT IFSC. Step 2: Identify Office Space and Obtain Provisional Letter of Allotment (PLOA) Next, identify office space within the GIFT SEZ (Special Economic Zone), finalize the agreement with the developer, and obtain a Provisional Letter of Allotment (PLOA). This document is crucial for the official approval process. Step 3: Submit SEZ Application and IFSC Registration Application You will need to submit both the SEZ application to the Administrator (IFSCA) for setting up a unit in GIFT IFSC, as well as a separate application for obtaining the necessary IFSC registration or license. Step 4: Unit Approval Committee (UAC) Hearing Once your applications are in place, the IFSCA will invite you to a hearing with the Unit Approval Committee (UAC) to discuss and evaluate your business proposition. This step is essential for securing approval to operate. Step 5: Obtain 'Letter of Approval' and In-Principle Approval If the UAC approves your application, the Administrator (IFSCA) will issue a 'Letter of Approval. ' Additionally, IFSCA will provide in-principle approval, enabling you to proceed with the next steps. Step 6: Submit Bond Cum LUT and Obtain Eligibility Certificate To proceed with business operations, submit the Bond Cum LUT (Letter of Undertaking) to the Administrator (IFSCA) and obtain an Eligibility Certificate. You will also need to complete necessary registrations, such as RCMC (Registration-cum-Membership Certificate), IEC (Import Export Code), and GST registration. Step 7: Open Foreign Currency and SNRR Bank Accounts Once the approvals are in place, open the necessary Foreign Currency and SNRR (Special Non-Resident Rupee) bank accounts to ensure smooth cross-border transactions and financial operations. Step 8: Kickstart Your Business Operations With all approvals and documentation completed, you are ready to start your business operations in GIFT City IFSC. You can now take full advantage of the regulatory and financial benefits GIFT City offers. This simplified setup process makes it faster for businesses to get up and running in GIFT City IFSC. 2. Dedicated Support for Entrepreneurs GIFT City IFSC goes beyond just providing infrastructure – it also offers dedicated support for entrepreneurs. The Indian government, along with various financial institutions, backs several programs designed to assist businesses at every stage of their journey. These include: Networking Events: GIFT City hosts regular events, conferences, and forums where entrepreneurs can network with investors, industry leaders, and other business owners. These events provide valuable opportunities for collaboration and growth. Funding Schemes: The government offers multiple funding options, including venture capital and seed funding schemes, to help startups and small businesses secure the capital they need to grow. Legal Assistance: Entrepreneurs can access legal support through IFSC’s regulatory bodies, which help ensure that businesses comply with all legal requirements. Additionally, GIFT City offers services to help businesses navigate international laws and regulations, which can be particularly beneficial for those dealing with... --- - Published: 2025-03-20 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-city-liquor-permit/ - Categories: Resources - Tags: alcohol gift city, Bar in Gift City, GIFT City alcohol permit, GIFT City alcohol price, gift city Gujarat liquor permit, gift city liquor news, gift city liquor permission, gift city liquor permit, is alcohol allowed in gift city, Is alcohol allowed in Gujarat for tourist, liquor permit Gujarat gift city, Punishment for drinking alcohol in Gujarat, Wine shop in GIFT City Gandhinagar Introduction to Liquor Laws in Gujarat Gujarat has been a dry state since 1960, enforcing strict prohibition under the Gujarat Prohibition Act, 1949—a law deeply rooted in Mahatma Gandhi’s ideology. As one of the only states in India to maintain a complete ban on alcohol, alcohol consumption, sale, and possession in Gujarat has long been illegal without a special permit. Traditionally, liquor permits in Gujarat were granted only to foreign tourists, NRIs, and individuals with medical needs, making alcohol access heavily restricted for the general public. Despite changing social and economic dynamics, Gujarat’s stance on alcohol remained firm for decades—until the recent policy shift in GIFT City, Gandhinagar. This landmark development now offers a controlled and regulated liquor permit system, marking a significant departure from the state’s prohibition legacy. What Changed in GIFT City? For the first time in Gujarat’s history, alcohol is legally allowed within GIFT City, thanks to a zone-specific relaxation of the state’s prohibition laws. On 30th December 2023, the Gujarat government passed the Gujarat Prohibition (Amendment) Bill, 2023, bringing a controlled liquor policy to Gujarat International Finance Tec-City (GIFT City), Gandhinagar.   This news about liquor in GIFT City introduces a Liquor Access Permit (LAP) system for employees and a Temporary Permit system for official visitors. Alongside, restaurants in GIFT City can now serve alcohol legally by obtaining an F. L. III license. This step aligns GIFT City with global financial hubs and aims to enhance corporate hospitality, tourism, and ease of doing business. If you're wondering, “Is alcohol allowed in GIFT City? ” — Yes, but only within regulated, licensed premises and through a formal permit system. Key Highlights of GIFT City Liquor Permission Reform Change ImplementedDetailsNotification Date30th December 2023Law AmendmentGujarat Prohibition (Amendment) Bill, 2023Relaxation AreaGIFT City, GandhinagarPermit System IntroducedLiquor Access Permit (LAP) for employees and visitorsPermit for VisitorsTemporary Permit (1-day), only with an LAP holderLicensed Serving VenuesWine and Dine establishments with F. L. III licensePurpose of the PolicyAlign with global financial hubs, support corporate growth This controlled liberalization ensures that alcohol permits in GIFT City remain regulated, traceable, and compliant, while improving the city's competitiveness on a global scale. GIFT City, Gujarat Liquor Permit Types & Eligibility To consume alcohol legally in GIFT City, Gandhinagar, individuals must obtain a valid liquor permit under the new controlled policy. The GIFT City liquor permit system includes two types of permits designed to regulate alcohol access for both employees and visitors. These permits ensure that alcohol consumption in GIFT City is restricted to designated wine and dine venues, while complying with Gujarat’s broader prohibition laws. Types of Liquor Permits in GIFT City Permit TypeValidityEligible IndividualsFeeLiquor Access Permit (LAP)2 yearsEmployees working in GIFT City units₹1,000 per yearTemporary Permit1 dayVisitors (must be with a LAP holder)No fixed fee Key Conditions & Eligibility Guidelines Minimum Age Requirement: 21 years Employer Recommendation: Required from the employee’s HR or PRO Visitor Permit: Must be endorsed by the host organization and accompanied by a permit-holding employee Application Process: All applications are reviewed and approved by the GIFT Facilitation Committee This permit-based alcohol access in GIFT City ensures responsible consumption, while offering flexibility for corporate guests and employees.   How to Apply for a Liquor Permit in GIFT City Wondering how to get a liquor permit in GIFT City? The application process is simple and well-structured for both employees working in GIFT City and official visitors. The Liquor Access Permit (LAP) is mandatory for consuming alcohol legally within the licensed bars and restaurants in GIFT City. Here's a step-by-step guide to help you through the process. For Employees (Liquor Access Permit – LAP) Get HR or PRO recommendation from your organization/unit in GIFT City Fill out the application form and submit it to the GIFT Facilitation Committee Pay the permit fee of ₹1,000 per year Once approved, receive a Liquor Access Permit valid for 2 years For Visitors (Temporary Permit) Must be accompanied by an employee who holds a valid LAP A Temporary Permit can be issued on arrival, allowing one-day alcohol access within designated venues in GIFT City Individuals can refer to the Gujarat State Prohibition Department’s official e-permit portal for up-to-date information on application procedures.   Link - : eps. gujarat. gov. in  Licensing Process for Wine and Dine Venues in GIFT City With the introduction of the GIFT City alcohol policy, only authorized hospitality establishments can legally serve alcohol within this financial hub. Restaurants, bars, hotels, and clubs must obtain an F. L. III license to operate as wine and dine venues in GIFT City. The licensing process ensures strict regulation and compliance under the Gujarat Prohibition Act, even within the newly relaxed zone. Licensing Details for Hospitality Venues License TypeAuthorityAnnual FeeSecurity DepositLicense TenureF. L. III LicenseSuperintendent of Prohibition and Excise, Gandhinagar₹1,00,000/year₹2,00,0001–5 years Key Conditions: Liquor must be sourced only from licensed vendors, either within Gujarat or from approved out-of-state suppliers Carryout or retail sale of alcohol is strictly prohibited Personal consumption outside licensed premises is illegal, even for permit holders Only venues with a valid F. L. III license in GIFT City are allowed to serve alcohol to individuals with a Liquor Access Permit (LAP) or Temporary Permit. This ensures a controlled and traceable alcohol ecosystem, aligned with Gujarat’s broader prohibition framework. . Alcohol Price in GIFT City vs Other Regions If you’re wondering “How expensive is alcohol in GIFT City? ”—the answer is: significantly higher than in nearby regions like Daman or Silvassa. Due to Gujarat’s prohibition legacy and controlled licensing, the GIFT City alcohol price is steep compared to areas with more liberal liquor laws. Alcohol Price Comparison Table: LocationAverage Alcohol PriceWhy the Price DiffersGIFT CityHighPremium state taxes, limited supply, high license fees, controlled and regulated approach adopted by Gujarat's government contributes to the high pricing. Daman/SilvassaLowLiberal liquor policies, open retail availability, more vendors In GIFT City Gandhinagar, alcohol is served only in licensed wine and dine venues, and the supply chain is tightly regulated. The cost of obtaining an F. L. III license, combined with high excise duties, leads to premium pricing for alcoholic beverages. In contrast, Daman and Silvassa, known for their low alcohol prices, operate under liberal liquor policies with competitive pricing due to open retail markets and higher vendor availability. So, while alcohol in GIFT City offers convenience for corporate professionals and visitors, it does come at a higher cost — one of the biggest deterrents to mass adoption of liquor permits in GIFT City. Rules, Restrictions & Penalties in GIFT City Although alcohol is now permitted in GIFT City, it is strictly regulated under the controlled liquor policy. To ensure compliance with Gujarat’s overarching prohibition laws, the state has implemented several rules and restrictions for both individuals and licensed venues. If you’re searching “What are the rules for alcohol in GIFT City Gujarat? ” — here’s everything you need to know. Key Alcohol Rules in GIFT City Alcohol is allowed only inside designated ‘wine and dine’ venues with a valid F. L. III license Liquor can be served only to individuals holding a valid Liquor Access Permit (LAP) or a Temporary Permit Record-keeping and CCTV surveillance are mandatory in all licensed establishments Daily stock logs and monthly reporting must be maintained and submitted for inspection Personal consumption, carryout, or retail liquor sales are strictly prohibited outside licensed zones Unconsumed liquor must be destroyed immediately after service hours Penalties for Violations Violating any of the rules can lead to strict punishment for drinking alcohol in Gujarat under the Gujarat Prohibition Act, 1949, specifically: Section 54 – Punishment for illegal possession, consumption, or sale Section 56 – Action against non-compliant licensed venues Authorities, including the Superintendent of Prohibition and Excise,conduct regular inspections, and non-compliant establishments risk losing their licenses in addition to fines and legal action and regularly monitor compliance to ensure that GIFT City liquor permission is used strictly as intended. Bars and Wine Shops in GIFT City With the introduction of the GIFT City liquor permit system, select premium hotels have emerged as the first licensed venues to serve alcohol legally in GIFT City, Gandhinagar. These establishments operate under the F. L. III license, allowing them to serve alcohol exclusively to Liquor Access Permit (LAP) and Temporary Permit holders. If you’re searching “Bar in GIFT City” or “Where to drink in GIFT City Gujarat”, here are the currently operational venues: Licensed Bars in GIFT City: Gift City Club – A premium business club in GIFT City offering licensed bar services to eligible permit holders. Grand Mercure Hotel – Another premier hospitality brand now serving alcohol under the regulated framework. Are there Wine Shops in GIFT City? No. Retail wine shops in GIFT City are not permitted. Alcohol is available only through dine-in service at licensed venues. Takeaway, carryout, or personal liquor stockpiling is strictly prohibited, even for permit holders. This ensures that alcohol in GIFT City is consumed responsibly, in alignment with Gujarat’s prohibition law structure while maintaining international hospitality standards. So, if you’re wondering “Is there a wine shop in GIFT City Gandhinagar? ” or “Where can I get alcohol in GIFT City? ”—the answer is: only at licensed hotels and restaurants with F. L. III licenses. Public Sentiment and Industry Impact The introduction of the GIFT City liquor permit policy has sparked mixed reactions across Gujarat. While many view it as a progressive step toward economic modernization, others see it as a departure from the state’s deep-rooted prohibition principles. Positive Outlook on GIFT City Alcohol Policy: Corporates and multinational companies have welcomed the reform, considering it a move toward a world-class business ecosystem. The availability of alcohol in licensed venues makes it easier to host international delegates, conferences, and corporate events. The new policy enhances GIFT City’s global appeal, aligning it with financial hubs like Singapore and Dubai. Concerns and Challenges: Some social and religious groups oppose the relaxation, citing moral and cultural concerns. Low public awareness about the permit system and complex application procedures have limited adoption. Despite initial interest, only about 700 Liquor Access Permits were issued in the early phase, reflecting slow uptake, as of December 2024. The policy has initiated important conversations around alcohol in GIFT City, balancing Gujarat’s prohibition legacy with the needs of a modern global financial hub. Conclusion: A Policy Balancing Modernity and Tradition The GIFT City liquor policy marks a significant shift in Gujarat’s approach—striking a delicate balance between modern economic aspirations and traditional prohibition values. By introducing a regulated liquor permit system with strict controls, the state has created a framework that supports global business hospitality standards without compromising its legal and cultural ethos. This reform not only enhances GIFT City’s global competitiveness but also showcases Gujarat’s readiness to adapt and evolve in a controlled, responsible manner, making it a compelling destination for corporates, investors, and international delegates alike. --- - Published: 2025-02-27 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-city-ecosystem-for-startups/ - Categories: Resources - Tags: gift city benefits for startups, gift city startups, how to register a company in gift city, how to register in gift city, startups in gift city, things to do in gift city GIFT City - A Hub for Innovation and Entrepreneurial Spirit Nestled amidst the Sabarmati River and flanked by the historic cities of Ahmedabad and Gandhinagar, Gujarat International Finance Tec-City (GIFT City) is more than just India's first International Financial Services Centre (IFSC). It's a vibrant ecosystem meticulously designed to foster innovation and propel startups to new heights. GIFT City stands tall as a testament to India's aspirations for a global financial powerhouse. But beyond the gleaming skyscrapers and state-of-the-art infrastructure lies a nurturing ground for budding entrepreneurs. Here, startups across diverse sectors can thrive thanks to a unique blend of benefits: Unparalleled Access to Funding: Imagine being surrounded by a network of financial institutions, VCs, and angel investors, all eager to support your vision. GIFT City connects you with the financial resources you need to fuel your startup's growth. A Streamlined Business Environment: Setting up shop in GIFT City is a breeze, thanks to a hassle-free process and supportive regulations. You can focus on your business goals, leaving the administrative hurdles behind. A Culture of Collaboration and Innovation: GIFT City isn't just a physical space – it's a community. Here, you'll be surrounded by like-minded individuals and businesses, all fostering a culture of creativity and groundbreaking ideas. This collaborative spirit can ignite your own innovation and propel your startup forward.   Understanding International Financial Service Centres (IFSCs): Gateways to Global Finance International Financial Service Centres (IFSCs) are specialized zones within a country that operate under a separate regulatory and tax regime compared to the domestic economy. These centers aim to attract international financial institutions and businesses by offering a number of advantages, including: Globally Competitive Regulations: IFSCs typically boast streamlined regulations designed to facilitate international business activities. This can include faster approvals, simpler processes, and more flexible rules compared to the main domestic financial system. Favorable Tax Environment: One of the key attractions of IFSCs is their tax benefits. Entities operating within these zones often enjoy significant tax exemptions, including income tax holidays, reduced capital gains taxes, and exemptions from Goods and Services Tax (GST). Access to International Markets: IFSCs provide a platform for companies to access global financial markets and investors. They can raise capital in foreign currencies, conduct cross-border transactions, and participate in international financial products and services.   How IFSCs Cater to International Business? IFSCs play a crucial role in facilitating cross-border financial activities. Here's how: Serving Foreign Clients: Financial institutions like banks, insurance companies, and asset managers operating within the IFSC can offer their services to foreign clients. This allows for efficient management of international investments, trade finance, and other financial needs. Global Fundraising: Companies can leverage IFSCs to raise capital from international investors. This can be particularly beneficial for startups and businesses seeking funds for expansion or global operations. Risk Management: IFSCs can be used by companies to manage their foreign exchange exposure and other financial risks associated with international business activities. The Case of India: GIFT City as the First IFSC (as of February 2025) India’s first operational IFSC is located in GIFT City, Gujarat. Established in 2008, GIFT City aims to be a global financial and technology hub. It offers a world-class infrastructure, a pro-business environment, and a range of benefits for financial institutions and startups. Growing Ecosystem: As of February 2025, GIFT City has grown significantly, with over 766 entities registered across banking, capital markets, insurance, fintech, and other financial service sectors. This expanding ecosystem demonstrates the increasing appeal of GIFT City for international business activities. Continued Focus on Startups: GIFT City’s focus on creating a supportive ecosystem with flexible regulations, tax exemptions (including a potential extension of the 100% income tax exemption for consecutive 10 years out of a 15 year period on business income), and access to international markets makes it a compelling destination for businesses looking to expand their global footprint, especially startups. A Haven for Innovation: Types of Startups Welcome in GIFT City GIFT City, India's premier International Financial Services Centre (IFSC), isn't just about gleaming skyscrapers and state-of-the-art infrastructure. It's a meticulously designed ecosystem fostering a diverse array of startups, particularly within the BFSI (Banking, Financial Services, and Insurance) domain. Here's a glimpse into the vibrant tapestry of sectors that find a nurturing ground in GIFT City: Banking: Ideal for startups offering international financial services, with world-class infrastructure and supportive regulations. Insurance: Launchpad for innovative insurance products and cross-border services, thanks to the IFSC framework and favorable regulations. Capital Markets: A hub for startups in stock exchanges, trading platforms, and other capital market activities. Fund Management: Robust infrastructure and regulations empower fund management startups to navigate global complexities and attract investors. Fintech/Techfins: A thriving ecosystem with a dedicated "fintech sandbox" for experimenting with cutting-edge financial technology solutions. Beyond BFSI: The opportunities in GIFT City extend far beyond traditional BFSI domains. The city welcomes startups in various other financial services sectors, including: Asset Management Wealth Management Financial Advisory Allied Financial Services The IFSC status ensures that these startups can operate seamlessly on a global scale, reaching a wider audience and maximizing their impact.   Bringing Innovation Home: Onshoring the Indian Dream Recognizing the potential of homegrown talent, GIFT City, through the International Financial Services Centres Authority (IFSCA), has launched a dedicated initiative – "Onshoring Indian Innovation to GIFT City. " This initiative aims to reverse the trend of Indian startups migrating overseas and actively encourages them to establish their base in GIFT City. An Expert Committee constituted by IFSCA recently submitted a report titled “Onshoring of Indian Innovation to GIFT City IFSC”. This report proposes a roadmap of legal, regulatory, and tax reforms designed to make GIFT City an attractive proposition for Indian entrepreneurs. The aim is to provide a compelling alternative to popular offshore destinations like the US and Singapore, keeping the brightest minds and innovations within India's borders. By fostering a welcoming environment with supportive regulations, tax exemptions, and access to funding, GIFT City is poised to become a launchpad for India's next generation of financial service and technology startups. It aspires to not just be a financial hub, but a breeding ground for innovation and a catalyst for India's journey towards becoming a global financial powerhouse.   Catapulting Your Startup: Why GIFT City is India's Launchpad for Innovation Forget the generic startup hubs – GIFT City is where innovation explodes. This meticulously designed financial metropolis isn't just about glitzy skyscrapers; it's a dynamic ecosystem specifically designed to propel startups, particularly in the BFSI (Banking, Financial Services, and Insurance) sector. But the benefits extend far beyond traditional finance. Here's a look at what makes GIFT City a launchpad for ambitious entrepreneurs: Funding Fiesta: A Network of Financiers Fueling Your Dreams in GIFT City Imagine a constant stream of potential investors at your doorstep. In GIFT City, you'll be right next door to leading financial institutions, VCs, and angel investors actively seeking to invest in high-growth startups. This proximity fosters a vibrant "Funding Fiesta" environment, where your company can easily connect with the capital it needs to thrive. With tech titans like Wipro setting up fintech centers and a growing pool of investors, GIFT City provides the perfect launchpad to propel your business to new heights.   Business Friendly Regulations, Tax Holiday Bliss – Forget the bureaucratic nightmares of setting up shop. GIFT City boasts a streamlined regulatory environment under the unified regulator IFSCA, which simplifies the business setup process. Startups benefit from a tax holiday for ten consecutive years in a fifteen year period, exemption from GST and MAT, IT / ITeS state subsidies and other incentives that significantly reduce the bureaucratic overhead and operational costs. This allows you to focus on what truly matters – transforming your innovative ideas into groundbreaking solutions. A Collaborative Cauldron of Creativity: Breeding Ground for Fintech – Innovation thrives in a vibrant ecosystem. Unlike isolated co-working spaces, GIFT City fosters a dynamic environment where creativity explodes. The collaboration between GIFT City and Zone Startups India is set to further bolster the fintech sector. This partnership aims to develop a robust base for fintech and related sectors, offering programs that attract both domestic and international startups in fields like digital banking and insure-tech. Surrounded by like-minded businesses and supported by targeted programs, you'll find the perfect space to brainstorm, iterate, and collaborate, fueling the development of cutting-edge solutions that can disrupt entire industries.   Location, Location, Location: A Talent Hub with Global Connectivity – GIFT City's strategic location between Ahmedabad, a burgeoning commercial center, and Gandhinagar, Gujarat's capital city, offers a distinct advantage. The city boasts state-of-the-art infrastructure, enhancing connectivity and access to major urban centers. This facilitates the smooth operation of businesses and attracts talent. With a skilled talent pool readily available, you can build a strong foundation for your startup's success.   Operational Cost Efficiency: Optimizing Your Expenses – Beyond the tax holiday, GIFT City presents additional cost advantages that are attractive to businesses looking to optimize expenses. Incentives like waivers on withholding tax for lenders in foreign currency loans and lower taxes on interest earned on bonds make GIFT City an attractive proposition. This allows you to invest more resources into product development, marketing, and team building – the cornerstones of any successful startup.   Beyond the Highlighted Benefits: Global Currency Accounts: Going Global with Ease – Open bank accounts in foreign currency with ease, simplifying financial transactions and international operations. This eliminates unnecessary hurdles and streamlines your journey towards becoming a global player.   Seamless Repatriation: Taking Your Success Home – Repatriate funds outside India with greater ease, enhancing the operational convenience of your startup. This flexibility allows you to attract global investment and talent, further accelerating your growth trajectory.   GIFT City's development as a smart city and financial hub aligns with global standards, positioning it as a prime destination for startups looking to innovate and expand on a global scale. These features, coupled with the substantial funding opportunities and supportive ecosystem, make GIFT City an ideal environment for startups aiming for rapid growth and international reach.    GIFT City: A Launchpad for Indian Startups GIFT City, located strategically between Ahmedabad and Gandhinagar, serves as a pivotal launchpad for Indian startups, especially in the financial services and technology sectors. It offers a unique ecosystem that combines advanced infrastructure, regulatory benefits, and comprehensive support to foster innovation and attract global capital.  Role of IFSCA The International Financial Services Centres Authority (IFSCA) is the regulatory body overseeing GIFT City. Established by the IFSC Authority Act of 2019, IFSCA ensures a conducive business environment with streamlined regulations that facilitate easy and efficient operations for startups and established businesses alike.  Supportive Ecosystem Highly Developed Infrastructure: GIFT City boasts state-of-the-art facilities including smart offices, high-speed connectivity, and social infrastructure. This setup supports seamless operations and provides a conducive work environment for emerging businesses. Cost-Saving Incentives: Startups in GIFT City benefit from substantial cost reductions, which include: Reduction in operating costs compared to other locations. Single window clearance for quick and easy business setup. Various subsidies like EPF reimbursement, power subsidy, and lease rental subsidy. As per the IT/ITES Incentive Policy (2022-2027), substantial support is provided in both capital and operational expenditures, enhancing affordability for IT-based startups. Supporting Ecosystem: GIFT City is equipped with India’s first district cooling system, automated waste management, and a smart water & power infrastructure, setting a benchmark in sustainable urban living. Strategic Business Location: Its location provides easy connectivity to major transport hubs, including the Ahmedabad International Airport and local railway systems, fostering accessibility and visibility. Access to Talent: Universities like Deakin and Wollongong, located near GIFT City, offer specialized programs in Cybersecurity and Business Analytics. These programs prepare graduates with the in-demand skills needed to thrive in critical fields like technology and finance. This proximity to a talent pool with expertise in Business Analytics and Cybersecurity is crucial for startups in these sectors, significantly increasing their chances of attracting and retaining top talent.  Key Highlights from the Gujarat IT/ITES Incentive Policy 2022-2027 Capital Support: Up to... --- > The world of finance is constantly evolving, seeking new hubs to foster innovation and growth. In India, a shining beacon has emerged: Gujarat International Finance Tec-City (GIFT City). - Published: 2025-02-26 - Modified: 2025-07-22 - URL: https://gift.treelife.in/a-complete-guide-on-gift-city-regulations/ - Categories: Resources - Tags: GIFT City regulations Unveiling the Gateway to India's Financial Future: An Introduction to GIFT City The world of finance is constantly evolving, seeking new hubs to foster innovation and growth. In India, a shining beacon has emerged: Gujarat International Finance Tec-City (GIFT City). This meticulously planned city within a city, situated in Gujarat, is rapidly transforming into a global financial powerhouse. But what exactly is GIFT City, and why is it capturing the attention of businesses and investors worldwide? GIFT City is more than just a financial center; it's a strategic vision brought to life. As India's first operational smart city, it boasts state-of-the-art infrastructure, a world-class business environment, and a strategic location. Imagine a hub designed to rival established financial giants like Singapore, Dubai, and Hong Kong. That's the ambition behind GIFT City, and it's attracting a wealth of opportunities for businesses and investors. Here's what truly sets GIFT City apart: Unparalleled Access to a Booming Market: GIFT City offers a gateway to India's vast and dynamic market, a land of immense potential for financial growth. Special Economic Zone (SEZ) Advantages: Operating within a SEZ grants businesses a multitude of incentives, including tax exemptions, making it a highly attractive location for establishing a presence in India. Robust Regulatory Framework: GIFT City prioritizes transparency and stability through a well-defined legal framework and a dedicated set of regulatory authorities, fostering an environment conducive to secure and successful investment. GIFT City is more than just a financial center; it's a springboard for propelling businesses and investors into the heart of India's thriving financial landscape. As we delve deeper into this blog, we'll explore the intricacies of GIFT City's regulatory framework, the unique investment opportunities it offers, and the reasons why it's poised to become a game-changer in the global financial arena.   Understanding the Regulatory Landscape in Gift City Gift City operates within a unique regulatory framework designed to foster innovation and growth. While navigating this landscape might seem complex at first glance, understanding the key regulatory authorities and their roles is crucial for a smooth operation within Gift City. Here's a breakdown of the prominent entities that govern various aspects of financial activities in Gift City: Gujarat International Finance Tec-City Authority (GIFT):GIFT serves as the governing body for Gift City, overseeing its overall functioning and development. It ensures Gift City adheres to international best practices while maintaining its status as a tax-efficient jurisdiction.   International Financial Services Centre Authority (IFSCA): Established specifically for Gift City, IFSCA is the primary regulator for financial institutions, financial products, and financial services. Its focus areas include banking, capital markets, insurance, and allied activities. Notably, the regulatory powers of RBI, SEBI, IRDAI, and PFRDA have been vested in IFSCA for regulating these financial activities within Gift City.   Demystifying the Regulatory Structure in GIFT City Gift City Regulations of Gujarat International Finance Tech-City Authority  The image depicts a simplified view of the regulatory structure within Gift City. It highlights the following key points: IFSCA is the single authority overseeing financial institutions, financial services, and capital market activities within Gift City. SEZ Units (Special Economic Zone Units) and IFSC Units (International Financial Services Centre Units) fall under the purview of IFSCA. Insurance and reinsurance entities operating in Gift City are also regulated by IFSCA. It's important to note that while IFSCA is the primary regulator, the underlying framework incorporates the expertise of established authorities like SEBI, RBI, and IRDAI. This ensures a comprehensive and robust regulatory structure for Gift City.   Legal Framework and Taxation: A Boon for Businesses and Investors Gift City operates under a robust legal framework that, coupled with a favorable tax regime, fosters a highly attractive environment for businesses and investors. Here's a closer look at these advantages: Legal Framework: Common Law System: Gift City adheres to a common law system (IFSCA framework), known for its clarity, predictability, and established body of case law. This provides a familiar and reliable legal foundation for businesses accustomed to similar systems. Business-Friendly Environment: The legal structure within Gift City is designed to streamline operations and minimize bureaucratic hurdles. This allows businesses to focus on growth and innovation. Dispute Resolution: Gift City boasts a world-class dispute resolution mechanism. The Singapore International Arbitration Centre (SIAC) has opened its second representative office in India in the International Financial Services Centre (GIFT IFSC) in GIFT, Gujarat, to assist in the promotion of international commercial arbitration. Taxation Benefits: Income Tax Exemptions: Businesses and individuals operating within Gift City enjoy income tax exemptions for a specified period. The exact duration of the exemption can vary depending on the type of unit being set up and the commencement of operations. Here's a general breakdown: 100% income tax exemption for 10 consecutive years out of the first 15 years for units established in International Financial Services Centre (IFSC). Companies opting for the new tax regime may not be eligible for the full 10-year exemption but can benefit from lower tax rates. Goods and Services Tax (GST): Gift City follows a unique GST regime that provides certain exemptions and benefits. These benefits can simplify the taxation process and reduce the overall tax liability for businesses. It's important to consult with a tax professional to understand the specific exemptions and how they apply to your business activities. Stamp Duty Exemptions: Stamp duty, a tax levied on certain financial transactions, is waived for transactions conducted within Gift City. This can result in significant cost savings, particularly for businesses engaged in capital market activities such as buying and selling shares.   Unveiling Investment Gems in GIFT City: A Gateway to India's Financial Future GIFT City, India's international financial hub, has emerged as a game-changer, attracting investors with its strategic location, robust regulatory framework, and a treasure trove of investment opportunities. Here, we explore some of the most valuable gems waiting to be discovered: International Financial Services: Your Gateway to India's Growth Story Banking Powerhouse: Foreign banks can set up shop in GIFT City, becoming a bridge for seamless cross-border transactions and catering to the burgeoning needs of the Indian market. This presents a unique opportunity to tap into India's economic rise. Insurance Innovation Hub: The insurance sector in GIFT City welcomes foreign players, fostering a more competitive landscape. This translates to a wider range of insurance products and services for Indian consumers, ultimately leading to greater financial security. Asset Management Expertise: Investment management firms can leverage GIFT City's platform to launch innovative products targeting both domestic and international investors. This allows them to participate in India's growing pool of investable assets and propel the nation's financial engine. Unveiling the Power of Commodities and Derivatives Global Benchmarking: The exchange adheres to stringent international standards, ensuring transparent price discovery and fostering trust among investors. Diversification Arsenal: From commodities and derivatives to precious metals, the exchange offers a vast array of products, empowering investors to build well-diversified portfolios and manage risk effectively. Tech-Driven Trading Advantage: The exchange utilizes cutting-edge technology, providing a robust and secure platform for smooth and efficient trading experiences. Alternative Investment Funds (AIFs): Unlocking New Investment Avenues GIFT City provides a fertile ground for the establishment and operation of AIFs, catering to sophisticated investors seeking alternatives to traditional stocks and bonds. Here are some of the AIF categories that flourish within GIFT City: Private Equity Powerhouse: Private equity funds can raise capital from a global pool of investors and channel it towards promising Indian companies, fueling their growth and driving innovation. Venture Capital Catalyst: Venture capital funds can leverage GIFT City's platform to invest in high-potential Indian startups and early-stage businesses, fostering a vibrant entrepreneurial ecosystem. Remember, Due Diligence is Key Before embarking on any investment journey, thorough due diligence is paramount. Consult with qualified financial advisors who can assess your risk tolerance and investment goals, guiding you towards the most suitable opportunities within GIFT City. Additionally, a comprehensive understanding of the specific regulations and requirements for each investment category is essential to navigate GIFT City's financial ecosystem successfully. By harnessing the unique advantages offered by GIFT City, investors can unlock a treasure trove of possibilities and actively participate in India's dynamic and exciting financial future. So, dive in, explore the investment gems within GIFT City, and become a part of India's growth story!   Conclusion: Unveiling a Gateway to Financial Growth GIFT City's emergence as a global financial hub presents a compelling proposition for investors seeking a dynamic and lucrative environment. Here's a recap of the key benefits that make GIFT City an attractive investment destination: Robust Regulatory Framework: A well-defined legal structure and a dedicated regulatory authority (IFSCA) ensure transparency, stability, and adherence to international best practices. This fosters investor confidence and mitigates risk. Tax Advantages: Significant income tax exemptions, a beneficial GST regime, and stamp duty waivers translate to substantial cost savings for businesses and investors. This enhances profitability and incentivizes investment. Access to a Booming Market: GIFT City provides a gateway to India's vast and growing economy. Investors can leverage this platform to tap into a multitude of opportunities across various sectors. Diversified Investment Avenues: From international financial services and commodity trading to alternative investment funds, GIFT City offers a wide spectrum of investment options. This allows investors to create well-diversified portfolios and manage risk effectively. World-Class Infrastructure: GIFT City boasts state-of-the-art infrastructure, including advanced technology platforms and a business-friendly ecosystem. This facilitates smooth operations and fosters innovation. The Future of GIFT City: A Vision of Growth GIFT City's future is brimming with potential. Here are some exciting possibilities on the horizon: Enhanced Connectivity: As infrastructure projects like dedicated high-speed rail and improved air linkages materialize, GIFT City's global accessibility will be further strengthened, attracting a wider pool of investors and businesses. Financial Innovation Hub: GIFT City is poised to become a breeding ground for financial innovation. Regulatory authorities are actively working to facilitate the development of new financial products and services, keeping pace with the evolving global financial landscape. Talent Magnet: With its focus on attracting skilled professionals, GIFT City is well on its way to becoming a global talent hub. This will create a dynamic ecosystem that fosters collaboration, knowledge sharing, and continuous growth. Investing in GIFT City is akin to investing in the future of finance. By capitalizing on its unique advantages and staying abreast of its evolving landscape, investors can unlock a world of possibilities and become part of India's remarkable growth story.   --- > Capital Market Intermediaries (CMI) are vital to the financial ecosystem, acting as facilitators between clients and regulators. They ensure smooth transactions, uphold market integrity, and contribute to the efficient functioning of capital markets. In this post, we explore the various types of CMIs and their roles, with a special focus on their operations within the GIFT IFSC ecosystem. - Published: 2024-06-25 - Modified: 2025-02-26 - URL: https://gift.treelife.in/what-are-capital-market-intermediaries-cmi/ - Categories: Resources DOWNLOAD FULL PDF Capital Market Intermediaries (CMI) are vital to the financial ecosystem, acting as facilitators between clients and regulators. They ensure smooth transactions, uphold market integrity, and contribute to the efficient functioning of capital markets. In this post, we explore the various types of CMIs and their roles, with a special focus on their operations within the GIFT IFSC ecosystem. --- - Published: 2024-05-28 - Modified: 2025-04-21 - URL: https://gift.treelife.in/the-era-of-international-businesses-in-gift-city/ - Categories: Resources - Tags: GIFT City global finance, International business in GIFT City, International exchange in GIFT City The Rise of GIFT City: An International Financial Hub in the Making Nestled between Ahmedabad and Gandhinagar, Gujarat, lies a city with a global ambition - GIFT City, or the Gujarat International Finance Tec-City. Envisioned by Prime Minister Narendra Modi to rival established financial giants, GIFT City is rapidly evolving into a key player in the international financial landscape. While still under development, it has already made significant strides in attracting international businesses and establishing itself as a prominent International Financial Services Centre (IFSC).   The Allure of an International Financial Services Centre An International Financial Services Centre (IFSC) is a game-changer for international businesses. It provides a unique zone within a country that operates with global regulations and offers attractive tax benefits. This makes them ideal locations for companies seeking to expand their reach and tap into new markets. Setting up a base in an IFSC like GIFT City allows businesses to enjoy: A Streamlined Approach: The IFSC boasts a simplified regulatory framework overseen by a single authority, eliminating the complexities of dealing with multiple regulatory bodies. Enhanced Cost Efficiency: GIFT City offers a competitive tax regime, translating to significant cost savings for international businesses. Global Connectivity: Companies in GIFT City have access to international exchanges and products, allowing them to participate in global financial activities seamlessly.   The Rise of IFSCA: A Catalyst for Progress The establishment of the International Financial Services Centre Authority (IFSCA) in 2020 marked a turning point for GIFT City. The IFSCA acts as a single regulator, streamlining the process of setting up and operating a business within the IFSC. Its proactive approach, with regular updates and amendments to regulations, fosters a business-friendly environment that is conducive to international investment. This focus on ease of doing business has paid off. A significant milestone was achieved in 2023 when derivatives trade worth $7. 5 billion shifted from Singapore to the NSE International Exchange (NSE IFSC) located in GIFT City. This not only underscores the growing trust in GIFT City as a financial hub but also positions it as a viable alternative for international financial transactions.   Unveiling the Advantages of Setting Up Business in GIFT City GIFT City, India's ambitious IFSC, is rapidly evolving into a magnet for businesses seeking a global foothold. But what exactly makes GIFT City so attractive? Here's a breakdown of the key benefits that international businesses can enjoy: Streamlined Regulations and Supportive Environment: The International Financial Services Centre Authority (IFSCA) acts as a single regulator for GIFT City, eliminating the complexities of navigating multiple regulatory bodies. This simplifies the process of setting up and operating a business, saving time and resources. IFSCA is proactive in introducing regular updates and amendments to regulations, demonstrating a commitment to creating a business-friendly environment. Their focus is on streamlining procedures and removing bureaucratic hurdles. Cost-Effectiveness: A Competitive Tax Advantage Compared to other established financial centers, GIFT City offers a significantly more cost-effective environment. Businesses benefit from a 10-year tax holiday for new units, a major incentive for establishing a base in GIFT City. There are exemptions from various taxes, including Goods and Services Tax (GST) on services received by a unit, Securities Transaction Tax (STT), and stamp duty for transactions done on international exchanges within the IFSC. The Minimum Alternate Tax (MAT) rate for income earned in convertible foreign currency is just 9%, compared to the usual 15%. These tax benefits translate to substantial cost savings for international businesses. Addressing Operational Hurdles: Government Initiatives The Indian government is actively working to address any challenges faced by businesses operating in GIFT City: Previously, obtaining approvals required navigating two separate entities – the development commissioner of the special economic zone and the IFSC authority. To address this, the government has granted the IFSC Authority powers under the SEZ Act, simplifying the approval process. A single window IT portal is also proposed to be established to streamline the process of obtaining approvals for businesses setting up in GIFT City. These initiatives demonstrate the government's commitment to creating a seamless and efficient operating environment for international businesses in GIFT City.   A Flourishing Ecosystem: GIFT City Beyond Traditional Finance GIFT City's ambitions extend far beyond becoming just another center for established financial institutions. While traditional players like banks and asset managers are crucial to its development, a new wave of businesses is propelling GIFT City towards becoming a comprehensive financial and technological ecosystem. Financial Powerhouses Take Root International Banks: 28 IFSC Banking Units (IBUs) are already operational in GIFT City. These branches of international banks offer a wide range of services, including trade finance, investments, commercial loans, and interbank placements. Their presence in GIFT City facilitates seamless international financial transactions. Asset Managers and Alternative Investment Funds: Recognizing the potential of GIFT City, asset managers and alternative investment funds are setting up shop. This allows them to cater to both inbound and outbound investments. Global investors gain access to Indian markets, while domestic investors can explore opportunities abroad through the liberalized remittance scheme. Beyond Finance: A Diversifying Ecosystem GIFT City is not limited to traditional financial institutions. It's actively attracting new types of businesses to create a well-rounded ecosystem: Aircraft and Ship Leasing Companies: These companies are finding GIFT City's tax benefits and streamlined regulations particularly attractive. For instance, Air India's recent acquisition of Airbus A350 aircraft was financed by a company registered in GIFT City, highlighting its growing role in the aviation sector. Fintech Startups: GIFT City is proving to be a fertile ground for innovative fintech startups. The supportive regulatory environment and access to a global talent pool are incentives for these companies to establish their base here. Tech Giants Take Notice The potential of GIFT City hasn't gone unnoticed by leading technology companies. Global tech giants like Google and Oracle have already acquired space to set up fintech centers. This signifies a growing synergy between finance and technology within GIFT City, paving the way for groundbreaking advancements in financial services. This flourishing ecosystem positions GIFT City as a future-oriented financial hub, well-equipped to compete on the global stage. In the next section, we'll explore how GIFT City's infrastructure and focus on talent development are further solidifying its position as a premier business destination.   Building a World-Class Infrastructure: More Than Just Brick and Mortar GIFT City's vision extends beyond creating a financial powerhouse. To attract and retain top talent, it's actively building a robust social infrastructure that fosters a desirable living environment. Here's a glimpse into these efforts: Cultivating a Livable City: Recognizing the importance of a well-rounded lifestyle, GIFT City is prioritizing the development of residential units. This ensures a critical mass of residents, creating a vibrant community.   Metro Connectivity: A functional metro rail link between Ahmedabad and GIFT City is expected to be operational by July. This will significantly reduce commute times and enhance accessibility.   Sabarmati Riverfront Development: Plans are underway to revitalize the Sabarmati riverfront, creating a scenic and recreational space for residents and visitors. This will add to the overall quality of life in GIFT City.   Investing in the Future Workforce: Deakin University Sets Up Shop GIFT City is not just about attracting established businesses; it's also fostering the next generation of talent. The recent opening of Deakin University's first overseas campus in GIFT City signifies a major leap forward. Focus on Job-Oriented Programs: Deakin University offers postgraduate programs in cyber security and business analytics. These programs are specifically chosen to align with the current and future needs of the financial and technological sectors within GIFT City. This ensures a skilled workforce readily available for the businesses operating there. Real Estate Boom: A Rising Tide Lifts All Boats The burgeoning activity in GIFT City is having a positive ripple effect on the real estate market: Increased Demand: As more businesses establish themselves in GIFT City, the demand for residential and commercial space is on the rise. This has led to a significant increase in property values.   Ahmedabad-Gandhinagar Corridor Benefits: The development of GIFT City is not happening in isolation. The Ahmedabad-Gandhinagar corridor, which flanks GIFT City, is also witnessing a boom in the real estate sector. This benefits not just GIFT City but the entire region.   By investing in social infrastructure, education, and fostering a thriving real estate market, GIFT City is strategically positioning itself as a world-class destination, not just for businesses, but also for the people who power them.   The Road Ahead: GIFT City's Ascent to Global Prominence GIFT City's journey towards becoming a global financial hub is well underway. The Indian government remains steadfast in its commitment to removing obstacles and fostering a welcoming environment for international businesses. Streamlining Regulations and Approvals: Recognizing the need for swift action, the government has taken proactive measures. The recent streamlining of approvals by granting the IFSCA complete authority under the SEZ Act eliminates bureaucratic hurdles. This "single window" approach expedites the process for businesses looking to establish a presence in GIFT City. Tax Advantages Remain in Place: The government's commitment to GIFT City's success is evident in the continuation of attractive tax benefits. Entities operating within GIFT City enjoy a 10-year tax holiday, along with exemptions from various taxes and duties. These measures significantly reduce operational costs, enhancing the city's competitiveness. Focus on Talent Acquisition: The establishment of Deakin University's campus signifies a crucial step towards building a skilled workforce. By offering job-oriented programs aligned with industry needs, GIFT City is ensuring a steady pipeline of qualified professionals to meet the demands of its growing financial and technological ecosystem. In conclusion, GIFT City's potential to become a prominent player on the global financial stage is undeniable. Backed by a supportive government, a robust infrastructure, and a focus on talent development, GIFT City is poised to attract leading international businesses, establish itself as a financial powerhouse, and contribute significantly to India's economic growth. The world is watching GIFT City's evolution, and its future as a global financial hub appears bright.   --- - Published: 2024-05-28 - Modified: 2025-07-22 - URL: https://gift.treelife.in/setting-up-aif-in-gift-city-a-detailed-investment-guide/ - Categories: Resources - Tags: Alternative Investment Funds in GIFT City, GIFT City AIFs, GIFT City tax incentives for AIFs, setting up aif in gift city Overview of GIFT City as a Financial Hub Gujarat International Finance Tec-City (GIFT City) stands as a pioneering endeavor, harmoniously integrating commercial, residential, and social spaces within its 886-acre development. Positioned strategically on the banks of the River Sabarmati, bridging Ahmedabad and Gandhinagar, GIFT City not only boasts proximity to the Ahmedabad International Airport but is also augmented by robust metro connectivity plans. This meticulously planned financial district is India's first and only operational International Financial Services Centre (IFSC), offering unparalleled ease of doing business through a conducive regulatory framework. Lauded globally, GIFT City has garnered recognition on the Global Financial Centres Index, underscoring its significant role as a nexus for global finance and IT industries.   Significance of AIFs in GIFT City's Financial Landscape Alternative Investment Funds (AIFs) in GIFT City represent a cornerstone in its expansive financial landscape, providing sophisticated vehicles for diverse investment strategies. The IFSC at GIFT City allows AIFs to operate under favorable regulatory conditions that starkly contrast with those found in the broader Indian financial system. This includes provisions for 100% tax exemption on business income for a considerable duration, opportunities for extensive leverage and co-investment, and the ability to invest substantially in international markets. Such attributes not only attract a wide array of investors and fund managers but also position GIFT City AIFs as highly competitive entities on the global stage. This ecosystem is particularly enhanced by the flexibility allowed in fund structures and the exemption from several restrictive norms applicable to AIFs outside the IFSC, making GIFT City an enticing prospect for establishing and managing AIFs.   Understanding Alternative Investment Funds (AIFs) in GIFT City Definitions and Types of AIFs Category I: These funds primarily invest in start-ups, early-stage ventures, and sectors identified as socially or economically desirable by the government. They include venture capital funds, infrastructure funds, and other funds focused on developmental and innovation-driven sectors. Category I AIFs often enjoy certain regulatory relaxations and incentives, fostering growth in key economic areas. Category II: This category encompasses a wider range of funds, including private equity funds and debt funds, which do not qualify for specific incentives or concessions under other categories. They are allowed to invest in a broad spectrum of activities, making them versatile investment vehicles for a variety of sectors without specified investment targets. Category III: These funds use complex trading strategies and may employ leverage, including through investment in listed or unlisted derivatives. They are typically aimed at generating short-term returns and include hedge funds and other funds that engage in trading with a view to making speculative gains.   Regulatory Framework Overview of IFSCA Regulations: The International Financial Services Centres Authority (IFSCA) regulates AIFs in GIFT City, providing a framework designed to facilitate ease of doing business and attract international financial services to India. These regulations are more flexible compared to the traditional Indian financial regulatory environment, aimed at creating a competitive international market. Comparison with SEBI-regulated AIFs: While AIFs in India are primarily regulated by SEBI, those operating in GIFT City are governed by IFSCA, which allows for broader operational freedoms. While SEBI regulated the Fund, IFSCA regulated the Fund Management Entity (Investment Manager). For instance, AIFs in GIFT City are not subject to stringent investment diversification norms that cap investments in any single investee company, as is the case under SEBI regulations. Additionally, AIFs in GIFT City can raise funds in foreign currency and are permitted unrestricted access to invest overseas, unlike their SEBI-regulated counterparts which face certain restrictions on offshore investments.     Setting Up an AIF in GIFT City - Step by Step Process Initial Considerations Assessing Business Case for Setting Up an AIF in GIFT City Before initiating the setup of an Alternative Investment Fund (AIF) in GIFT City, it is crucial to evaluate the business rationale and the strategic benefits. This evaluation should consider the regulatory advantages, tax exemptions, and the broader investment opportunities that GIFT City offers. Investors and fund managers need to analyze how these factors align with their investment strategies and objectives, especially the ability to invest significantly in international markets and the flexibility around diversification norms. Engaging with IFSCA and Other Regulatory Bodies Engagement with the International Financial Services Centres Authority (IFSCA) and other relevant authorities is a vital step. This involves understanding the specific regulatory requirements and compliance standards set by IFSCA, which are designed to facilitate ease of doing business in GIFT City. Early consultations can help clarify any regulatory concerns and streamline the approval processes.   Registration Process for AIF Steps to Register an AIF with IFSCA in GIFT City Pre-Application Consultation: Engage with IFSCA to discuss the AIF's business model and investment strategy. This stage may involve preliminary meetings and the submission of a detailed business plan. Formal Application Submission: Complete and submit the application form along with required documents, such as the fund structure, investment strategy, and details of the fund management team. Review and Approval: IFSCA will review the application. This may include a detailed scrutiny of the documents submitted and possibly an interview or presentation before the regulatory panel. Obtain Approval and Registration: Once approved, the AIF will receive formal registration and can commence operations.   Required Documentation and Compliance for Setup Essential documents include the fund's investment strategy, details of fund managers, risk management framework, and compliance policies. Additionally, compliance with Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) standards is mandatory.   Operational Setup Choosing Office Space and Infrastructure in GIFT SEZ Selecting the right office space within the GIFT Special Economic Zone (SEZ) involves considerations of space adequacy, infrastructure quality, and accessibility. GIFT City offers state-of-the-art facilities with plug-and-play infrastructure, which is conducive for financial services operations.   Legal and Regulatory Compliances (GST, Income-tax, TDS) Goods and Services Tax (GST): AIFs in GIFT City benefit from GST exemptions on management fees and transactions carried out on IFSC exchanges, significantly reducing operational costs. Income Tax: AIFs enjoy a 100% exemption on business income for the first ten years within a 15-year window, under certain conditions. Tax Deduction at Source (TDS): Compliance with TDS regulations is simplified due to exemptions available for transactions within GIFT City, though careful management of obligations related to investments outside the SEZ is necessary.   Financial and Tax Implications for AIFs in GIFT City Investment Norms and Restrictions Diversification Norms and Limits on Investments - In GIFT City, Alternative Investment Funds (AIFs) benefit from a relaxation of typical diversification norms which are prevalent in other financial jurisdictions. Unlike SEBI regulations that limit investment concentrations (e. g. , no more than 25% of a Category I and II AIF's funds can be invested in a single investee company), AIFs in GIFT City face no such restrictions. This flexibility allows fund managers greater leeway in structuring their investment portfolios according to their strategic interests and risk assessments. Guidelines on Offshore and Hard Asset Investments - AIFs in GIFT City are permitted to invest up to 100% of their corpus in overseas securities, providing a vast landscape of international investment opportunities. Additionally, they can allocate up to 20% of their funds in hard assets, such as real estate, bullion, and art. This capacity for broad investment diversification is especially attractive to funds that seek to mix traditional financial instruments with tangible asset investments, providing a hedge against market volatility or sector-specific downturns.   Tax Benefits and Liabilities Tax Pass-Through Status for Categories I and II Category I and II AIFs in GIFT City enjoy a tax pass-through status, meaning that income is taxed in the hands of the individual investors and not at the fund level. This treatment helps avoid double taxation, making these categories particularly attractive for investors seeking transparent and efficient tax handling. Additionally, income earned by non-resident investors from offshore investments through these AIFs is not taxable in India, adding an extra layer of tax benefit. Tax Exemptions and Benefits for Fund Managers and Investors AIFs in GIFT City, along with their fund managers, benefit from several tax incentives: 100% Tax Exemption: Fund management entities enjoy a complete tax exemption on their business income for the first ten years, within a 15-year window, promoting long-term investment planning. GST Exemptions: Services provided by AIF managers in GIFT City are exempt from the Goods and Services Tax (GST), which can significantly reduce the cost of operations. Exemption from Standard Tax Requirements: Non-resident investors are not required to obtain a Permanent Account Number (PAN) or file tax returns in India, which simplifies the compliance burden and enhances the attractiveness of GIFT City AIFs to international investors.   Key Benefits of GIFT City for AIFs Comparative Advantages Over Other Financial Centers GIFT City, as India’s first and only operational International Financial Services Centre (IFSC), offers a unique blend of benefits not typically available in other financial hubs. Its strategic location, state-of-the-art infrastructure, and a regulatory framework tailored for ease of doing business distinguish it from other global centers like Dubai’s DIFC or Singapore’s financial district. Key comparative advantages include: Regulatory Flexibility: GIFT City provides a regulatory environment that is more accommodating compared to traditional financial centers, facilitating easier fund setup and operations. Cost Efficiency: Operational and tax-related costs in GIFT City are competitively lower, largely due to tax exemptions and incentives offered to businesses operating within the IFSC. Access to Global Markets: The IFSC allows for broader investment in international markets directly from GIFT City, making it an ideal base for funds looking to invest globally.   Specific Incentives for Investors and Fund Managers in GIFT City GIFT City offers several incentives specifically designed to attract AIFs and their managers: Tax Incentives: Complete tax exemption on business income for the first 10 years and no GST on management fees enhance the profitability and operational efficiency of AIFs. Investment Freedom: There are no restrictions on the percentage of funds that can be invested in foreign securities by Alternative Investment Funds (AIFs) established in GIFT City. . Ease of Doing Business: Simplified processes and support from the IFSCA ensure that setting up and managing a fund in GIFT City is straightforward and hassle-free.   Managing an AIF in GIFT City Compliance and Reporting Regular Reporting Requirements to IFSCA - AIFs in GIFT City must adhere to regular reporting protocols which include detailed disclosures about their activities, investment portfolio, and fund performance. This ensures transparency and aligns with global best practices in fund management. Compliance with AML, CFT, and KYC Regulations - The IFSCA mandates strict adherence to Anti-Money Laundering (AML), Counter-Financing of Terrorism (CFT), and Know Your Customer (KYC) regulations. Compliance with these international standards reassures investors and enhances the reputation of GIFT City as a secure and reliable financial center. Strategic Considerations Leveraging GIFT City’s Ecosystem for Growth - The integrated ecosystem within GIFT City is designed to support the growth and expansion of AIFs. This includes access to professional services, networking opportunities, and a collaborative environment with other financial and tech companies. Networking and Partnership Opportunities Within the IFSC - GIFT City fosters a community of financial services professionals and businesses, providing ample opportunities for AIFs to build partnerships and expand their professional networks. Regular events, conferences, and seminars within the IFSC also offer platforms for thought leadership and industry engagement. Conclusion Setting up an Alternative Investment Fund (AIF) in Gujarat International Finance Tec-City (GIFT City) represents a strategic decision for fund managers and investors aiming to capitalize on the unique benefits offered by India's premier financial hub. GIFT City's integrated infrastructure, conducive regulatory environment, and robust financial ecosystem provide a solid foundation for AIF operations, distinguishing it from other global financial centers. Recap of the Potential Benefits of Setting Up an AIF in GIFT City: Regulatory Benefits: GIFT City offers a regulatory environment that simplifies compliance, reduces bureaucratic hurdles, and provides clarity on financial regulations, making it easier for AIFs to operate with confidence. Tax Advantages: One of the most compelling reasons to establish an AIF in GIFT City is the significant tax benefits. These include... --- > Positioned at the heart of Gujarat, India, the Gujarat International Finance Tec-City (GIFT City) stands out as an exemplary destination for businesses aiming to leverage India's burgeoning potential in the financial markets. - Published: 2024-05-28 - Modified: 2025-07-22 - URL: https://gift.treelife.in/setting-up-a-company-or-business-in-gift-city-registration-process-eligibility/ - Categories: Resources - Tags: companies operating in gift city, gift city advantages and disadvantages, gift city business opportunities, gift city license, gift city revenue, gift city transactions, how to open a company in gift city, how to register a company in gift city, how to register in gift city, setting up business in gift city, setting up company in gift city, setting up in gift city Introduction to GIFT City as a Global Business Hub In the era of globalization, where international finance and business connectivity play pivotal roles, the need for a well-structured, business-friendly environment is more crucial than ever. Positioned at the heart of Gujarat, India, the Gujarat International Finance Tec-City (GIFT City) stands out as an exemplary destination for businesses aiming to leverage India's burgeoning potential in the financial markets. As an integrated development designed to encourage and facilitate both domestic and international business operations, GIFT City serves as a gateway to opportunities in the realms of technology, finance, and global trade.   Understanding GIFT City What is GIFT City? GIFT City, formally known as Gujarat International Finance Tec-City, represents a colossal stride towards establishing a global financial and IT services hub in India. Conceived as a 'Smart City,' GIFT provides world-class infrastructure, facilities, and regulatory regimes tailored to boost the efficiency and competitiveness of businesses. The Strategic Importance of GIFT City for Businesses GIFT City is strategically positioned to serve the growing demands of India's financial services market on a global scale. By facilitating operations that span across time zones and bridging the infrastructural divide, GIFT City offers an unmatched blend of technological and regulatory amenities that propel businesses forward. Its significance is further amplified by its designation as the only Multi-services Special Economic Zone (SEZ), offering a plethora of fiscal incentives, including tax exemptions and business-friendly regulations, making it an attractive hub for financial services, IT, and ITeS companies.   Eligibility Criteria for Setting Up a Business in GIFT City Understanding who can set up a business in GIFT City and the specific compliance requirements is essential for domestic and international entities looking to establish operations in this jurisdiction. Here’s a detailed look at the eligibility criteria: Types of Businesses Eligible for GIFT City GIFT City caters to a broad range of business sectors, primarily servicing the Banking, Financial Services and Insurance (BFSI) sector. Below is a detailed list of permissible business types and activities: Banking Indian and Foreign Banks (via IFSC Banking Units or IBUs) Retail Banking for Non-Residents Treasury Operations & Structured Deposits Custodian and Escrow Services Transaction Banking (Cross-border) Wealth Management Platforms Insurance Indian & Foreign Insurers and Reinsurers Insurance Intermediaries (brokers, agents, web aggregators) IFSC Insurance Offices offering life, health, ULIPs, travel, and student insurance for NRIs Captive Insurers Asset & Fund Management Alternate Investment Funds (Category I, II, III) Venture Capital Funds & Angel Funds Portfolio Management Services (PMS) Mutual Funds (Retail Schemes) ESG Funds (exempt from certain IFSCA fees) Private Equity & Structured Products Fund Management Entities (FMEs) Family Investment Funds / Family Offices Capital Markets Stock/Commodity Exchanges Clearing Corporations Depositories and Custodians Brokers and Dealer-Brokers Bullion Exchanges (e. g. , IIBX) Registrar & Share Transfer Agents ESG Ratings & Data Providers Credit Rating Agencies Market Infrastructure Institutions (MIIs) Payment Services & Fintech E-money Issuance and Account Issuance Services Cross-border Remittance Providers Payment Aggregators & Gateways Escrow and Merchant Services IFSC Payment System Operators (PSPs) FinTech Innovation Entities under Regulatory Sandbox ITFS (International Trade Finance Service) Platforms Leasing Services Aircraft Leasing and Financing Ship Leasing and Marine Finance Framework-based transactions with resident Indian entities permitted under specific condition Ancillary/Allied Services Global In-house Centres (GICs) and Treasury Centres Accounting, Audit & Legal Consultancy Services Compliance Advisory & Corporate Secretarial Firms Educational and Training Institutions Research & Development Services HR & Talent Management Services Specialized Trade & Investment Services Bullion Trading & Clearing Members Commodity Trading International Trade Finance Services (Factoring, Bill Discounting, Forfaiting) Core Finance Companies (e. g. Lending, Export Financing) Listing of Commercial Papers & Debt Securities Sustainable Finance ESG-labelled Debt Securities Green/Climate Finance Products Sustainability-linked Loans and Bonds Educational & Capacity Building Foreign Universities & Institutions (under IFSCA Edu Guidelines) FinTech and Compliance Training Centres These businesses benefit from GIFT City's modern infrastructure, regulatory incentives, and status as an SEZ, making it a strategic location for both financial services and global trade operations. Criteria for International and Domestic Companies Both international and domestic companies must meet specific criteria to operate in GIFT City, focusing on compliance, operational readiness, and financial stability. Regulatory Compliance: Companies must comply with the regulations set by the International Financial Services Centres Authority (IFSCA). Adherence to the Special Economic Zone (SEZ) rules and regulations is mandatory. Operational Compliance: Entities are required to maintain specific net worth, financial ratios and meet capital adequacy requirements as per IFSCA guidelines. Regular reporting and disclosure to IFSCA are required to ensure transparency and compliance with financial regulations. Financial and Operational Readiness: Entities must demonstrate the capacity for sustainable operations, which includes having a sound financial base and a robust business plan. Must have the organizational structure in place to commence operations immediately upon setup. Specific Compliances for Banking and Insurance Sectors: Banking units must adhere to norms related to exposure ceilings, reserve requirements, and prudential norms as specified by IFSCA. Insurance entities must comply with IFSCA guidelines, focusing on solvency margins and operational mandates. Step-by-Step Registration Process for Setting Up a Business in GIFT City Navigating the registration process in GIFT City involves several critical steps. Here’s a concise yet comprehensive breakdown to ensure clarity and efficiency in setting up your business operations. Step 1: Identifying Office Space Choosing the right office space within GIFT City is pivotal as it serves as your business's operational base. Here’s how to approach this: How to Choose the Right Location: Consider factors like proximity to transport links, the nature of your business, infrastructure compatibility, and future expansion possibilities. GIFT City offers a variety of zones tailored for different types of businesses which can significantly benefit operational logistics. Legal Agreements with Developers: Once a suitable space is identified, engage in negotiating lease terms or purchase agreements. Legal considerations include lease duration, renewal terms, and any clauses specific to business operations in a Special Economic Zone (SEZ) like GIFT City. Step 2: Provisional Letter of Allotment (PLOA) The PLOA is a crucial document in the setup process, marking the reservation of your chosen space. Importance of the PLOA: This document confirms the allocation of office space and is essential for the next steps in the registration and setup process. Process to Obtain the PLOA: After agreeing on terms with the developer, apply for the PLOA through the developer.   Step 3: Application via SWIT Portal (for SEZ and IFSCA Approval) To streamline the setup, GIFT City now uses the SWIT (Single Window IT System) portal, enabling businesses to apply for both SEZ Unit Approval and IFSCA Authorization in a consolidated manner. Instead of submitting separate applications to the SEZ Development Commissioner and IFSCA, entities must now apply through the SWIT Portal. Key Documents Required: Provisional Letter of Allotment (PLOA) Detailed Business Plan / Project Report Certificate of Incorporation and PAN Memorandum and Articles of Association Board Resolution authorizing signatory Identity and Address Proof of Promoters/Directors Financial statements (audited) Application fees (as specified on the portal) Application Covers: SEZ Unit Approval IFSCA Authorization (for regulated financial services) Step 4: Approval Processes This stage involves regulatory approvals before you can start operations. Introduction to the Unit Approval Committee (UAC): The UAC evaluates your application and business plan. Prepare to present your case to the UAC, detailing how your business fits into GIFT City’s ecosystem. Obtaining the Letter of Permission / Approval (LOA): Upon satisfactory review by the UAC, the IFSCA (Administrator) will issue an LOA, which is the formal authorization to commence your business operations in GIFT City. Step 5: Legal Formalities and Registrations Post-approval, there are several legal formalities to complete. Execution of Lease Deed: Finalize your lease agreement with the developer and submit this deed to the authorities. SEZ License and NSDL Portal Registration: Obtain your SEZ license and register on the NSDL portal for seamless operation and compliance reporting. Step 6: Compliance and Legal Undertakings Ensure compliance with all legal requirements to operate smoothly. Bond Cum Legal Undertaking Requirements: Prepare and sign the Bond Cum Legal Undertaking with the IFSCA (Administrator). Registration Certificates and Tax Exemption Eligibility: Apply for necessary registrations such as GST and obtain certificates for tax exemptions applicable within GIFT City. Step 7: Final Registration with IFSCA The last step involves getting the final nod from the International Financial Services Centres Authority (IFSCA). Necessary Documentation and Fees: Submit all required documents and the applicable fees to IFSCA. Achieving the Certificate of Registration from IFSCA: Once all documents and fees are submitted, and the review is complete, IFSCA will issue a Certificate of Registration, allowing you to commence business operations. Commencing Business Operations in GIFT City Steps to Commence Business After Registration: Operational Setup: Once your company is registered, the next step is to establish your office in GIFT City. This involves setting up the necessary infrastructure such as IT systems and office equipment to ensure your business operations can begin smoothly. Staffing: Recruiting a skilled workforce is essential. GIFT City offers access to a vast talent pool, thanks to its strategic location and emphasis on financial and tech industries. Ensuring that your team is well-versed in compliance and operational procedures specific to GIFT City will be crucial. Obtain GIFT SEZ ID Cards: File an application with the Customs office for issuance of ID Cards for your employees which is a mandatory requirement for entering the SEZ area. Final Compliance Checks: Before you start operating, it’s important to complete all compliance checks. This includes obtaining final approvals from GIFT City authorities and ensuring all legal and regulatory guidelines are met. Mandatory Reporting and Operational Compliance: Regular Reporting: Businesses must adhere to strict reporting guidelines, which include submitting regular financial, operational, and compliance reports to both GIFT City authorities and the International Financial Services Centres Authority (IFSCA). Compliance with SEZ Regulations: Continuously monitor and comply with the regulations specific to Special Economic Zones (SEZs), which cover aspects like customs, tax, and labor laws. Environmental and Safety Standards: Maintaining high standards of safety and environmental compliance is crucial. GIFT City promotes sustainability and expects all businesses to adhere to these principles to ensure a safe and sustainable working environment. Conclusion Adhering to the detailed guide for setting up and commencing operations in GIFT City is crucial for leveraging the full spectrum of benefits offered by this premier business hub. This guide ensures that businesses align with regulatory requirements and capitalize efficiently on the strategic advantages of GIFT City. Benefits of Setting Up a Business in GIFT City 1. Strategic Location: Positioned at the crossroads of global trade routes, GIFT City offers strategic access to international and Indian markets. 2. Advanced Infrastructure: State-of-the-art infrastructure supports high-tech industries and financial services, providing a robust foundation for business operations. 3. Regulatory Advantages: The regulatory environment in GIFT City is designed to be business-friendly, offering ease of doing business, financial incentives, and a simplified tax regime, including: 100% tax exemption for 10 consecutive years out of 15 years for units in the International Financial Services Centre (IFSC). No Goods and Service Tax (GST) on services received by units in IFSC. Reduced Minimum Alternative Tax (MAT) for companies in IFSC. Favorable tax treatment for dividends, interest income, and capital gains for companies and investors operating within GIFT City. 4. Access to Talent: Proximity to major academic and business centers in India ensures access to a skilled workforce. 5. Global Connectivity: With its modern facilities and services, GIFT City serves as a gateway for businesses to engage with the global market. Following this comprehensive setup and operational guide will help businesses thrive in GIFT City, turning strategic positioning into tangible success and growth. By capitalizing on the conducive business environment, companies can drive innovation, attract investment, and achieve a competitive edge in the global marketplace. For more detailed information, visit GIFT City Business Operations and About GIFT City. --- > We at Treelife are thrilled to share the latest statistics from the International Financial Services Centres Authority ( ) 4 2024. This comprehensive snapshot showcases the remarkable growth and activity across various sectors within the GIFT IFSC - Published: 2024-05-25 - Modified: 2025-03-05 - URL: https://gift.treelife.in/key-highlights-from-gift-ifsc-q4-2024/ - Categories: Resources DOWNLOAD FULL PDF We at Treelife are thrilled to share the latest statistics from the International Financial Services Centres Authority 4 2024. This comprehensive snapshot showcases the remarkable growth and activity across various sectors within the GIFT IFSC 1. The number of IFSC Banking Units 17%, now totaling 27. 2. Fund Management Entities 37% to 114. 3. Investments in within India saw a 19% , amounting to USD 2,345 Mn. 4. 131 applications received under the , 20% and 52 , marking an 11% . 5, Both 42% 57% respectively. These numbers underscore the dynamic environment and the myriad of opportunities available in GIFT IFSC. We're proud to support businesses and investors in navigating this thriving landscape, offering expert legal, financial, and compliance services tailored to your needs. For more insights and to understand how we can help you capitalize on these opportunities, visit us at https://gift. treelife. in/. --- - Published: 2024-05-23 - Modified: 2025-07-22 - URL: https://gift.treelife.in/fintech-startups-and-companies-in-gift-city/ - Categories: Resources - Tags: fintech companies in gift city, fintech hub gift city, fintech in gift city, Fintech startups in GIFT City, gift city incentives India's Financial Gateway: GIFT City Beckons Fintech Startups With a keen eye on the future, the Indian government is actively shaping Gujarat International Finance Tec-City, or GIFT City, into a premier International Financial Services Centre (IFSC). This burgeoning financial hub is rapidly establishing itself as a fertile ground for innovation, particularly for ambitious fintech startups. GIFT City's design centers around attracting both domestic and foreign investment in the financial sector. By fostering a one-of-a-kind ecosystem that prioritizes growth and innovation, it presents an enticing destination for aspiring fintech companies seeking a launchpad to propel their ventures onto the global stage.   The Alluring Ecosystem of GIFT City for Fintech Gujarat International Finance Tec-City (GIFT City) is rapidly emerging as a beacon for fintech innovation, bolstered by a strategic regulatory and supportive ecosystem tailored for financial technologies. Here, we explore how GIFT City's environment is ideal for fintech startups. A. Streamlined Regulatory Landscape Role of International Financial Services Centre Authority (IFSCA) as a Single Regulator GIFT City, being India's first operational International Financial Services Centre (IFSC), is regulated by the International Financial Services Centre Authority (IFSCA). This organization functions as the sole regulator for financial activities within GIFT City, overseeing financial products, institutions, and services. The presence of a unified regulator like the IFSCA simplifies the regulatory landscape, replacing the previously complex system where multiple authorities had jurisdiction. Benefits of a Unified Regulatory Body for Fintech Startups For fintech startups, a single regulatory body means less bureaucratic red tape and more clarity and efficiency in compliance matters. This streamlined approach enables startups to navigate the regulatory environment more smoothly and focus on innovation and growth without being bogged down by complex and time-consuming regulatory processes. B. Fostering Innovation: The Fintech Framework Introduction to the Fintech Framework The Fintech Framework, established by the IFSCA, aims to encourage innovation within financial services by fostering an environment conducive to the development of cutting-edge financial technologies. This framework serves as a backbone for the creation and implementation of innovative financial products and services, making GIFT City an attractive landscape for fintech ventures. Framework's Categories: Financial Services vs. Broader Tech The framework categorizes eligible activities into two main types: fintech, which includes innovations directly in financial services like neo-banking, digital lending, and InsureTech; and techfin, which incorporates broader technological advancements that support financial services, such as solutions in AgriTech and DefenseTech that intersect with financial technologies. Eligibility Criteria for Fintech Startups To qualify under the Fintech Framework, entities must meet specific criteria: Indian Entities: These must either be recognized as fintech startups by the Department for Promotion of Industry and Internal Trade (DPIIT) or be Indian companies and LLPs, including those already regulated by domestic financial authorities like RBI, SEBI, IRDAI, and PFRDA. Foreign Entities: Must be based in jurisdictions compliant with the Financial Action Task Force (FATF), ensuring a global standard of financial security and integrity. C. Sandbox Mechanisms: Testing Grounds for Innovation Introduction to Sandboxes Sandboxes in the fintech sector provide a structured yet flexible environment where startups can experiment with innovative financial products and services without immediately undergoing the full brunt of regulatory compliance. This concept is crucial as it allows for the testing of cutting-edge technologies and business models in a controlled setting, reducing risks associated with deploying untested solutions directly to the market. Different Sandbox Options Available in GIFT City GIFT City offers several types of sandboxes, each catering to different needs and stages of innovation: Regulatory Sandbox: This sandbox allows fintech companies to test their new technologies and solutions with real customers but without full regulatory compliance. It's particularly valuable for those innovations that aim to disrupt the traditional financial services landscape. Fintech Innovative Sandbox (FIS): Designed for startups to develop and refine their technologies in isolation from the live market, this sandbox does not offer a reprieve from regulatory norms but provides a safe space for testing. Inter Operable Regulatory Sandbox (IORS): This unique sandbox facilitates the testing of hybrid financial products and services that might fall under the regulatory purview of multiple financial authorities, making it ideal for complex fintech solutions looking to operate across borders or in multifaceted regulatory environments.   Boosting Innovation: The FinTech Incentive Scheme Recognizing the importance of financial backing in the initial stages of growth, IFSCA has established a comprehensive FinTech Incentive Scheme. This scheme aims to attract fintech companies by offering grants that can significantly bolster their financial well-being. The grant range varies depending on the nature of the fintech activity and the stage of development. Here's a breakdown of the available grants: Startup Grant (₹15 lakhs): This grant provides initial support for developing and marketing innovative fintech products. Proof of Concept (POC) Grant (₹50 lakhs): Designed to bridge the gap between ideation and implementation, this grant aids startups in conducting POCs for their solutions, both domestically and internationally. Sandbox Grant (₹30 lakhs): This grant helps startups refine their solutions within a controlled environment offered by GIFT City's sandbox mechanisms. Green Fintech Grant (₹75 lakhs): Recognizing the growing focus on sustainability, this grant encourages the development of fintech solutions that promote environmentally conscious financial practices. Accelerator Grant (₹10 lakhs): This grant supports accelerators within the IFSC, fostering an ecosystem that empowers and mentors aspiring fintech companies. Listing Support Grants (₹15 lakhs): This grant helps eligible Domestic FEs (Financial Entities) defray costs associated with listing on stock exchanges recognized by the Authority. These grants are available to a wide range of entities, including: Fintech startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) Indian companies and Limited Liability Partnerships (LLPs) Existing Indian entities operating under domestic financial regulators (RBI, SEBI, IRDAI, PFRDA) Foreign entities from FATF-compliant jurisdictions   The Future of Payments: Payment Services in IFSC The future of finance lies heavily on the seamless movement of funds. Recognizing this, IFSCA is actively shaping a robust framework for payment services within GIFT City. The IFSCA (Payment Services) Regulations, 2025, represent a significant step towards this goal. This framework outlines specific types of payment services that can be offered within GIFT City, including: Account Issuance: Establishing and managing financial accounts for customers. E-Money Issuance: Issuing electronic money denominated in foreign currencies for convenient digital transactions. Escrow Services: Acting as a trusted third party to hold funds or assets securely during transactions. Cross-Border Money Transfer Services: Facilitating the efficient and secure transfer of funds across international borders. Payment service providers in GIFT City operate under a well-defined regulatory structure: Authorization: All entities offering payment services must obtain a certificate of authorization from IFSCA. Company Incorporation and Net Worth Requirements: Companies must be incorporated within the IFSC and meet minimum net worth requirements based on their designated category. Here's a breakdown of the net worth requirements: Regular Payment Service Providers: These providers must start with a minimum net worth of USD 100,000, which increases to USD 200,000 by the third financial year of operation. Significant Payment Service Providers: In contrast, Significant Payment Service Providers must reach a net worth of USD 250,000 within 90 days of designation and USD 500,000 by the end of the third year. Operational and Security Standards: The IFSCA regulations emphasize stringent operational and security standards: Fit and Proper Criteria: Directors, key personnel, and stakeholders must demonstrate high standards of integrity, financial soundness, and competence. Safeguarding Funds: User funds must be held in segregated escrow accounts within designated banking units in the IFSC, ensuring their protection from operational risks. Risk Management and Cybersecurity: Robust risk management frameworks and robust IT security systems are mandatory for all payment service providers.   Why Fintech Startups Should Consider Gift City Gift City presents a compelling landscape for fintech startups seeking to flourish and disrupt the financial sector. Here's a breakdown of the key advantages that make Gift City an attractive launchpad:   Reduced Operational Costs: Lucrative Tax Benefits Gift City offers a significant financial advantage through its tax breaks: Consecutive Tax Exemption: Units operating within the International Financial Services Centre (IFSC) enjoy a 100% tax exemption for ten consecutive years out of a fifteen-year period. This translates to substantial savings that can be reinvested in growth and innovation. GST Exemption: Fintech startups benefit from a complete exemption on Goods and Services Tax (GST) for services received within the IFSC. This eliminates a layer of indirect taxation, further reducing operational costs. Additional Tax Benefits: Gift City offers a bouquet of other tax incentives, including exemption from Minimum Alternate Tax (MAT) for companies opting for the new tax regime, and exemptions from stamp duty and taxes on security or commodity transactions. These benefits significantly lighten the overall tax burden for startups.   Access to a Skilled Talent Pool India boasts a vast pool of highly skilled engineers, making it an ideal location for fintech startups. Here's what Gift City offers: Large Talent Pool: India is a global leader in producing skilled IT professionals. Gift City's strategic location leverages this national advantage, allowing startups to tap into a readily available talent force. This reduces recruitment costs and expedites the process of building a strong development team. Access to India Stack: India's robust digital infrastructure, including Aadhaar (unique identity system) and UPI (Unified Payments Interface), provides a strong foundation for fintech solutions. Gift City allows startups to leverage these resources efficiently, fostering innovation in areas like digital lending and mobile payments.   Recognition by Global Players: A Sign of Promise GIFT City has garnered significant attention from global corporations, affirming its potential as a prime location for fintech startups. Notably, major institutions like HSBC, IBM, Bank of America, and Oracle have established a presence in the city, demonstrating the trust and investment these giants are willing to commit. Google's establishment of a global fintech operations center here is particularly noteworthy, serving as a testament to the city's promising future in the financial technology sector   Modern Infrastructure: A Flourishing Business Environment The development plans for GIFT City are indeed ambitious and expansive. According to current projections, the total planned built-up area amounts to approximately 62 million square feet. This includes substantial allocations for commercial, residential, and social facilities. Specifically, commercial space is set to encompass about 67% of the total area, translating to roughly 42 million square feet, while residential areas will cover 22% or approximately 14 million square feet . These developments are backed by significant financial commitments, with the GIFT City project attracting substantial investments aimed at transforming it into a world-class finance and IT hub. The presence of major global firms and ongoing large-scale infrastructure projects underpin GIFT City's emergence as a significant player in the global financial services sector   Gift City: A Launchpad for the Future of Fintech Gift City presents a compelling opportunity for fintech startups seeking to disrupt the financial landscape. Here's a recap of its potential: Advantages: Reduced Operational Costs: Lucrative tax breaks like 100% tax exemption for ten years and exemption from GST significantly reduce costs, allowing startups to reinvest in growth. Access to Skilled Talent: India's vast pool of skilled engineers and access to India Stack (Aadhaar, UPI) provide a strong foundation for innovation. Streamlined Regulatory Environment: A single regulator (IFSCA) offers clarity and efficiency compared to the previous complex landscape. Fintech Framework and Sandbox: The framework encourages innovation with clear categories and testing options through regulatory and innovation sandboxes. Fintech Incentive Scheme: Grants of up to INR 75 lakhs provide financial support for research, development, and expansion. Overall, Gift City presents a promising launchpad for fintech startups. The supportive regulatory environment, financial incentives, and access to talent and digital infrastructure position it to be a prominent global fintech hub. However, startups should carefully consider the challenges and strategically plan their entry into this dynamic ecosystem. Gift City stands poised to shape the future of Indian and global fintech, offering a platform for innovation and disruption within the financial services sector.   --- - Published: 2024-05-22 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-city-the-epicenter-of-global-financial-hub-in-india/ - Categories: Resources - Tags: finance companies in gift city gandhinagar, Financial hub in India, Financial services in GIFT City, GIFT City fintech Nestled between the bustling city of Ahmedabad and Gujarat's capital, Gandhinagar, lies a project unlike any other in India - Gujarat International Finance Tec-City (GIFT City). Envisioned by Prime Minister Narendra Modi during his time as Gujarat's Chief Minister, GIFT City is more than just a cityscape; it's a bold ambition to establish India as a prominent player in the global financial arena. While still under development, GIFT City has already made significant strides. Launched in 2007, the project has attracted international attention with its world-class infrastructure, favorable regulations, and attractive tax benefits. This unique financial hub aspires to rival established giants like Dubai and Singapore, offering a dynamic ecosystem for businesses and investors alike.   The Genesis of GIFT City: A Dream of Rivaling Global Financial Giants The story of GIFT City's origin can be traced back to 2007, when a visionary leader named Narendra Modi, then the Chief Minister of Gujarat, dreamt of establishing a financial powerhouse in India. His vision was audacious: to create a center that could compete with established giants like Dubai and Singapore. This dream took a significant step forward in 2015 when the Reserve Bank of India (RBI) granted GIFT City the coveted status of a 'multi-services Special Economic Zone (SEZ)'. This designation unlocked a range of benefits, paving the way for GIFT City's remarkable journey.   The Initial Goals: An Ambitious Benchmark From the outset, the project aimed high. The core objective was to establish GIFT City as a world-class financial hub, attracting businesses and investors not just from India, but from across the globe. By rivaling established financial centers, GIFT City aspired to: Become a magnet for international investment: By offering a robust infrastructure, a favorable regulatory framework, and attractive tax benefits, GIFT City aimed to become a preferred destination for foreign investors. Create a dynamic financial ecosystem: Envisioned as a hub for diverse financial services, GIFT City aimed to attract a wide range of institutions, from banks and insurance companies to asset management firms and fintech startups. Position India as a global financial leader: By establishing a competitive financial center within its borders, India could solidify its place on the global financial map, attracting new opportunities and fostering economic growth.   Key Drivers of GIFT City's Rise: A Thriving Ecosystem for Financial Powerhouses GIFT City's meteoric rise can be attributed to a powerful confluence of factors, meticulously designed to create an environment that fosters financial activity and attracts businesses of all sizes. Let's delve into the three pillars that have propelled GIFT City forward: 1. Infrastructure Excellence: A World-Class Stage for Business GIFT City boasts top-notch infrastructure, meticulously crafted to cater to the specific needs of the financial sector. Imagine towering, state-of-the-art office spaces equipped with cutting-edge technology. These havens for business are seamlessly connected by a dedicated metro corridor, ensuring efficient and swift commutes. A well-planned road network further bolsters connectivity, both within GIFT City and to nearby locations. This world-class infrastructure isn't just impressive; it's a strategic advantage that makes GIFT City an undeniably attractive proposition for both domestic and international players. 2. Regulatory Advantages: A Streamlined Framework for Unlocking Potential One of the most significant draws of GIFT City is its distinct regulatory framework. Unlike the rest of India, GIFT City operates under a separate set of regulations designed to be more business-friendly. This translates to quicker approvals, streamlined processes, and a focus on facilitating financial activities. The heart of this advantage lies in the International Financial Services Centre (IFSC) established within GIFT City. This IFSC allows businesses to operate in foreign currency, a feature that unlocks a global pool of investors and fosters international trade. 3. Tax Benefits: A Compelling Proposition for Investors Tax incentives have played a crucial role in propelling GIFT City to prominence. Businesses operating within the IFSC enjoy a smorgasbord of tax exemptions and concessions. For instance, units in the IFSC are offered a 100% tax exemption for 10 consecutive years out of 15 on business income. This significantly reduces operational costs and allows businesses to reinvest their profits for further growth. Furthermore, investors benefit from a range of tax breaks, including exemption from Securities Transaction Tax (STT), Capital Gains Tax (CGT), and stamp duty for transactions done on international exchanges within the IFSC.   Beyond the Basics: Additional Perks Beyond these core drivers, GIFT City offers other advantages. For instance, the government provides state subsidies to reduce operational costs for businesses within the IFSC. These subsidies cover expenses like lease rentals, provident fund contributions, and even electricity charges. Additionally, GIFT City is actively developing its social infrastructure, with plans to construct residential units, a university town, and a vibrant riverfront district. These developments will create a more holistic and attractive environment for professionals and their families, further solidifying GIFT City's position as a premier financial hub.   The Impact of GIFT City: A Catalyst for Growth and Transformation GIFT City's meteoric rise has transcended the realm of finance, leaving a deep imprint on the economic landscape of both Gujarat and India. Here, we delve into some of the key ways GIFT City is fostering positive change: Fostering International Trade: A Gateway Beyond Financial ServicesStrategically located near major ports, GIFT City isn't confined to just financial activities. Its International Financial Services Centre (IFSC) allows businesses to operate in foreign currency, facilitating seamless cross-border trade and commerce. This, in turn, bolsters India's overall economic growth by: Enhancing Export Potential: Companies can leverage GIFT City's infrastructure to conduct international trade transactions efficiently, boosting India's exports of goods and services. Attracting Foreign Investment: The ease of conducting international business in GIFT City attracts foreign investments, which injects capital into the Indian economy and spurs further growth. Promoting Innovation: The confluence of international trade and financial services in GIFT City fosters a dynamic environment that encourages innovation in areas like trade finance and logistics. Employment Opportunities: A Hub for Skilled ProfessionalsGIFT City's development has been a boon for job creation, generating thousands of opportunities across various sectors. This isn't just limited to high-profile finance and technology positions. It also encompasses: Construction and Maintenance: The ongoing development of GIFT City necessitates a skilled workforce for construction, maintenance, and facility management. Support Services: As the business ecosystem in GIFT City flourishes, the demand for supporting services like hospitality, retail, and transportation soars, creating additional job opportunities for a diverse range of professionals within the city. These job opportunities contribute to: Reduced Unemployment: Increased job creation helps bring down unemployment rates in the region, uplifting the standard of living for many families. Skill Development: GIFT City's focus on attracting high-end financial and tech firms fosters a culture of skill development, equipping professionals with the expertise needed in the globalized economy. Global Recognition: A Rising Star on the Financial MapGIFT City's ascent hasn't gone unnoticed. Major financial institutions are setting up operations there, recognizing its potential as a global financial hub. This international attention has several advantages for India: Enhanced Reputation: The presence of leading financial institutions bolsters India's image as a credible and competitive player in the global financial arena. Benchmarking and Knowledge Transfer: Interaction with established international players allows Indian finance companies in GIFT City, Gandhinagar to learn best practices, cutting-edge technologies, and innovative financial products, accelerating their own growth. Integration with Global Markets: GIFT City acts as a bridge between India and global financial markets, facilitating easier access to international capital and fostering greater integration with the global financial ecosystem.   GIFT City: A Gateway to India's Financial Future GIFT City's meteoric rise has transformed itself from a visionary project into a thriving financial hub. Nestled on the banks of the Sabarmati River, it bridges the gap between Ahmedabad, Gujarat's commercial capital, and Gandhinagar, the state's political center. Let's delve deeper into the success stories that are propelling GIFT City forward. Banking and Financial Institutions: A Melting Pot of Expertise GIFT City boasts a robust presence of both domestic and international financial giants. These institutions capitalize on GIFT City's unique regulatory framework to offer a wider range of services compared to mainland India. Here are some notable examples: Domestic Powerhouses: Leading Indian banks like HDFC, SBI, and YES Bank have set up shop, offering services like offshore banking units and wealth management, catering to a global clientele. International Expertise: Renowned institutions like Standard Chartered Bank and HSBC have established a presence, leveraging GIFT City's focus on international finance. This blend of domestic and international expertise fosters a dynamic financial ecosystem. Alternative Investment Funds: A Launchpad for Global Capital GIFT City's regulations facilitate the establishment of a diverse range of investment funds. These funds cater to both domestic and global investors, unlocking new avenues for capital generation: Global Investment Reach: Investment funds in GIFT City can attract capital from across the globe, providing Indian businesses with greater access to international financing for growth. Diversification Opportunities: The presence of various investment funds allows investors to diversify their portfolios, mitigating risk and maximizing returns.   FinTech Innovations: A Breeding Ground for the Future GIFT City has become a hotbed for FinTech innovation, attracting startups and established tech firms alike. Its state-of-the-art digital infrastructure empowers these companies to develop cutting-edge solutions: Cross-Border Payment Solutions: FinTech startups within GIFT City are revolutionizing international money transfers. Their innovative solutions ensure faster, more secure transactions, boosting global trade. Blockchain Technology: Several companies are leveraging blockchain technology to offer secure financial services within GIFT City. This enhances transparency and reduces fraud risk in financial transactions.   International Collaborations: Building Bridges for Success GIFT City's success story is bolstered by strategic partnerships with leading global institutions. These collaborations span diverse sectors, fostering knowledge exchange and propelling growth: Educational Powerhouses: Prestigious universities like Deakin University have established campuses in GIFT City. This not only fosters talent development but also injects international best practices into the Indian education system. Financial Knowledge Sharing: GIFT City actively collaborates with international financial entities on knowledge-sharing initiatives and joint ventures. This fosters innovation and strengthens India's position in the global financial landscape.   The Future of GIFT City: A Gateway to a Transformed Financial Landscape GIFT City's meteoric rise from a visionary project to a thriving financial hub is a testament to India's ambition in the global financial arena. However, its true potential lies not just in replicating established financial centers, but in shaping the future of finance itself.   Evolving Financial Landscape: A Fertile Ground for Innovation The global financial sector is undergoing a metamorphosis. Fintech solutions are revolutionizing traditional models, and sustainability is becoming a core principle. GIFT City, with its focus on cutting-edge technology and a robust regulatory framework tailored for innovation, is perfectly positioned to capitalize on these trends. Imagine a future where GIFT City facilitates seamless cross-border transactions using blockchain technology, ensuring security and efficiency for financial services in GIFT City. GIFT City fintech startups within the city can develop solutions that cater to the evolving needs of global businesses, fostering financial inclusion and accessibility. Furthermore, GIFT City's focus on green finance can attract businesses and investors committed to sustainable practices, propelling India's leadership in this crucial domain.   Competing with Established Giants: A David vs. Goliath Narrative Can GIFT City truly compete with established financial giants like London, New York, and Singapore? While not an overnight replacement, GIFT City has the potential to become a formidable competitor in the long run. Its strategic location, coupled with a favorable time zone difference from major financial centers, allows for extended trading hours. Additionally, GIFT City offers a unique advantage – a single unified regulator, the International Financial Services Centres Authority (IFSCA). This streamlines processes and reduces red tape, creating a more business-friendly environment compared to its multi-layered regulatory counterparts.   Shaping the Future of Finance: Beyond India's Borders GIFT City's impact will extend far beyond India's borders. By fostering innovation, GIFT City can establish itself as a global thought leader, influencing international financial regulations and practices. Think tanks and research institutions within GIFT City can collaborate with their... --- - Published: 2024-05-21 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-city-stamp-duty-exemption-all-you-need-to-know/ - Categories: Resources - Tags: GIFT City Stamp Duty Exemption Introduction Gujarat International Finance Tec-City (GIFT City), situated in Gandhinagar, represents India’s pioneering stride into establishing an international financial services centre, envisioned by our Hon’ble Prime Minister Narendra Modi. Since its inauguration in late 2016, GIFT City has been a focal point for advancing India's financial services on a global scale. Home to subsidiaries of major exchanges like the Bombay Stock Exchange and the National Stock Exchange, this hub integrates a vast spectrum of financial activities, fostering substantial economic engagement. The recent legislative amendment by the Gujarat government, aimed at enhancing GIFT City’s allure to financial entities, is a strategic move to solidify its status as a premier financial hub. Effective from March 30, 2020, as per the state government's notification, there will be a full refund of stamp duty on stock transactions for broking firms that establish their registered offices within GIFT City. This policy shift follows the 2020 introduction of a uniform stamp duty rate of 0. 2 percent by the Central government, aimed at standardizing the collection process across India, wherein the responsibility is vested in exchanges, clearing corporations, and depositories. This new GIFT City Stamp Duty Exemption is designed to entice more broking companies to relocate to GIFT City, thereby increasing trading activities and leveraging the city’s state-of-the-art infrastructure. Brokers, especially those dealing predominantly in derivatives, stand to benefit significantly from this policy, as it potentially reduces operational costs associated with high-volume transactions. The exemption also complements other financial incentives in GIFT City, such as exemptions from Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT), enhancing the city’s competitiveness as an International Financial Services Centre (IFSC).   Moreover, this initiative is part of a broader set of incentives that include exemptions for emerging sectors like aircraft leasing, ship leasing, global in-house centres and provisions for significant capital investments, aiming to attract diverse business activities and stimulate job creation. The holistic approach taken by the Gujarat government underscores their commitment to transforming GIFT City into a global financial powerhouse and providing direct employment to thousands.   The Stamp Duty Exemption in India: A Closer Look Stamp duty is an essential tax levied on various financial transactions and legal documents, playing a critical role in the regulatory framework of India's financial markets. Historically, stamp duty rates differed from state to state, which sometimes led to businesses relocating to take advantage of lower rates. Recognizing the need for uniformity, the Indian government standardized stamp duty rates across all states in January 2020. This reform centralized the collection of stamp duty through exchanges, clearing corporations, and depositories, setting a uniform rate of 0. 2 percent on all transactions to simplify the process and ensure consistency across the country.   Stamp Duty Exemption in GIFT City The Gujarat government has introduced a stamp duty exemption specifically for broking firms operating within GIFT City. Announced on April 11, 2020, this policy refunds stamp duties on stock transactions for firms with registered offices in GIFT City, aiming to attract more financial services to this burgeoning hub. This move is part of broader efforts to enhance GIFT City’s appeal as a global financial district, providing competitive advantages such as tax holidays and other financial incentives. This exemption is not only a significant draw for stock broking entities, particularly those dealing in high-frequency trading like derivatives.   By eliminating stamp duty for capital market transactions GIFT City is being positioned as a highly attractive destination for domestic stock broking firms.     Impact of the Stamp Duty Exemption in GIFT City For Broking Firms Advantages for Broking Firms Registering in GIFT CityThe stamp duty exemption provided by the Gujarat government offers a significant financial incentive for broking firms establishing their registered offices in GIFT City. By eliminating the stamp duty on stock transactions, these firms can enjoy reduced operational costs, which is particularly beneficial for those engaging in high-volume trading such as derivatives. This cost efficiency can make GIFT City a more attractive location for financial enterprises looking to maximize their profitability.   Expected Shift of Brokerage Offices to GIFT CityAnticipating the financial benefits, a considerable number of brokerage firms are expected to relocate their operations to GIFT City. This migration is driven by the prospect of substantial savings on transaction costs, which can accumulate to significant amounts, especially for firms with large-scale trading activities. The strategic relocation is not only financially prudent but also positions these firms within a rapidly growing international financial hub.   Testimonials from Brokers on the Impact of the ExemptionBrokers have expressed strong support for the stamp duty exemption, highlighting its role in reducing business expenses and enhancing operational efficiency.   For the Financial Sector in GIFT City Enhanced Attractiveness of GIFT City as a Financial HubThe exemption from stamp duty contributes significantly to enhancing GIFT City’s attractiveness as a financial hub. By fostering a cost-effective trading environment, GIFT City is set to attract not only brokerage firms but also other financial services and fintech companies. This creates a competitive financial ecosystem conducive to innovation and growth, further establishing GIFT City’s reputation on the global financial Infrastructure and Development InitiativesRecent developments in GIFT City’s infrastructure, such as the establishment of advanced facilities like the International Mediation and Arbitration Centre, have made it an even more appealing location for financial firms. These facilities are designed to support the complex needs of global financial transactions and dispute resolutions, adding significant value to the services provided within GIFT City.   Future Plans and InvestmentsLooking ahead, GIFT City continues to expand with strategic plans that include further infrastructural enhancements and significant capital investments. These initiatives are expected to directly benefit financial services firms by providing sophisticated amenities and services tailored to the needs of global finance. The ongoing development aligns with GIFT City’s aim to become a leading international financial hub, mirroring established centers like Singapore and Dubai .   The Broader Economic Impact of GIFT City On the Local Economy Job Creation and Economic Growth within Gandhinagar and Surrounding AreasGIFT City's development has significantly spurred job creation and economic growth in Gandhinagar and nearby areas. GIFT City has created a workforce of 26,000 professionals. The infrastructure and business opportunities provided by GIFT City have also fostered ancillary economic activities, boosting local industries such as hospitality, real estate, and retail .   Investment Inflows into GIFT CityThe strategic initiatives and tax incentives offered by GIFT City have attracted a myriad of domestic and international investments. Notably, bonds worth USD 50 billion have already been listed on GIFT City IFSC exchanges, highlighting its effectiveness in drawing substantial financial engagements. The city's focus on creating a conducive business environment is evident from the over 1,000 companies engaged through various international and domestic roadshows, showcasing GIFT City's potential to global investors . On India’s Global Financial Standing GIFT City's Role in Enhancing India's Position in the International Financial MarketGIFT City is strategically positioned to boost India's stature in the global financial markets. By offering a combination of advanced infrastructure, significant tax breaks, and a regulatory environment conducive to business, it attracts a concentration of financial services that contribute to India's growing influence in international finance. This development supports India's integration into the global financial system and helps position the country as a competitive player on the world stage .   Contributions to India's Economic Strategy on a Global ScaleThe establishment of GIFT City aligns with broader economic reforms aimed at liberalizing and enhancing the competitiveness of India's financial services sector. These reforms are part of India's strategic efforts to attract foreign investment and diversify its economic base, which are crucial for India's long-term economic growth and integration into the global economy. As a hub for international financial services, GIFT City plays a pivotal role in this strategy, contributing to India's aspirations to become a global financial leader.   Conclusion GIFT City, as India's pioneering International Financial Services Centre, has made significant strides in establishing itself as a major player on both the national and international financial stages. Through strategic incentives such as stamp duty exemptions, robust infrastructural developments, and a comprehensive regulatory framework, GIFT City has successfully attracted a wide array of businesses and investments, fostering substantial economic growth and development. Recap of Key Points: Stamp Duty Exemption: This pivotal policy has significantly reduced operational costs for financial firms, especially those engaged in high-volume trading, enhancing GIFT City's attractiveness as a financial hub. Broader Financial Incentives: Beyond stamp duty, GIFT City offers various financial incentives including exemptions from Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT), which further lower the cost of financial operations within the centre. Infrastructure and Development Initiatives: State-of-the-art facilities like the International Mediation and Arbitration Centre and continuous infrastructural upgrades have equipped GIFT City to meet global standards and cater to international financial transactions. Impact on Local Economy: The development of GIFT City has spurred job creation and economic growth within Gandhinagar and surrounding areas, significantly impacting local industries and improving living standards. Global Financial Standing: GIFT City has contributed to enhancing India's position in the international financial market, making it a competitive destination for global financial services and investments.   Future Outlook Looking ahead, GIFT City is poised for continued growth and expansion. The focus on attracting more international businesses, coupled with India's broader economic reforms, positions GIFT City as a critical gateway for global finance into India. With ongoing developments and a strategic focus on becoming a hub for new-age financial and technology services, GIFT City is expected to play a crucial role in shaping India's financial future. The implications of these developments are profound, promising not only to bolster India's economic growth but also to enhance its strategic position in global financial networks. As GIFT City continues to evolve, it stands as a testament to India's commitment to fostering innovation and excellence in financial services on a global scale. --- - Published: 2024-05-21 - Modified: 2025-07-22 - URL: https://gift.treelife.in/the-rise-of-mutual-fund-businesses-in-gift-city/ - Categories: Resources - Tags: gift city mutual fund A New Hub Emerges for Indian Mutual Funds The Indian financial landscape is witnessing a significant shift. Mutual funds, which pool investor money to invest in a variety of assets like stocks and bonds, are increasingly choosing a new home: Gujarat International Finance Tec-City, or GIFT City. Traditionally, Indian asset managers operated their offshore fund businesses from established financial centers like Dubai and Singapore. However, the tide is turning towards GIFT City, driven by a combination of strategic advantages offered by the Indian government and a desire for better access to the domestic capital market. This trend highlights the growing importance of mutual funds. These investment vehicles play a crucial role in financial markets by offering individuals a diversified and professionally managed way to participate in the growth of the economy. By pooling resources, mutual funds allow investors to spread their risk across various assets, potentially leading to better returns compared to investing directly in individual stocks or bonds. Furthermore, the migration of Indian asset managers to GIFT City signifies a strategic shift in the industry. In the following sections, we will delve deeper into the reasons behind this movement, exploring the benefits GIFT City offers and the potential impact it may have on the future of Indian mutual funds.   Why GIFT City for Mutual Fund Businesses? GIFT City, or the Gujarat International Finance Tec-City, is envisioned as a game-changer for India's financial landscape. It's a greenfield project built from the ground up to rival established financial hubs like Singapore and Dubai. This makes it an attractive location for both domestic and international asset managers looking to establish a presence in India, particularly for GIFT city mutual funds. Government Initiatives The Indian government is actively promoting GIFT City as a gateway for global capital and financial services. To attract businesses, they've rolled out a bouquet of incentives: Tax Breaks: Companies setting up shop in GIFT City enjoy a 10-year tax holiday on profits. This significantly reduces operational costs and boosts profitability. Favorable Tax Regime: GIFT City offers a tax-friendly environment that rivals established financial centers. There are no taxes on transfer of funds from overseas jurisdictions, and capital gains tax exemptions exist for investments in units set up within GIFT City.   Regulatory Advantages Beyond tax benefits, GIFT City provides a robust and efficient regulatory framework for mutual funds: Stable Regulatory Regime: The International Financial Services Regulatory Authority (IFSCA) governs financial services in GIFT City. This independent regulator ensures a stable and predictable regulatory environment, crucial for long-term business planning. Proximity to Indian Markets: Unlike traditional offshore hubs, GIFT City offers unmatched physical and regulatory proximity to the Indian capital market. This proximity allows for better understanding of the Indian market dynamics, faster decision-making, and efficient management of India-focused funds.   Benefits for Mutual Funds in GIFT City GIFT City offers a compelling package of benefits that is attracting Indian asset managers to relocate their mutual fund businesses. Here's a breakdown of the key advantages: Lower Operational Costs: Compared to established financial centers like Singapore and Dubai, GIFT City provides a significantly more cost-effective environment. The cost of living in Gujarat is generally lower than Singapore and Dubai. Renting office space in GIFT City is significantly cheaper compared to prime locations in those cities. Competitive Manpower Costs: Salaries for qualified professionals in GIFT City tend to be lower than those in Singapore or Dubai. This can lead to significant cost savings on staff expenses for asset management companies. Tax Advantages: The Indian government has made GIFT City attractive through a series of tax breaks specifically targeted at financial institutions: 10-Year Consecutive Tax Holiday: Companies operating in GIFT City enjoy a complete tax exemption on profits for 10 consecutive years in a 15 year period. This significantly boosts profitability and frees up capital for growth. No Transfer Taxes: Funds can be transferred from overseas jurisdictions into GIFT City without any tax implications. This simplifies the process and reduces overall costs associated with fund movement.   Capital Gains Tax Exemption: There are exemptions on capital gains tax accrued on transfer of specified securities listed on IFSC exchanges by a non-resident or Category III AIF located in IFSC.   Examples of Migration: A Rush to GIFT City The trend of Indian asset managers migrating their operations to GIFT City is gaining significant momentum. Here are some notable examples that showcase the appeal of this financial hub: Mirae Asset Investment Managers: This Indian unit of South Korea's Mirae Asset Financial Group has shifted a $200 million Hong Kong-based fund to GIFT City. They are actively considering moving a second fund, citing the "stable regulatory regime and proximity to the Indian markets" as key drivers. Mirae expects to manage a total of $435 million out of GIFT City in the near future.   DSP Mutual Fund: This fund manager, with $20 billion in assets under management (AUM) across India and offshore, plans to relocate its Mauritius-based operation managing $450-500 million to GIFT City by March 2024. This move highlights the cost benefits of GIFT City, as DSP Mutual Fund seeks a more economical operational environment.   Aditya Birla Sun Life AMC: India's sixth-largest asset manager, with ₹3. 08 trillion ($37. 2 billion) AUM, is also moving its operations from Dubai and Singapore to GIFT City. This decision goes beyond just cost savings. A. Balasubramanian, CEO of Aditya Birla Sun Life AMC, emphasizes the ability to establish an ESG-focused fund with seed investment already secured, demonstrating GIFT City's support for innovative financial products.   According to the International Financial Services Regulatory Authority (IFSCA), over 80 fund managers with commitments of $30 billion and investments exceeding $2. 93 billion have established themselves in GIFT City in the last three years. This rapid growth signifies the growing confidence of the Indian mutual fund industry in GIFT City's potential.   The Future of GIFT City: A Gateway for Mutual Funds GIFT City's potential as a hub for mutual funds is brimming with promise. The recent influx of major Indian asset managers is a strong indicator of this future growth. Here's a glimpse into what lies ahead: Surge in Commitments and Investments: Data from the IFSCA paints an optimistic picture. Over the past three years, more than 80 fund managers have established a presence in GIFT City, with combined commitments exceeding $30 billion and investments surpassing $2. 93 billion. This rapid growth signifies the growing confidence in GIFT City's ability to cater to the needs of the mutual fund industry.   Proximity and Efficiency: GIFT City's geographical advantage, situated close to India's major financial centers, provides unparalleled access to the Indian capital market. This physical proximity allows for faster decision-making, better understanding of market dynamics, and efficient management of India-focused funds.   Regulatory Stability: The IFSCA plays a critical role in ensuring a stable and predictable regulatory environment for mutual funds operating within GIFT City. The IFSCA's robust framework fosters investor confidence and facilitates the smooth functioning of the financial ecosystem.     GIFT City - A Catalyst for Growth in Gift City Mutual Funds The emergence of GIFT City as a hub specifically for Indian mutual funds, or "gift city mutual funds" as they're becoming known, presents a significant development for the financial sector. Here's a recap of the key points discussed: Government Support: The Indian government's proactive approach in promoting GIFT City, with a combination of tax breaks and a favorable regulatory framework, is creating a fertile ground for asset managers looking to establish or expand their gift city mutual funds business.   Competitive Advantage: Lower operational costs compared to established financial centers like Singapore and Dubai make GIFT City an attractive proposition. This translates into higher potential returns for investors and a more competitive Indian mutual fund industry.   Strategic Location: GIFT City's proximity to the Indian capital market fosters better understanding of market dynamics, facilitates faster decision-making, and allows for efficient management of India-focused gift city mutual funds.   Regulatory Stability: The presence of a robust and independent regulator, the IFSCA, ensures a stable and predictable regulatory environment, crucial for long-term business planning of gift city mutual funds.   The recent influx of major Indian asset managers and the billions of dollars in committed investments specifically for gift city mutual funds are strong indicators of the growing confidence in GIFT City's potential. Looking ahead, GIFT City's focus on innovation and its plans for expansion further solidify its position as a catalyst for growth in the gift city mutual funds industry. By attracting global capital, fostering a culture of innovation, and offering a world-class infrastructure, GIFT City is well on its way to becoming a leading international financial hub, propelling the Indian mutual fund industry forward, with gift city mutual funds at the forefront. --- - Published: 2024-05-20 - Modified: 2025-07-22 - URL: https://gift.treelife.in/gift-city-and-its-tax-implications-a-deep-dive/ - Categories: Resources - Tags: gift city corporate tax rate, gift city gst exemption, gift city income tax, gift city tax, GIFT City tax benefits, gift city tax exemption, gift city tax rate, gift city withholding tax, gift city zero tax, gst in gift city, is gift city tax free, taxation in gift city GIFT City: India's Gateway to a Global Financial Future The global financial landscape thrives on vibrant hubs that facilitate international trade and investment. India's strategic response to this need is the Gujarat International Financial Tec-City, or GIFT City. This ambitious project is designed to propel India's financial and tech sectors to the forefront, offering a compelling array of incentives and infrastructural advantages. Today, we'll delve into the world of GIFT City, exploring its appeal, particularly for those seeking significant tax benefits.   Why Consider GIFT City for Your Business? For businesses and investors seeking a tax-efficient and globally connected environment, GIFT City presents a compelling opportunity. Here's a breakdown of its key advantages: Tax Paradise: GIFT City's status as an International Financial Services Centre (IFSC) translates to significant tax benefits for entities operating within it. These benefits translate to substantial cost savings and increased profitability. Units in the IFSC enjoy a 10-year income tax exemption, no Goods and Service Tax (GST) on services received, and exemption from capital gains tax on transfers of specified securities listed on IFSC exchanges. Dividend received by non-residents from IFSC units is taxable at a concessional rate of 10% plus applicable surcharge and cess. Strategic Location and Global Ambitions: Situated near Gandhinagar, Gujarat's capital, GIFT City enjoys excellent connectivity. It's adjacent to Ahmedabad, a major industrial and historical hub, and boasts proximity to the Ahmedabad International Airport and the Delhi-Mumbai Industrial Corridor. This strategic positioning, coupled with a time zone advantage, makes it ideal for global operations. A World of Opportunities: GIFT City caters to a diverse range of financial services and related sectors. Banks, capital market players, fund managers, insurance companies, and even global in-house centers (GICs) can all find a home here. Additionally, FinTech enterprises, foreign universities, and supplementary services are welcomed, fostering a dynamic and multifaceted ecosystem.   Understanding International Financial Services Centers (IFSCs) Established under the Special Economic Zone (SEZ) Act, GIFT City serves as India's first designated IFSC. These specialized zones offer a liberalised regulatory environment and tax incentives to attract foreign investment and participation in financial services. This fosters competition within the financial sector, ultimately benefiting businesses and investors.   Types of Businesses Eligible for GIFT City The IFSC at GIFT City welcomes a wide range of businesses, including: Financial Services: Banks, insurance companies, capital market players, fund management firms. Global In-House Centers (GICs): Companies can establish GICs to handle functions like IT, finance, and accounting within GIFT City's tax-efficient framework. Support Services: Accounting, auditing, legal, taxation, and other professional services providers can leverage GIFT City's infrastructure and benefits. Emerging Sectors: FinTech companies, the International Bullion Exchange, ship and aircraft leasing firms are finding a supportive environment within GIFT City.   GIFT City Tax Benefits GIFT City offers a treasure trove of tax benefits for businesses and investors seeking a cost-effective and globally competitive platform. Let's delve into the GIFT City Taxation key advantages: Income Tax Benefits A) For units in IFSC: 100% Tax Holiday: Companies operating in GIFT City enjoy a complete tax exemption on business profits for any 10 consecutive years within a 15-year period. This allows them to maximize profits and reinvest in growth. Reduced MAT/AMT: The Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT) are significantly lower at 9% of book profits compared to 15% in the mainland. This translates to considerable tax savings. New Tax Regime Option: Companies opting for the new tax regime are exempt from MAT altogether, offering even greater flexibility. B) For Investors: Tax-Free Interest Income: Interest earned on loans provided by non-residents to IFSC units is not subject to any taxes in India. This incentivizes investors to park their funds in GIFT City. Reduced Tax on Bonds: Interest income from specific long-term or rupee-denominated bonds listed on IFSC exchanges is taxed at a concessional rate of:- 4% for bonds issued before July 1, 2023- 9% for bonds issued on or after July 1, 2023     Investor Incentives A) For units in IFSC: Concessional rate for Dividend: Dividend received by non-residents from an IFSC unit taxable at a concessional rate of 10% plus applicable surcharge and cess. B) For Investors: Capital Gains Exemption: Gains from the transfer of specific securities by non-residents on IFSC exchanges are not considered taxable income in India. This eliminates a potential tax burden for foreign investors.   GST Implications A) For units in IFSC: GST-Free Services: Services rendered between IFSC units or provided to IFSC units, SEZ units, and offshore clients are exempt from GST. This simplifies tax compliance and reduces operational costs. B) For Investors: GST-Free Transactions: Transactions on IFSC exchanges, such as trading in securities, are not subject to GST, offering tax efficiency for investors.   Corporate Tax Rate EntityCorporate Tax RateFor 10 consecutive years (within a 15-year period)0%After 10 Years22% + 10% (surcharge) + 4% (cess) Corporate tax rate for companies incorporated in GIFT IFSC who have opted for the concessional regime   Other GIFT City Taxation Benefits State Subsidies: Units in IFSC can avail of state subsidies on various expenses, including lease rentals, provident fund contributions, and electricity charges, further reducing their operational costs. Transaction Tax and Stamp Duty Exemptions: Investors benefit from exemptions on specific transaction taxes and stamp duty on trades executed on IFSC exchanges. Reduced Withholding Tax on Interest: For overseas borrowings by IFSC units, the withholding tax on interest payments is reduced to 9% for long-term or rupee-denominated bonds listed on an IFSC stock exchange, compared to the standard withholding tax rate.   Additional Considerations Alternative Investment Funds (AIF) Tax Benefits: AIFs Category I and II provide a tax pass-through status, allowing investors to be taxed as if they directly made the investments, while the AIF itself enjoys a ten-year tax exemption on business income. Non-resident investors benefit from not having to file tax returns or pay income tax on certain earnings. Category III AIFs offer tax exemptions on income from specific securities for non-resident investors. Additionally, fund managers in GIFT City enjoy a 100% corporate tax exemption for ten years and are exempt from Goods and Services Tax.   Tax Incentives for Non-Resident Investors: The government provides specific tax benefits for non-resident investors who invest in AIFs located in the GIFT City IFSC.   Unlocking Operational Efficiency in GIFT City GIFT City goes beyond its initial focus on tax incentives. It has evolved into a comprehensive financial and business hub offering a range of operational advantages. These advantages are designed to streamline business processes and empower companies to function at their peak. Let's delve into these key benefits: Streamlined Approvals and Single-Window Regulator: GIFT City boasts a simplified regulatory framework. The International Financial Services Centre Authority (IFSCA) acts as a single point of contact, eliminating bureaucratic hurdles and expediting approvals for setting up and operating a business. This reduces administrative burdens and allows companies to focus on core activities. World-Class Infrastructure and Uninterrupted Power Supply: GIFT City provides state-of-the-art infrastructure with cutting-edge technology and a robust power supply. This ensures seamless business continuity and minimizes operational disruptions. Access to a Growing Talent Pool:  GIFT City is attracting a growing pool of skilled professionals in finance, law, and accounting, exceeding 26,000. This readily available talent pool ensures businesses have the resources they need to thrive. The city's proximity to IIT Gandhinagar and the recent establishment of campuses by Deakin and Wollongong University, both leading Australian institutions, further fuel the talent pipeline with top graduates. Liberalized Currency Repatriation: Unlike the mainland, companies in GIFT City enjoy liberalized currency repatriation norms. This allows for the free movement of funds within permissible regulations, enhancing financial flexibility for businesses. Strategic Time Zone Advantage: GIFT City's strategic location places it between key financial centers like Dubai and Singapore. This advantageous time zone facilitates seamless communication and collaboration across different markets, allowing businesses to capitalize on global opportunities.   The Future of GIFT City GIFT City in Gandhinagar, Gujarat, India, is rapidly emerging as a key player in the global financial landscape. Its attractive tax framework is a major driver of this growth, attracting businesses and investors seeking a competitive and efficient operating environment. The Indian government's initiatives are solidifying GIFT City's position as a global financial hub, offering a strategic location and strong regulatory framework. Reduced Tax on Dividends for IFSC Units: Dividend received by non-residents from an IFSC unit taxable at a concessional rate of 10% plus applicable surcharge and cess Concessional Withholding Tax: Non-resident investors earning interest income from long-term or rupee-denominated bonds listed on GIFT City exchanges benefit from a reduced withholding tax rate. This makes these bonds more attractive to international investors. Tax-Neutral Fund Transfers: Recent amendments allow for the smooth transfer of offshore funds with no tax implications. This opens doors for greater participation from offshore funds.     Industry Optimism and the Road Ahead These tax breaks, coupled with streamlined regulations and a world-class infrastructure, are fueling industry optimism about GIFT City's future. 28 banks have already established a presence in GIFT City, recognizing its potential as a gateway to the Indian market. Looking ahead, experts believe that continued government support and a clear long-term vision are crucial for GIFT City's success. This includes: Regulatory Clarity: Stakeholders are seeking further clarity on the scope and longevity of tax benefits offered by GIFT City. Harmonization with Onshore Regulations: Streamlining regulations between GIFT City and mainland India will facilitate smoother business operations. Enhanced Infrastructure and Living Standards: Developing a robust social and living infrastructure within GIFT City will attract and retain a skilled workforce and expatriate talent.   Conclusion: Unveiling the Gateway to India's Financial Future GIFT City's journey is a testament to India's ambitious vision for a world-class financial hub. By strategically leveraging tax benefits and a progressive regulatory environment, GIFT City is poised to become a magnet for businesses and investors seeking a globally competitive platform. For businesses, GIFT City offers a compelling value proposition. The tax holidays, reduced tax on dividends translate to significant cost savings and improved profitability. Additionally, the world-class infrastructure and streamlined regulations ensure a smooth and efficient operational environment. Investors, both domestic and international, can benefit from GIFT City's tax-efficient ecosystem. The concessional withholding tax on bonds, tax-neutral fund transfers,. Moreover, GIFT City's proximity to the vast Indian market allows investors to tap into its immense potential while enjoying the advantages of an international financial center. GIFT City's success hinges on its ability to adapt and evolve. Continued government support in terms of regulatory clarity and harmonization with mainland India will be crucial. Developing a robust social infrastructure and world-class living standards will further enhance its appeal to a global workforce. GIFT City's story is far from over. It's an ongoing saga of innovation, collaboration, and unwavering ambition. As it continues to develop, GIFT City beckons businesses and investors to be part of this transformative journey. By embracing GIFT City's potential, businesses and investors can unlock a world of opportunity in the heart of resurgent India. --- - Published: 2024-05-20 - Modified: 2025-07-22 - URL: https://gift.treelife.in/the-rise-of-insurance-in-gift-city/ - Categories: Resources - Tags: gift city insurance The Rise of Insurance sector business in GIFT City GIFT City, a visionary project spearheaded by the Indian government, is more than just a financial hub. It's a meticulously planned smart city built from the ground up, boasting state-of-the-art infrastructure and a focus on cutting-edge technology. This creates an ideal environment for global financial institutions to establish a presence and seamlessly conduct business. Within GIFT City lies a crucial component - the International Financial Services Centre (IFSC). This specialized zone caters specifically to financial services, attracting both domestic and international players. Originally, entities like insurance companies operated under their existing regulators. However, to streamline oversight and create a dedicated framework, the International Financial Services Centres Authority (IFSCA) was formed in 2020. This unified regulator allows for smoother operations and paves the way for further growth. The IFSCA has played a key role in propelling the insurance sector forward in GIFT City. With the introduction of the IFSCA (Registration of Insurance Business) Regulations in 2021, a clear path has been established for insurers and reinsurers to set up shop within the city. These entities, known as IFSC Insurance Offices (IIOs), enjoy the unique advantage of conducting business in freely convertible foreign currencies, all within India's borders.   What are IIOs in GIFT City? Imagine a world of insurance specifically designed for international businesses and global citizens. That's the realm of IFSC Insurance Offices, or IIOs for short. Set up within GIFT City, India's international financial hub, IIOs offer a unique set of advantages for both insurance companies and policyholders. In the following sections, we'll delve deeper into what IIOs are, the types of insurance they can offer, and how they're transforming the insurance landscape in India. So, buckle up and get ready to explore the exciting world of IIOs!   Benefits of Setting Up an IIOs in GIFT City Access Global Markets & Enhanced Risk Management: Operate in freely convertible foreign currencies and access a wider range of reinsurance options. This powerful combination allows IIOs to tap into international clients and transactions while effectively managing risk exposure across global markets. Tax Advantages: Enjoy significant tax benefits, including a 10-year tax holiday which translates to substantial cost savings and increased profitability, making setting up an IIO a financially attractive proposition. Operational Efficiency: Benefit from a streamlined regulatory environment under the centralized authority of the IFSCA. This simplifies procedures and expedites business operations, reducing administrative burdens and allowing for faster decision-making.   The IIO Regulations: A Streamlined Framework for Insurance in GIFT City The introduction of the IFSCA (Registration of Insurance Business) Regulations 2021, or IIO Regulations, in October 2021, marked a significant step forward for insurance in GIFT City. These regulations replaced the previous IRDAI IIO Guidelines, establishing a unified and streamlined framework for entities seeking to register as IIOs.   Who Can Become an IIOs? The IIO Regulations clearly define the types of entities eligible to establish themselves as IIOs within GIFT City. This broader eligibility opens the door for a wider range of players to participate in the growing insurance market. Eligible entities to register as IIOs in GIFT City:  ApplicantPermitted StructureAdditional ConditionsInsurer registered with the IRDAIBranch officePrior IRDAI No-Objection Certificate (“NOC”)Foreign insurer / Foreign Reinsurer / Managing General Agent / Lloyd’sBranch officeRegistration of the entity in its home country* and a NOC from the home country regulatorBranch office of a foreign insurer or Lloyd’s society registered with IRDAIBranch officeRegistration of the entity in its home country* and a NOC from the home country regulatorIndian Public Company / Wholly owned subsidiary of a foreign or Indian insurer or reinsurer Incorporated under the Companies Act, 2013–Insurance Co-operative Society registered under the Co-operative Societies Act, 1912Co-operative society registered under the Co-operative Societies Act, 1912–Body corporate incorporated outside India not in the nature of a private companyEstablish its place of business in an IFSC, under the provisions of the Companies Act, 2013 Registration of the entity in its home country* *The home country must be one that has signed a double taxation avoidance agreement with India.   Existing Insurance and Reinsurance Businesses Indian insurance companies and insurance co-operative societies already registered with the IRDAI. Foreign insurers and reinsurers with valid registrations from their home country regulators. Branch offices of foreign insurers or Lloyd's India, provided they hold existing IRDAI registrations.   New Applicants Public companies incorporated under the Companies Act, 2013, functioning as wholly-owned subsidiaries of existing insurers or reinsurers (domestic or foreign). Bodies corporate incorporated outside India, excluding those classified as private companies. These entities can establish a public company subsidiary in India specifically for the purpose of registering an IIO. Managing General Agent (MGA) who has a valid binding agreement with a Foreign Insurer or Foreign Re-insurer   The Choice of Structure: Incorporated vs. Unincorporated IIOs Entities can choose between operating as: Incorporated IIOs: These function as public companies with a minimum paid-up capital as mandated by the Insurance Act, 1938. They are also subject to solvency margin requirements set by the IFSCA. Unincorporated IIOs: These are typically branch offices of existing insurance or reinsurance entities. Their capital adequacy requirements are determined by the regulations of their home country.   Permitted Business Activities for IIOs: Catering to Diverse Insurance Needs The IIO Regulations offer IIOs flexibility in the types of insurance they can provide. However, there are some key distinctions to consider: A Broad Spectrum of Insurance Products: Registered IIOs can engage in a wide range of insurance activities, encompassing the four main categories: Life Insurance: Products that provide financial security in events like death, disability, or retirement. General Insurance: Covers a variety of risks, such as property damage, vehicle accidents, and business disruptions. Health Insurance: Provides financial support for medical expenses and hospitalization costs. Reinsurance: Offers insurance to existing insurance companies (cedants) to help them manage their risk exposure. Home Country Registration and Business Scope: It's important to remember that the type of IIO registration plays a role in determining permissible business activities: "Place of Business" Registration: IIOs established as "a place of business of an Indian insurer or a branch office of a foreign insurer or reinsurer" are limited by their home country regulations. They can only transact business in the categories authorized by their home country's regulatory body. Direct Insurance vs. Reinsurance Activities: The IIO Regulations differentiate between direct insurance and reinsurance activities for IIOs: Direct Insurance Business: IIOs registered as direct insurers can offer insurance products directly to individuals or entities. However, there are geographical limitations: They can operate within the IFSC and other SEZs. They can also offer coverage to clients outside India. They are strictly prohibited from directly insuring individuals or entities in mainland India (outside SEZs). Reinsurance Activities: IIOs registered as reinsurers can participate in risk management by accepting reinsurance business from: Cedants based in the IFSC. Clients from outside India. Indian insurers, but with a caveat. The IRDAI's order of preference dictates which Indian insurers must first offer reinsurance opportunities to domestic reinsurers before seeking coverage from international players like IIOs.   The Evolving Landscape of Reinsurance Opportunities for IIOs: The Order of Preference The IRDAI (Reinsurance) Amendment Regulations 2023 mark a significant development for IIOs seeking to participate in the Indian reinsurance market. This amendment specifically addresses the order of preference, a crucial factor determining which reinsurers Indian cedants (insurance companies seeking reinsurance) can approach. The Previous Order of Preference Before the 2023 amendment, the order of preference placed IIOs at a disadvantage. Indian cedants were required to first offer reinsurance opportunities to the General Insurance Corporation of India (GIC Re), the domestic reinsurer, followed by other Indian reinsurers and then Foreign Reinsurance Branches (FRBs). Only after exhausting these options could cedants approach IIOs. This limited the ability of IIOs to compete for reinsurance business from Indian companies.   The Rise of IIOs: A Level Playing Field The recent amendment elevates IIOs to a new position within the order of preference. They are now placed in the same category as FRBs, putting them just below GIC Re. This opens up a wider range of reinsurance opportunities for IIOs, allowing them to compete more effectively with established players.   Benefits for the Indian Insurance Market This shift in the order of preference has several positive implications: Increased Competition: With more reinsurers vying for business, Indian cedants can potentially benefit from more competitive pricing and terms. Enhanced Risk Management: A wider pool of reinsurers allows Indian insurers to better manage their risk exposure by spreading it across a more diverse range of participants. Growth of the Reinsurance Market: The increased participation of IIOs can contribute to the overall growth and dynamism of the Indian reinsurance market. Operational Considerations for IIOs Establishing an IIO in GIFT City involves navigating specific operational requirements. Here's a quick rundown of some key points to keep in mind: Currency Freedom: A major benefit for IIOs is the ability to conduct their business in freely convertible foreign currencies. This allows them to cater to a global clientele and transact internationally without being restricted to the Indian Rupee. Capital Adequacy: The IIO Regulations establish minimum capital requirements to ensure financial stability. The specific amount depends on the IIO's structure: Branch offices require an earmarked assigned capital of USD 1. 5 million. Incorporated IIOs, functioning as public companies, must maintain a paid-up capital as mandated by the Insurance Act, 1938.   Fostering Growth in GIFT City's Insurance Sector The IIO Regulations establish a strong foundation for IIOs, but it doesn't stop there. The IFSCA has issued a series of additional regulations to ensure smooth operations and protect policyholders. These include: IFSCA (Re-Insurance) Regulations 2023: This regulation establishes a framework for reinsurance activities conducted by IIOs in GIFT City. IFSCA (Insurance Products and Pricing) Regulations, 2022: This regulation outlines product approval processes and pricing guidelines for IIOs. It ensures transparency and consumer protection while allowing for innovative product offerings. IFSCA (Appointed Actuary) Regulations, 2022: This regulation mandates the appointment of qualified actuaries to assess risk and ensure solvency. This promotes financial stability within the IIO ecosystem. IFSCA (Manner of Payment and Receipt of Premium) Regulations, 2022: This regulation establishes clear guidelines for premium collection and settlement, streamlining financial transactions for both IIOs and policyholders. IFSCA (Investment by International Financial Service Centre Insurance Office) Regulations, 2022     A Flourishing Future for Insurance in GIFT City The comprehensive framework established by the IFSCA, coupled with the operational considerations outlined earlier, positions GIFT City as a highly attractive destination for IIOs. Here's a glimpse into the promising future: Increased Market Participation: The recent amendments to the order of preference and the overall ease of doing business will likely incentivize more domestic and international players to establish themselves as IIOs. This will foster a dynamic and competitive insurance market within GIFT City. Enhanced Product Innovation: With greater flexibility in product design and pricing, IIOs can cater to a wider range of insurance needs, particularly for niche markets and high-value segments. This will lead to a more diverse and innovative insurance landscape. Boosted International Connectivity: GIFT City has the potential to become a global insurance hub, connecting Indian and international insurers and reinsurers. This will not only benefit the Indian insurance market but also contribute to the overall growth of the Asian insurance sector. In conclusion, the IIO framework, along with the supportive regulatory environment, paints a bright picture for the future of the insurance sector in GIFT City. It's poised to become a key player in the global insurance landscape, offering a robust and innovative platform for both established and emerging insurance players --- - Published: 2024-02-13 - Modified: 2024-09-03 - URL: https://gift.treelife.in/gujarats-it-and-ites-policy-a-robust-framework-for-sector-growth/ - Categories: Resources Gujarat’s IT and ITeS incentive policy, in effect until 2027, is pivotal in driving the sector forward. Here’s what you need to know: 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 & 𝐒𝐤𝐢𝐥𝐥𝐬: A commitment to enhancing IT infrastructure and skill development, with incentives for ICT courses. 𝐄𝐱𝐩𝐚𝐧𝐝𝐞𝐝 𝐅𝐢𝐬𝐜𝐚𝐥 𝐈𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬: 𝐂𝐀𝐏𝐄𝐗 𝐁𝐨𝐨𝐬𝐭: 25% one-time support on eligible CAPEX, up to ₹20 crores for large projects, ₹5 crores for smaller ones. 𝐎𝐏𝐄𝐗 𝐒𝐮𝐩𝐩𝐨𝐫𝐭: 15% aid on eligible OPEX, with caps of ₹4 crores for larger projects and ₹2 crores for smaller projects, over five years. Employment Generation: Incentives for job creation, focusing on gender inclusivity. 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐀𝐬𝐬𝐢𝐬𝐭𝐚𝐧𝐜𝐞: Subsidy on term loans to reduce financial strain, subject to conditions. 𝐄𝐏𝐅 𝐑𝐞𝐢𝐦𝐛𝐮𝐫𝐬𝐞𝐦𝐞𝐧𝐭: Provident fund contributions reimbursed to encourage employment, with greater benefits for female employees. 𝐄𝐥𝐞𝐜𝐭𝐫𝐢𝐜𝐢𝐭𝐲 𝐃𝐮𝐭𝐲: Eligibility to claim the entire amount of electricity duty paid for five years. 𝐈𝐓 𝐂𝐢𝐭𝐲/𝐓𝐨𝐰𝐧𝐬𝐡𝐢𝐩 𝐈𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬: Support for developing IT cities and townships, including CAPEX and OPEX assistance. 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐚𝐭𝐢𝐧𝐠 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞: Subsidies for infrastructure like rentals on a per-seat basis for the first few years. 𝐂𝐥𝐨𝐮𝐝 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦 𝐒𝐮𝐩𝐩𝐨𝐫𝐭: Financial aid for building network hardware and related civil works. 𝐃𝐚𝐭𝐚 𝐂𝐞𝐧𝐭𝐫𝐞 𝐏𝐫𝐨𝐣𝐞𝐜𝐭𝐬: One-time support for eligible CAPEX in data centre development. This policy is a testament to Gujarat’s vision of becoming a tech powerhouse. --- - Published: 2023-10-19 - Modified: 2025-07-22 - URL: https://gift.treelife.in/simplified-banking-in-gift-ifsc-for-foreign-companies/ - Categories: Resources Historically, the PAN (Permanent Account Number) requirement has been a significant obstacle for foreign companies wishing to establish bank accounts in GIFT IFSC. Obtaining a PAN entailed additional compliance in a new jurisdiction, which deterred many from exploring banking opportunities within GIFT IFSC. 𝐏𝐀𝐍 𝐄𝐱𝐞𝐦𝐩𝐭𝐢𝐨𝐧: Now, foreign companies can bypass the PAN requirement when opening a bank account in GIFT IFSC. They simply need to submit Form No. 60 to the International Banking Units (IBUs) operating in GIFT IFSC. 𝐊𝐞𝐲 𝐂𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬: These foreign companies should not have any income that is chargeable to tax in India. 𝐊𝐞𝐲 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐬𝐮𝐛𝐦𝐢𝐭𝐭𝐞𝐝 𝐚𝐥𝐨𝐧𝐠 𝐰𝐢𝐭𝐡 𝐅𝐨𝐫𝐦 𝐍𝐨. 60 𝐛𝐲 𝐭𝐡𝐞 𝐅𝐨𝐫𝐞𝐢𝐠𝐧 𝐂𝐨𝐦𝐩𝐚𝐧𝐲: – Certificate of Registration or incorporation from its home country. – Tax identification number issued in the home country. Both documents must be duly attested by authorized officials of the IFSC banking unit. 𝐔𝐬𝐞 𝐂𝐚𝐬𝐞𝐬: 1. Indian founders who have flipped their structures offshore might find banking in GIFT IFSC attractive due to its closeness to the Indian mainland. 2. Additionally, IBUs in GIFT IFSC hold an advantage over neo-banks, adeptly handling challenges such as FIRC, KYC for inward remittances, and other FEMA compliances. 3. In light of the recent SVB bank collapse, cross-border SaaS companies and startups, including those backed or funded by overseas accelerators that relied solely on SVB or had a single banking relationship, might view GIFT IFSC as an alternative or backup banking option. For a copy of the CBDT notification, refer to the link here. Need more assistance? Call us on 9930156000 --- - Published: 2023-10-05 - Modified: 2025-07-22 - URL: https://gift.treelife.in/fintech-opportunities-in-gift-city-a-new-era-of-innovation/ - Categories: Resources The rapidly evolving financial landscape has placed India on the map for its forward-thinking initiatives. The International Financial Services Centre (IFSC) conceptualized by the Indian government seeks to make India a magnet for both domestic and international investment in the financial arena. Gujarat International Finance Tech-City (GIFT City) stands as a testament to this vision, being the only operational IFSC in India at present. Overseeing its operations, the International Financial Services Centre Authority (IFSCA) maintains a vigilant eye on the financial products, services, and institutions established there. The Birth of the FinTech Framework Understanding the need to encourage innovation, IFSCA on 27 April 2022 published a detailed ‘Framework for Fintech Entity in the IFSCs. ’ The framework aims to boost the establishment of a world-class fintech hub at the IFSC GIFT City and encourage the promotion of financial technologies across the spectrum of banking, insurance, securities and fund management activities. The framework covers the following: Fintech solutions resulting in new business models, applications, processes or products in areas/activities linked to financial services regulated by the IFSCA Advanced/innovative technological solutions that aid and assist activities in relation to financial products, financial services and financial institutions Entities offering innovative solutions or emerging technologies directly related to financial products and services are welcome to seek authorization under this FinTech Framework. It casts a wide net, encompassing areas such as digital lending, neo banking, crowd funding, Insure Tech, Agri tech, and even niche sectors like Defense tech. How to register with IFSCA as a fintech entity? The framework broadly prescribes the following two modes for fintech(s) to register with the IFSCA as a fintech entity (FE): a. Direct entry (Authorisation by IFSCA) The framework enables some class/categories of technology entities to obtain direct entry having: A deployable advanced/innovative technology solution that aids and assists activities in relation to financial products, financial services and financial institutions A revenue-earning track record in at least 1 of the last 3 financial years b. Sandbox An applicant shall be permitted to undertake one or more of the following activities under the IFSCA sandbox: Test fintech ideas or solutions in the IFSCA fintech regulatory sandbox Develop and test fintech ideas or solutions in the IFSCA fintech innovation sandbox Test fintech ideas or solutions in an inter-operable regulatory sandbox Provide fintech ideas or solutions in the overseas regulatory referral mechanism/fintech bridge offered by the IFSCA Who can apply? Entities from India An entity registered with the Department for Promotion of Industry and Internal Trade (DPIIT) as a start-up entity relating to fintech An entity incorporated as a company under the Companies Act 2013, as a limited liability partnership (LLP) under the Limited Liability Partnership Act, 2008, or the ‘Branch’ of an Indian company or LLP in an IFSC An entity working directly or indirectly in the ecosystem regulated by a domestic financial sector regulator Entities from outside India An entity from the Financial Action Task Force (FATF)- compliant countries/jurisdictions Applicant as a ‘Fintech Entity’ may do the following: Separately incorporate an entity in the IFSC Establish a branch or a subsidiary of an Indian or foreign incorporated entity in an IFSC Fintech Opportunities in GIFT City: A New Era of Innovation 2 Innovating Within the Sandbox A ‘Sandbox’ in the fintech context is a controlled environment where businesses can test their novel products or solutions with a limited set of real customers, for a finite duration. This system, prevalent in GIFT City, allows fintech entities to validate their innovations in the capital market, banking, insurance, and other financial spaces in an IFSC. Fintech Regulatory Sandbox (FRS) This is a dedicated space for fintech products/solutions, granting them a limited-use authorization. Successful participants can also avail grants from the IFSCA Fintech Incentive Scheme 2022. Who’s eligible? From India: Start-ups registered with DPIIT focusing on Fintech. Entities under the Companies Act 2013, Limited Liability Partnership Act 2008, or branches in an IFSC. Those functioning within the domain regulated by a domestic financial sector regulator. From abroad: Entities or branches from FATF-compliant countries. Fintech Innovation Sandbox (FIS) The FIS is an isolated environment away from the live market. Here, fintech entities can experiment with their ideas based on market-related data. A successful journey in FIS paves the way to the FRS. Who can participate? The eligibility mirrors the criteria set for the FRS. Inter-operable Regulatory Sandbox (IoRS) IoRS means a testing environment for innovative hybrid financial products/services falling within the regulatory ambit of more than one domestic financial sector regulator. The IFSCA will facilitate Indian fintech companies seeking access to foreign markets and foreign fintech companies seeking entry into India. The applications received by the authority from the domestic sector regulator(s)/coordination group of IoRS shall be subjected to the same screening process for entry into IoRS, as given under the fintech regulatory sandbox criteria of this framework. After a successful exit from IoRS, entities must liaise with the authority and the relevant regulators to obtain necessary permissions before launching the product in the market. Overseas Regulatory Referral Mechanism by IFSCA This is a collaboration between the IFSCA and overseas financial regulators. It aids fintech firms that wish to operate reciprocally in each other’s territories. The terms are governed by a mutual agreement or MOU between the IFSCA and the corresponding foreign financial sector regulator(s). Monetary Incentives for Innovators Recognizing the potential of FinTech, IFSCA has rolled out an attractive incentive program. Depending on the category of operations, grants can amount to a substantial INR 75 lacs. This scheme caters to a variety of FinTech entities, ranging from those in the Regulatory or Innovation Sandbox to those engaged in any IFSCA-supported programs. Refer incentive scheme blog for more details The Upcoming Payments Revolution Signifying its intent to further boost the FinTech sector, IFSCA has shed light on regulating payment services within the IFSC. Several payment-related projects are already underway, setting the stage for a transformative payment ecosystem. In conclusion, GIFT City, with its innovative frameworks and conducive environment, is poised to be a global hub for FinTech innovation. With massive opportunities on the horizon, it’s a matter of time before this city becomes synonymous with financial technology excellence. If you have more questions, reach out to our experts on 9930156000 --- - Published: 2023-10-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/fintech-incentive-scheme/ - Categories: Resources On February 2nd, 2022, the International Financial Services Centres Authority (IFSCA) issued a notification introducing the “FinTech Incentive Scheme”. 1. Objective of the Scheme: The primary aim is to propel India’s IFSC into the league of leading International Financial Centers by financially assisting FinTech activities. The scheme specifically targets: – Indian FinTechs targeting foreign markets. – Domestic FinTechs aiming to list on IFSCA-recognised exchanges. – International FinTechs targeting Indian IFSC market access. – Foreign FinTechs eyeing Indian markets through the Inter-Operable Regulatory Sandbox (IORS) framework. – Domestic FinTechs looking to expand their business to the IFSC. 2. Duration of the Scheme: The scheme will be in operation for three years from its official announcement date. 3. Definitions: The notification elucidates several terms for clarity, such as ‘FinTech’ being technology-driven solutions assisting Financial Institutions, and ‘Regulatory Sandbox’ being an environment allowing limited real customer interactions for testing FinTech solutions.  4. Eligibility: To benefit from this scheme, applicants must meet certain criteria: – If from India, they could be DPIIT-registered startups, companies under the Companies Act 2013, resident individuals, or entities under the purview of regulators like RBI, SEBI, etc. – If foreign, they should be individuals or entities from FATF compliant nations with a majority (over 51%) non-resident shareholding. 5. Scope: The scheme grants are designed for those associated with the Authority’s sandbox programs, accelerators, or special collaborations with the Authority. 6. Types of Incentives: Multiple grants are available, subject to conditions: – FinTech Start-up Grant: Up to Rs. 15 lacs for startups with innovative FinTech solutions. – Proof of Concept (PoC) Grant: Up to Rs. 50 lacs for early or mature FEs for conducting a PoC. – Sandbox Grant: Up to Rs. 30 lacs for developing innovative products or services in a sandbox. – Green FinTech Grant: Up to Rs. 75 lacs for sustainable finance solutions. – Accelerator Grant: Up to Rs. 10 lacs for supporting accelerators at the IFSC. – Listing Support Grant: Up to Rs. 15 lacs for domestic FEs aiming to list on recognized exchanges. The FinTech Incentive Scheme is an ambitious endeavor by the IFSCA to invigorate the FinTech landscape in India, making it competitive on a global scale. It promises not only to boost domestic enterprises but to attract international entities, thereby fostering innovation, collaboration, and growth in the sector. Call our experts on 9930156000 to know more Disclaimer – The content of this document is for information purpose only and does not constitute advice or a legal opinion. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc. before acting on the basis of this write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the Treelife is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. --- - Published: 2023-10-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/gift-city-catalyzing-indias-startup-revolution/ - Categories: Resources Gujarat International Financial Tec-City (GIFT City) stands as an emblem of India’s proactive approach to contemporary finance and business. Positioned as India’s answer to globally recognized financial centers such as London’s Dockyards or Shinjuku in Tokyo, GIFT City is sprawled over 886 acres by the scenic Sabarmati River in the state of Gujarat. With its inception, it’s not just large-scale businesses that stand to benefit; the Indian startup ecosystem, too, receives a substantial shot in the arm. Here’s a closer look at how GIFT City interlaces with the country’s burgeoning startup culture. Why Startups Should Lean Towards GIFT City: Uninterrupted Fund Flow: Avoid the pitfalls of currency conversion by keeping funds in their original USD form. Fluid Repatriability: Transfer funds back to the US or elsewhere, at will. Interest Returns: Up to 5% yield potential on Term Deposits. Simplified Compliance: No taxing obligations with the GIFT City IFSC functioning akin to an International bank. Multi-currency Support: For those without a US bank account, solutions like Razorpay can help facilitate a US-based multi-currency account. This can be a conduit to transfer funds to GIFT City or elsewhere. Spotlight on GIFT City SEZ: The Special Economic Zone (SEZ) is a dedicated area meant to lure multinational corporations with a range of benefits from tax breaks to simplified trade regulations. Key sections include: – International Financial Services Centre (IFSC): This is GIFT City’s heart, tailored for the financial sector and offering an unparalleled business environment. – Domestic Finance Centre (DFC): Catering to domestic financial services, the DFC offers a growth-friendly space for Indian financial ventures. The GIFT City Promise: Elevating Financial Infrastructure: GIFT City is positioned to upscale India’s financial framework, offering a nexus for banks, insurance ventures, and other finance-focused entities. Foreign Investment Draw: The confluence of contemporary facilities, SEZ privileges, and strategic planning makes GIFT City a magnet for international funds. Nurturing Startups: The city’s pro-innovation stance can catalyze startup growth, foster innovation, and generate employment. Minimizing Offshore Dependence: GIFT City offers a compelling alternative to other Asian financial hubs, potentially rerouting Indian business that would otherwise head to places like Singapore or Hong Kong. Global Economic Footprint: As GIFT City thrives, so does India’s stature in global financial circles. GIFT City’s Dual Lures: SEZ & IFSC: – SEZs cater to attracting Foreign Direct Investment (FDI) by offering a conducive environment for exports and finding global markets. Goods and services from SEZs are treated distinctively, often enjoying tax benefits and simpler trade regulations. – IFSC, within GIFT City, offers a consolidated platform for diverse financial services. From stock exchanges to risk management, this hub simplifies growth trajectories for businesses, all while offering tax and regulatory perks. GIFT City and the Startup Landscape: Startups stand to gain manifold: – Diverse Funding Avenues: GIFT City’s global orientation ensures startups have broader access to funding. – Pro-Business Ambience: From tax breaks to a unified clearance system, doing business is seamless. – Innovation as a Pillar: GIFT City’s forward-looking approach fosters startup growth. – Partnership Potentials: The city’s diverse business landscape offers numerous collaboration opportunities. – Ready Talent Pool: GIFT City’s vicinity is replete with skilled professionals, ensuring startups have ready access to talent. – Global Exposure: The city’s international ethos ensures startups think beyond domestic confines. – Sustainability Drive: GIFT City’s green commitment appeals to eco-conscious startups. In wrapping, GIFT City isn’t just an infrastructure marvel but a strategic move, poised to revolutionize India’s startup scene. Especially in the backdrop of global financial shifts, like the SVB crisis, GIFT City stands tall, beckoning entrepreneurs and investors alike. As India pitches itself as an Asian financial linchpin, GIFT City is, undoubtedly, its crown jewel. Got a question? Call us on 9930156000 --- - Published: 2023-10-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/gift-city-an-opportunity-for-indian-fintechs/ - Categories: Resources India’s financial and technological ecosystem has been expanding exponentially, and the newest feather in its cap is the Gujarat International Finance Tec-City, popularly known as GIFT City. This initiative, nestled in the heart of Gujarat can be a hotspot for Indian FinTech companies catering to a global clientele. Here’s a deep dive into why this initiative offers an unparalleled advantage. Broad Mechanics: Indian FinTech companies can opt to establish a unit within GIFT City. This could either be in the form of a branch or a wholly-owned subsidiary. The primary purpose? To service its roster of global clients as well as other enterprises located within the IFSC. Existing employees of such companies can be relocated to GIFT City. Alternatively, companies can also scout and hire local talent from the vicinity of GIFT City. One of the major operational benefits is the ability for the unit in GIFT City to receive payments in foreign exchange directly from its global clientele and IFSC clients. Key Benefits: 100% income-tax exemption for 10 consecutive years out of 15 years Reduced MAT / AMT @ 9% on book profits – not applicable for companies opting for new regime No GST on services: (i) Received by unit in IFSC (ii) Provided to IFSC / SEZ units (iii) Provided to global clients State subsidies such as lease rental, provident fund contribution, electricity charges Want to know more about GIFT City? Call us on 9930156000 --- --- ## Faqs - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/are-entities-in-gift-ifsc-treated-as-a-resident-in-india/ - FAQ Category: GIFT IFSC From an Income-tax perspective, entities in GIFT IFSC are “resident” in India while from an exchange control perspective, entities in GIFT IFSC are “non-resident”. --- - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/how-many-approvals-does-one-need-to-obtain-to-operate-in-gift-ifsc/ - FAQ Category: GIFT IFSC As of now, approval is needed from the SEZ authorities and the IFSCA authorities for operating in GIFT IFSC. A proposal to make a single window clearance in underway. --- - Published: 2024-09-03 - Modified: 2024-09-18 - URL: https://gift.treelife.in/faq/is-the-aif-regulated-by-gift-ifsc/ - FAQ Category: GIFT IFSC Unlike SEBI’s domestic AIF regulations where the fund (AIF) seeks registration with SEBI, under the IFSCA regulations, the fund management entity (FME) seeks registration with the IFSCA and can launch funds (schemes) with only prior intimation to IFSCA. --- - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/what-is-the-difference-between-fintech-and-techfin-under-the-gift-ifsc-framework/ - FAQ Category: GIFT IFSC Fintech: This refers to emerging financial technologies and innovations that drive new business models, applications, processes, or products in areas connected to financial services. These are typically B2C in nature. 𝘍𝘰𝘳 𝘦𝘹𝘢𝘮𝘱𝘭𝘦 – 𝘗𝘢𝘺𝘵𝘮, 𝘊𝘳𝘦𝘥, 𝘙𝘢𝘻𝘰𝘳𝘱𝘢𝘺, 𝘗𝘰𝘭𝘪𝘤𝘺𝘣𝘢𝘻𝘢𝘢𝘳, 𝘗𝘪𝘯𝘦𝘭𝘢𝘣𝘴, 𝘚𝘭𝘪𝘤𝘦, 𝘦𝘵𝘤. Techfin: These are advanced or innovative technological solutions primarily designed to support, aid, and enhance activities related to financial products, services, and institutions. These are typically B2B in nature where they have tech products which can be used by financial institutions for their operations. 𝘍𝘰𝘳 𝘦𝘹𝘢𝘮𝘱𝘭𝘦 – 𝘍𝘪𝘯𝘢𝘤𝘭𝘦 (𝘣𝘺 𝘐𝘯𝘧𝘰𝘴𝘺𝘴), 𝘔𝘢𝘮𝘣𝘶, 𝘉𝘳𝘰𝘬𝘦𝘳𝘌𝘥𝘨𝘦, 𝘐𝘯𝘴𝘶𝘳𝘦𝘊𝘙𝘔, 𝘖𝘋𝘐𝘕, 𝘦𝘵𝘤. --- - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/who-are-the-real-estate-developers-in-gift-city/ - FAQ Category: GIFT IFSC There are multiple real estate developers offering office space in GIFT City. There are also a few Plug N Play service providers in GIFT City. Refer here for more details – https://www. giftgujarat. in/business/ifsc --- - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/why-should-a-business-set-up-its-operations-in-the-gift-city-ifsc/ - FAQ Category: General Entities in GIFT City’s IFSC benefit from a favorable regulatory environment, tax incentives, robust infrastructure, and easy access to a massive global market, making it a strategic location for financial service providers. --- - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/are-there-special-regulatory-provisions-for-businesses-in-gift-citys-ifsc/ - FAQ Category: General Yes, businesses in GIFT City’s IFSC are governed by a separate regulatory framework crafted by the IFSC Authority, ensuring a competitive and friendly business environment while maintaining international standards. --- - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/what-kind-of-tax-incentives-does-gift-citys-ifsc-offer/ - FAQ Category: General Companies in GIFT City’s IFSC enjoy various tax benefits, including lower tax rates, exemptions from several duties, and other incentives aimed at promoting the ease of doing business. --- - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://gift.treelife.in/faq/how-does-gift-citys-ifsc-compare-with-other-global-financial-hubs/ - FAQ Category: General GIFT City’s IFSC is strategically designed to offer services at par with global financial hubs. Its state-of-the-art infrastructure, streamlined regulatory framework, and competitive advantages position it as a leading financial center in the Asian market. --- - Published: 2024-07-31 - Modified: 2024-07-31 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy/ - FAQ Category: Pricing Treelife offers a flexible and transparent pricing model tailored to the specific needs of your business. Our pricing is structured based on the scope and complexity of the services required and works on the following basis: project-based, where there is a one-time fee; retainer, with ongoing services for a fixed monthly fee; hourly, based on the number of hours worked; and an equity sharing model, where payment is made through a share of equity in your business. This approach ensures you receive the best value for your investment. --- - Published: 2024-07-31 - Modified: 2024-07-31 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy/ - FAQ Category: Pricing No, Treelife believes in transparency and ensures there are no hidden fees or unexpected charges. All costs are clearly outlined in our engagement proposal, and any additional expenses will be discussed and approved by you before being incurred. --- - Published: 2024-07-31 - Modified: 2024-07-31 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy/ - FAQ Category: Pricing The turnaround time for our services depends on the complexity and scope of the project. During the initial consultation, we provide an estimated timeline based on your specific needs and ensure timely delivery through efficient project management. --- - Published: 2024-07-31 - Modified: 2024-07-31 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy/ - FAQ Category: Pricing Our payment schedule is designed to be convenient and flexible. Typically, we operate on a milestone-based payment system, where payments are made at key stages of the project. We also offer customized payment plans based on your specific requirements. --- - Published: 2024-07-31 - Modified: 2024-07-31 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy/ - FAQ Category: Pricing Treelife accepts various payment methods to ensure ease and convenience for our clients. You can pay us via bank transfer, credit card, or other electronic payment methods. Detailed payment instructions will be provided upon engagement. --- - Published: 2024-07-25 - Modified: 2024-07-25 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy/ - FAQ Category: About Services Yes, Treelife offers extensive support for businesses looking to expand globally. Our services include jurisdiction evaluation, regulatory assessment, and execution support for market entry, ensuring compliance and smooth operations in new markets. --- - Published: 2024-07-25 - Modified: 2024-07-25 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy/ - FAQ Category: About Services Yes, Treelife provides end-to-end support for setting up a business in India. Our services include market entry strategy, company registration, regulatory compliance, and ongoing back office support to ensure a smooth and successful setup. --- - Published: 2024-07-25 - Modified: 2024-07-25 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy/ - FAQ Category: Operations Treelife operates seamlessly with clients across various locations whether domestic or international through virtual communication and collaboration tools. We conduct meetings via video calls, share documents electronically, and stay in constant touch through emails and messaging platforms to ensure smooth operations regardless of your location. --- - Published: 2024-07-25 - Modified: 2024-07-25 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy/ - FAQ Category: Operations Treelife is equipped with a comprehensive technology stack to ensure effective and efficent way to deliver our services. For bookkeeping, we use Tally, QuickBooks, Zoho, and Xero. Our data management is handled through Slack, Dropbox, and Google Drive. For payment processing, we utilize platforms like Kodo, Razorpay, Keka, and PayPal. These tools enable us to provide high-quality, reliable services tailored to your business needs. --- - Published: 2024-07-25 - Modified: 2024-07-25 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy/ - FAQ Category: Operations Your account will be managed by a dedicated SPOC who will be your primary point of contact. This person will coordinate with our team of experts to ensure all your needs are met and provide regular updates on the progress of your projects. --- - Published: 2024-07-25 - Modified: 2024-07-25 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy/ - FAQ Category: Operations No, physical signatures are generally not required. Treelife uses secure electronic signature platforms to facilitate the signing of documents, making the process quick and convenient for our clients. However, if physical signatures are necessary, we will coordinate the process with you. --- - Published: 2024-07-25 - Modified: 2024-07-25 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy/ - FAQ Category: Operations Treelife prioritizes the security and confidentiality of your data. We use secure servers, encryption, and access controls to protect your information. Additionally, our team adheres to strict confidentiality agreements and industry best practices to safeguard your data. --- - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy/ - FAQ Category: About Services Our transaction services encompass advisory and documentation support for various financial transactions, including private equity/venture capital (PE/VC) deals, mergers and acquisitions (M&A), and venture debt. We ensure smooth and compliant transactions, from due diligence to closure. --- - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-2/ - FAQ Category: About Services Yes, Treelife assists startups and businesses in raising funds. We provide comprehensive support, including preparation of investor-ready documents, due diligence, financial modeling, and strategic advisory to help you secure the necessary funding. --- - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-4/ - FAQ Category: About Treelife Treelife stands out due to our integrated approach, combining legal, financial, and compliance expertise under one roof. Our personalized service and deep domain expertise of the Indian market ensure that we deliver solutions that are both strategic and practical. --- - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-5/ - FAQ Category: About Treelife Treelife has a robust track record of working with investors and Alternative Investment Funds (AIFs). We offer comprehensive support for fund setup, tax structuring, SEBI applications, due diligence, and ongoing compliance, ensuring smooth operations and successful investments. --- - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-6/ - FAQ Category: About Treelife Yes, we have extensive experience working with startups across various industries. We understand the unique challenges faced by startups and provide tailored solutions to support their growth, from incorporation to fundraising and beyond. --- - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8-copy-7/ - FAQ Category: About Treelife Our team at Treelife comprises experienced professionals with diverse backgrounds in finance, law, compliance, and business advisory. Each member brings specialized knowledge and practical expertise to help our clients navigate complex legal and financial landscapes. --- - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://gift.treelife.in/faq/this-is-what-we-do/ - FAQ Category: About Treelife Treelife provides comprehensive legal, financial, and compliance services tailored to the needs of startups, investors, and businesses. Our services include Virtual CFO, legal support, secretarial compliance, tax and regulatory advisory, and assistance with global market entry. --- - Published: 2024-07-21 - Modified: 2024-07-21 - URL: https://gift.treelife.in/faq/how-can-treelife-support-in-a-due-diligence-exercise-8/ - FAQ Category: About Services Absolutely! Treelife specializes in supporting startups with a wide range of services. From legal support and virtual CFO services to secretarial compliance and tax advisory, we provide end-to-end solutions to help your startup grow and succeed. --- ---