gift city business opportunities - Treelife

GIFT City Business Opportunities – A Deep Exploration

Posted on February 2, 2026February 2, 2026 by Treelife

Why GIFT City Is India’s Most Strategic Business and Financial Opportunity

Gujarat International Finance Tec-City, or GIFT City, is India’s designated global financial hub created to onshore international financial services under globally aligned regulatory and tax frameworks. Unlike traditional SEZs or IT parks, it operates as a jurisdiction within a jurisdiction, enabling cross-border financial activity from within India.

GIFT City enables the repatriation of offshore financial services previously routed through hubs such as Singapore, London, and DIFC. Banking, capital markets, fund management, insurance, fintech, bullion trading, leasing, and treasury operations can now be conducted onshore, expanding gift city business opportunities for global and domestic institutions.

At the core of this ecosystem is India’s first operational International Financial Services Centre. The IFSC permits foreign currency transactions, provides non-resident treatment under FEMA, and functions under a unified regulatory framework, delivering offshore-style flexibility with onshore legal certainty.

Compared with global financial centres, GIFT City offers lower operating and talent costs, a unified regulator, time-zone coverage across Asia, Europe, and the US, and direct access to India’s domestic economy.

When benchmarked against global financial centres, GIFT City offers clear structural advantages:

Lower operating and talent costs
Unified financial regulator instead of fragmented oversight
Time-zone advantage covering Asia, Europe, and the US in a single day
Direct linkage to India’s domestic economy and corporate sector

Snapshot of GIFT City Financial Opportunity

GIFT City has achieved measurable scale across financial services, demonstrating institutional depth and transaction maturity.

Key Ecosystem Metrics

Indicator	Scale
Registered IFSC entities	1,034
Licensed banks and IBUs	35
Total banking assets	USD 100+ billion
Cumulative debt listings	USD 66.6 billion
Fund commitments raised	USD 26+ billion
Active sectors	Banking, capital markets, funds, insurance, fintech, leasing

Data Source – https://ifsca.gov.in/CommonDirect/GetFileView?id=47a297ad49aaae8fa365313a9167e7c6&fileName=IFSCA_Bulletin_Q2_2025_26_20251117_0102.pdf&TitleName=Report%20and%20Publication [Sept 2025 Bulletin IFSCA]

Structural Enablers of Business Opportunities in GIFT City

IFSC entities treated as non-residents for FEMA purposes
Transactions permitted in freely convertible foreign currency
Simplified cross-border fund flows and capital repatriation
Unified regulation across banking, securities, insurance, and funds
Offshore-equivalent functionality without offshore relocation

Collectively, these elements establish GIFT City as one of India’s most scalable and strategically important gift city business opportunities, offering proven depth, regulatory maturity, and sustained relevance for institutions.

GIFT City at a Glance: Location, Scale and Infrastructure Advantage

Gujarat International Finance Tec-City is purpose-built as a globally competitive financial and business district supporting high-volume international finance, technology operations, and cross-border activity. Its location, scale, and smart infrastructure combine offshore-style functionality with onshore efficiency, strengthening long-term gift city business opportunities.

Strategic Geographic Location

GIFT City is strategically located between Ahmedabad and Gandhinagar, Gujarat’s commercial and administrative capitals.

Key location advantages:

Situated between Ahmedabad and Gandhinagar
Approximately 20 km from the international airport
Direct highway and metro connectivity to major economic corridors
Time-zone overlap enabling same-day operations across Asia, Europe, and the United States
Access to deep financial, legal, and technology talent pools

This positioning makes business opportunities in GIFT City attractive for institutions operating 22 to 24-hour global cycles.

City Scale and Zoning Structure

GIFT City is a large-scale integrated financial city with clearly defined zones.

Component	Area
Total developed area	886 acres
IFSC Special Economic Zone	261 acres
Domestic Tariff Area	625 acres
Planned expansion	3,300+ acres

The IFSC SEZ supports international financial services, while the Domestic Tariff Area provides residential and social infrastructure, creating a live-work-play ecosystem that reinforces the overall business opportunity in GIFT City.

Smart Infrastructure for Finance at Scale

GIFT City is engineered for operational continuity, cost efficiency, and sustainability.

Core infrastructure features:

99.999 percent power reliability
17 km underground utility tunnel
District Cooling System with about 30 percent lower energy costs
Automated waste collection reducing traffic and emissions
Optical fiber ring with multiple global providers
Samrudhi Sarovar water reservoir with up to 15 days storage

This infrastructure lowers operating costs for banks, exchanges, GCCs, and data-intensive fintech firms while improving reliability and workforce productivity.

Understanding IFSC: The Backbone of GIFT City Business Opportunities

Gujarat International Finance Tec-City derives its strategic importance from the International Financial Services Centre, which functions as the core engine behind business opportunities in GIFT City. The IFSC establishes a legally distinct financial jurisdiction within India, enabling cross-border financial services under globally aligned regulations while retaining capital and talent domestically.

What Is an International Financial Services Centre

An International Financial Services Centre is a designated zone for international financial transactions between residents and non-residents, primarily in foreign currency. Globally, more than 120 IFSCs operate as specialized cross-border finance hubs.

Key characteristics:

Focus on cross-border financial services
Transactions in freely convertible foreign currency
Distinct regulatory and legal framework
Interface between domestic and global markets

IFSC at GIFT City: Structural Advantages

The IFSC at GIFT City combines offshore-style flexibility with onshore stability, strengthening the gift city financial opportunity.

Core advantages:

IFSC entities treated as non-residents for FEMA
Foreign currency transactions across eligible activities
Globally aligned frameworks for banking, markets, insurance, and funds
Unified regulatory oversight
Lower operating and compliance costs than offshore hubs

These features position the IFSC as the structural backbone of long-term business opportunities in GIFT City.

Regulatory Framework: IFSCA and Ease of Doing Business

A key enabler of scalable gift city business opportunities is GIFT City’s unified regulatory framework. All IFSC activities operate under a single authority, eliminating fragmented oversight and significantly reducing approval timelines, regulatory uncertainty, and compliance friction.

International Financial Services Centres Authority

The International Financial Services Centres Authority was established under the IFSCA Act, 2019 as the sole regulator for all financial services within the IFSC. It governs financial products, institutions, and intermediaries through a single-window model focused on speed, consistency, and predictability.

Key regulatory features:

Statutory authority under the IFSCA Act, 2019
Single-window licensing, supervision, and enforcement
Coverage across banking, capital markets, insurance, pensions, and allied services

Regulators Consolidated Under IFSCA

Sector	Earlier Regulator	Current Regulator
Banking and forex	RBI	IFSCA
Capital markets	SEBI	IFSCA
Insurance and reinsurance	IRDAI	IFSCA
Pensions	PFRDA	IFSCA
SEZ administration	MoCI	IFSCA

This consolidation reduces regulatory overlap and strengthens the overall business opportunity in GIFT City for global and domestic institutions.

Key Regulatory Milestones

Year	Milestone
2014	IFSC framework operationalized within SEZ
2019	IFSCA Act enacted
2020	IFSCA established as unified regulator
2023	SEZ powers delegated to IFSCA
2025	40 plus sector-specific frameworks notified

Reforms Improving Ease of Doing Business

To enhance scalability and lower entry barriers, IFSCA has introduced:

Single Window IT System for integrated approvals and filings
Umbrella registrations for capital market intermediaries
Removal of minimum office space norms for BATF service providers
Direct SEZ administration by IFSCA

The Single Window IT System integrates SEZ approval, GST registration, and regulatory filings into one interface. Capital market intermediaries benefit from perpetual registration linked only to SEZ approval validity, supporting long-term operational planning and reinforcing the gift city financial opportunity.

Tax and Fiscal Incentives: Why Businesses Choose GIFT City

Tax efficiency is a major factor driving gift city business opportunities. The IFSC at GIFT City offers a globally competitive and stable fiscal regime that improves post-tax returns for international financial services and cross-border businesses.

Direct Tax Incentives

IFSC entities benefit from a clear, time-bound direct tax framework:

100 percent income tax exemption for any 10 years within a 15-year block
Capital gains tax exemption on specified securities traded on IFSC exchanges
Exemption from Minimum Alternate Tax under new regimes

These benefits directly strengthen the gift city financial opportunity for banks, fund managers, insurers, fintech firms, and global investors.

Indirect Tax and Transaction Benefits

GIFT City also reduces transaction-level costs compared to offshore hubs:

Zero GST on offshore financial services
No Securities Transaction Tax or Commodities Transaction Tax on IFSC trades
Customs duty exemptions on authorized imports
Stamp duty waiver under state policy

Tax and Duty Incentives Summary

Tax Category	Domestic Tariff Area (DTA)	GIFT IFSC / SEZ
Corporate Tax	25% – 30%	0% for 10 years (in 15-yr block)
MAT / AMT	15%	9% or Exempt
GST on Services	18% (Standard)	0% (on exports and inter-unit)
Customs Duty	Applicable	0% on authorized imports
STT / CTT	Applicable	0% on IFSC exchanges
Dividend Taxation for recipient	Taxed at shareholder level	~10% Withholding for non-residents
Stamp Duty	Applicable (State rates)	0% (Waiver by Gujarat Govt)

Recent fiscal changes also exempt profits from OTC derivatives and offshore derivative instruments, supporting high-volume global trading.

Business Opportunities in GIFT City: Sector-Wise Deep Dive

GIFT City has moved well beyond its early regulatory phase into a mature international financial ecosystem with measurable transaction volumes, institutional depth, and cross-border relevance. Activity across banking, capital markets, fund management, insurance, fintech, leasing, and sustainable finance confirms that business opportunities in GIFT City are now data-driven, scalable, and globally competitive.

Banking and International Banking Units

International Banking Units form the foundation of cross-border finance within the IFSC. These units operate as offshore-style banks from India, conducting transactions in foreign currency while serving global and India-linked clients.

Key banking ecosystem indicators:

35 International Banking Units operational
Presence of major global banks and Indian banks with overseas operations
Consistent growth in credit exposure and total asset base
Expansion in treasury, interbank, and liquidity operations

Primary banking activities include:

Cross-border corporate and project lending
Trade finance and export-import financing
External commercial borrowing facilitation
Treasury, liquidity, and risk management
Financing overseas acquisitions by Indian corporates

Non-resident treatment under foreign exchange regulations enables offshore flexibility with onshore regulatory certainty, strengthening the gift city financial opportunity for international banks.

Banking and Treasury Scale

Metric	Value
Licensed banks	35 IBUs
Total banking assets	USD 100.14 billion
Monthly average turnover	USD 89.67 billion
Cumulative debt listings	USD 66.6 billion

Global Treasury and Shared Services Opportunities in GIFT City

Regulatory relaxation on deemed dividend provisions for listed parent entities has accelerated the setup of treasury subsidiaries in GIFT City, enabling corporates to manage overseas investments, cash pooling, and liquidity from a single onshore location.

Global Treasury Centres in GIFT City

Beyond front-office financial services, treasury operations represent a structurally important business opportunity in GIFT City. The IFSC framework explicitly enables centralized treasury activities required by banks, funds, insurers, exchanges, and multinational corporations.

Key regulatory and operational enablers:

IFSC entities treated as non-residents for foreign exchange purposes
Treasury operations permitted in foreign currency
Liberalized cross-border fund movement
Unified regulatory oversight under IFSCA

Core Treasury Functions Permitted-

Treasury Function	Scope
Cash management	Centralized liquidity across global subsidiaries
Foreign currency pooling	Multi-currency pooling and netting
Intercompany funding	Cross-border loans and guarantees
Risk management	FX, interest rate, and commodity hedging
Capital structuring	ECB management and global debt servicing

Treasury centres integrate directly with IFSC banking units, derivatives markets, and capital market infrastructure. With 25 International Banking Units supporting cross-border flows, GIFT City enables corporates to replace overseas treasury hubs with an onshore alternative, significantly strengthening the long-term gift city financial opportunity.

Shared Services and Global In-House Centres

GIFT City is also designed to host Global In-House Centres and Shared Services Centres supporting finance, risk, and operations for both IFSC and non-IFSC entities.

Key structural advantages include integrated commercial and residential infrastructure, a walk-to-work ecosystem that lowers operating costs, proximity to Ahmedabad and Gandhinagar talent pools, and access to the international airport within approximately 20 km.

Shared Services Activities Enabled

Service Category	Functions
Finance operations	Accounting, reporting, reconciliations
Risk analytics	Portfolio risk, stress testing, analytics
Back-office processing	Trade processing, settlements
Technology support	Data platforms, automation

Together, global treasury and shared services activities expand business opportunities in GIFT City beyond pure financial trading, anchoring long-term, scalable enterprise operations within the IFSC ecosystem.

Capital Markets, Exchanges, and Bullion

Capital markets represent one of the fastest-scaling segments within GIFT City, driven by international exchanges, derivatives trading, and foreign currency debt listings.

Key capital market components:

International stock exchanges
Clearing corporations and depositories
Trading in equity, currency, and commodity derivatives
Listing of foreign currency denominated debt securities

Capital market performance highlights:

Stock exchange turnover growth of 104 percent
Derivatives market growth of nearly 40 percent
GIFT Nifty monthly turnover of USD 102.35 billion in May 2025
Exchange operations spanning 22 hours daily, overlapping Asian, European, and US sessions

Capital Markets Growth Snapshot

Indicator	Performance
Stock exchange turnover growth	104 percent
Derivatives market growth	Nearly 40 percent
Dominant derivative products	Index futures and options
Commodity focus	Gold derivatives

Debt market scale:

Metric	Value
Cumulative debt listings	USD 66.6 billion
Debt listed in one financial year	USD 5.9 billion

The India International Bullion Exchange has added a unique dimension to market depth:

More than 16 tonnes of gold imported
Trading via Bullion Depository Receipts fully backed by physical bullion
T+0 settlement with 30-minute trading cycles

Planned products including silver futures, bullion REPOs, and gold metal loans are further financializing the bullion ecosystem. The expansion of bullion access across 83 districts in 20 states has also democratized price discovery for domestic manufacturers.

Fund Management and Asset Management

Fund management has emerged as a core growth engine connecting GIFT City to global capital flows.

Permitted fund structures:

Alternative Investment Funds
Mutual fund schemes
Private equity and venture capital funds
Hedge funds and hybrid strategies

Strategic advantages for fund managers:

Ability to raise foreign capital and invest globally
Tax-efficient fund structures
Unified regulatory oversight
Flexible investor eligibility and currency denomination

Ecosystem scale:

Metric	Value
Registered Fund Management Entities	194
Capital commitments raised	USD 26 billion+

Permitted structures include alternative investment funds, mutual funds, private equity, venture capital, hedge funds, and hybrid strategies.

Recent regulatory frameworks enabling retail participation, ESG schemes, co-investment structures, and Specialized Investment Funds have expanded the addressable investor base. Extensions to custodian appointment timelines have also improved operational flexibility, reinforcing fund management as a scalable gift city business opportunity.

Insurance and Reinsurance

The insurance and reinsurance segment supports offshore risk placement for Indian and global markets while building domestic underwriting capacity.

Key developments:

Registration of insurers and reinsurers
Licensing of insurance brokers and intermediaries
Expansion of offshore insurance solutions

Permitted activities include:

Reinsurance of India-linked risks
Specialty and niche insurance products
Captive insurance structures
Cross-border risk pooling and transfer

This framework reduces dependence on overseas reinsurance hubs and integrates risk management within India’s international financial architecture.

FinTech, TechFin, and Global Capability Centres

Fintech operates as an enabling layer across all financial verticals, supported by an innovation-focused regulatory approach.

Key features include:

Dedicated regulatory sandbox
Technology-neutral regulations
Faster approval cycles for new products

Primary fintech use cases:

Cross-border payments and settlement platforms
Regulatory technology and compliance automation
InsurTech solutions for underwriting and claims
Digital asset and tokenized financial instruments

Primary use cases span cross-border payments, compliance automation, InsurTech underwriting, and digital asset platforms. Direct access to banks, exchanges, funds, and insurers accelerates institutional adoption and scale.

Global Capability Centres further strengthen long-term growth. Under the Gujarat GCC Policy 2025 to 2030, incentives include:

CAPEX support of 20 percent up to INR 50 crore for standard projects and INR 200 crore for mega projects
OPEX support up to INR 5 crore per year for standard projects and INR 20 crore per year for mega projects
Employment incentives up to INR 50,000 per employee

GIFT City already hosts large technology and consulting firms with significant headcount across analytics, cybersecurity, semiconductor design, and financial technology.

Aircraft and Ship Leasing

Leasing is a strategic vertical aimed at capturing activity traditionally routed through offshore jurisdictions.

Key leasing advantages:

Globally aligned leasing and financing frameworks
Tax-efficient lease structures
Ability to lease to Indian and foreign operators
Access to India’s aviation and maritime growth

Strategic positioning:

Designed as an alternative to Dublin and Singapore
Supports fleet expansion for Indian airlines
Enables onshore financing of global movable assets

Aviation leasing ecosystem:

37 registered aircraft lessors
303 aviation assets under lease
Supported by the PIAO Act 2025 aligned with the Cape Town Convention

Ship leasing framework:

Lease type	Minimum owned fund
Operating lease	USD 200,000
Financial or hybrid lease	USD 3 million

Additional benefits include a 10-year tax holiday, zero GST on lease payments, capital gains exemption on vessel disposal, and stamp duty waivers. These features position GIFT City as a credible alternative to traditional leasing hubs while retaining asset financing within India.

Oilfield Equipment Leasing

Oilfield Leasing is a strategic vertical aimed at on-shoring equipment financing for exploration & production (E&P) and oilfield services.

Key leasing advantages:

Globally aligned leasing and financing frameworks
Tax-efficient lease structures for specialized energy assets
Ability to lease to Indian and foreign E&P/service operators
Direct exposure to India’s exploration, development and brownfield upgrades

Strategic positioning:

Designed as an alternative to offshore leasing hubs (e.g., Singapore/Dublin)
Supports capex cycles for rigs, workover units, frac fleets, wireline, and subsea kits
Enables onshore financing of high-value movable assets within a regulated IFSC

Oilfield equipment ecosystem:

Formal recognition of oilfield equipment leasing as a financial product
Clear scope anchored to nationally recognized equipment classifications
Fits energy transition themes (enhanced recovery, gas infrastructure, integrity upgrades)

Oilfield equipment leasing framework:

Lease type	Scope
Operating lease	Rental of drilling, completions, testing, production and subsea equipment to E&P and oilfield service companies
Financial or hybrid lease	Structured leases combining rental and financing features for capex-intensive assets (e.g., rigs, coiled tubing, compressors)

Effective date: Comes into force on publication in the Official Gazette (Jan 5, 2026).

Additional benefits include multi-year tax incentives, streamlined imports/exports through the IFSC, access to foreign currency financing, and simplified cross-border contracting. These features position GIFT City as a credible hub for oilfield asset financing while retaining value creation within India.

Payment Service Providers (PSPs)

PSPs are a strategic vertical aimed at enabling compliant, low-friction cross-border payments, collections, and settlements for IFSC participants.

Key PSP advantages:

Globally aligned, API-first payment and settlement frameworks
Access to foreign-currency accounts and multi-currency processing
Ability to serve Indian and overseas merchants, funds, and financial institutions
Embedded compliance rails (KYC/AML, transaction screening, auditability)

Strategic positioning:

Designed as an alternative to routing India-linked flows via offshore gateways
Supports export receivables, capital-market cash flows, and fund subscriptions/redemptions
Enables onshore setup for gateway/acquiring, remittances, wallets, and card programs within a regulated IFSC

PSP ecosystem:

Scope for payment aggregation, merchant acquiring, remittances, card/wallet issuance, and payment infrastructure
Interoperable rails for collections, pay-outs, recurring mandates, and marketplace splits
Designed for high-volume, cross-border commerce, fintech innovation, and treasury optimization

PSP Framework:

PSP type	Scope
Payment Aggregator / Gateway	Merchant onboarding, multi-currency checkout, split-payouts, refunds, and reconciliation for IFSC entities and global merchants
Cross-border Remittance Operator	Inward/outward remittances with screening, pricing, and straight-through processing to partner banks/IBUs
Card / Wallet Issuer (prepaid/virtual)	Corporate expense, traveler, and programmatic disbursement cards; stored-value or wallet constructs for IFSC use cases
Payment Infrastructure Provider	Clearing, settlement, reconciliation, risk, and compliance tooling (fraud, chargebacks, screening, reporting)

ESG and Sustainable Finance

Sustainable finance has become a high-growth segment within GIFT City:

ESG-labelled debt listings of USD 15.73 billion
Approximately 25 percent share of total IFSC debt listings

The Transition Bond Framework introduced in 2025 supports hard-to-abate sectors such as steel, cement, and heavy transport. Mandatory governance standards include entity-level transition plans, taxonomy-aligned use of proceeds, independent external reviews, and quantified emission reduction targets, reinforcing credibility and investor confidence.

Professional and Ancillary Services Ecosystem

Professional services are a formally recognized activity within the IFSC and are essential to its regulatory integrity.

Key Professional Services Operating in GIFT City

Service Type	Scope
Legal advisory	Cross-border finance, funds, derivatives
Accounting and audit	IFRS-aligned reporting
Tax advisory	IFSC-specific direct and indirect tax
Regulatory advisory	Licensing and compliance

Book-Keeping and Financial Crime Compliance Services

GIFT City explicitly permits specialized compliance and risk services that are critical for international finance.

Key compliance activities:

Fund accounting and NAV computation
Book-keeping for banks, funds, insurers
Anti-money laundering operations
Know-your-customer processing
Transaction monitoring and reporting

Regulatory importance:

IFSC entities must comply with global AML and KYC standards
Centralized compliance services reduce cost and duplication
Enhances investor confidence and regulatory trust

Ancillary Support Services for IFSC Entities

Beyond core professional services, GIFT City supports a full stack of ancillary services required for scale.

Support services include:

Technology and cybersecurity services
Data management and regulatory reporting platforms
Corporate secretarial and governance support
Human resources and payroll services

Integrated Ecosystem Advantage

The true strength of GIFT City lies in how its sectors reinforce one another:

Banks provide liquidity to capital markets and funds
Capital markets enable fundraising and risk management
Fund managers channel global capital
Insurers manage cross-border risk
Fintech firms enhance efficiency and compliance
Leasing platforms finance global movable assets

This integrated structure ensures that business opportunities in GIFT City remain diversified, resilient, and data-driven, positioning the IFSC as a long-term global financial hub rather than a single-sector destination.

Business Opportunities in GIFT City - A Snapshot — GIFT City Business Opportunities – A Deep Exploration 3

Fundraising and Capital Access via GIFT City

GIFT City provides a regulated and internationally aligned platform for raising foreign capital and structuring cross-border investments. The IFSC framework enables companies, funds, and financial institutions to access global capital efficiently, making fundraising one of the strongest gift city business opportunities.

How Companies Raise Capital from GIFT City

The IFSC at GIFT City supports multiple capital-raising instruments designed for foreign currency transactions and international investors.

Fundraising Instruments in GIFT City

External Commercial Borrowings
- Foreign currency borrowings with simplified approval processes
- Access to global lenders through IFSC banking units
- Used for corporate expansion, refinancing, and overseas acquisitions
USD-Denominated Bond Issuances
- Listing of foreign currency bonds on IFSC exchanges
- Cumulative debt listings of USD 56.5 billion
- USD 5.9 billion listed in a single financial year
SPAC Listings
- Framework for Special Purpose Acquisition Companies
- Enables global listing routes for growth-stage companies
- Access to international investors and acquisition capital
Alternative Investment Funds
- 194 registered Fund Management Entities
- Commitments exceeding USD 38 billion
- Structures include private equity, venture capital, and hedge funds

These instruments collectively position GIFT City as a scalable fundraising hub for global and India-linked businesses.

Global Investment Structuring Through GIFT City

GIFT City enables efficient structuring of international investments under a unified regulatory and tax framework.

Key structuring advantages:

Holding company structures for domestic and overseas investments
Optimization under multiple double taxation avoidance agreements
Simplified repatriation of profits and dividends
Efficient cross-border investment routing using IFSC entities

This framework strengthens the gift city financial opportunity for global investors and multinational corporations.

Opportunities for Individuals and Talent Ecosystem

GIFT City is also a large-scale employment and talent hub supporting financial and allied services.

Employment Potential in GIFT City

Estimated 500,000 direct jobs
Estimated 500,000 indirect jobs
Roles spanning finance, fintech, legal, compliance, risk, and technology

Presence of Global Universities

GIFT City hosts international universities supporting finance and technology talent development:

Deakin University
University of Wollongong

The combination of high-value employment, global education institutions, and international financial services positions GIFT City as a long-term talent destination aligned with expanding business opportunities in GIFT City.

Setting Up a Business in GIFT City: Quick Overview

Setting up operations in GIFT City is designed to be structured, time-bound, and regulator-friendly. The IFSC framework enables faster approvals and unified oversight, supporting scalable gift city business opportunities for global and domestic entities.

Entity Types Allowed in GIFT City

The IFSC permits a wide range of regulated and allied entities to operate.

Permitted entity categories:

Banks and International Banking Units
Insurance and reinsurance companies
Fund managers and investment vehicles
Fintech and technology-driven financial services firms
Capital market intermediaries including exchanges, brokers, and clearing entities

These entities operate under globally aligned frameworks and foreign currency regimes, strengthening the gift city financial opportunity.

Business Setup Process in GIFT City

The setup process follows a clear and sequential structure.

Entity incorporation under applicable Indian corporate law
Special Economic Zone approval for IFSC operations
Registration with the International Financial Services Centres Authority
Sector-specific licensing and ongoing compliance approvals
Operational launch within the IFSC ecosystem

This streamlined process reduces regulatory overlap, improves time-to-market, and enhances ease of doing business, making business opportunities in GIFT City operationally viable and scalable.

Refer our Detailed Guide on Setting Up a Business in GIFT City here.

Residential and Lifestyle Opportunities in GIFT City

Residential development forms a critical supporting layer for long-term business opportunities in GIFT City by enabling a stable, high-quality living environment for a rapidly expanding professional workforce. As financial institutions, global capability centres, and shared services scale operations, residential demand has accelerated in parallel.

Key market indicators highlight this growth:

Property prices range from approximately ₹46.8 lakh for entry-level units to over ₹6 crore for premium residences
NRI investment in GIFT City has crossed USD 7 billion, reflecting strong global confidence
Workforce strength is projected to increase from 25,000 to nearly 150,000 professionals

This combination of rising employment, sustained NRI interest, and limited high-quality supply reinforces residential real estate as a complementary gift city financial opportunity. By supporting talent retention and quality of life, residential and lifestyle infrastructure plays a vital role in sustaining GIFT City’s long-term ecosystem growth.

GIFT City vs Offshore Financial Centres: Comparative Advantage

GIFT City is designed to compete directly with established offshore financial centres while offering structural advantages rooted in India’s regulatory and economic framework. For businesses evaluating gift city business opportunities, the IFSC provides offshore-style flexibility with onshore stability.

Comparative Advantage of GIFT City

Parameter	GIFT City	Singapore	DIFC
FEMA treatment	Offshore	Offshore	Offshore
Regulatory structure	Unified regulator under IFSCA	Multiple regulators	Independent authority
Cost of operations	Lower	High	High
Currency regime	Foreign currency transactions	Foreign currency	Foreign currency
Market linkage	Direct access to India economy	Limited India linkage	Limited India linkage

Why GIFT City Stands Out

Key differentiators driving business opportunities in GIFT City:

Non-resident treatment under foreign exchange regulations while operating within India
Unified regulatory oversight reducing compliance complexity
Lower operating and talent costs compared to offshore hubs
Direct integration with India’s banking, capital markets, and corporate sector

These advantages position GIFT City as a scalable and cost-efficient gift city financial opportunity for institutions seeking India-linked international finance without offshore relocation.

Future Outlook: Why GIFT City Is a Long-Term Financial Opportunity

GIFT City is positioned as a structural pillar of India’s long-term financial strategy rather than a short-term incentive-driven zone. Its policy direction, regulatory depth, and market traction indicate sustained relevance for global and domestic participants.

Alignment with Viksit Bharat @2047

GIFT City directly supports India’s long-term economic vision by:

Mobilizing global capital into India-linked investments
Deepening domestic capital markets through international participation
Retaining high-value financial services within India
Supporting large-scale employment creation of 500,000 direct and 500,000 indirect jobs

This alignment anchors gift city business opportunities to national economic priorities.

Continuous Regulatory Expansion

Regulatory development remains active and forward-looking:

40+ regulatory frameworks notified across banking, capital markets, funds, insurance, fintech, and leasing
Ongoing expansion of permissible activities and financial products
Delegation of SEZ administrative powers to the unified regulator to reduce friction

This ensures regulatory certainty and adaptability over time.

Setting Up a Company or Business in GIFT CITY – Registration, Process, Eligibility

Posted on January 27, 2026January 27, 2026 by Treelife

Introduction to GIFT City: A Global Business Hub

In the era of globalization, the need for a well-structured, business-friendly environment has never been more crucial. Positioned strategically in Gujarat, India, the Gujarat International Finance Tec-City (GIFT City) stands as a prime example of a global business hub. Since its inception in 2015, GIFT City has been developed to cater to the needs of both domestic and international businesses. This remarkable project serves as a gateway to opportunities in finance, technology, and global trade, offering an ideal environment for companies to set up operations and capitalize on India’s growing financial markets.

What is GIFT City?

GIFT City, formally known as Gujarat International Finance Tec-City, represents a monumental step towards creating a world-class financial and IT services hub in India. Designed as a “Smart City,” it provides state-of-the-art infrastructure and regulatory regimes tailored to boost the competitiveness and efficiency of businesses. As the first International Financial Services Centre (IFSC) in India, GIFT City is built to cater to global financial needs while offering attractive incentives for business setup.

GIFT City’s Strategic Importance for Businesses

The strategic location of GIFT City enhances its potential as a global business destination. Positioned to serve the growing demands of India’s financial services sector on a global scale, GIFT City offers a unique blend of cutting-edge technology, world-class facilities, and a business-friendly regulatory framework. Its multi-services Special Economic Zone (SEZ) status further bolsters its appeal by providing a range of fiscal incentives. These include tax exemptions and favorable regulations that make GIFT City an attractive hub for financial services, IT, and IT-enabled Services (ITeS) companies.

GIFT City’s Rising Global Significance

Ranked 46th among financial centers in Asia as per the 2025 Global Financial Centres Index, GIFT City has made remarkable strides in just a decade. It has leapfrogged Mumbai as the prime financial center in India, showcasing a rapid rise from its humble beginnings. The city gained 15 spots from the previous year, highlighting its growing influence in the global financial landscape. The 2020 report by the Global Financial Centres Index had already indicated GIFT City’s potential to become a major player in the coming years, and it is now on track to cement its position as one of the top emerging financial centers worldwide.

GIFT City Special Economic Zone (SEZ) and International Financial Services Centre (IFSC)

The Dual Structure of GIFT City: SEZ and DTA

The Gujarat International Finance Tec-City (GIFT City) operates as a premier International Financial Services Centre (IFSC) in India. Its operational area is strategically partitioned into two distinct zones: the Special Economic Zone (SEZ) and the Domestic Tariff Area (DTA). This bifurcation is crucial for understanding the differing regulatory and economic frameworks within the city. The SEZ component is specifically designed to function as an offshore financial hub, facilitating global transactions.

GIFT SEZ: A Hub for Export-Oriented Financial Activities

The GIFT SEZ is a dedicated, geographically demarcated area within GIFT City established with the core objective of promoting export-oriented economic activities, particularly within the finance, technology, and allied service sectors. This zone provides a world-class physical and regulatory infrastructure to attract international business operations.

Key Operational and Financial Advantages in the GIFT SEZ

Global Client Focus and Foreign Currency Transactions: Entities operating within the GIFT SEZ are mandated to conduct business exclusively in foreign currencies. Their primary focus is catering to global clients and facilitating international financial transactions. This setup is strategically designed to attract financial flows and activities that are currently undertaken by international institutions outside of India, effectively onshoring them.
Significant Tax and Regulatory Incentives: Businesses situated in the GIFT SEZ benefit from a package of substantial tax benefits and regulatory concessions. These incentives are a major draw for global financial institutions, making the SEZ a highly competitive location. The comprehensive ecosystem in GIFT City is specifically tailored to promote business activities and offer compelling incentives related to capital, taxation, and ease of doing business.

Types of Legal Entities for Setting Up in GIFT City

GIFT City offers various legal structures for businesses to establish their presence in India’s premier financial hub. These structures are designed to provide flexibility and align with global regulatory standards. Key options include:

Private Limited Company: A popular choice for both domestic and foreign investors, offering limited liability protection and the ability to raise capital through equity. To set up a company in GIFT City, it must meet the minimum capital requirement and comply with Indian corporate laws.
Limited Liability Partnership (LLP): Ideal for smaller businesses and partnerships, LLPs provide flexibility in management and offer limited liability protection, making it an attractive option for professional services firms and startups.
Branch Office: Foreign companies can establish a branch office in GIFT City to conduct business in India. This allows them to leverage GIFT City’s regulatory advantages while maintaining a direct link to their parent entity.
Subsidiary: A wholly owned subsidiary can be set up by foreign entities, providing them with full control over operations in India. This structure allows for compliance with local laws while maintaining corporate governance standards aligned with the parent company.
Foreign Company Representative Office: For foreign entities wanting to establish a liaison in GIFT City without engaging in direct commercial operations, a representative office provides an option to handle marketing and customer support activities.

Each legal structure is designed to meet specific business needs and regulatory requirements, making GIFT City an ideal destination for businesses looking to expand their footprint in India’s financial services sector.

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 Business Sectors Eligible to Start a Business in GIFT City

Banking

GIFT City facilitates the establishment of both Indian and foreign banks through IFSC Banking Units (IBUs). Some key areas under banking include:

Indian and Foreign Banks
Retail Banking for Non-Residents
Treasury Operations & Structured Deposits
Custodian and Escrow Services
Transaction Banking (Cross-border)
Wealth Management Platforms

Insurance

Both Indian and foreign insurers, as well as intermediaries, can set up their businesses in GIFT City. Key players include:

Indian Insurers & Reinsurers
Foreign Insurers & Reinsurers
Insurance Intermediaries (e.g., brokers, agents, web aggregators)
IFSC Insurance Offices for NRIs (covering life, health, ULIPs, travel, and student insurance)

Capital Market Entities

GIFT City is a hotspot for capital market-related activities, hosting a variety of entities such as:

Stock and Commodity Exchanges
Depositories and Custodians
Brokers and Dealer-Brokers
Clearing Corporations
Registrar & Share Transfer Agents
Credit Rating Agencies
Market Infrastructure Institutions (MIIs)

Asset & Fund Management

Businesses involved in fund management and investment activities can benefit from GIFT City’s favorable infrastructure. Permitted entities include:

Alternate Investment Funds (AIFs)
Venture Capital Funds
Private Equity & Structured Products
Portfolio Management Services (PMS)
Family Investment Funds / Family Offices
Fund Management Entities (FMEs)

Leasing Services

GIFT City is an ideal location for businesses focused on leasing operations, such as:

Aircraft Leasing and Financing
Ship Leasing and Marine Finance
Core Financing Companies

Payment Services & Fintech

Payment services and fintech businesses are also eligible to set up shop, with activities such as:

E-money Issuance and Account Issuance Services
Payment Aggregators & Gateways
Cross-border Remittance Providers
Escrow and Merchant Services
FinTech Innovation Entities under Regulatory Sandbox
International Trade Finance Services (ITFS)

Allied & Support Services

A variety of allied services can be established in GIFT City, such as:

Global In-house Centres (GICs) and Treasury Centres
Accounting, Audit & Legal Consultancy Services
Compliance Advisory & Corporate Secretarial Firms
HR & Talent Management Services
Research & Development Services
Educational & Capacity Building Institutions
Specialized Trade & Investment Services

Sustainable Finance and ESG Initiatives

With a growing focus on sustainability, GIFT City is home to initiatives related to green and climate finance, including:

ESG-labelled Debt Securities
Sustainable 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

Setting up a business in GIFT City (Gujarat International Finance Tec-City) offers several regulatory and infrastructural advantages, especially for businesses engaged in financial services, technology, and related sectors. The process for establishing a business in GIFT City is systematic and requires careful attention to legal, regulatory, and compliance-related steps.

Below is a detailed, step-by-step guide for GIFT City Registration and setup process:

Step 1: Identifying Office Space

Choosing an office space within GIFT City is one of the first crucial steps in the setup process. This space will serve as the operational base for your business and needs to comply with the GIFT City’s regulations.

How to Choose the Right Office Space:

Evaluate factors such as proximity to transport links, the nature of your business, infrastructure compatibility, and possibilities for future expansion.
GIFT City offers tailored zones designed to accommodate various business types, which can significantly improve logistical operations.

Legal Agreements with Developers:

Upon identifying a suitable location, negotiate lease terms or purchase agreements with developers. Consider important legal clauses regarding lease duration, renewal terms, and any SEZ-specific provisions in your agreement.

Provisional Letter of Allotment (PLOA):

Once terms are agreed upon, apply for a Provisional Letter of Allotment (PLOA) from the developer. This document serves as confirmation of the office space allocation and is necessary for progressing to subsequent steps.

Step 2: Company Structure and Registration

The next critical step is determining the legal entity structure of your business. GIFT City permits various business structures depending on the nature of services you intend to provide, such as:

Private Limited Company
Limited Liability Partnership (LLP)

This choice will dictate the required registration procedures and legal documents for your business.

Legal Documents to Prepare:

Charter Documents: These include the Memorandum of Association (MOA) and Articles of Association (AOA), which define the company’s activities and shareholder rights.
GST Registration, Income Tax Registration, Labor Laws Compliance: Depending on the business structure and scope of operations, other mandatory registrations may be required.

Step 3: Submit Application via SWIT Portal

GIFT City uses the SWIT (Single Window IT System) portal for streamlined submission of your application for both SEZ Unit Approval and IFSCA Authorization. This integrated approach eliminates the need for submitting separate applications to the SEZ Development Commissioner and IFSCA.

Required Documents:

Provisional Letter of Allotment (PLOA)
Detailed Business Plan or Project Report: This includes your financial projections, scope of activities, and other pertinent details.
Certificate of Incorporation, PAN, MOA, AOA
Board Resolution Authorizing Signatory
Financial Statements (Audited)
Identity and Address Proof of Promoters/Directors
Application Fees

Application Covers:

SEZ Unit Approval
IFSCA Authorization (for regulated financial services)

Step 4: Unit Approval and Regulatory Review

After the application is submitted, your business will undergo a review by the Unit Approval Committee (UAC). Prepare to present your business model and operations plan, showcasing how it aligns with GIFT City’s goals for economic development.

Letter of Permission (LOA):

If the UAC is satisfied with the application, the IFSCA (Administrator) will issue a Letter of Permission (LOA), granting formal authorization to commence operations.

Step 5: Lease Agreement and Legal Formalities

Once the LOA is issued, it’s time to complete the legal formalities to secure your operational status within GIFT City.

Key Formalities:

Lease Deed Execution: Finalize the lease agreement with the co-developer, ensuring all terms are aligned with GIFT City’s regulations. This deed must be submitted to the Development Commissioner within six months of receiving the LOA.
SEZ License & NSDL Portal Registration: Obtain the SEZ license, and register on the NSDL portal to facilitate import/export reporting and compliance.

Step 6: Compliance and Legal Undertakings

Ensuring compliance with all legal obligations is essential for a smooth setup process.

Bond Cum Legal Undertaking:

Prepare and sign a Bond Cum Legal Undertaking with the Development Commissioner and the IFSCA to ensure compliance with the terms of operation.

Tax Exemption and Registration Certificates:

Apply for various necessary registration certificates, such as GST, IEC, and RCMC. Additionally, businesses can apply for eligibility certificates to avail of tax exemptions from the central and state governments.

Step 7: Approval from IFSCA and Commencement of Operations

The final stage involves receiving approval from the International Financial Services Centres Authority (IFSCA) and officially commencing business operations.

Final Registration with IFSCA:

Submit all required documents and application fees to IFSCA. Once reviewed, the Certificate of Registration will be issued, officially granting your business the status of an operating entity within GIFT City.

Commencement of Business Operations:

Notify the Office of Development Commissioner of your business’s commencement. Provide evidence such as a tax invoice to confirm the first export of services, signaling the start of your operations within GIFT City.

Step 8: Final Documentation and Records

Letter of Acceptance: After receiving the LOA, the business must provide a Letter of Acceptance, confirming agreement to the terms and conditions laid out by the authorities.
Final Registration Certificates: Ensure that all necessary registrations, including GST, are completed, and the business is ready to operate under the regulatory framework of GIFT City.

By following these detailed steps, businesses can navigate the registration process in GIFT City with ease, ensuring compliance with all legal and regulatory requirements while benefiting from the advantageous tax and infrastructural benefits offered by the city.

Note: To begin the process of PSP registration, you must first apply for IFSCA (International Financial Services Centres Authority) registration. Once that is secured, the next step is to obtain the PLOA (Permission Letter of Approval), which is a key document in the regulatory framework. Following this, you will need to incorporate your entity as per the guidelines set by the relevant authorities. After the incorporation is complete, SEZ (Special Economic Zone) approval must be obtained to operate within the designated zone. These steps are then followed by similar processes for other regulatory approvals and compliances, ensuring that your entity is fully aligned with the legal and financial requirements for PSP registration in India.

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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.

Regulatory Framework for Financial Market Intermediaries in GIFT City

GIFT City operates under the International Financial Services Centres Authority (IFSCA), the primary regulator for financial services in India. The IFSCA’s framework ensures a transparent and efficient environment for financial market intermediaries, covering essential sectors such as banking, insurance, funds, and capital markets.

Key regulatory requirements include:

Stockbrokers & Clearing Members: Must register with IFSCA and meet capital adequacy, operational, and KYC norms. They are required to maintain a minimum net worth and adhere to compliance guidelines for client due diligence and transaction reporting.
Custodians: Must have a minimum net worth of $7 million for Indian entities and comply with financial segregation standards. Operational requirements include periodic audits and safeguards to ensure the protection of client assets.
Fund Management Entities (FMEs): FMEs are required to register with IFSCA, with specific net worth requirements ranging from $75,000 for venture capital funds to $1 million for retail investment funds. These entities must comply with guidelines on investor eligibility, reporting standards, and operational transparency.
Foreign Banks & Financial Entities: Foreign financial entities setting up in GIFT IFSC must ensure compliance with IFSCA regulations and their home country’s regulations. This includes meeting capital requirements, adopting anti-money laundering practices, and providing transparency in foreign exchange transactions.

The IFSCA’s unified framework reduces regulatory overlap, making GIFT IFSC an attractive destination for global financial market intermediaries, with a clear focus on compliance, investor protection, and operational efficiency.

Prominent Institutions Doing Business in GIFT City

GIFT City is home to numerous prominent global financial institutions and regulatory bodies, solidifying its position as India’s premier financial hub. Key players operating in GIFT include:

International Banks: GIFT City hosts top global financial institutions such as MUFG Bank, BNP Paribas, HSBC, Citi Bank, and JP Morgan, offering a range of banking services, including corporate banking, trade finance, and foreign exchange transactions.
Fund Management Entities (FMEs): Over 150 FMEs, including Private Equity, Venture Capital, and Hedge Funds, are registered in GIFT IFSC, contributing to India’s growing investment landscape. These entities manage substantial capital and offer unique opportunities for investors both domestically and internationally.
Insurance Companies: Leading insurers such as ICICI Lombard and SBI Life Insurance are operating in GIFT City, offering both life and non-life insurance products tailored for global and Indian clients.
Exchanges: GIFT City is home to two major exchanges, India INX and NSE IFSC, offering trading in equities, commodities, and currency derivatives. These exchanges have a growing monthly turnover of over $67 billion, fostering a robust capital market environment.
Fintech Innovators: GIFT City also attracts fintech startups and established firms, providing them with a conducive environment for innovation in blockchain, AI, and other technologies that are transforming financial services.

These institutions leverage GIFT City’s strategic location, world-class infrastructure, and favorable regulatory environment to provide a competitive edge in the global financial market.

Sector-Specific Opportunities in GIFT City

Setting up a company in gift city offers unparalleled opportunities across various sectors, fostering an ecosystem that attracts global businesses. Key sectors benefiting from GIFT City’s favorable regulatory and tax frameworks include:

Banking: GIFT City provides a robust platform for setting up IFSC Banking Units (IBUs), offering foreign currency transactions, trade finance, and capital raising. Banks benefit from a tax holiday of 10 years, exemption from CRR and SLR, and a lower MAT rate of 9%.
Insurance & Reinsurance: Foreign and Indian insurers can set up in GIFT IFSC under flexible regulations. The city offers tax exemptions, including no GST on services, and relaxed capital requirements for insurance and reinsurance entities, positioning GIFT City as a growing hub for the insurance sector.
Funds & Asset Management: With over 150 registered Fund Management Entities (FMEs), GIFT City serves as a prime destination for Private Equity, Venture Capital, and Hedge Funds. The sector enjoys favorable taxation, including capital gains exemptions and access to a growing base of accredited investors.
Fintech: The fintech sector in GIFT City benefits from regulatory innovation, offering a conducive environment for blockchain, AI, and cryptocurrency ventures. The IFSCA’s framework provides flexibility in regulatory compliance, making GIFT City a hotspot for global fintech companies.
Aircraft & Ship Leasing: GIFT IFSC enables the setup of leasing units for aircraft and ship leasing, with tax exemptions and an enabling framework for cross-border transactions, catering to global clients in aviation and maritime industries.
Capital Markets: GIFT City is home to the India INX and NSE IFSC, offering trading in equities, commodities, and currency derivatives. The exchanges benefit from no Securities Transaction Tax (STT) or Commodity Transaction Tax (CTT), attracting global investors.

These sector-specific opportunities, backed by world-class infrastructure, a unified regulatory framework, and tax incentives, make GIFT City an ideal destination for setting up businesses or companies.

Eligibility Criteria for Foreign Entities Setting Up in GIFT City

Foreign investors looking to establish a presence in GIFT City must meet specific eligibility criteria set by the International Financial Services Centres Authority (IFSCA). These criteria ensure compliance with global standards while offering attractive opportunities for international businesses. Key requirements include:

FATF-Compliant Jurisdiction: Foreign entities must be based in jurisdictions that are compliant with the Financial Action Task Force (FATF) standards, ensuring they meet global anti-money laundering and counter-terrorism financing regulations.
Capital Requirements: Depending on the type of business, foreign entities must maintain certain minimum capital levels. For instance, banks must maintain a minimum capital of $20 million for an IFSC Banking Unit (IBU), while other sectors may have different capital needs.
Operational Ring-Fencing: Foreign companies must ensure operational and financial separation between their GIFT City entity and their foreign parent company, providing clarity on cross-border operations and regulatory compliance.
Regulatory Approval: Foreign entities must seek approval from the IFSCA before setting up operations. This includes submission of a detailed business plan, proof of compliance with financial and operational regulations, and adherence to local governance standards.
Sector-Specific Eligibility: Certain sectors, like banking and insurance, have additional sector-specific requirements. For instance, foreign banks must be regulated by a recognized financial regulator in their home country and comply with the Reserve Bank of India’s guidelines on foreign exchange transactions.

Meeting these criteria ensures a smooth setup process for foreign entities, enabling them to leverage the advantages of GIFT City, including tax exemptions, regulatory flexibility, and access to India’s growing financial markets.

Maximizing Foreign Investments by Establishing a Business in GIFT City

India’s foreign investment landscape has seen significant growth, with FDI inflows reaching $81.04 billion in FY 2024–25, a 14% increase from the previous fiscal year. This growth is fueled by favorable investment routes such as Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI). GIFT City, India’s International Financial Services Centre (IFSC), stands out as a prime destination for foreign investors due to its robust regulatory framework and attractive tax benefits.

GIFT City: A Key Hub for Foreign Investment

GIFT City offers streamlined financial services and tax incentives, including 10-year tax holidays for fund managers, making it an attractive option for global businesses. As of 2025, over 150 fund managers manage assets worth over $22 billion in GIFT City. Furthermore, the value of Offshore Derivative Instruments (ODIs) reached approximately $16.5 billion by May 2025, showcasing GIFT City’s growing role in international finance.

Detailed Breakdown of Membership Fees in GIFT City

GIFT City offers a transparent and structured fee system for businesses looking to establish themselves within its financial ecosystem. The membership fees vary depending on the type of entity and services provided, ensuring flexibility for different business needs. Key membership fees include:

Stock Exchange Membership Fees:
- Trading Member: $500 application fee, with an annual fee ranging from $3,000 to $10,000, depending on the membership level.
- Clearing Member: $500 application fee, with annual fees starting at $3,000, plus additional deposits based on the type of membership.
Clearing Corporation Membership Fees:
- Self-Clearing Member: $500 application fee, with annual fees ranging from $10,000 to $15,000, depending on the size of the operation and the clearing services offered.
- Professional Clearing Member: $500 application fee, with a refundable deposit requirement of up to $100,000 and an annual fee of $15,000.
Exchange Fees for Specialized Activities:
- Investment Advisors & Other Intermediaries: Annual membership fees range between $1,000 to $3,500, with additional fees based on specific functions like portfolio management, investment advisory, and clearing activities.

These membership fees ensure access to GIFT City’s world-class trading infrastructure, regulatory benefits, and an integrated business environment, providing businesses with the tools needed to thrive in the global financial market.

Tax Benefits of Setting up Business in GIFT City

1. Income Tax Exemption

Units in GIFT City’s IFSC are eligible for a 100% income tax exemption for 10 consecutive years within the first 15 years of operation.
MAT/AMT of 9% applies to units that do not avail of the Section 80LA exemption, but companies opting for the new tax regime are exempt from MAT.

2. Dividend Distribution Tax (DDT) Exemption

Companies in IFSC are exempt from Dividend Distribution Tax, with dividends paid to non-resident shareholders subject to a 10% withholding tax.

3. Capital Gains Tax Exemptions

Capital gains from the transfer of specified securities, offshore derivatives, and non-deliverable forward contracts are exempt from tax for non resident.

4. GST and Customs Duty Exemptions

No GST on services received by units in IFSC or provided to IFSC/SEZ units or offshore clients.
Exemption from customs duties on goods imported into IFSC for authorized operations.

5. Stamp Duty and Securities Transaction Tax (STT) Exemption

Transactions carried out on IFSC exchanges are exempt from Stamp Duty and STT, reducing the cost of trading.

Tax Benefits for Non-Resident Investors

1. Tax-Free Interest Income

Interest income on fixed deposits and financial instruments in GIFT City’s IFSC is exempt from Indian taxation for non-residents.

2. AIFs Tax Exemptions

Non-resident investors in Category I and II AIFs registered in IFSC are exempt from Indian tax on income from specified securities / overseas investments, and are not required to file tax returns in India.

3. Repatriation Benefits

Income earned by non-resident investors from GIFT City investments is governed by India’s Double Taxation Avoidance Agreements (DTAAs), allowing for easy repatriation of earnings.

Sector-Specific Incentives

Financial Services

Income tax exemptions and GST exemptions on services provided to offshore clients make GIFT City attractive for financial institutions.

Insurance and Reinsurance

Tax exemptions on premiums received and claims paid, along with GST exemptions for services to offshore clients, enhance GIFT City’s appeal for the insurance and reinsurance sectors.

IT and TechFin

IT and TechFin companies benefit from income tax exemptions, capital subsidies, and infrastructure discounts under the Gujarat IT/ITeS Policy.

Benefits of Setting Up a Business in GIFT City

Strategic Location & Global Connectivity
GIFT City offers a prime location at the crossroads of global trade routes, providing businesses with seamless access to both Indian and international markets. Its strategic positioning ensures easy connectivity with key global financial hubs, making it an ideal choice for businesses looking to expand globally. The city is well-connected to major highways and the airport, ensuring that transportation and logistics are efficient, helping businesses tap into a wide range of market opportunities.
Benefits of Special Economic Zone
As a Special Economic Zone (SEZ), GIFT City offers numerous advantages for businesses, especially those looking to establish operations in India. The SEZ framework provides:
- Tax exemptions and incentives: Units in the International Financial Services Centre (IFSC) can benefit from 100% tax exemption for 10 consecutive years out of 15.
- GST Waiver: No Goods and Service Tax (GST) on services received by IFSC units and a reduced Minimum Alternate Tax (MAT).
- Simplified compliance: GIFT City’s SEZ regulations are designed to foster ease of doing business, reducing bureaucratic hurdles and providing businesses with a simplified compliance framework.
- Access to global trade: GIFT City’s SEZ status enables businesses to benefit from streamlined export and import procedures, making it an ideal gateway to international markets.
World-Class Infrastructure and Essential Services
GIFT City is designed to offer businesses a robust foundation with its world-class infrastructure. The city provides modern facilities and amenities that support both operational efficiency and business growth, including:
- Power back-up and communication services: Ensuring uninterrupted business operations, GIFT City offers a reliable power supply and high-quality communication networks, vital for today’s tech-driven businesses.
- Solid waste management and district cooling systems: The city uses sustainable and eco-friendly technologies for waste management and energy-efficient cooling systems, providing a greener business environment.
- Mass rapid transit system: A well-developed transit network connects businesses and residents within the city, promoting mobility and easy access to commercial and residential areas.
- City command and control center: This smart management center ensures the efficient functioning of the city, handling everything from traffic to resource management, and supporting businesses with a seamless operational environment.
The Tri-City Ecosystem: GIFT City, Gandhinagar, and Ahmedabad
GIFT City is part of a larger tri-city ecosystem, including Gandhinagar and Ahmedabad, enhancing its business appeal. This integrated approach offers businesses access to:
- Enhanced resources and synergies: The surrounding cities contribute to a broader pool of talent, resources, and infrastructure that businesses in GIFT City can tap into.
- Collaborative business environment: The tri-city vision promotes a collaborative ecosystem where businesses can connect, innovate, and grow, strengthening the overall region’s competitive edge.
Ideal Destination for Global Business Expansion
GIFT City is an excellent choice for international businesses looking to set up operations in India due to its:
- Strategic access to global financial markets: GIFT City connects India’s financial markets with global trade, creating a thriving hub for international businesses.
- Liberal regulatory environment: The regulatory framework in GIFT City is more flexible than in other parts of India, making it easier for businesses to comply with local laws and operate without extensive bureaucracy.
- Competitive tax structure: With various tax exemptions and concessions, including tax holidays and reduced tax rates, GIFT City offers a cost-effective business environment, particularly for businesses in the financial services, IT, and high-tech industries.
Shifting from Offshoring to Onshoring
The establishment of GIFT City marks a shift in India’s approach to global business operations. The government aims to encourage companies to move their operations from offshore locations to India, leveraging the city’s modern infrastructure and regulatory advantages. GIFT City provides the ideal environment for businesses to integrate with India’s economy, benefiting from global market connectivity while tapping into India’s growing market potential.

Benefits for Foreign Universities and Educational Institutes

Foreign universities and educational institutes operating in GIFT City can benefit from a relaxed regulatory framework, which exempts them from many of the domestic regulations that typically apply to Indian educational institutions. This provides greater freedom and flexibility to international academic entities, making GIFT City an attractive destination for establishing campuses and expanding educational services in India.

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.

For more detailed information on how to setup business in gift city, visit GIFT City Business Operations and About GIFT City.