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GIFT City

Gujarat International Finance Tec-City — is India’s first and only operational International Financial Services Centre (IFSC). It’s a strategically designed global financial hub located between Ahmedabad and Gandhinagar, offering state-of-the-art infrastructure, world-class regulation, and an ecosystem tailored for cross-border financial services, funds, family offices, and global businesses.

GIFT City is rapidly emerging as India’s answer to other global finance centres like Dubai, Singapore, and London, with modern legal infrastructure, robust digital connectivity, efficient dispute resolution mechanisms, and a growing base of banks, asset managers, and fintech players.

Why GIFT City Is Attractive for Businesses & Funds

International Financial Ecosystem

GIFT City hosts a wide range of financial institutions — banks, exchanges, fund managers, and asset servicers — providing a comprehensive international financial ecosystem under one regulatory framework.

Strategic Global Connectivity

With close proximity to major Indian business hubs and global markets, GIFT City offers seamless connectivity for cross-border transactions, funding, investment activities, and capital flows.

Pro-Business Regulation

Units in the IFSC operate under the International Financial Services Centres Authority (IFSCA) regime, with clear business-friendly rules for fund structures including AIFs and Family Investment Funds (FIFs).

Tax & Regulatory Benefits in GIFT City

One of the biggest advantages of setting up in GIFT City is its international tax-efficient framework designed to attract global capital and financial activities:

Tax Incentives for IFSC Units

  • 100% Income Tax Exemption : Businesses and funds located in the IFSC can claim a 100% income tax holiday for 10 consecutive years out of a block of 15 years, subject to conditions.
  • Minimum Alternate Tax (MAT) : Units set up in the IFSC pay MAT/AMT at a concessional 9% on book profits. Companies opting for the new tax regime are not subject to MAT at all.
  • No STT / CTT / Stamp Duty / GST : Transactions on IFSC exchanges are exempt from Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), Stamp Duty, and GST on many services, enhancing efficiency for fund managers and investors.
  • Capital Gains & Dividend Benefits : Certain capital gains on transfer of specified securities in IFSC are not treated as taxable transfers in India. Dividend income paid to non-residents may be subject to concessional tax rates.
  • Offshore-Friendly Regime : Interest income earned by non-residents on deposits in IFSC banking units is exempt from Indian tax, supporting global investors.

Alternative Investment Funds (AIFs) in GIFT City

GIFT City has rapidly emerged as a preferred destination for fund managers and institutional investors seeking a globally competitive, tax-efficient, and well-regulated fund ecosystem.

Category I & II AIFs

These funds enjoy pass-through taxation, allowing income to be taxed directly in the hands of investors. Non-resident investors can also benefit from exemptions on income earned through IFSC-based funds.

Category III AIFs

Rapidly gaining traction among non-resident investors and family offices, Category III AIFs support sophisticated strategies where fund-level taxation may not apply again at the investor level, subject to treaties.

The Alternative Investment Fund (AIF) ecosystem in GIFT City is expanding at a rapid pace, driven by increasing registrations, growing investor participation, and rising capital commitments. This strong momentum reflects the confidence of fund managers and institutional investors in GIFT City’s robust regulatory framework, tax-efficient structure, and globally competitive infrastructure.

As more domestic and international funds choose GIFT City as their base, it is steadily positioning itself as a key global centre for asset management. With supportive policies, seamless cross-border investment mechanisms, and an evolving financial ecosystem, GIFT City is emerging as a preferred destination for sophisticated investment strategies and long-term capital deployment.

Family Office & Family Investment Fund (FIF) Setup

GIFT City enables the creation of regulated Family Investment Funds (FIFs), allowing single-family wealth to be professionally managed under a clear, internationally aligned regulatory framework. FIFs can be structured as companies, LLPs, or trusts with flexible investment mandates.

  • Regulated wealth pooling under IFSCA
  • Company, LLP, or Trust structures
  • Global investments from India
  • Clear governance & oversight

Benefits for Family Offices

International Diversification

Access global markets and asset classes through a compliant Indian platform.

Tax Efficiency

Potential tax holidays, exemptions, and reduced tax leakage on investments.

Capital Flexibility

Ability to borrow, leverage, and deploy capital based on family risk policy.

Lower Compliance Burden

Simpler compliance compared to offshore jurisdictions and structures.

Institutional Framework

Operate within a globally recognised and trusted financial ecosystem.

Long-Term Wealth Strategy

Ideal for succession planning and structured wealth governance.

Why Choose GIFT City for Your Setup?

Tax Efficiency & Savings

The fiscal incentives — tax holidays, reduced MAT/AMT, and exemptions — are among the most attractive in Asia for financial and investment activities.

Global Financial Ecosystem

You gain access to a wide network of banks, service providers, fund managers, and wealth structures — all under one regulatory architecture.

Regulatory Clarity & Ease of Doing Business

The IFSCA regime supports modern fund regulations, efficient approvals, and transparent processes designed to attract global capital flows.

Strategic Growth Opportunity

GIFT City is planned to become a major global financial hub, attracting funds, family offices, and global firms over the coming decade.

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Expert Support for GIFT City Setup

Entity Structuring & Incorporation

Design and incorporate optimal structures in GIFT City aligned with investment objectives and regulatory requirements.

AIF / FIF Registration

End-to-end support for fund registration, licensing, and ongoing compliance under IFSCA regulations.

Tax Structuring

Efficient tax frameworks designed to optimize returns while ensuring full regulatory compliance.

Regulatory & Reporting

Continuous support for filings, reporting, audits, and regulatory interactions with IFSCA.

Cross-Border Advisory

Strategic advice for inbound and outbound investments across jurisdictions through GIFT City structures.

Process of Setting up a Company in GIFT City

01

Decide Your Business Structure

Before anything else, determine what type of entity you want to set up:

  • IFSC Unit (International Financial Services Centre) — for financial services, fintech, banking, fund management, insurance, etc., regulated by the International Financial Services Centres Authority (IFSCA).
  • SEZ Unit (Special Economic Zone) — for non-financial businesses such as IT services, export-oriented units, captive operations, etc.
02

Secure Office Space in GIFT SEZ

You must have a physical office in the SEZ area of GIFT City:

  • Lease or buy space from a co-developer.
  • Obtain a Provisional Letter of Allotment (PLOA) — a required document for the approvals to follow.
03

Company Name Reservation & Incorporation

Register your company with the Ministry of Corporate Affairs (MCA) just like any Indian company:

  • Reserve your company name.
  • File incorporation forms (SPICe/INC forms) with the required documents (identity, address, MOA, AOA, etc.).
  • This step officially forms your corporate entity under the Companies Act, 2013.
04

Apply for SEZ and IFSCA Approvals

Once incorporated:

SEZ Unit Approval

  • Submit Form F with annexures to the Development Commissioner of the GIFT SEZ.
  • Attach: PLOA, project report, incorporation docs, director KYC, financials, and compliance affidavits.
  • Attend the Unit Approval Committee (UAC) meeting if required.

IFSCA Certificate of Registration (CoR)

If you’re offering regulated financial services in IFSC:

  • File a combined SEZ + IFSCA application via the SWIT single-window platform.
  • IFSCA reviews your business plan, compliance, capital, and operational readiness.

👉 If not financial, you may not need IFSCA licensing, but SEZ approval is still mandatory.

05

Execute Bond/Legal Undertaking

After approval:

  • Sign a bond cum legal undertaking with the SEZ and customs authorities as required by the regime.
  • This binds your company to compliance and operational commitments.
06

Additional Registrations

Once approvals are in place:

  • Open a bank account in a GIFT City IFSC Banking Unit — often required for foreign currency transactions.
  • GST registration, Import-Export Code (IEC), and other mandatory registrations depending on your business activities.
07

Start Business Operations

After all documentation and registrations:

  • File the Commencement of Business (e.g., INC-20A) within the stipulated time after incorporation.
  • Begin operating from your GIFT City office in accordance with SEZ and IFSCA terms.

Types of Business Sectors Eligible to Start a Business in GIFT City

Main types of business sectors that are eligible to start and operate a company in GIFT City (both in the International Financial Services Centre (IFSC) and Special Economic Zone (SEZ) / Domestic Tariff Area (DTA)).

Banking & Financial Services

  • Indian and foreign banks (through IFSC Banking Units – IBUs).
  • Retail & corporate banking (non-resident customers), treasury operations, trade and transaction banking.
  • Custodian, escrow, and wealth services.

Insurance & Reinsurance

  • Domestic and international insurance companies.
  • Reinsurers and insurance intermediaries (brokers, agents, web aggregators).
  • IFSC insurance offices targeting global markets.

Capital Markets & Exchange

  • Stock exchanges, commodity exchanges, and trading platforms.
  • Brokers, dealers, clearing corporations, depositories.
  • Credit rating agencies and market infrastructure institutions.

Asset & Fund Management

  • Alternative Investment Funds (AIFs) and Venture Capital Funds.
  • Mutual funds, portfolio management services (PMS), and family offices.
  • Fund management entities serving global investors.

FinTech & Payment Services

  • FinTech firms offering payment gateways, digital wallets, remittance services.
  • Cross-border payment platforms and innovative financial technology products (incl. sandbox pilots).
  • E-money and account issuance services.

Leasing & Corporate Finance

  • Aircraft leasing and financing, ship leasing, and other leasing services.
  • Core financing and specialised corporate finance companies.

IT & IT-Enabled Services (IT/ITES)

  • Software, data services, and financial technology support operations.
  • Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO).
  • Corporate IT, back-office functions, and shared service centres.

Global In-House & Support Services

  • Global In-House Centres (GICs), corporate treasury centres.
  • Consulting: legal, accounting, audit, compliance advisory, corporate secretarial.
  • Research & analytics, HR & talent management, training institutes.

Allied & Specialized Services

  • Bullion and commodity services.
  • Educational institutions (international / specialized training).
  • Sustainable finance initiatives (ESG bonds, green finance).

IFSC-Specific & Targeted Sectors

Capital markets and securities

Trading, clearing, custody, derivatives and international instruments.

Aircraft & Ship leasing

Global asset leasing and related financial activities.

Foreign universities / education

Specialized global training / higher education services tied to financial services.

Additional Notes

✔ Sectors like retail, manufacturing and local consumer businesses are usually not the focus of the IFSC but can be part of the DTA/SEZ unit operations, especially for export-oriented or support functions.

✔ GIFT City combines SEZ benefits + IFSC global-oriented rules, so businesses that can leverage foreign currency transactions and international clients stand to benefit most.

Sector-Wise Licenses & Regulatory Framework – GIFT City (IFSC)

GIFT City operates as India’s only International Financial Services Centre (IFSC) and is regulated by the International Financial Services Centres Authority (IFSCA). Any entity undertaking financial or capital market activities in GIFT City must obtain registration or authorization from IFSCA, in addition to SEZ approvals.

Banking & IFSC Banking Units (IBUs)

Banking

Eligible Activities

  • Offshore banking for non-residents
  • Corporate & wholesale banking
  • Trade finance & treasury operations
  • Foreign currency lending

Required License

  • IFSCA Authorization for IFSC Banking Unit (IBU)

Key Regulatory Requirements

  • Minimum capital as prescribed by IFSCA
  • Parent bank approval (foreign banks)
  • Robust AML/KYC framework
  • Risk management & compliance setup

Insurance & Reinsurance

Insurance

Eligible Activities

  • Life & non-life insurance
  • Reinsurance operations
  • Insurance intermediaries

Required Licenses

  • IFSCA Registration for IFSC Insurance Office (IIO)
  • IFSCA License for Reinsurers / Intermediaries

Key Regulatory Requirements

  • Prescribed net worth & solvency margins
  • Reinsurance program approvals
  • Actuarial, compliance & governance framework

Capital Markets & Securities Services

Markets

Eligible Activities

  • Stock & commodity exchanges
  • Brokers, clearing corporations
  • Depositories & custodians
  • Credit rating agencies

Required Licenses

  • IFSCA Registration as Market Intermediary
  • IFSCA Authorization for Market Infrastructure Institution (MII)

Key Regulatory Requirements

  • Minimum net worth criteria
  • Technology & risk systems
  • Compliance officer appointment
  • Reporting & disclosure obligations

Asset Management, Funds & Family Offices

Funds

Eligible Activities

  • Alternative Investment Funds (AIFs)
  • Mutual funds
  • Portfolio Management Services (PMS)
  • Family investment vehicles

Required License

  • IFSCA Registration as Fund Management Entity (FME)
  • Authorized FME
  • Registered FME

Key Regulatory Requirements

  • Minimum capital & sponsor commitment
  • Investment strategy disclosure
  • Compliance & fund governance standards
  • Periodic investor reporting

FinTech & Innovation-Driven Businesses

FinTech

Eligible Activities

  • Digital payments & remittance platforms
  • Blockchain & RegTech solutions
  • Cross-border fintech services

Required Registration

  • IFSCA FinTech Entity Registration
  • IFSCA Regulatory Sandbox Approval (if applicable)

Key Regulatory Requirements

  • Innovation use-case approval
  • Technology risk & data protection controls
  • Limited-period sandbox testing(where applicable)

Aircraft, Ship & Asset Leasing

Leasing

Eligible Activities

  • Aircraft leasing & financing
  • Ship leasing
  • Equipment & infrastructure leasing

Required License

  • IFSCA Registration for Aircraft / Asset Leasing Entity

Key Regulatory Requirements

  • Minimum owned fund requirement
  • Leasing structure approvals
  • Cross-border transaction compliance

Bullion & Commodity Services

Bullion

Eligible Activities

  • Bullion trading & vaulting
  • Precious metals exchanges
  • Commodity derivatives

Required License

  • IFSCA Authorization for Bullion Market Participant

Key Regulatory Requirements

  • Net worth & operational infrastructure
  • Storage, vaulting & logistics compliance
  • Trade reporting & surveillance systems

Global In-House Centres (GICs) & Support Services

Global

Eligible Activities

  • Accounting & finance shared services
  • Risk, compliance & analytics
  • IT & operations support
  • Research & data services

Required Approval

  • SEZ Unit Approval
  • IFSCA registration generally not required unless providing regulated financial services

Key Regulatory Requirements

  • Export-oriented services
  • Transfer pricing & FEMA compliance
  • Data security and confidentiality controls

Professional & Allied Services

Professional

Eligible Activities

  • Legal, accounting & audit support
  • Consulting & advisory
  • Training & financial education

Required Approval

  • SEZ Registration
  • IFSCA approval (if advising regulated entities)

Key Regulatory Requirements

  • Fit & proper criteria
  • Compliance with professional standards
  • Client confidentiality frameworks

Common Approvals Applicable Across Sectors

Regardless of sector, most IFSC entities require:

Company incorporation under Indian law
SEZ Unit Approval from Development Commissioner
Office space allotment in GIFT City
IFSCA registration / authorization (sector-specific)
FEMA & RBI compliance (where applicable)
AML / KYC & compliance policies
Ongoing reporting to IFSCA

How CFOtree Enables GIFT City Success

CFOtree acts as a long-term compliance and finance partner, supporting entities from initial setup through ongoing operations.

  • Sector eligibility assessment & structuring
  • End-to-end license and approval mapping
  • IFSCA application drafting & liaison
  • SEZ registration & compliance management
  • Accounting, compliance & Virtual CFO support

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