GIFT Legal & Compliance Support
One regulator instead of four, a special economic zone underneath it, and a unit that is treated as non-resident for most foreign exchange purposes.
A unit in GIFT IFSC is regulated by the International Financial Services Centres Authority rather than by the RBI, SEBI, IRDAI or PFRDA, and setting one up runs on two tracks: a lease from a co-developer and a Letter of Approval from the SEZ authorities, and registration or authorisation from IFSCA for the specific activity to be carried on. Ongoing compliance combines IFSCA periodic reporting with SEZ returns, and the unit is treated as a person resident outside India under FEMA for most purposes.
What our GIFT IFSC support covers
Setup, approvals and the reporting that follows.
- Mapping the intended activity to the right IFSCA framework
- Entity formation and co-developer space arrangements
- SEZ application and Letter of Approval for the unit
- IFSCA registration or authorisation and net worth documentation
- Ongoing IFSCA periodic reporting and SEZ returns
- FEMA analysis of transactions between the unit, India and offshore
What setting up in GIFT involves
Two approval tracks and one ongoing calendar.
SEZ approval
Space from a co-developer and a Letter of Approval from the Development Commissioner, which establishes the unit.
IFSCA authorisation
Registration or authorisation for the specific activity, with the applicable net worth, personnel and infrastructure conditions.
Ongoing reporting
IFSCA periodic returns for the activity, alongside the SEZ returns the unit files as an SEZ entity.
FEMA treatment
A unit in an IFSC is treated as a person resident outside India for most purposes, which changes how transactions with the domestic tariff area work.
Our process
The sequence from idea to operating unit.
Activity mapping
Identifying which IFSCA framework the intended business falls under and what it requires.
Approvals
SEZ Letter of Approval and the IFSCA registration or authorisation, run in parallel where possible.
Operational setup
Bank accounts, systems, key personnel and the policies the framework requires in place.
Ongoing compliance
IFSCA and SEZ reporting calendar, with periodic returns and event-based intimations.
Why GIFT setups stall
What sets our approach apart.
The activity defines everything
Net worth, personnel, infrastructure and reporting all follow from which IFSCA framework applies, so a vague business description delays the application.
Two authorities, one timeline
SEZ and IFSCA approvals are separate processes, and sequencing them badly adds months to the setup.
Non-resident status has consequences
Because the unit is treated as non-resident under FEMA, transactions with Indian counterparties are cross-border transactions and are documented as such.
GIFT Legal & Compliance Support questions answered
What people ask before engaging us.
Considering a unit in GIFT IFSC?
Tell us the activity you have in mind and we will map it to the applicable IFSCA framework.
