What GIFT IFSC is
GIFT City in Gandhinagar, Gujarat, hosts India’s International Financial Services Centre, regulated by a single regulator — the International Financial Services Centres Authority (IFSCA). A unit in the IFSC is treated as a person resident outside India for foreign-exchange purposes, operates in foreign currency, and gets tax incentives that the rest of India doesn’t.
It has grown quickly: by 30 June 2026 there were about 235 fund management entities running some 400 schemes, according to IFSCA data reported by Cafemutual.
What you can set up
- Fund management entity (FME) and funds — venture capital schemes, restricted schemes equivalent to Category I, II and III AIFs, retail schemes and ETFs. See how to set up a fund in GIFT City.
- Family office — a single-family Family Investment Fund (minimum USD 10 million within three years) or a multi-family office under a portfolio-management licence. See family office in India or GIFT City.
- Book-keeping, accounting, tax and financial-crime compliance (BATF) services for non-resident clients, under IFSCA’s 2024 regulations.
- Global in-house centres for financial-institution groups, under regulations effective December 2025.
- Other regulated activities — banking units, insurance, capital-market intermediaries, aircraft and ship leasing, fintech and bullion — each with its own IFSCA framework.
| FME category | Minimum net worth | What it can manage |
|---|---|---|
| Authorised FME | USD 75,000 | Venture Capital Schemes; single-family Family Investment Funds |
| Registered FME (Non-Retail) | USD 500,000 | Restricted schemes (Category I, II and III AIF equivalents), portfolio management including multi-family offices, private REITs/InvITs |
| Registered FME (Retail) | USD 1,000,000 | Retail schemes, ETFs and public REITs/InvITs — with board independence and track-record conditions |
Source: IFSCA (Fund Management) Regulations, 2025, as amended. Managing third-party funds adds USD 500,000 to the net-worth requirement.
Why the numbers work
- Tax holiday: after the Finance Act 2026, eligible IFSC units get a 100% deduction of business income for 20 consecutive years out of 25, and a concessional 15% rate after that.
- Non-resident investors: a range of exemptions for income from specified IFSC funds and securities traded on IFSC exchanges.
- Fund relocation: tax-neutral moves of eligible offshore funds to GIFT City, available until 31 March 2030.
- GST: services received by IFSC units are broadly outside GST.
Details and conditions: GIFT City tax benefits.
How setup works
- Structure — activity, licence category, legal form (company, LLP or branch), capital and people.
- Incorporate the entity and set up the IFSC office.
- Apply through the Single Window IT System (SWIT) — one application covers the IFSCA licence or registration and the SEZ approval.
- Substance — key managerial persons based in the IFSC, bank account with an IFSC banking unit, policies and compliance manual.
- Launch — for funds, file the placement memorandum; venture capital and restricted schemes can open once IFSCA takes it on record (“green channel”).
How we help
- Feasibility: GIFT City vs a SEBI AIF vs an offshore fund — see VC fund setup.
- Entity setup, IFSCA and SEZ applications, bank accounts and the capital inflow.
- Fund accounting, NAV support, tax filings, transfer pricing and IFSCA reporting after launch.
- Investor-side advice for resident Indians (LRS) and NRIs — see how to invest in GIFT City.
Frequently asked questions
What is GIFT IFSC?
GIFT IFSC is India's International Financial Services Centre in GIFT City, Gandhinagar, Gujarat. It is regulated by the IFSCA, units there are treated as non-residents for foreign-exchange purposes, and they receive tax incentives including a 20-year tax holiday.
What are the tax benefits of setting up in GIFT City?
After the Finance Act 2026, eligible IFSC units can claim a 100% deduction of business income for any 20 consecutive years out of 25, followed by a concessional 15% rate. There are also exemptions for non-resident investors in specified funds and securities, tax-neutral fund relocation until 31 March 2030, and GST relief on services received.
How much net worth does a fund management entity in GIFT City need?
Under the IFSCA (Fund Management) Regulations, 2025: USD 75,000 for an Authorised FME, USD 500,000 for a Registered FME (Non-Retail) and USD 1,000,000 for a Registered FME (Retail), with an extra USD 500,000 for third-party fund management.
Can Indian residents invest in GIFT City?
Yes. Since July 2024 RBI allows remittances under the Liberalised Remittance Scheme (up to USD 250,000 a financial year) to IFSCs for all permissible purposes, including IFSCA-regulated financial products.
How far is your office from GIFT City?
About 30 minutes. Durgesh's office is in Ahmedabad, next to Gandhinagar, and he also has an office in Dubai for UAE-based clients.