The four main routes
| Route | Works well for | Watch out for |
|---|---|---|
| Holding company or LLP in India | Indian investments, operating businesses, real estate | Taxed as a normal company or LLP; NBFC rules if investing becomes the principal business |
| SEBI AIF | Pooling with other families or co-investors into Indian private markets | ₹20 crore minimum corpus, ₹1 crore minimum per investor (except accredited investors), SEBI compliance |
| GIFT City Family Investment Fund (FIF) | Global and Indian investments in foreign currency from one family | USD 10 million within three years; substance in GIFT City |
| Multi-family office in GIFT City | Advisers serving several families | Needs a Registered FME (Non-Retail) licence for portfolio management |
The GIFT City Family Investment Fund
- A self-managed fund for a single family, registered with IFSCA.
- Its manager needs to be at least an Authorised FME (minimum net worth USD 75,000).
- The fund must reach a corpus of USD 10 million within three years of registration.
- It operates in foreign currency from the IFSC and can invest in India and abroad, with the IFSC tax incentives — see GIFT City tax benefits.
Resident Indian families going global
- Individuals can remit up to USD 250,000 per financial year each under the Liberalised Remittance Scheme; since July 2024 RBI allows LRS remittances to IFSCs for all permissible purposes.
- TCS of 20% applies to investment remittances above ₹10 lakh a year — creditable against income tax, but it ties up cash.
- Companies and LLPs investing abroad follow the overseas investment rules instead — see ODI rules.
- Confirm with the authorised dealer bank how a specific FIF investment is treated before remitting.
NRI families investing in India
- NRIs invest as non-residents — directly in Indian companies (with FEMA reporting), through AIFs, or through GIFT City funds.
- For families in the UAE, see our UAE page.
Running the office
- Consolidated reporting across entities and countries, investment committee packs and cash forecasting.
- Tax: capital gains planning, treaty claims, Schedule FA disclosures for residents.
- Governance: a family charter, investment policy and succession planning with lawyers.
We run finance for family offices as part of our Virtual CFO practice and set up GIFT City and AIF vehicles.
Frequently asked questions
How do I set up a family office in India?
There's no separate family office licence. Families typically use a holding company or LLP for Indian investments, a SEBI AIF to pool capital, or a GIFT City Family Investment Fund for foreign-currency investments; many use a combination.
What is a Family Investment Fund in GIFT City?
A self-managed fund for a single family registered with IFSCA in GIFT City. It must reach a corpus of USD 10 million within three years and is managed by at least an Authorised FME with USD 75,000 net worth.
Can a resident Indian family invest through GIFT City?
Resident individuals can remit up to USD 250,000 each per financial year under LRS to IFSCs for permissible purposes, with 20% TCS on investment remittances above ₹10 lakh. Check the treatment of the specific investment with the authorised dealer bank.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.