Step 1: register the fund management entity
| 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.
The FME can be a company, an LLP or a branch of a foreign entity. It applies through IFSCA’s Single Window IT System, which also covers the SEZ approval for the office.
Key people and substance
- Every FME needs a Principal Officer; a Registered FME also needs a separate Compliance Officer.
- Key managerial persons must be based in the IFSC, and investment proposals must originate from the IFSC office.
- Qualifications: a professional qualification (such as CA, CS or CMA) or a relevant postgraduate degree or CFA/FRM, with relevant experience — a January 2026 amendment relaxed the experience requirement.
- A Retail FME, and any FME whose assets under management reach USD 1 billion, needs an additional key person for fund management.
Step 2: choose the scheme
| Scheme | Investors | Minimum investment | Corpus |
|---|---|---|---|
| Venture Capital Scheme | Up to 50 | USD 250,000 (USD 60,000 for employees); none for accredited investors | USD 3 million to USD 200 million; close-ended, at least 3 years |
| Restricted scheme (Cat I / II / III) | Up to 1,000 | USD 150,000 (USD 40,000 for employees) | At least USD 3 million (open-ended schemes may start at USD 1 million) |
| Retail scheme | Public | As per offer document | At least USD 3 million |
| Family Investment Fund | One family | — | USD 10 million within 3 years |
Launching
- Green channel: venture capital and restricted schemes can open for subscription as soon as IFSCA takes the placement memorandum on record. It stays valid for 12 months, with extensions available.
- Retail schemes file a draft offer document in advance.
- Sponsor contribution: the FME or its associates may contribute a large share of the scheme — the 2025 rules raised the cap significantly, subject to conditions.
After launch
- Fund accounting and NAV, annual audit and IFSCA reporting.
- Tax filings for the fund and the FME, and investor-level tax reporting — see GIFT City tax benefits.
- Investor onboarding: resident Indians invest through LRS, NRIs and foreign investors directly — see how to invest in GIFT City.
Comparing options? Read GIFT City fund vs SEBI AIF.
Frequently asked questions
How do you set up a fund in GIFT City?
Register a fund management entity (FME) with IFSCA in the right category, put key managerial persons in the IFSC, then file a placement memorandum or offer document for each scheme. Venture capital and restricted schemes can open once IFSCA takes the placement memorandum on record.
What is the minimum investment in a GIFT City venture capital scheme?
USD 250,000 per investor (USD 60,000 for employees), with no minimum for accredited investors. A venture capital scheme can have at most 50 investors and a corpus between USD 3 million and USD 200 million.
What is the minimum investment in a GIFT City restricted scheme (AIF)?
USD 150,000 per investor (USD 40,000 for employees of the FME), with up to 1,000 investors and a minimum corpus of USD 3 million.
What net worth does a GIFT City FME need?
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).
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.