IFSCAIBUFMEAircraftIIBX80LA
AMLEGALS / Gujarat / GIFT City
Business Setup at GIFT City IFSC

One Act. One regulator. The financial centre India has been waiting for.

The IFSCA Act, 2019 collapsed four domestic regulators into one window. The IFSC currency is foreign. FEMA does not bite inside. Section 80LA is the door. GIFT City is now structurally closer to Singapore or Dubai than to mainland India.

A single regulator. A single tax holiday. A single platform for offshore Indian financial activity.
10/15
Section 80LA — 100% income deduction for any 10 consecutive years out of 15
2019
IFSCA Act — unified regulator for banking, capital markets, insurance and pension at IFSC
USD
IFSC default currency — FEMA-neutral capital flows for transactions with non-residents
Capabilities

Six capabilities. One IFSCA window.

01

IFSC Banking Unit (IBU)

IFSCA · IBU

IBU set-up as a branch of an Indian or foreign bank under IFSCA Banking Regulations, 2020 — capital, leverage, KYC and supervisory architecture.

02

Fund Management Entity

IFSCA · FME

Authorised / Registered FME under the IFSCA FME Regulations, 2022 for AIF (Cat I/II/III), retail schemes and PMS — with Family Investment Fund overlay.

03

Aircraft leasing platform

IFSCA · Aircraft Lease

Operating lease, finance lease and asset management under IFSCA (Aircraft Lease) Regulations, 2022 — replacing offshore structures.

04

Bullion / IIBX

IFSCA · IIBX

Qualified Jeweller status, IIBX settlement, customs sequencing and onshore consumption / re-export architecture under IFSCA Bullion Regulations.

05

Tax architecture

80LA · 115JB · GST

Section 80LA 100% holiday for 10/15 years, concessional MAT, GST exemption on services to non-residents and FEMA-neutral capital flows.

06

Fintech & insurance

IFSCA · Fintech · IIO

IFSCA Fintech Entity framework / regulatory sandbox, IFSC Insurance Office (IIO), reinsurance and insurance intermediation under IFSCA Insurance Regulations.

The GIFT City sequence

From activity mapping to operating compliance.

01

Activity mapping

IBU vs FME vs Aircraft Lease vs IIBX vs Fintech vs IIO. Output: a one-page activity decision and the corresponding IFSCA regulation that governs it.

02

Entity form

Branch (for IBU), Company, LLP or Trust — with Indian or foreign parent. Tax residency and Section 80LA eligibility designed in.

03

IFSCA application

Application package, capital adequacy demonstration, fit-and-proper and key managerial personnel proposal — sequenced for one-window approval.

04

Co-located clearances

SEZ developer / co-developer formalities, GIFT IFSC unit approval, GIFT IFSC Authorised Dealer link, AD Bank for FEMA-neutral flows.

05

Section 80LA registration

Income-tax filing of Form 10CCF, Chartered Accountant audit and segmental P&L for IFSC source income — from Year 1.

06

Operating compliance

IFSCA periodic returns, IBU prudential reports, FME audited NAV, transfer pricing, FATCA / CRS and ongoing IFSCA inspections.

The statutes that govern this centre
Each is a constraint we design to.
IFSCA
IFSCA Act, 2019
Unified regulator. Replaces RBI, SEBI, IRDAI, PFRDA for IFSC activity.
IFSCA
80LA
Section 80LA, Income-tax Act, 1961
100% deduction for any 10 consecutive years out of 15 — the GIFT City tax door.
CBDT
SEZ
Special Economic Zones Act, 2005
Deemed foreign territory architecture under which IFSC operates.
MoC
FME
IFSCA (Fund Management) Regulations, 2022
Single licence for AIF, retail schemes, PMS and Family Investment Fund.
IFSCA
Answers

The five questions every IFSC applicant should ask.

01Why is GIFT City structurally different from any other Indian jurisdiction?

GIFT City houses India’s only International Financial Services Centre (IFSC), notified as a deemed foreign territory under the Special Economic Zones Act, 2005 and regulated by a single unified regulator — the International Financial Services Centres Authority (IFSCA) — established under the IFSCA Act, 2019. That single Act replaced four domestic regulators (RBI, SEBI, IRDAI, PFRDA) for IFSC activity, collapsing the regulatory perimeter for banking, capital markets, insurance and pension into one window. The currency of operation is foreign (USD-denominated). FEMA does not apply inside the IFSC for transactions with non-residents. The architecture is structurally closer to Singapore or Dubai than to mainland India.

02What is the Section 80LA tax holiday and how is it claimed?

Section 80LA of the Income-tax Act, 1961 grants a unit established in an IFSC a deduction of 100% of its income from the IFSC business for any 10 consecutive assessment years out of 15, beginning from the year in which the registration is obtained. To claim the holiday, the unit must (i) be set up at the IFSC, (ii) hold a valid IFSCA registration, (iii) compute IFSC-source income separately, and (iv) file Form 10CCF audited by a Chartered Accountant. The MAT under Section 115JB is also payable at a concessional rate (9% in lieu of 15%) for IFSC entities. The State has also amended the Gujarat GST architecture to exempt service supplies to non-residents.

03What is a Fund Management Entity (FME) under the IFSCA?

The IFSCA (Fund Management) Regulations, 2022 created a single, comprehensive licensing regime for fund management activity at the IFSC. An applicant registers either as (i) Authorised FME — to manage only Venture Capital schemes from accredited investors and AIFs under specified caps; (ii) Registered FME (Non-Retail) — to manage AIFs (Category I, II or III) for non-retail investors including HNIs; or (iii) Registered FME (Retail) — to manage retail schemes / mutual fund-like products and PMS. The FME regime also accommodates the Family Investment Fund (FIF) — a single-family vehicle that pools family capital for investment within the FME framework, attracting Section 80LA.

04What is the Aircraft Lease Framework at GIFT City IFSC?

The IFSCA (Aircraft Lease) Regulations, 2022 (read with the IFSCA Framework for Aircraft Lease) permit IFSC entities to undertake aircraft operating lease, finance lease, asset management and ancillary activities including helicopters, business jets and ground support equipment. The framework allows DGCA-route Indian airlines to lease aircraft from an IFSC-based lessor, replacing offshore leasing structures historically run out of Ireland. The capital adequacy norm, leverage cap and reporting are administered by IFSCA. Combined with Section 80LA, the structure offers a tax-neutral leasing platform at par with the foreign jurisdictions historically used.

05How does the IIBX and bullion architecture work at GIFT City?

The India International Bullion Exchange (IIBX) is the first international bullion exchange in India, operating from GIFT City IFSC under IFSCA regulation. Bullion can be imported into IFSC vaults by Qualified Jewellers, settled through the IIBX clearing corporation, and either consumed onshore (after customs clearance and IGST) or re-exported. The IFSCA (Bullion Exchange) Regulations, 2020 read with Bullion Market Regulations create the prudential, KYC, surveillance and storage architecture. The structure replaces the historical fragmented import-by-bank route with a transparent on-exchange settlement.

Engage AMLEGALS

One Act. One window. Ten years of holiday — done correctly.

IFSCA registration, Section 80LA architecture and the operating compliance grid — from Day 0.