Definition
What is GIFT City (IFSC)?
GIFT City (Gujarat International Finance Tec-City) is India's first International Financial Services Centre (IFSC), located in Gandhinagar, Gujarat. It offers tax benefits, regulatory ease, and a dollar-denominated business environment — ideal for funds, family offices, and financial services.
Tax benefits
Tax benefits.
Significant tax advantages for IFSC units:
- 100% income tax exemption for 10 years (out of first 15) — Section 80LA
- No GST on services to non-residents
- No Securities Transaction Tax (STT) for IFSC-based transactions
- No Commodity Transaction Tax (CTT)
- Exemption from MAT (Minimum Alternate Tax) for IFSC banking, insurance
- Reduced LTCG/STCG for non-residents trading through IFSC
Use cases
Common use cases.
- AIF (Alternative Investment Fund) — VC, PE, debt funds with global LPs
- Family Office for HNIs allocating globally
- IFSC Banking Unit — international banking
- Insurance — life, general, reinsurance
- Aircraft / Ship leasing
- Bullion, derivatives, currency trading
- Capital markets — global trading desks
- FinTech sandbox
Setup process
Setup process.
- Choose entity type (AIF, banking, insurance, etc.)
- Apply to IFSCA (regulator) for in-principle approval
- Incorporate IFSC entity at GIFT City
- Lease physical office space at GIFT City (mandatory)
- Get final IFSCA license
- Begin operations