10-year income tax holiday
A 100% deduction on business income for any 10 consecutive years out of the first 15, under Section 80LA of the Income Tax Act.
Business setup
How money, licences and approvals work at GIFT IFSC
Setup requirements, capital norms and approvals vary by sector, but the shape of the journey is the same: pick the activity, take space in the right zone, clear the SEZ approval, then obtain the IFSCA registration.
10-year tax holiday0% GST on financial servicesSingle-window clearance
Incentives
Why the economics work
No GST on financial services
Services provided by IFSC units to offshore clients and to other IFSC units are outside the GST net.
No STT, CTT or stamp duty
Transactions on IFSC exchanges are exempt from securities transaction tax, commodities transaction tax and state stamp duty.
MAT / AMT relief
Minimum alternate tax is charged at a concessional 9% for IFSC units, and does not apply at all to units opting for the new corporate tax regime.
Withholding tax relief
No withholding tax on aircraft lease rentals paid by IFSC units, and concessional rates on interest paid on foreign-currency borrowings.
State-level incentives
The Government of Gujarat offers lease-rental, stamp-duty, registration-fee, employment-generation and provident-fund reimbursements for eligible IFSC units.
Single-window clearance
Approvals and clearances are consolidated under one umbrella, with plug-and-play office space available for quick launch.
Foreign currency freedom
IFSC units keep their books in a foreign currency and transact in USD, EUR, GBP and other currencies without domestic FEMA restrictions.
The process
Five steps from decision to go-live
01
Choose the activity and licence
Decide whether the business is an IBU, FME, IIO, capital market intermediary, finance company, GIC, fintech entity or ancillary service provider - each has its own IFSCA framework.
02
Secure space in the zone
Take office space in the IFSC SEZ (for regulated financial entities) or the domestic zone (for IT/ITeS, GCCs and support services) from GIFT SEZ Ltd. or a developer.
03
Obtain SEZ approvals
Apply for a letter of approval as an SEZ unit through the Development Commissioner, along with the standard company incorporation steps.
04
Apply to IFSCA
File the registration or authorisation application with IFSCA, meeting the net-worth, fit-and-proper, KYC/AML and staffing conditions for the chosen framework.
05
Go live and stay compliant
Open bank accounts in foreign currency, commission systems, and file the periodic reporting IFSCA requires for the licence.
Entity types
What you can register as
IFSCA has issued a specific framework for each of these. Consult a registered IFSC professional services firm before proceeding.
- IFSC Banking Units (IBUs)
- Fund Management Entities (FMEs)
- Alternative Investment Funds
- Foreign Portfolio Investors
- IFSC Insurance Offices (IIOs)
- Insurance intermediary offices (IIIOs)
- Capital market intermediaries
- Credit rating agencies
- Aircraft lessors
- Ship lessors
- Finance companies and finance units
- Global/Regional Corporate Treasury Centres
- Fintech entities and the regulatory sandbox
- Payment system operators
- Global In-House Centres
- Bullion market intermediaries
- Foreign university campuses
- Ancillary and professional services
Investment & real estate
Space across the SEZ, domestic and residential zones
Residential and hospitality inventory is expanding rapidly, driven by professionals relocating for IFSC employment and by institutions establishing a physical presence. NRIs may purchase residential property in the domestic zone subject to FEMA regulations.
- Commercial office towers (SEZ and non-SEZ)
- Branded and luxury residential apartments
- Serviced apartments and co-living
- 5-star and business hotels
- Data centres and tech parks
- International schools and campuses
- Retail streets and lifestyle precincts
- Mixed-use developments with long lease options
Compiled from official material published by GIFT City, GIFT Gujarat, IFSCA. Figures carry the period stated by the publishing authority. Always verify current requirements before acting.