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Home / GIFT City (IFSC) / IFSC Unit Setup in GIFT City
Last updated: 2 October 2026
A unit in GIFT City IFSC needs an SEZ Letter of Approval and, for financial services, registration with the International Financial Services Centres Authority (IFSCA). Both are now applied for through IFSCA’s Single Window IT System (SWIT). Expertvuw supports the structuring, documentation and application work from entity choice to post-registration compliance.
GIFT City in Gandhinagar is India’s operational International Financial Services Centre, located within a multi-services SEZ. A unit here is regulated by IFSCA under the International Financial Services Centres Authority Act, 2019, while its SEZ status is governed by the Special Economic Zones Act, 2005. The Administrator (IFSCA) issues the SEZ Letter of Approval, and IFSCA grants the activity-specific registration, both through the SWIT portal.
The applicant first identifies the regulated activity, since that decides the governing regulations: fund management, finance company, capital market intermediary, ancillary or TechFin services, and so on. Units may generally be set up as a company, an LLP or a branch, subject to the form permitted by the relevant regulations. Office space is taken from a co-developer, and the lease is filed with IFSCA after approval.
Under FEMA, a financial institution or branch set up in IFSC and recognised by a regulator is treated as a person resident outside India. For income tax, section 147 of the Income-tax Act, 2025 allows a deduction for eligible IFSC income, which the Finance Act, 2026 extended from 1 April 2026. Expertvuw prepares the application set and coordinates with the co-developer, IFSCA, bankers and independent licensed professionals where certifications are needed.
Based on the regulations and circulars referred to on this page. Last updated: 28 September 2026.
IFSCA, established under the International Financial Services Centres Authority Act, 2019
SEZ approval and IFSCA registration applied for through the Single Window IT System (SWIT)
Letter of Approval issued by the Administrator (IFSCA) under the SEZ Act, 2005
Bond-cum-Legal Undertaking in Form H of the SEZ Rules, 2006, before operations
IFSC financial institutions treated as persons resident outside India (Reg. 3, FEMA 339/2015-RB)
100% of eligible income for 20 consecutive tax years out of 25 (s.147, Income-tax Act, 2025)
Most delays come from a mismatch between the proposed activity, the entity form and the documents filed.
Each activity has its own IFSCA regulations, so a mis-classified application is returned or re-filed.
IFSCA expects a clear plan on activities, clients, staffing and capital consistent with the chosen regulations.
For units commencing on or after 1 April 2026, units formed by splitting or reorganising an Indian business do not get the deduction.
Related services.
Fund Management Entity registration in GIFT City under the IFSCA (Fund Management) Regulations, 2025.
Finance company or finance unit registration for lending, treasury and leasing in IFSC.
Overseas investment structuring and FEMA reporting for Indian businesses investing abroad.
Entry structures and approvals for foreign companies setting up in India.
We map the proposed business to the applicable IFSCA regulations and suitable entity form.
Provisional allotment and NOC are obtained from a GIFT City co-developer.
We prepare and file the application, business plan and supporting documents on SWIT.
The Administrator issues the SEZ Letter of Approval and IFSCA grants in-principle approval, where applicable.
We support incorporation or branch registration, the Bond-cum-Legal Undertaking and the lease filing.
IFSCA issues the certificate of registration, after which the unit can commence permitted operations.
An IFSC unit carries regulatory, SEZ, FEMA and tax obligations from the start of operations.
Periodic returns, material change intimations and conditions under the unit's registration.
Lease filing within six months of the Letter of Approval and ongoing SEZ reporting.
Section 147 claim with the return, supported by an accountant's report through independent licensed professionals.
Annual ROC filings, statutory registers and board processes for the IFSC entity.
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The Administrator (IFSCA) issues the SEZ Letter of Approval, and IFSCA grants registration for the regulated activity. Both are handled through the SWIT portal.
Yes. Indian and foreign entities can set up in IFSC as a subsidiary, LLP or branch, subject to the form permitted for the activity and applicable FEMA rules for investment into IFSC.
Section 147 of the Income-tax Act, 2025, as amended by the Finance Act, 2026, allows a 100% deduction of eligible income for 20 consecutive tax years out of 25, at the unit’s option.
A financial institution or branch set up in IFSC and recognised by a regulator is treated as a person resident outside India under the FEMA (IFSC) Regulations, 2015.
It depends on the activity and the completeness of the application. Timelines vary and are set by the regulator; no approval date can be guaranteed.
ACS – Director, Expertvuw Management Pvt Ltd
Advisory and company secretarial work is handled by Expertvuw’s team. Audits, certifications and representation that the law reserves for Chartered Accountants, advocates or other licensed professionals are provided by independent professionals engaged for your case.