1 GIFT City in one minute
Gujarat International Finance Tec-City (GIFT City) hosts India’s only International Financial Services Centre (IFSC). Units registered there operate on “offshore” terms while sitting onshore—giving founders global market access plus a tax holiday the mainland can’t match.
2 Who can set up in the IFSC?
• Banks, broker-dealers, fintech sand-box players
• Aircraft leasing and financing companies
• Fund managers, insurers and reinsurers
• Bullion exchange members, fintech SaaS exporters, captive shared-services centres
3 Five-step registration roadmap
Business plan + board resolution approving IFSC setup.
Name approval with “IFSC Unit” suffix on MCA portal.
Application to IFSCA (Form A or sector-specific form) with projected financials for 3 years.
Letter of approval + lease agreement in the GIFT SEZ designated tower.
Operationalisation filing within 180 days; receive SEZ customs code and start billing.
Beacon Filing’s IFSC desk maintains pre-approved document templates that cut the usual timeline from 8 weeks to about 5.
Headline tax & duty incentives in GIFT City
Incentive | Legal section / circular | IFSC unit benefit | Mainland rate | Benefit period |
Corporate‑income tax | Section 80LA IT Act | 100 % exemption on business income for any 10 yrs out of 15 | 22 % or 30 % | Choose the profitable years |
MAT / AMT | Section 115JB / 115JC | 9 % on book profits (if 80LA not claimed) | 15 % | Perpetual |
Dividend tax | Sec 115A(4) | No DDT; non‑resident shareholders pay 10 % WHT | 10 % WHT + surcharge | Perpetual |
GST on exported services | IGST Act s.16 | Zero‑rated (no IGST) | 18 % | Perpetual |
Stamp duty on capital issue | Gujarat Stamp Act notif. 13/2020 | 100 % waiver for share / debenture issue | 0.5–1 % | First 5 yrs |
Customs duty | SEZ Act 2005 | Duty‑free import of equipment & raw material | Up to 40 % | Perpetual |
Typical timeline to “go live” (IFSC professional services unit)
Milestone | Key authority | Calendar days | Beacon Filing deliverable | Success metric |
Board nod + name reservation | MCA | Day 0–5 | Draft resolution & RUN form | Name approval letter |
IFSCA application & queries | IFSCA | Day 6–30 | Form A pack & Q&A tracker | Letter of approval (LoA) |
Lease & SEZ entry pass | GIFT SEZ | Day 31–45 | Lease deed + intimation | Space allotment certificate |
Company incorporation + PAN | MCA / CBDT | Day 46–55 | SPICe+ filing (with IFSC suffix) | Certificate of Incorporation |
Operationalisation & customs code | SEZ customs | Day 56–70 | Bond‑cum‑legal undertaking, INT‑1 | “Unit operational” letter |
4 Compliance essentials after launch
IFSCA reporting: quarterly net-owned funds and risk matrix.
SEZ performance report: file Softex forms for each export invoice.
Income-tax filing: ITR-6 with Section 80LA deduction schedule.
Transfer-pricing report if related-party deals > ₹1 crore.
Beacon Filing’s GIFT dashboard syncs MCA, SEZ and IFSCA calendars so you never miss a due date.
5 FAQs (30-word answers)
Is book-keeping in USD allowed?
Yes—IFSC units may keep foreign-currency books and present Ind-AS statements in USD.
Can an existing India Pvt Ltd migrate?
Yes via a business-transfer agreement; capital-gains tax often steps up to FMV but Section 47(vib) relief may apply.
Is foreign director residency mandatory?
Only one resident director is needed (120 days/yr). Beacon Filing can act as Nominee if all promoters are overseas.
6 Why Beacon Filing is the go-to IFSC partner
Dedicated IFSC desk run by ex-Big-4 tax partners.
Template library shaving 40 % off document-prep time.
Integrated FEMA & transfer-pricing review so RBI audits never derail you.
Fixed-fee plans—incorporation, first-year compliance and two advisory calls bundled.
Ready to harness India’s most powerful tax holiday?
Book a strategy call and let Beacon Filing turn your GIFT City dream into a revenue-ready reality.
Disclaimer (23 July 2025): Regulations change. This guide is for general information only—always obtain personalised professional advice before acting.
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