What is the minimum corpus for a GIFT City AIF?

For a Fund Management Entity (FME), the minimum corpus requirements vary by category, typically starting from USD 1 Million.

Can an Indian resident invest in a GIFT City AIF?

Yes, Indian residents can invest via the Liberalized Remittance Scheme (LRS) or the Overseas Investment (OI) route.

Is the tax holiday really 100%?

Yes, units in the IFSC enjoy a 100% tax holiday on business income for any 10 consecutive years out of 15 years.

In what currency does a GIFT City AIF operate?

AIFs in the IFSC can operate in any freely convertible foreign currency (primarily USD).

FME stands for Fund Management Entity, a new regulatory category introduced by IFSCA to regulate the managers of the funds.

Is GST applicable in GIFT City?

Services provided by an IFSC unit to another IFSC unit or to an offshore client are generally exempt from GST.

What are the audit requirements?

Funds must be audited by auditors who are registered with the NFRA or satisfy specific IFSCA criteria.

How long does it take to set up?

The entire process, including SEZ and IFSCA approvals, usually takes 2 to 3 months.

Service

GIFT City AIF Registration | IFSCA Fund License Online

Launch your global fund from GIFT City. Complete assistance with IFSCA AIF registration, tax optimization, and offshore fund structuring.

Launching Global Funds from India

Launch your global fund from GIFT City. Complete assistance with IFSCA AIF registration, tax optimization, and offshore fund structuring.

Setup an offshore-capable Alternative Investment Fund in India's first IFSC at GIFT City with tax benefits and global regulatory standards.

The future of fund management. Set up your AIF in GIFT City to access global capital with unmatched tax efficiency and ease of business.

GIFT City (Gujarat International Finance Tec-City) is India's first International Financial Services Centre (IFSC). An AIF set up in GIFT City is treated as a person resident outside India for exchange control purposes, allowing it to invest globally without the usual RBI restrictions.

The IFSCA (Fund Management) Regulations, 2022, provide a modern, principles-based regulatory framework that is at par with global hubs like Singapore or Luxembourg. It offers a single window for all approvals, making it the preferred destination for inbound and outbound investment funds.

QuickTaxperts provides specialized consulting for GIFT City setups, including fund structuring, IFSCA licensing, and coordination with SEZ authorities.

Category: Financial Services
10-year Corporate Tax Holiday (out of 15 years).
No MAT (Minimum Alternate Tax) for companies in IFSC.
Exemption from Stamp Duty on all documents executed in the IFSC.
Ease of capital repatriation for foreign investors.
Zero tax on business income for 10 consecutive years
No GST on services provided to IFSC funds
Liberalized investment norms for global markets
Regulated by IFSCA (International Financial Services Centres Authority)

Why Choose GIFT City for your AIF?

A comparative advantage for fund managers.

Tax Efficiency: Exemption from Capital Gains tax for non-residents on various securities.
Investment Flexibility: Lower diversification norms and ability to invest in unlisted offshore securities.
Reduced Compliance: Lower regulatory burden compared to domestic SEBI AIFs for certain categories.
Global Benchmarking: Regulatory standards aligned with IOSCO and FATF principles.

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

GIFT City Checklist: IFSCA Application Form (Form A).; Private Placement Memorandum (PPM) drafted for global investors.; SEZ Unit Approval application.; Investment Management Agreement (IMA).; Trust Deed / LLP Agreement (IFSC Specific).; Networth Certificate of the Sponsor/Manager.; Infrastructure details in GIFT City (Office space proof).

Process and timeline

SEZ Approval: Obtaining Letter of Approval (LOA) from the GIFT SEZ Development Commissioner.
IFSCA Application: Submitting the fund management entity and fund registration to IFSCA.
Entity Incorporation: Registering the Trust/LLP/Company within the GIFT City jurisdiction.
Operational Setup: Opening USD bank accounts and appointing IFSC-based custodians/auditors.
Grant of License: Final certificate of registration from IFSCA to commence fund activities.

Expert review

GIFT City AIF Registration | IFSCA Fund License Online content is reviewed by QuickTaxperts International Tax Team, IFSC Compliance Specialists.

Checklist-led review
Document pre-verification
Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

What is the minimum corpus for a GIFT City AIF?: For a Fund Management Entity (FME), the minimum corpus requirements vary by category, typically starting from USD 1 Million.
Can an Indian resident invest in a GIFT City AIF?: Yes, Indian residents can invest via the Liberalized Remittance Scheme (LRS) or the Overseas Investment (OI) route.
Is the tax holiday really 100%?: Yes, units in the IFSC enjoy a 100% tax holiday on business income for any 10 consecutive years out of 15 years.
In what currency does a GIFT City AIF operate?: AIFs in the IFSC can operate in any freely convertible foreign currency (primarily USD).
What is an FME?: FME stands for Fund Management Entity, a new regulatory category introduced by IFSCA to regulate the managers of the funds.
Is GST applicable in GIFT City?: Services provided by an IFSC unit to another IFSC unit or to an offshore client are generally exempt from GST.
What are the audit requirements?: Funds must be audited by auditors who are registered with the NFRA or satisfy specific IFSCA criteria.
How long does it take to set up?: The entire process, including SEZ and IFSCA approvals, usually takes 2 to 3 months.