Guide to setting up Fintechs in GIFT City

TLDR

1. GIFT City’s IFSC is India’s onshore jurisdiction for international finance, built to host cross-border banking, funds, insurance, payments and fintech activity without pushing structures offshore.
2. The IFSC sits inside the SEZ and operates under a separate rule-set, with business typically conducted in permitted foreign currencies, not INR, and with infrastructure built for institutional-grade uptime and continuity.
3. IFSCA is the single unified regulator for the IFSC ecosystem licensing, supervision and regulatory engagement are designed as a one-window process compared to India’s domestic multi-regulator landscape.
4. Fintech vs Techfin is determined by function: Fintechs deliver regulated financial services using technology; Techfins provide technology to financial institutions and may remain unlicensed if they don’t handle money, control assets, or take regulated decisions.
5. Permitted activities are broad but perimeter-led payments, lending/financing platforms, market access and infrastructure, fund/wealth enablement, regtech/AML/KYC, data/analytics, cybersecurity and allied TechFin themes subject to the relevant authorisation where the underlying activity is regulated.
6. Sandbox is the controlled entry route: firms can test live models under defined limits and reporting, and for more mature propositions the Limited Use Authorisation (LUA) enables restricted live operations often up to 12 months before scaling.
7. Full authorisation (“full-flagged”) is the steady-state: once licensed, fintechs are treated like other IFSC financial institutions, with ongoing expectations on governance, AML/CFT controls, regulatory reporting, and real operational substance in GIFT City (premises and staffing aligned to scale).
8. Commercial mechanics matter: entities can serve international clients by design; India-facing activity is conditional and must sit within the applicable perimeter and FEMA/LRS/GST/TP realities. Setup costs split into regulatory fees + incorporation/SEZ + office/substance + advisory + ongoing compliance, and eligible fintechs can also access IFSCA’s Fintech Incentive Scheme grants (start-up/PoC/sandbox/green/accelerator/listing support).
   

 

What is GIFT City?

Why set up in GIFT City?

GIFT City offers a place to run international financial business without leaving the country. For decades, activities involving foreign currency, overseas investors, or cross-border structures were pushed offshore by default. GIFT City was created to pull that activity back, not by relaxing oversight, but by redesigning the framework altogether.

Since becoming operational, the IFSC has attracted a wide mix of institutions. Banks use it for foreign-currency lending and trade finance. Fund managers run India-linked strategies that would otherwise sit in traditional offshore centres. Insurers, reinsurers, payment firms, fintech platforms, leasing companies, and group treasury centres have followed. The common thread is not sector, but use case: these are activities that need to operate internationally, even when the underlying capital or risk is India-related.

Its location helps, but its real value lies in how it is positioned. Sitting between Ahmedabad and Gandhinagar, GIFT City remains close to India’s economic base while operating under a regime that is clearly separated from domestic financial rules. Indian firms can service non-resident clients and manage cross-border flows without the usual onshore constraints. Foreign institutions can engage with India-linked opportunities without having to navigate the full complexity of India’s domestic regulatory system.

Confidence in the IFSC has also been shaped by how it is regulated. Instead of multiple authorities with overlapping mandates, the entire ecosystem sits under a single regulator, the International Financial Services Centres Authority. For firms used to dealing with regulators in global financial centres, this makes a noticeable difference. Licensing paths are clearer, approvals are faster, and regulatory conversations tend to be more coordinated and predictable.

The regulatory framework itself reflects this intent. While many regulatory frameworks have evolved gradually from legacy rules, IFSC regulations were designed from the beginning with international standards and practices  in mind. Fund management, banking, insurance, payments, fintech, leasing, and treasury operations are all covered under frameworks that borrow heavily from global practice, while still reflecting Indian policy priorities. For fund managers and fintech firms in particular, this balance between structure and flexibility has been a key draw.

Another reason GIFT City has gained traction is the sheer scale of capital linked to India. The Indian diaspora, NRIs and OCIs, family offices, and global investors are increasingly looking for ways to access Indian assets through structures that meet international governance and compliance expectations. Operating in foreign currency, within a recognisable regulatory environment, makes the IFSC a natural fit for that demand. Tax efficiency plays a role, but it is rarely the only factor.

At the same time, GIFT City is not being shaped around a single product or theme. Alongside traditional banking and funds, the ecosystem has expanded into areas such as private credit, infrastructure and real-asset strategies, aircraft and ship leasing, ESG-linked services, trade finance platforms, and cross-border payments. The range of permitted activity suggests a deliberate attempt to build depth rather than rely on one narrow advantage.

GIFT City was planned as a working financial district, not just a regulatory zone. Offices, housing, hotels, schools, healthcare, and everyday amenities sit within the same development. As more teams relocate, the city is gradually functioning less like a project site and more like a place where institutions can base operations for the long term.

Taken together, these factors explain the appeal of GIFT City. It is not simply a tax play or an experiment in regulatory arbitrage. For many firms, it has become the most straightforward way to run international financial business connected to India, without stepping outside India itself.

Specific advantages of establishing in GIFT City

Legal and regulatory framework

• Operates under a single, unified regulator – the International Financial Services Centres Authority (IFSCA).
• Regulatory frameworks aligned with international financial centres rather than domestic Indian rules.
• Permits cross-border financial activities in foreign currency.
• Allows 100 percent foreign ownership for most financial and ancillary services.
• Simplified approval and supervision process compared to multi-regulator environments.

Tax and fiscal benefits

• 100 percent income-tax exemption for any 20 consecutive years out of a 25-year block.
• No securities transaction tax (STT) or commodities transaction tax (CTT) on IFSC exchange trades.
• No GST on services received by IFSC units or on IFSC exchange transactions.
• Capital gains exemptions on specified securities listed on IFSC exchanges.
• Customs-duty exemptions on goods imported into the IFSC.

Counterparty and investor confidence

• Independent statutory regulator with consolidated oversight.
• Globally recognisable regulatory structure covering banking, funds, insurance, payments, and fintech.
• Clear licensing categories, net-worth requirements, and compliance obligations.
• Strong emphasis on AML, governance, and risk management aligned with international standards.

Diverse and expanding ecosystem

• Presence of international and Indian banks, fund managers, insurers, fintechs, and leasing companies.
• Rapidly growing fund domicile for India-linked offshore funds.
• Supportive environment for global capability centres and financial services outsourcing.
• Availability of professional services including legal, audit, compliance, and advisory firms.

Strategic geographic and economic positioning

• Acts as India’s offshore financial gateway without requiring relocation to a foreign jurisdiction.
• Enables participation in inbound and outbound capital flows linked to India.
• Supports India’s role in South-South trade and cross-border investment between Asia, the Middle East, and Africa.
• Well-positioned to benefit from long-term growth in emerging markets and global reallocation of capital.

What are Fintechs and Techfins at GIFT City?

As per the IFSCA, the distinction between fintech and techfin is functional and regulatory, based on the activities that an entity actually performs, rather than how it describes itself.

A fintech entity is one that carries out financial activities using technology as the primary delivery mechanism. In the IFSC context, fintechs typically operate platforms or models that involve payments, lending, investment access, market infrastructure, or other forms of financial intermediation executed digitally. Where the underlying activity constitutes a financial service, the entity falls within the IFSCA’s regulatory perimeter and must obtain the appropriate authorisation for that activity.

A techfin entity, by contrast, is a technology provider to the financial ecosystem. Its core business lies in building or operating systems, platforms, or tools used by regulated institutions—such as core banking infrastructure, payment rails, risk and compliance engines, regtech solutions, data platforms, or transaction-processing technology. Techfins do not, by default, provide financial services themselves. Provided they do not deal in financial products, hold funds, or make regulated decisions, they may operate outside the financial licensing framework.

The IFSC framework applies a substance-over-label approach. An entity is assessed on whether it introduces financial risk into the system—by handling money, making investment or credit decisions, or operating critical regulated functions—not on whether it brands itself as a fintech or a technology platform. In some cases, regulatory authorisation may be required, regardless of the technology involved. We recommend that you Contact Us to review the business model so that we can advise you accordingly.

 

What are the permitted fintech and techfin activities at GIFT City?

 

 

The IFSCA framework allows a wide range of technology-enabled financial and financial-support activities, provided they fall within clearly defined regulatory categories and respect the boundary between regulated financial services and ancillary or technology services.

Fintech activities (regulated or authorisable)

Fintech entities may undertake regulated financial activities in the IFSC where they obtain the relevant authorisation from the IFSCA. These activities typically include technology-driven models for:

• Payments and settlement services, including cross-border payment platforms, payment gateways, and payment infrastructure operating in foreign currency.
• Lending and financing platforms, including digital lending, structured credit platforms, trade finance technology, and invoice or receivables-based models.
• Investment and capital markets platforms, such as digital brokerage models, fund platforms, market access tools, and distribution or execution infrastructure.
• Wealth, asset, and fund-related technology, including platforms supporting fund management, investor onboarding, reporting, and portfolio administration.
• Financial market infrastructure, where technology forms part of trading, clearing, settlement, or post-trade processes, subject to applicable authorisation.

In each case, the permissibility of the activity depends not on the use of technology, but on whether the underlying function constitutes a regulated financial service. Where it does, the fintech must operate within the applicable IFSCA licensing framework and comply with governance, capital (where applicable), conduct, and AML requirements.

Techfin activities (technology and infrastructure-led)

Techfin entities are permitted to operate in the IFSC where their activities are technology-centric and non-financial in nature, even though they support financial institutions or markets. These activities commonly include:

• Core banking, payments, and transaction-processing platforms provided to IFSC-regulated institutions
• Regtech and compliance technology, including AML/CFT systems, monitoring tools, reporting engines, and risk-assessment platforms
• Data, analytics, and financial intelligence platforms, supporting pricing, risk modelling, portfolio analytics, or regulatory reporting
• Operational and back-office technology, including reconciliation systems, accounting platforms, treasury systems, and workflow automation
• Cybersecurity, identity, and digital-trust solutions designed for financial institutions and market participants

These activities are generally permissible without financial services authorisation, provided the techfin does not itself deal in financial products, hold or control funds, make regulated decisions, or assume responsibility for regulated outcomes.

 An illustrative list of allied areas/activities aiding and assisting activities in relation to financial product, financial services and financial institutions (TechFin) is given below:

(a) Agri Tech.

(b) Accelerators.

(c) Climate/Green/Sustainable Tech.

(d) Defence Tech.

1(e) Regulatory Tech.

(f) Space Tech.

(g) Supervisory Tech.

(h) Technology solution supporting Digital banking (example Core Banking etc.).

(i) Technology solution aiding Trade Finance.

(j) Solutions/services for BFSI domain leveraging:

(i) Artificial Intelligence/Machine Learning.

(ii) Big Data.

(iii) Biometrics.

(iv) Chatbots.

(v) Cyber security.

(vi) Digital Identity/KYC/AML/CFT.

(vii) Distributed Ledger Technology.

(viii) Fraud detection/prevention.

(ix) Internet of Things (IoT).

(x) Longevity Finance.

(xi) Metaverse including Augmented Reality and /or Virtual Reality.

(xii) Quantum Tech.

(xiii) Web 3.0.

Platform and hybrid models

The IFSCA framework recognises that many IFSC businesses operate platform or hybrid models, where technology and financial functionality are closely integrated. In such cases, the Authority applies a functional analysis to determine which parts of the business are regulated and which are not.

A platform may, for example:

• operate regulated financial services through a licensed IFSC entity, while
• separately providing technology or operational support through an ancillary or techfin structure.

What matters is that regulated functions are clearly ring-fenced, authorised, and supervised, and that technology or support functions do not drift into decision-making, intermediation, or asset control.

Export-oriented and cross-border focus

Consistent with the IFSC’s design, permitted fintech and techfin activities are international in orientation. Services are typically provided in foreign currency, and business models are expected to support non-resident clients, overseas counterparties, or cross-border financial activity. Technology platforms developed in GIFT City may service global markets, provided the regulatory perimeter applicable in each jurisdiction is respected.

Regulatory boundary conditions

Across all models, certain boundaries apply uniformly:

• Activities must not exceed the scope of the relevant authorisation or registration.
• Technology providers must not assume regulated roles by contract or practice.
• Financial risk, client money, and decision-making must sit only with authorised entities.

 

What is a sandbox license and what types of Sandboxes are available at GIFT City?

 

 

 

A sandbox licence in GIFT City is a controlled regulatory mechanism that allows firms to test innovative financial or technology-driven business models in a live environment, but within clearly defined limits. It is designed for activities that are not yet fully addressed by existing regulations, or where the commercial, operational, or regulatory implications need to be observed before a full authorisation is granted.

In GIFT City, sandboxes are administered by the International Financial Services Centres Authority and are intended to balance innovation with regulatory oversight. A sandbox approval does not replace a licence; it provides temporary, conditional permission to test a model under close supervision.

Purpose of the sandbox framework

The sandbox framework exists to enable innovation without forcing firms into unsuitable licensing categories. It also allows the regulator to observe risk, governance, and consumer outcomes in real conditions, and gives firms regulatory clarity before committing capital to a full-scale launch.

Sandbox participation is therefore time-bound, scope-limited, and supervised, with defined entry and exit criteria.

Types of Sandboxes Available at GIFT City

1. IFSCA Regulatory Sandbox – FRS

The Regulatory Sandbox is the primary sandbox framework in GIFT City. It is available to fintechs and techfins proposing new or innovative financial products, services, or delivery models that do not fit neatly within existing IFSCA regulations.

Typical use cases include:

• new cross-border payment or settlement models,
• novel lending, financing, or credit-assessment structures,
• digital market infrastructure or investment platforms,
• technology-led insurance or risk-transfer models,
• innovative compliance, regtech, or reporting solutions that interact directly with regulated activity.

Participants are allowed to test their models with real users or counterparties, but within pre-agreed limits on transaction size, client numbers, geography, and duration. During the sandbox period, the firm may specifically request regulatory relaxations or exemptions as part of application based on the proposed testing..

2. FinTech Innovation Sandbox – FIS (Thematic / Cohort-Based)

IFSC-based financial institutions can conduct testing outside the live market using market-related data provided by other financial institutions, without requiring a physical presence in the IFSC, such testing may also be conducted through thematic or cohort-based sandbox programmes. These sandboxes are aligned to strategic priorities rather than open-ended experimentation.

Examples of themes that have been supported include:

• cross-border payments and trade finance,
• sustainable finance and ESG-linked products,
• digital identity, KYC, and AML innovation,
• capital-market infrastructure and fund administration technology.

Admission is typically competitive, with firms assessed on innovation, readiness, regulatory relevance, and potential ecosystem impact.

3. Inter-Operable Sandbox – IoRS (Limited Cases)

In certain cases, IFSCA supports inter-regulatory or cross-border sandbox participation, where a product or platform is tested simultaneously across multiple jurisdictions or regulatory environments. Other participating regulators include RBI, SEBI, IRDAI and PFRDA. 

These arrangements are less common and usually apply where:

• the business model is inherently cross-border,
• regulatory coordination is required with another financial centre, or
• testing outcomes are expected to inform broader policy development.

Such sandboxes involve tighter conditions and deeper supervisory coordination.

Overseas Regulatory Referral Mechanism – ORRM (Fintech bridges)

Applicants seeking to access the overseas regulatory referral mechanism shall be governed by the MOU or collaboration/special arrangements between the IFSCA and the corresponding overseas financial service regulators. The MOU signed between the Monetary Authority of Singapore and GIFT City’s IFSCA is one such mechanism that has been put in place. 

Key Characteristics of Sandbox Approvals

Across all sandbox types, certain principles apply consistently:

• Temporary approval: Sandbox permissions are time-limited and do not confer permanent operating rights.
• Defined scope: It sets clear limits on the activities, number of clients, transaction volumes, and geographical scope are tightly constrained.
• Regulatory oversight: Participants may request regulatory relaxations or exemptions as part of their application,  subject to IFSCA’s approval and ongoing reporting requirement .
• Clear exit paths: At the end of the testing stage, the Limited use authorisations and any other regulatory relaxation will expire. The participants must then transition to the appropriate regulatory framework, modify its model, if required or complete the applicable exit requirements.

A sandbox approval gives the firms an opportunity to test their business model before  leading to progression to a full IFSCA licence, refinement of the business model before licensing, or discontinuation if risks are deemed unmanageable.

 

What is a Limited Use Authorisation Sandbox in GIFT City?

A Limited Use Authorisation (LUA) Sandbox is a regulatory pathway used by the International Financial Services Centres Authority (IFSCA) to allow fintech and techfin entities to commence live operations on a restricted basis, where the business model is sufficiently mature but not yet ready for unrestricted authorisation.

An LUA Sandbox sits between a traditional regulatory sandbox and a full licence. It is intended for firms that have moved beyond experimentation and can demonstrate operational readiness, but where the Authority prefers a phased market entry to observe execution, controls, and risk outcomes under real operating conditions.

Under an LUA, firms are permitted to operate with real clients and transactions, subject to clearly defined limits on scope, volumes, client categories, and duration. Regulatory expectations relating to governance, AML, risk management, and internal controls remain broadly consistent with those applicable to fully authorised entities, while being proportionate to the limited scale and nature of sandbox activities.

LUA approvals are time-bound. The authorised period is typically up to 12 months, as determined  at the time of approval. This provides the firm sufficient time to build an operating history for supervisory assessment. Any extension is discretionary and granted only in limited circumstances where the business has demonstrated strong compliance and control maturity.

At the end of the authorised period, the LUA is expected to resolve into a clear outcome: transition to a full IFSCA licence, modification or limited extension of the authorisation, or cessation of the activity where regulatory comfort has not been achieved.

Does the fintech entity have to set up an office at GIFT City during the Sandbox period?

IFSCA does not prescribe a rigid or uniform physical-presence requirement for fintech entities during the sandbox or Limited Use Authorisation (LUA) phase. However, sandbox participation does not operate as a location-agnostic or purely virtual regime.

In practice, IFSCA expects sandbox participants to demonstrate a clear operational nexus to the IFSC, sufficient to enable effective supervision, regulatory engagement, and accountability during live testing. The nature and extent of this presence  may vary depending on the type of the activity, the risk profile of the model, and the duration of the sandbox approval.

During the sandbox period, this requirement is typically satisfied through light but genuine on-ground arrangements, such as dedicated desk space, managed or shared office facilities, or other arrangements that evidence real operating linkage to GIFT City. What is critical is not the size or permanence of the premises, but the ability of the Authority to access responsible individuals, engage with the entity locally, and supervise the sandbox activity in real time.

Key managerial and control functions relevant to the sandbox activity should be accessible within the IFSC, whether through physical presence or regular on-site engagement. Arrangements that are purely normal such as address-only setups without meaningful operational activity are generally considered as inconsistent with the objectives of the sandbox framework.

As the entity moves towards full authorisation, greater emphasis is placed on maintaining a physical presence and demonstrating operational substance increase. Firms exiting the sandbox are ordinarily required to establish formal office premises in the IFSC and meet the applicable substance requirements relevant to their licensed activity.

What are the eligibility criteria for Limited Use Authorisation Sandbox licenses?

A Limited Use Authorisation (LUA) Sandbox may be granted to FinTech Entities that are eligible to operate in the IFSC, whether incorporated in India or incorporated outside India. Both Indian and foreign applicants are permitted to apply, subject to compliance with the applicable laws and regulations governing establishment and operations in the IFSC.

The applicant must be a FinTech Entity proposing to carry out financial services or financial technology–enabled activities that fall within the regulatory scope of the International Financial Services Centres Authority and that are considered suitable for operation on a limited and controlled basis.

An LUA may be considered where the business model is sufficiently developed and the entity is ready to commence live operations, but where the Authority considers it appropriate to allow such operations at a restricted scale and for a limited period before granting full authorisation.

The proposed activity must be clearly defined, including the nature of the product or service, the target users or clients, the transaction or exposure limits, and the duration for which the limited authorisation is sought. The proposed activity should be capable of being ring-fenced so that any potential risks are contained during the LUA period.

The applicant should demonstrate that it has appropriate governance arrangements, systems, and controls that are proportionate to the nature and scale of the proposed activity. This includes clearly identifying  those responsible for managing and overseeing  the activity, along with appropriate compliance and risk management arrangements.

The applicant should also be able to identify, assess, monitor, and mitigate risks associated with the proposed activity, including operational, technology, financial, and compliance risks. Where applicable, appropriate measures relating to customer protection, safeguard data, and financial crime prevention must be in place.

During the authorized period,  the applicant seeking an LUA must be willing to operate under enhanced regulatory supervision and comply with all conditions imposed by the Authority, including reporting, disclosures requirements, and restrictions on scale or scope of activity.

Finally, the application must also include a clear exit plan, explaining how the entity proposes to transition at the end of the limited use period. Depending on the outcome of the testing, this may include applying for full authorisation, modifying the business model, or discontinuing the activity, as directed by the Authority.

What is the process involved in applying for the Fintech sandbox license in GIFT City?

The process of applying for a sandbox license is designed to assess whether a proposed fintech or techfin business model warrants controlled live testing within the IFSC.

Step 1: Business model scoping and regulatory alignment

Before any formal submission, the applicant is expected to clearly document what the product or service does,how technology is used, where financial risk arises (if at all), and why the model does not fit within existing IFSCA regulations. The regulator seeks a detailed problem definition and applicants engage in informal pre-submission discussions with the IFSCA to confirm their suitability for a full application. 

Step 2: Submission of sandbox application

Once the application is approved, applicants fill out a formal sandbox application that includes: a detailed description of the business model and innovation, proposed sandbox use cases and testing objectives, scope of the sandbox (clients, volumes, geographies), risk identification and mitigation measures, governance and accountability arrangements, and a proposed sandbox duration and exit strategy.

Step 3: Regulatory assessment and clarifications

Once submitted, the application enters a regulatory review phase. The IFSCA reviews the details submitted, seeks clarifications, possibly asks for refinements to the scope of activities or limits, and other such matters. The regulator also arrives at the required safeguards that the applicant will have to adhere to, if and when licensed. 

Step 4: Sandbox approval and conditions

The IFSCA issues a sandbox approval that lists the types of activities, transactions, or exposures that are allowed, the types of clients that are allowed, the reporting and monitoring requirements, and the period of the sandbox (usually 12 months).

Step 5: Testing in real life with supervision

During the sandbox period, the entity can perform live testing within the limits that have been set. The entity will have to regularly report to the IFSCA, providing ongoing access to the responsible individuals, and quickly disclose any problems or deviations, along with the required steps to fix them. 

Any material change to the scope or the business model will require prior regulatory approvals. 

Step 6: Exit from the sandbox

At the end of the sandbox period, the entity must either:

• apply for full authorisation under the relevant IFSCA framework, or
• transition into a Limited Use Authorisation (LUA) where appropriate, or
• discontinue the activity if risks or viability concerns remain.

 

What kind of clients can Fintechs and Techfins serve, if established in GIFT City?

 

Fintech and techfin entities established in GIFT City’s IFSC are designed to operate in an international and cross-border context. As a starting point, the framework assumes that IFSC entities will primarily serve non-resident clients, overseas counterparties, and international markets, rather than India’s domestic retail or onshore financial system.

In practice, fintechs operating from the IFSC may serve non-resident individuals, foreign corporates, international financial institutions, overseas funds, and cross-border platforms that require payment, financing, investment, market access, or other financial services delivered in foreign currency. These clients may be located anywhere outside India, provided the fintech’s activity remains within the scope of its IFSCA authorisation and complies with the regulatory requirements of the client’s home jurisdiction.

Techfin entities, whose role is typically technology enablement rather than financial intermediation, may serve an equally broad international client base. This includes IFSC-regulated entities, such as banks, fund managers, insurers, and payment firms, as well as foreign financial institutions and global enterprises that use the IFSC as a hub for technology, compliance, data, or infrastructure services. Where the techfin does not itself perform regulated financial activity, client location is generally not a limiting factor.

Fintech and techfin entities may also provide services to other entities operating within the IFSC ecosystem. This includes licensed financial institutions, ancillary service providers, and other fintech or techfin firms, subject to appropriate ring-fencing and compliance with outsourcing or third-party service arrangements recognised by the International Financial Services Centres Authority (IFSCA).

Serving clients in mainland India is not possible under the current framework.

Structural and Operational Conditions (Fintechs and Techfins)

Fintech and techfin activities in GIFT City must be undertaken through an entity established in the IFSC in a form permitted under Indian law. Depending on the business model and regulatory pathway, this may take the form of a company incorporated under the Companies Act, 2013, a limited liability partnership, or—where expressly permitted by the IFSCA—a branch of a foreign entity. The key regulatory emphasis is not the legal form itself, but whether the entity has clear accountability, identifiable management, and effective supervisory access within the IFSC.

Where a fintech operates regulated financial activities, those activities must be clearly authorised, ring-fenced, and conducted solely within the scope of the relevant IFSCA approval. Hybrid or platform models are permitted, but regulated financial functions must be segregated from pure technology, group support, or ancillary activities to ensure that financial risk, decision-making, and client exposure sit only within the authorised perimeter.

Fintechs are not subject to blanket prohibitions on group linkage, but the IFSCA applies a substance-based assessment to ensure that the IFSC entity is not a mere booking or pass-through vehicle. Where the fintech forms part of a wider Indian or global group, the Authority will examine how decision-making, risk ownership, technology control, and operational responsibility are allocated between the IFSC entity and other group entities.

From a workforce perspective, there is no rigid numerical cap on employee transfers from Indian group entities. However, the IFSC fintech should be able to demonstrate genuine operational capability and independent functioning. Large-scale transfer of an existing Indian business into the IFSC, without clear international focus or regulatory rationale, may attract regulatory scrutiny. The staffing arrangements must support the activitiesauthorised in IFSCand entity’s regulatory or supervisory requirements, rather than replicate its domestic operations under an offshore label.

The same principle applies to contractual and asset arrangements. While fintechs may enter into commercial arrangements with group entities or third parties, the IFSC entity must not be structured as a vehicle for shifting domestic Indian business into the IFSC. Regulated activity, client relationships, and financial risk must align with the IFSC authorisation process and international focus of the framework.

Mandatory Operational Requirements

Fintech entities are required to maintain adequate physical and operational substance within the IFSC, proportionate to their regulatory status. During the sandbox or Limited Use Authorisation phase, this requirement is applied proportionately and may be met through managed or shared office arrangements, provided the setup allows effective regulatory engagement and supervision. Upon transition to full authorisation, fintechs are required to maintain dedicated office premises and staffing commensurate with the scale and complexity of their business activities as mentioned in the regulations.

Financial records and regulatory reporting are required to be maintained in a freely convertible foreign currency, with US dollars commonly used as the standard reporting currency unless otherwise permitted by the IFSCA. This reflects the international nature of the IFSC and facilitates consistency in regulatory reporting and supervision.

Fully authorised fintechs are also subject to ongoing regulatory reporting, audit, and supervisory interaction, in line with the applicable licensing framework. While there is no universal requirement for periodic third-party certifications in the same manner as BATF providers, the IFSCA may require independent audits, system reviews, or assurance reports depending on the nature of the activity, technology risk, and client exposure.

Can a GIFT City–based Fintech serve clients in mainland India?

No. As a rule, a fintech entity established in GIFT City’s International Financial Services Centre (IFSC) cannot serve clients resident in mainland India.

The IFSC framework is deliberately constructed as an international-facing regime. Fintechs licensed or authorised by the International Financial Services Centres Authority (IFSCA) are expected to operate outside India’s domestic financial system, servicing non-residents, overseas counterparties, and cross-border activity conducted in permitted foreign currencies. An IFSC authorisation does not provide a gateway into the onshore Indian market.

From a regulatory perspective, the determining factor is client residency, not the physical location of the provider. Where the end client is resident in India, the activity is treated as domestic and falls squarely within the jurisdiction of Indian regulators such as the RBI, SEBI, or IRDAI. An IFSCA licence, sandbox approval, or Limited Use Authorisation does not replace or override the need for onshore Indian regulatory approvals.

Accordingly, a GIFT City–based fintech must not:

• onboard or directly service Indian resident clients;
• market its services into the Indian domestic market;
• provide financial or technology-enabled financial services intended for use by Indian residents; or
• structure arrangements that, in substance, deliver services into India while nominally routing them through the IFSC.

There are limited and indirect India linkages, but these do not amount to serving mainland India. For example, Indian residents may independently invest in IFSC products under the Liberalised Remittance Scheme (LRS), or Indian financial institutions may interact with IFSC entities in permitted cross-border contexts. In such cases, the IFSC fintech continues to operate on a non-resident, foreign-currency basis, and the client relationship is not treated as an India-facing service.

How this works in practice for India-linked clients

The IFSC model is fundamentally cross-border in orientation. Fintechs operating from GIFT City are structured to handle international transactions, platforms, or services that connect India-linked capital or users with global markets, rather than facilitating routine domestic transactions.

One of the clearest use cases for GIFT City lies in its relevance to the Indian diaspora. The IFSC has been structured with NRIs, OCIs, and overseas investors in mind, offering them a way to participate in India-linked investments and financial activity without being drawn into the full set of domestic banking procedures and regulatory frictions that apply onshore. In most cases, investments and transactions are routed through IFSC banking units in permitted foreign currencies, using processes that mirror international market practice rather than local retail banking conventions. This design makes it materially easier for non-resident participants to engage with India-related opportunities from a familiar and globally aligned operating environment.

Indian residents may also access certain GIFT City offerings, but only within existing Indian regulatory frameworks. Most notably, individuals may invest in permitted IFSC securities or funds under the Liberalised Remittance Scheme (LRS), subject to the prevailing annual limits and conditions prescribed by the Reserve Bank of India. The IFSC does not create an exemption from LRS; it operates within it.

Regulatory and structural considerations

While GIFT City offers a streamlined regulatory environment through a single regulator, this does not dilute regulatory discipline. Any service provided to Indian residents must be assessed through a substance-based test: if the same activity, when performed onshore in India, would require authorisation from an Indian regulator, an IFSC licence does not override that requirement.

Tax treatment within the IFSC does not operate on a one-size-fits-all basis. While certain structures and instruments available in GIFT City can result in more efficient tax outcomes, particularly for non-resident participants, the actual position depends on multiple variables, including the nature of the product, the profile of the investor, and the interaction of applicable tax laws. GIFT City should therefore be understood as a regulated international financial centre, not as a jurisdiction where tax considerations apply automatically or uniformly.

Can a fintech company based in GIFT City provide services to clients outside India?

Yes. A fintech entity established in GIFT City’s IFSC is expressly permitted to provide services to clients outside India, and this is, in fact, the primary design objective of the IFSC framework.

GIFT City is structured as an international financial services jurisdiction, and fintech entities operating within it are expected to service non-resident clients, foreign counterparties, overseas investors, and cross-border platforms. There is no requirement that a fintech’s client base be limited to India or to IFSC-based entities, provided the activity remains within the scope of its authorisation under the International Financial Services Centres Authority (IFSCA).

In practice, GIFT City–based fintechs commonly provide services to overseas clients across areas such as cross-border payments, digital lending or financing platforms, investment and market-access technology, wealth and fund platforms, and financial infrastructure services, delivered in permitted foreign currencies. These services are treated as international financial or technology services exported from the IFSC.

The regulatory test applied by IFSCA in this context is functional rather than geographic. What matters is not where the client is located, but whether the fintech’s activity constitutes a regulated financial service and whether it is operating within the boundaries of its approved activity. Where a fintech is licensed or authorised for the relevant activity, it may serve overseas clients without geographic restriction.

That said, serving clients outside India does not remove all regulatory obligations. Fintechs remain responsible for complying with:

• applicable AML, CFT, and sanctions requirements, including FATF-aligned controls,
• client-jurisdiction legal and regulatory considerations where services are consumed, and
• contractual, data protection, and cross-border tax obligations relevant to the service.

From an operational perspective, services are typically invoiced and settled in permitted foreign currencies through IFSC banking arrangements, reinforcing the international character of the activity.

What is a “full flagged” fintech business?

A “fully flagged” fintech business in GIFT City is a market term used to describe a fintech entity that has completed the sandbox or Limited Use Authorisation (LUA) phase and is operating under a full, permanent regulatory authorisation issued by the IFSCA. It is not a formal licence category defined in regulation, but a practical descriptor used to distinguish fully authorised fintechs from entities that are still testing, transitioning, or operating under restricted conditions.

In practical terms, a fully flagged fintech is one where the regulatory uncertainty has been resolved. The Authority has assessed the business model, governance framework, risk controls, technology infrastructure, and operational execution and has concluded that the entity may operate on an ongoing basis, without sandbox-style limits, within the scope of its approved activity. Restrictions on client numbers, transaction volumes, or duration—typical of sandbox or LUA approvals—no longer apply, except where expressly built into the licence itself.

Once fully flagged, Fintech is treated, from a supervisory perspective, much like any other licensed IFSC financial institution. It is expected to maintain full operational substance in GIFT City, including appropriate office premises and staffing commensurate with the scale and complexity of its activities. Governance requirements   continue throughout the life cycle of the entity, Firms are expected to  maintain effective compliance, AML and CFT controls, meet ongoing regulatory reporting requirements, and supervisory engagement. The regulatory focus shifts away from assessing whether the business model is viable to ensure that the business can operate sustainably, manage risks effectively, and maintain appropriate standards and resilience.Eligibility to become a fully flagged fintech is not automatic and does not arise merely from time spent in the sandbox. To qualify, an entity must first be eligible to operate in the IFSC, whether incorporated in India or overseas, and must be carrying on (or proposing to carry on) an activity that falls within a recognised IFSCA regulatory framework. The business model must be clearly defined, commercially viable, and capable of being supervised under existing rules, rather than relying on temporary regulatory forbearance.

 

What are the eligibility criteria for applying to a fintech business in GIFT City?

 

The Fintech business must demonstrate that they are  fit and eligible to conduct business in the IFSC on a continuous basis and the operations are being conducted within the regulatory ambit of the IFSCA. 

The applicant  should be able to prove that their business model is robust, viable, and can be carried out on a large scale without relying on temporary relaxations or regulatory forbearance. The proposed requirements must be clearly stated and  followed, the rules and regulations that apply to the financial service or financial technology activity being undertaken.

The Fintech entities must have good governance systems in place, such as clearly defined management and control roles, proper internal policies and processes, and effective oversight. The applicant must demonstrate that the roles and responsibilities for making decisions, being responsible, and having control are clearly defined.

The applicant must also demonstrate that it has the  appropriate processes, infrastructure, and operational capabilities to carry out the requested operations in a safly and in an organized manner. This comprises technology systems, business continuity arrangements, and operational resilience that is appropriate for the size and nature of the business.

The FinTech Entity must demonstrate that it has effective risk management and compliance frameworks in place. This includes the ability to identify, monitor, and mitigate risks associated with its activities, including operational risk, technology risk, financial risk, and risks relating to anti-money laundering and countering the financing of terrorism.

The applicant must also demonstrate that it has sufficient financial resources to support its operations on an ongoing basis and to meet its obligations whenever they need additional funds. Where applicable, the entity must comply with any capital, net worth, or financial resource requirements prescribed by the Authority for the relevant activity.

 

What kind of legal structures are available for Fintechs  in GIFT City?

There are four possible legal structures available for fintech companies.

1. Company incorporated under the Companies Act, 2013 

The most widely and trusted structure for ancillary service providers is a company limited by shares, incorporated under the Companies Act, 2013 and registered as an IFSC unit.

This structure is generally preferred by the IFSCA because it provides a clear separation between the entity and its shareholders, a well-understood governance framework (Board, directors, statutory filings), ease of demonstrating fit-and-proper status of shareholders and management, and scalability for multi-service or multi-jurisdictional operations.

Both private limited and public limited companies are permitted, although private limited companies are far more common for professional and advisory services.

This is the default structure used by:

• Legal and compliance advisory firms.
• Consulting and management advisory firms.
• Fund administration and back-office providers.
• Group shared-service or capability centres.

2. Limited Liability Partnership (LLP)

A limited liability partnership formed under the LLP Act, 2008 can also be used for operations in the IFSC and is a structure many professional firms naturally prefer. It works best where the business is built around individual partners rather than a corporate hierarchy, where commercial arrangements between principals need flexibility, and where the firm’s output is advisory or opinion-led rather than transactional.

From the regulator’s standpoint, the form itself is not the deciding factor. What matters is how the LLP is structured and controlling person of the LLP. The IFSCA will expect partners—particularly designated partners—to meet basic fitness and integrity standards. It will also look for clear internal arrangements that explain who makes decisions, how conflicts are handled, and who is responsible for ongoing compliance and regulatory interaction. These responsibilities must be clearly specified in the LLP agreement; informal understandings are not sufficient.

In practice, this structure is most predominant among consulting firms, accounting and tax practices, and specialist compliance or risk advisers that operate as professional partnerships rather than scaled financial institutions.

3. Branches of foreign entities

Some overseas firms choose to establish a branch presence in the IFSC for ancillary activities, subject to regulatory approval. This route is commonly used by international consultancies, global advisory networks, and multinational groups that want a direct operating footprint..

That said, branches tend to attract closer supervisory attention. The IFSCA typically examines how accountability is retained when senior management sits outside India, how control is exercised over the IFSC operation, and where responsibility ultimately lies between the head office and the local unit. For this reason, approvals are usually conditional on having a clearly identified local officer in charge, tightly defined limits on what the branch may do from the IFSC, and formal governance and reporting lines back to the parent organisation.

4. Subsidiary of an Indian or foreign parent

An ancillary service provider may also operate as a wholly owned subsidiary of an Indian or overseas group, incorporated in India and registered as an IFSC unit.

This structure is commonly used where the IFSC entity forms part of a wider regional or global platform, services are provided primarily to group entities or group clients, or the parent entity wishes to ring-fence IFSC operations.

From the regulator’s perspective, this is generally viewed favourably, provided that the subsidiary has adequate substance and decision-making capability, the scope of services is clearly defined, and conflicts between group and third-party work are addressed.

What currencies are permitted for transactions?

All units operating in the International Financial Services Centre (IFSC) at GIFT City are required to conduct their business activities in permissible foreign currencies, other than the Indian Rupee. To this end, such units are required to open and maintain foreign currency accounts with banks operating within the IFSC at GIFT City.

Financial institutions established in the IFSC, being treated as persons resident outside India for exchange-control purposes, are permitted to open and maintain a Special Non-Resident Rupee (SNRR) account with a bank in India, outside the IFSC, in accordance with the Foreign Exchange Management (Deposits) Regulations, 2016. Such SNRR accounts may be used solely for meeting expenses denominated in Indian Rupees and incurred outside GIFT City and the IFSC.

The International Financial Services Centres Authority has notified the following specified foreign currencies as permissible for undertaking business in the IFSC at GIFT City:

US Dollar (USD), Euro (EUR), Pound Sterling (GBP), Japanese Yen (JPY), Swiss Franc (CHF), Singapore Dollar (SGD), Australian Dollar (AUD), Canadian Dollar (CAD), Hong Kong Dollar (HKD), UAE Dirham (AED), Russian Rouble (RUB), Swedish Krona (SEK), Danish Krone (DKK), Norwegian Krone (NOK), and New Zealand Dollar (NZD).

What are the minimum personnel  and operational requirements for a Fintech in GIFT City?

The Fintech must make it clear who is responsible for the actions and oversight of its activities. This involves appointing, at the least, a Principal Officer and a Compliance Officer. The Principal Officer is in charge of running the fintech business out of the IFSC – the captain of the ship. The Compliance Officer is in charge of making sure that the fintech company follows all of the rules and keeps accurate accounting records, manages internal reporting, and makes sure that all of the rules and regulations are followed in practice.

The Principal Officer and the Compliance Officer must both meet the IFSCA’s fit-and-proper standards and have the right professional credentials and expertise for the fintech services they provide. It is common for them to be full-time employees who work out of the IFSC unit itself. The Authority may allow experts who are not employees to do certain jobs, but usually only if they are based in the IFSC and are only working for the applicable fintech firm.

Along with these staff requirements, a fintech entity must also maintain enough operational presence in the IFSC. This involves leasing office space that is appropriate for the size and type of its personnel, which is usually measured by a standard of about 60 square feet of carpet area per employee, to demonstrate that the company is really conducting business and not just having a nominal presence.

In IFSC Fintechs are  required to keep their financial records and reports in a foreign currency that can be easily exchanged, with the US Dollar being the most common currency for reporting. 

What are the key tax benefits available to firms in GIFT City?

In GIFT City the tax framework is best understood as a set of targeted concessions rather than a standalone tax regime. Entities operating in the IFSC remain within India’s income-tax system, but specific incentives are layered on top to make international financial activity viable onshore. The focus is on foreign-currency business, cross-border services, and India-linked offshore activity that would otherwise sit outside the country.

One of the central incentives is the income-tax holiday available to IFSC units. Eligible entities can claim a full exemption from income tax for ten consecutive years, chosen by the taxpayer, within a broader fifteen-year window. This flexibility allows firms to defer the exemption until operations stabilise or profitability improves, rather than being forced to use it from day one. The exemption applies only to income earned from approved IFSC activities and does not extend to unrelated or domestic operations.

Capital markets activity in the IFSC benefits from a separate set of concessions. Capital gains arising from transfers of specified securities listed on IFSC exchanges are exempt from tax, subject to prescribed conditions. In addition, transactions executed on IFSC exchanges are not subject to securities transaction tax or commodities transaction tax. For trading desks, funds, and institutional investors, this materially reduces transaction costs and aligns the IFSC more closely with offshore exchanges.

The regime also addresses benefits of cross-border funding efficiency. Interest payments made by IFSC units to non-resident lenders are subject to concessional withholding tax rates, improving the economics of offshore borrowing. This is particularly relevant for banking units, leasing companies, and treasury centres that rely on international debt markets.

For funds established in the IFSC, the tax framework is designed to minimise leakage at the fund level. Certain funds benefit from tax-neutral or pass-through treatment, and eligible non-resident investors may be exempt from capital gains tax on transfers of fund units, subject to conditions. This makes GIFT City a workable domicile for India-focused offshore funds without forcing managers or investors into complex multi-jurisdictional structures.

Indirect taxes are also addressed. IFSC units are generally exempt from GST on services received for authorised operations, and transactions carried out on IFSC exchanges are similarly relieved from indirect tax. Where services are provided to overseas clients, they are typically treated as exports for GST purposes, provided the statutory conditions are met. This reduces the operating cost base for firms using the IFSC as an export hub for financial or professional services.

Finally, for tax and exchange-control purposes, IFSC units are largely treated as non-residents. This classification supports the foreign-currency operating model and complements the direct-tax incentives by allowing greater flexibility in cross-border structuring, treasury activity, and group support arrangements.

Summary of key tax benefits in GIFT City

 

Area	Tax treatment in GIFT City (IFSC)
Income tax	100% income-tax exemption for any 10 consecutive years out of a 15-year block, for eligible IFSC income
Capital gains	Exemption on capital gains from transfer of specified securities listed on IFSC exchanges (subject to conditions)
STT / CTT	No securities transaction tax or commodities transaction tax on IFSC exchange transactions
Withholding tax	Concessional withholding tax rates on certain interest payments to non-residents
Funds	Tax-neutral / pass-through treatment for eligible funds; capital gains exemptions for certain non-resident investors
GST / indirect tax	GST exemption on services received for authorised operations; IFSC exchange transactions exempt
Export of services	Services provided to overseas clients generally treated as exports, subject to GST conditions
Residency status	IFSC units treated as non-residents for tax and exchange-control purposes

What is the Fintech Incentive Scheme in GIFT City?

Fintech Incentive Scheme

The Fintech Incentive Scheme aims to support the establishment of a world-class Fintech hub in GIFT IFSC. This scheme offers financial grants to both domestic and foreign Fintech companies, providing financial support for various activities.

Types of Grants Available

1. FinTech Start-up Grant: Up to INR 15 lakh (approx. US$ 18,000) for start-ups developing novel Fintech ideas or solutions to help build a minimum viable product (MVP).
2. Proof of Concept (POC) Grant: Up to INR 50 lakh (approx. US$ 60,000) for early or mature Fintech entities running live proof of concept tests or pilot projects.
3. Sandbox Grant: Up to INR 30 lakh (approx. US$ 36,000) for entities experimenting with innovative financial technologies in the sandbox into a regulatory or interoperable sandbox environment.
4. Green Fintech Grant: Up to INR 75 lakh (approx. US$ 90,000) for developing solutions related to sustainable finance, climate-focused financial solutions and ESG investments.
5. Accelerator Grant: Up to INR 10 lakh (approx. US$ 12,000) for supporting Fintech accelerators in IFSC.
6. Listing Support Grant: Up to INR 15 lakh (approx. US$ 18,000) for entities aspiring to list on stock exchanges recognized by IFSCA.

Eligibility for Grants

The Grants contemplated under the Scheme shall be available to the eligible FinTech Entity (FE):

• Which is part of the IFSCA’s Regulatory or Innovation Sandbox; or
• Which is referred to the IFSCA under a FinTech bridge arrangement with a Counterpart Regulator; or
• Which has either participated or is participating in any Accelerator or Cohort Programme supported or recognized by IFSCA; or
• Which is referred to IFSCA by an entity(ies) having Memorandum of Understanding (MoU) or collaboration or special arrangement with it.

• The incentive granted to an FE under the PoC Grant, Start-up Grant or Sandbox Grant shall be a one-time assistance given to it.
• In case of Accelerator Grant, following conditions shall be complied with by the Applicant:
  • The minimum size of the cohort or accelerator shall be 10 (number of FinTechs).
  • The minimum tenure of the program shall be of 4 weeks.
  • The accelerator applicant is eligible for the following number of grant(s) in a year, per focus area –
    • One grant, for an accelerator not based in IFSC.
    • Three grants, for an accelerator based in IFSC.
• Preference shall be given to the FE having a tie-up or support with a Financial Institution.
• Intellectual Property, if any, generated during the Sandbox tenor shall be owned by the FE.
• In case of violation of any terms and condition of the grant by the FE, registered in case of Listing Support Grant.
• The sanctioned grant is further to be availed on a reimbursement basis.

Fees: US$ 100 per Application of the Grant.

How much does it cost to set up a fintech in GIFT City?

The cost of establishing a Fintech in GIFT City varies materially depending on whether the entity enters the ecosystem through the IFSCA Sandbox framework or applies directly for full authorisation as a regulated Fintech business. The scale of activities proposed, the regulatory category involved, and the level of operational substance maintained in the IFSC are the primary cost drivers.

The figures below are indicative only. They are based on IFSCA’s notified fee schedules, the Fintech Entity Framework, sandbox guidelines, and prevailing market practice for incorporation, SEZ onboarding, and operational setup. They should be read as guidance rather than fixed quotations.

1. IFSCA application, authorisation, and supervisory fees

Sandbox-stage Fintechs

Fintechs entering GIFT City through the Regulatory Sandbox or Limited Use Authorisation framework are subject to lighter upfront fees, reflecting the experimental and time-bound nature of sandbox participation.

Typical official fees include:

• Sandbox application fee (one-time): USD 1,000.
• Sandbox approval / authorisation fee: Nil or nominal (depending on cohort and sandbox type).
• Sandbox supervision fee: Generally not levied separately during the testing phase.

Sandbox participation is time-bound and does not result in a permanent licence unless the entity subsequently applies for full authorisation.

Fully Authorised (Full-Flagged) Fintechs

Once a Fintech exits the sandbox or applies directly for full authorisation, it is treated as a regulated IFSC financial institution.

Indicative official fees include:

• Application fee (one-time): USD 5,000 – 10,000 (depending on activity category).
• Authorisation / registration fee (one-time): USD 10,000 – 25,000.
• Annual supervisory fee: USD 10,000 – 25,000+, depending on the nature, scale, and complexity of activities.

Unlike sandbox entities, fully authorised Fintechs are subject to ongoing supervision and periodic regulatory reporting.

2. Capital or net-worth requirements

Sandbox-stage Fintechs

The IFSCA does not prescribe fixed minimum capital requirements for sandbox participants. However, applicants must demonstrate:

• Financial capacity to complete the sandbox testing phase.
• Ability to meet operational and compliance costs during the authorised period.

In practice, sandbox Fintechs often operate with modest paid-up capital, commonly in the range of USD 25,000 – 50,000, depending on the use case and investor backing.

Fully Authorised Fintechs

For full authorisation, minimum capital or net-worth requirements apply, and these vary by activity (payments, market infrastructure, lending, digital assets, etc.). The IFSCA assesses capital adequacy on a risk-based basis, aligned with the nature of the regulated activity.

As a practical benchmark, fully authorised Fintechs should expect significantly higher capitalisation than sandbox entities, often starting from USD 250,000 and above, depending on the licence category.

3. Entity incorporation and SEZ onboarding costs (one-time)

Both sandbox and fully authorised Fintechs must incorporate an Indian entity and complete SEZ formalities applicable to IFSC units.

Typical one-time costs include:

• Company incorporation: USD 1,500 – 3,000.
• SEZ processing, PLOA, bonding, and documentation: USD 2,500 – 5,000.

Indicative one-time setup cost: USD 4,000 – 8,000.

4. Office space and physical presence

Sandbox-stage Fintechs

Sandbox entities are generally permitted lighter physical presence in the initial phase. Managed offices or co-working arrangements within GIFT City are typically acceptable, provided:

• The entity has identifiable desk space.
• Key personnel are accessible in the IFSC when required.
• The setup reflects genuine intent to operate from GIFT City.

Indicative costs:

• Shared / managed office: USD 5,000 – 12,000 per year.

Fully Authorised Fintechs

Once fully authorised, Fintechs are expected to maintain clear operational substance, including dedicated office premises and staff based in the IFSC.

Indicative costs:

• Grade-A office rent: USD 12 – 18 per sq ft per month.
• Typical office (800–1,500 sq ft): USD 12,000 – 30,000 per year.
• Fit-out and furnishing (one-time): USD 15,000 – 40,000.

5. Professional and advisory fees (one-time)

Sandbox-stage Fintechs

Sandbox applications are comparatively streamlined but still require clear articulation of the business model, testing plan, safeguards, and exit strategy.

Typical advisory costs:

• Sandbox application support: USD 7,500 – 15,000.

Fully Authorised Fintechs

Full authorisation requires detailed business plans, financial projections, governance frameworks, risk management, and compliance documentation.

Typical advisory costs:

• Full licence application: USD 25,000 – 50,000+, depending on complexity.

6. Ongoing annual operating costs

Sandbox-stage Fintechs

Recurring costs during the sandbox phase are generally limited and may include:

• Audit and accounting: USD 3,000 – 6,000.
• Light-touch compliance support: USD 5,000 – 10,000.
• Core staff and operations: USD 25,000 – 60,000.

Indicative annual run-rate:

USD 35,000 – 80,000.

Fully Authorised Fintechs

Once authorised, ongoing costs increase materially due to supervision, reporting, and governance requirements.

Typical recurring costs:

• Annual supervisory fee: USD 10,000 – 25,000.
• Audit and accounting: USD 6,000 – 12,000.
• Compliance and AML support: USD 15,000 – 30,000.
• Staff and local substance: USD 75,000 – 200,000+
• Technology, systems, and administration: USD 10,000 – 25,000.

Indicative annual budget:

USD 120,000 – 300,000+, depending on scale

Summary table – Indicative Fintech setup costs in GIFT City

 

Cost category	Sandbox Fintech (US$)	Fully Authorised Fintech (US$)
IFSCA application & approval	1,000 – 2,000	15,000 – 35,000
Incorporation + SEZ setup	4,000 – 8,000	4,000 – 8,000
Office & fit-out (year 1)	5,000 – 12,000	25,000 – 60,000
Advisory & licensing support	7,500 – 15,000	25,000 – 50,000+
Annual operating costs	35,000 – 80,000	120,000 – 300,000+

 

“All cost figures are indicative only and are based on applicable IFSCA regulations, publicly available fee schedules, and prevailing market practice as of 2025. Actual costs may vary depending on the nature, scale, and regulatory classification of the business.”

 

How can AxiomSync help you establish and maintain your presence in the GIFT City?

AxiomSync is a registered Ancillary Service Provider with the International Financial Services Centres Authority (IFSCA) and forms part of the 10 Leaves Group, a cross-jurisdictional legal, compliance, and financial advisory platform headquartered in Dubai, UAE. The group maintains established regulatory and operational capabilities across DIFC, ADGM, Luxembourg, Mauritius, and India, enabling it to support clients with international structures that intersect multiple regulatory regimes.

With a team of over 50 specialised professionals spanning compliance, legal advisory, risk management, regulatory licensing, and operational setup, AxiomSync provides end-to-end support to firms seeking to establish, license, and operate businesses from GIFT City IFSC. Its services are designed to align with the IFSCA regulatory framework while remaining practical, implementation-focused, and scalable.

1. Jurisdictional assessment and structuring advisory

Before incorporation or licensing, AxiomSync supports clients in determining whether GIFT City is the appropriate jurisdiction for their proposed business model. This includes comparative analysis against other international financial centres such as DIFC and ADGM, assessment of regulatory fit, tax considerations, and operational substance requirements.

Services include:

• Business-model suitability assessment for GIFT City.
• Regulatory perimeter analysis under IFSCA regulations.
• Cross-jurisdiction structuring involving DIFC, ADGM, Luxembourg, or Mauritius.
• Holding, fund, treasury, or platform structuring for India-linked international activity.

This upfront advisory ensures that clients enter the IFSC with a structure that is viable both commercially and regulatorily.

2. Entity formation and SEZ setup support

AxiomSync manages the complete entity setup process within GIFT City, coordinating incorporation, SEZ approvals, and statutory registrations through the SWIT portal and related authorities.

This includes:

• Assistance with office identification and SEZ documentation.
• Provisional Letter of Approval (PLOA) support.
• Company or LLP incorporation in India for IFSC purposes.
• Execution of bond-cum-legal undertaking with SEZ and customs authorities.
• GST and Import Export Code (IEC) registrations, where applicable.

The focus is on ensuring that legal formation, SEZ compliance, and regulatory readiness progress in parallel.

3. IFSCA licensing and regulatory authorisation

As an IFSCA-registered Ancillary Service Provider, AxiomSync provides hands-on regulatory licensing support across all major IFSC business categories.

This includes assistance with:

• IFSC Banking Unit-related advisory (non-bank participants and group interfaces).
• Finance Company registrations (including lending, trade finance, factoring, forfaiting, leasing, ITFS participation).
• Fund Management Entity (FME) registration and fund launches.
• Capital Market Intermediary licensing (brokers, advisers, custodians, distributors).
• Payment Services authorisation and sandbox participation.
• Insurance and reinsurance office applications.

Support covers preparation of regulatory applications, business plans, financial projections, governance frameworks, and ongoing engagement with the IFSCA through the application lifecycle.

4. Governance, compliance, and AML framework design

AxiomSync designs and implements IFSCA-aligned governance and compliance frameworks tailored to the client’s regulatory category and risk profile.

Services include:

• Drafting of compliance manuals and regulatory policies aligned with applicable IFSCA regulations.
• AML, CFT, and KYC frameworks compliant with IFSCA AML Guidelines.
• Risk management frameworks and internal control policies.
• Board and management governance structures.
• Outsourcing, data protection, and business continuity policies.

These frameworks are designed not just for approval, but for actual operational use, inspection readiness, and scalability.

5. Ongoing compliance and regulatory support

Beyond licensing, AxiomSync provides ongoing compliance support to IFSC entities operating in GIFT City, either on a retained or modular basis.

This includes:

• Outsourced or co-sourced Compliance Officer and AML Officer support.
• Regulatory reporting and filing assistance.
• Support during IFSCA supervisory reviews and inspections.
• Ongoing monitoring of regulatory changes and impact assessments.
• Periodic compliance health checks and gap analyses.

This allows clients to maintain regulatory continuity without over-building in-house teams in the early stages.

6. Cross-border legal and regulatory coordination

Many GIFT City structures sit alongside entities in other jurisdictions. Through the 10 Leaves Group, AxiomSync coordinates cross-border legal and compliance alignment across DIFC, ADGM, Luxembourg, Mauritius, and India.

This includes:

• Group-level compliance and governance harmonisation.
• Regulatory mapping across multiple jurisdictions.
• Support for India-linked global fund and treasury structures.
• Assistance with regulator-to-regulator consistency and disclosures.

This capability is particularly relevant for multinational groups, fund sponsors, family offices, and fintech platforms operating across regions.

7. Operational readiness and scaling support

Once licensed, AxiomSync assists clients in moving from regulatory approval to live operations and growth.

This includes:

• Support with IFSC banking relationships and operational accounts.
• Assistance with onboarding service providers and vendors.
• Regulatory input on new products, services, or geographic expansion.
• Preparation for audits, investor due diligence, and counterparties.

The objective is to ensure that IFSC entities are not only compliant on paper, but operationally credible and scalable.

Positioning within the GIFT City ecosystem

Through its registration with the IFSCA and its integration within the wider 10 Leaves Group, AxiomSync operates as a long-term advisory partner rather than a one-time setup provider. Its role is to bridge regulatory intent with commercial reality, helping clients navigate the IFSC framework with clarity, discipline, and foresight.