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Understanding AIF Registration in Gift City IFSCA

Are you planning to set up an AIF (Alternative Investment Fund) in India? Indiaโ€™s first International Financial Services Centre (IFSC), known as GIFT City, is located in Gandhinagar, Gujarat. It is Indiaโ€™s only certified IFSC, launched in April 2015 by the Government of India (GoI). AIF registration in Gift City is a charm with Enterslice experts.

AIF Registration in GIFT City is mandatory for entities intending to establish an AIF and make investments in global markets. Gujarat International Fin-Tech City (GIFT City) is being developed as a world-class financial and IT services hub, comparable to globally benchmarked financial centres.

It is a designated Special Economic Zone (SEZ) and, due to its unique regulatory framework, serves as an attractive jurisdiction for pooling and managing global funds.

At Enterslice, we assist businesses in obtaining AIF online registration in GIFT City with ease, offering end-to-end support to ensure seamless compliance and sustainable business growth.

Exemption from Transaction Taxes

Total AIF Commitments Over USD 26.3 Billion (Gift City)

270+ Active Schemes (As of June 30, 2025)

Cumulative Investments- USD 11.27 Billion (As of June 30, 2025)

World-class Infrastructure

Access to Numerous Markets from IFSC

Enjoy Income Tax Exemptions with AIF Registration in GIFT City

Secure your Alternative Investment Fund and expand your financial operations in Indiaโ€™s premier International Financial Services Centre with AIF Registration in GIFT City.

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What are the Benefits of SEBI AIF Online Registration in Gift City?

The list of benefits of SEBI AIF online registration in Gift City is as follows:

Regulatory Benefits

Regulatory Benefits

A GIFT City offers a flexible regulatory environment that simplifies compliance, reduces bureaucratic hurdles and provides clarity on financial regulations, thus making it easier for AIFs to operate.

International Expansion

International Expansion

The UAE’s accession to the Madrid Protocol allows businesses to apply for international trademark protection in WIPO member countries. It further provides a way for registering trademarks in markets of the Middle East, Europe, and beyond.

Tax Advantages

Tax Advantages

It offers a 100% tax exemption on business income for up to 10 years within a 15-year window and exemption from Goods and Services Tax (GST) on management fees. These overall enhance the profitability and operational efficiency of AIFs. It is one of the key benefits of SEBI AIF online registration in Gift City.

Operational Efficiencies

Operational Efficiencies

The cityโ€™s state-of-the-art infrastructure ensures that AIFs operate efficiently. These facilities are designed to support the high demands of modern financial services, and the strategic location offers easy access to both domestic and international markets.

Avoid Duplication

Investment Flexibility

It has investment flexibility and is not bound by stringent diversification norms; therefore, it has the freedom to invest a substantial portion of its funds in international markets, allowing broader investment strategies and access to global opportunities.

Networking Opportunities

Networking Opportunities

The GIFT City is also equipped with a wide range of networking opportunities, fostering collaborations and partnerships across financial services sectors. While, regular conferences and seminars further provide platforms for AIF managers to engage with Industry leaders and influencers.

Enhanced Security and Compliance

Enhanced Security and Compliance

It also enhanced the security and compliance by adhering to international standards in Anti-Money laundering (AML), Counter Financing of Terrorism (CFT), and Know your Customer (KYC). It is one of the advantages of AIF registration in Gift City.

Cost Efficiency

Cost Efficiency

The operational and tax-related costs in GIFT City are comparatively lower due to various tax exemptions and incentives offered to businesses operating in IFSC. It is one of the benefits of SEBI AIF online registration in Gift City.

Access to Global Markets

Access to Global Markets

The IFSC allows for broader investment in international markets directly from the City, overall making it a suitable place for funds looking to invest globally. It is one of the key benefits of AIF registration.

How to Apply for SEBI AIF Registration Online in Gift City IFSCA?

The step-by-step process of SEBI AIF registration online in Gift City IFSCA is as follows:

Pre-Application Consultation

Firstly, the applicant needs to discuss with IFSCA (International Financial Services Centres Authority) on the AIFโ€™s business model and investment strategy. This stage may involve preliminary meetings and the submission of a detailed business plan.

Formal Application Submission

Secondly, fill the application form along with the necessary documents like fund structure, investment strategy and details of the fund management team.

Review and Approval

In this stage, the IFCA will review the application submitted by an applicant for AIF registration in Gift City. This may include a detailed scrutiny of the documents submitted and possibly an interview or presentation before the concerned regulatory panel.

Obtain Approval and Registration

Lastly, after the said application is approved, the AIF will receive the formal registration and can accordingly commence its respective business operations.

Access global markets, reduce operational costs by 30%, and enjoy 100% tax exemptions with AIF Registration in GIFT City.

What are the Documents Needed for Registration of AIF in Gift City?

The list of documents required for the registration of AIF in GIFT city is as follows:

Constitutional documents (MOA, AOA, Trust Deed, LLP Agreement)

Details of the fund manager, sponsor, directors and key personnel

Financial statements and net worth certificate

Investment strategy and fund structure

Risk management framework

Compliance policies and governance structure

What is IFSC?

IFSC, which stands for International Financial Service Centre, is a special jurisdiction where global financial service providers offer financial services or products in foreign currencies to worldwide customers. The role of the IFSC in India is to carry out financial services transactions that are currently carried out outside of India by foreign financial institutions and Indian financial institutions' overseas branches or subsidiaries.

While, Gujarat International Finance Tec-City (GIFT City), located in Gandhinagar, Gujarat is Indiaโ€™s sole certified IFSC. Various government guidelines were released in 2015 to help enable and regulate the securities market in Indiaโ€™s first IFSC, GIFT City. These principles have set the foundation of AIFs, including permissible investors, permissible investments and so on.

AIF Registration in Gift City

What are the Types of AIF Registration in Gift City?

The different types of AIF Registration in Gift City, based on category, are as follows:

Category I

Category I funds are primarily investing in start-ups, early-stage ventures, and sectors identified as socially or economically desirable by the government. This includes venture capital funds, infrastructure funds, and other funds focused on developmental and innovation-driven sectors. This category often enjoys certain regulatory relaxations and incentives, fostering growth in the key economic areas.

Category II

A category II AIF registration in Gift City covers a wider range of funds, including private equity funds and debt funds, specifically for those who do not qualify for specific incentives or concessions under other categories. They are allowed to invest in a broad spectrum of activities, making them versatile investment vehicles for a variety of sectors without specified investment targets.

Category III

This category funds use complex trading strategies and may employ leverage, including through investment in listed or unlisted derivatives. The primary objectives are to generate short-term returns and include hedge funds and other funds that engage in trading with a view to making speculative gains.

Legal & Regulatory Compliance for Registration of AIF in GIFT City

The legal and regulatory compliance for registration of AIF in GIFT City is as follows:

  • IFSCA Regulations :- The International Financial Centres Authority (IFSCA) regulates AIFs in GIFT City, offering broader operational freedoms compared to the traditional Indian financial regulatory framework.
  • Goods and Services Tax (GST) :- AIFs in GIFT City benefit from GST exemptions on management fees and transactions conducted on IFSC exchanges, significantly reducing operational costs.
  • Income Tax :- AIFs enjoy a 100% exemption on business income for the first ten years within a 15-year window, subject to prescribed conditions.
  • Tax Deduction at Source (TDS) :- TDS compliance is simplified due to exemptions on transactions within GIFT City, though obligations related to investments outside the SEZ must be carefully managed.
  • Regular Reporting Requirements to IFSCA :- AIFs must comply with regular reporting protocols, including detailed disclosures on activities, investment portfolios, and fund performance, ensuring transparency and adherence to global best practices.
  • Compliance with AML, CFT, and KYC Regulations :- It is mandatory to comply with Anti-Money Laundering (AML), Counter Financing of Terrorism (CFT), and Know Your Customer (KYC) regulations as prescribed by the IFSCA, aligning with international standards and enhancing investor confidence.

Who are the Eligible Investors in AIF Registration in Gift City?

The eligible investors in AIF Registration in Gift City are as follows:

  • Domestic Investors :- Indian residents or entities registered in India who wish to invest in AIFs operating within GIFT City.
  • Foreign Investors :- Non-resident individuals or entities eligible to invest in AIFs in GIFT City, including Foreign Portfolio Investors (FPIs), Qualified Foreign Investors (QFIs), and other foreign investors meeting the prescribed eligibility criteria.
  • Institutional Investors :- Institutions such as pension funds, insurance companies, banks, mutual funds, and other financial institutions that meet regulatory requirements may invest in AIFs in GIFT City.
  • High Net Worth Individuals (HNIs) :- Individuals with substantial personal wealth who meet the minimum investment thresholds specified by SEBI.
  • Family Offices :- Wealth management and advisory firms serving high-net-worth individuals and families that invest in AIFs in GIFT City on behalf of their clients.

Eligibility Criteria for AIF Online Registration in Gift City IFSCA

The eligibility criteria for AIF online registration in Gift City IFSCA are as follows:

  • The applicant must be set up as a company, LLP, or trust.
  • The sponsor or manager must demonstrate professional competence, a proven track record, and meet fit & proper criteria.
  • The minimum corpus for Category I, II, and III AIFs is USD 3 million.
  • The minimum investment per investor should be USD 150,000 (except employees or directors).
  • Appointment of a custodian for safekeeping of assets (mandatory for Category III AIFs).

Why Partner with Enterslice for AIF Registration in Gift City IFSCA?

With years of focused expertise in financial and regulatory services, Enterslice offers specialized guidance for AIF registration in GIFT City, under the IFSCA framework. We simplify the entire setup process, making it seamless and compliant for fund managers and sponsors. Explore the key reasons why Enterslice stands out as your ideal partner for launching an AIF in GIFT City.

  • In-depth expertise in IFSCA Regulations and the GIFT City ecosystem
  • End-to-end AIF setup support โ€“ from structuring to approval
  • Proven track record with a high success rate in AIF registration in GIFT City
  • Dedicated team of CA, CS, legal, and compliance experts
  • Comprehensive documentation drafting (PPM, LPA, IM Agreement)
  • Seamless liaison with IFSCA and local GIFT City authorities
  • Post-registration compliance and annual filing support
  • Advisory on tax benefits and incentives in GIFT City
  • Transparent pricing with no hidden costs
  • Technology-driven client portal for real-time tracking
  • Access to a strong network of custodians, administrators, and legal firms in GIFT City
  • Tailored support for Category I, II, and III AIF registration

FAQs on SEBI AIF Registration Online in Gift City

Well, AIFs registered in GIFT City are regulated by both GIFT City Regulations and SEBI (AIF) Regulations 2012. While SEBI regulated the Fund, IFSCA regulated the Fund Management Entity (Investment Manager).

Yes, AIFs registered in GIFT City IFSC need to comply with all the Income Tax compliances as mandatory for general AIFs.

No, more than one approval is required from the following authorities, like IFSC authorities, SEZ authorities and SEBI (AIF) Regulations.

The list of benefits of SEBI AIF registration in GIFT City is as follows:

  • Easy Regulation :- Simplified compliance framework.
  • Tax Savings :- 100% income tax exemption along with GST relief.
  • Global Access :- Freedom to invest in international markets.
  • Efficiency :- World-class infrastructure available at lower operational costs.
  • Strong Compliance :- Adherence to global AML, CFT, and KYC standards.

The eligibility criteria for AIF registration in GIFT City are as follows:

  • Entity must be a Company, LLP, or Trust
  • Sponsor/Manager must satisfy fit & proper and competence criteria
  • Minimum corpus: USD 3 million (Category I, II, and III)
  • Minimum investment: USD 150,000 per investor
  • Custodian required (mandatory for Category III)

The eligible investors in AIF GIFT city are as follows:

  • Domestic investors
  • Foreign investors (including FPIs and QFIs)
  • Institutional investors
  • High Net Worth Individuals (HNIs)
  • Family offices

The different categories of AIF in GIFT city are as follows:

  • Category I :- Focuses on start-ups, early-stage ventures, and priority sectors with regulatory incentives.
  • Category II :- Covers private equity and debt funds with flexible investment options.
  • Category III :- Uses leveraged and trading strategies to generate short-term returns.

The legal and regulatory compliance requirements for alternative investment fund in GIFT city is as follows:

  • IFSCA :- Regulates AIFs with greater operational flexibility.
  • GST :- Provides exemptions on fees and transactions conducted within IFSC.
  • Income Tax :- Offers 100% tax exemption for 10 years within a 15-year window.
  • TDS :- Simplified compliance for IFSC transactions, with caution required for investments outside the SEZ.
  • Reporting :- Requires periodic disclosures to the IFSCA.
  • AML/CFT/KYC :- Mandatory compliance to ensure transparency and maintain investor trust.

The list of post-compliances essential for AIF registration in GIFT City is as follows:

  • Submit quarterly and annual reports to IFSCA
  • Disclose risks, portfolio valuation, and returns to investors
  • Appoint an independent auditor
  • Follow leverage limits and investment restrictions
  • Maintain an investor grievance redressal system

The list of documents required for AIF registration in GIFT city is as follows:

  • Constitutional documents (MOA, AOA, Trust Deed, LLP Agreement)
  • Details of the fund manager, sponsor, directors, and key personnel
  • Financial statements and net worth certificate
  • Investment strategy and fund structure
  • Risk management framework
  • Compliance policies and governance structure

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