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Select Your Location
In Asia and the Middle East, three major financial hubs are rapidly advancing: India’s GIFT City, Dubai’s DIFC, and Singapore. Each global financial hub offers great opportunities for different types of businesses. You will benefit from low taxes and easy transactions in foreign currency to make your business more credible to international investors.
Choosing the right location strengthens the future of your business. This is the reason why you must read this blog to know whether it’s GIFT City, Dubai’s DIFC, or Singapore’s financial hub that is suitable for your business.
GIFT City, or Gujarat International Finance Tec-City, is India’s first International Financial Services Centre (IFSC). It is a world-class financial hub in India, providing foreign banks, funds, insurance, and fintech companies to operate with ease.
GIFT City is developed as a Special Economic Zone (SEZ), located in Gujarat. Companies can conduct business under international standards, outside of India’s main economic regulations. It gives India a strong position on the global financial map and creates a safe and tax-friendly environment for domestic and foreign investors. Companies can easily work with foreign clients and access international markets.
GIFT City has become a center of attraction for many international firms today. But why? See the major reasons given below:
Companies operating in GIFT City receive a 100% income tax exemption for any 10 years within a continuous 15-year period. No tax is payable on the company’s profits for a significant period. In addition, many financial services provided in the IFSC are exempted from GST and transaction taxes to reduce costs. The IFSC compliance calendar will give you a better overview of the tax updates.
All financial activities in GIFT City are overseen by the International Financial Services Centres Authority (IFSCA). Here, a single authority operates, instead of multiple regulators. So, licensing, permits, and compliance have become much simpler. In many cases, work is completed through a single-window system.
GIFT City has more than 1,000 registered companies. The banking assets are close to touching US$100 billion. Office rent, employee costs, and legal expenses are also lower compared to Singapore or Dubai.
GIFT City is not just for banks. Many types of businesses settle here. The main sectors are:
In addition, some new sectors are growing rapidly. Such as:
The GIFT City is now creating a great opportunity for those who want to conduct international business with the Indian market. Especially, NBFC registration in GIFT City is a great move for business enthusiasts eyeing to build their business empire.
The Dubai International Financial Centre, or DIFC, is the largest and most modern financial region. It was created to transform Dubai into the leading financial hub of the Middle East.
In DIFC, banks, investment firms, law firms, fintech start-ups, and regional headquarters of global companies work together. It serves as an important gateway for the entire Middle East, Africa, and South Asia.
The Dubai location easily connects Europe, Asia, and Africa, making it a strategic center for international business. Many global companies use DIFC as their MEASA region headquarters.
DIFC has created a strong platform for international business. Besides this, there are a few more benefits you must not overlook. See below:
In many cases, a 0% corporate tax rate applies to DIFC for 50 years. There is no personal income tax or capital gains tax. So, a large portion of profits can be reinvested in the business.
DIFC has its own courts, which follow English common law. This provides international companies with transparent and impartial legal protection.
Thousands of companies and more than 10,000 finance professionals work in DIFC. Recently, new company registrations have increased by approximately 32%, indicating its rapid growth.
DIFC has a robust FinTech and Innovation Hub. It has a separate support system for start-ups, blockchain, digital assets, and payment companies.
Singapore has long been known as Asia’s most powerful financial hub. Political stability, clear laws, and a strong banking system make doing business more secure. It is a central hub for ASEAN and the entire Asia-Pacific region. Singapore has easy access to large markets such as China, India, Indonesia, and Vietnam. Singapore ranks among the top five global financial centers. This demonstrates the high level of confidence international investors have in its system. This is a reliable hub for those seeking long-term stability, legal protection, and global banking facilities.
Singapore’s strength lies not only in its location but also in its entire business environment.
The corporate tax rate in Singapore is 17% maximum. Many start-ups and specific sectors also receive tax exemptions. There is no capital gains tax here, which is a major advantage for investors.
The market capitalization of the Singapore Exchange (SGX) is approximately USD 644 billion.
The country’s banking assets exceed USD 1.64 trillion, making it one of Asia’s largest banking centers.
The Monetary Authority of Singapore (MAS) regulates the entire financial sector. Singapore has tax treaties with more than 100 countries, which facilitates international business.
There are approximately 7,000 multinational companies in Singapore. Many global companies locate their Asia-Pacific headquarters because of the easy availability of skilled manpower and advanced infrastructure.
Below is an informative table providing regulatory body, location, global position, and year of establishment for all global financial hubs.
Find the tax benefit and incentives for each global financial hub given in the table below:
GIFT City is India’s only International Financial Services Centre (IFSC). Here, all companies receive 100% tax exemption for the first 10 years. So, you don’t have to pay tax on your profits. Capital gains tax, dividend tax, and MAT are also not applicable here. Since it is an offshore financial zone, there is no GST or any other indirect tax. As a result, GIFT City is much more profitable for fund managers, fintech companies, and banks.
Dubai DIFC offers tax exemption on eligible income as a free zone. Both corporate tax and personal income tax are zero. There are no taxes on capital gains or dividends. VAT does not apply to financial services within the DIFC. This tax-free environment is very favorable for international trade, investment, and regional headquarters.
The corporate tax rate is 17%, but many incentives and rebates are available in Singapore. Dividends are taxable, and capital gains tax may apply. There is a 9% GST. However, foreign income is not subject to double taxation due to strong double taxation treaties. For global funds, banks, and fintech companies, lower taxes mean higher profits. This increases investment, reduces costs, and allows businesses to grow faster.
Look at the table below and its subheadings to know which financial hub is suitable for ease of doing business and regulations.
GIFT City has a separate regulator. The banks, funds, insurance companies, or fintech companies don’t have to go to different departments for everything. All licenses and approvals can be obtained from one place. Although governed by Indian law, the IFSC has its own framework. So, it is much easier for international businesses. Foreign companies can have 100% ownership here. Company setup is possible within 4-6 weeks.
Starting a business in DIFC is fast. DFSA is the financial regulator, and the laws follow English common law. This is very familiar and secure for international investors. The company setup takes 2-4 weeks. Foreigners can have 100% ownership here. The paperwork and licensing process are relatively less complex.
Doing business in Singapore is the most structured with the MAS regulator. Banks, funds, or fintech companies require strong compliance. Although company registration takes 1-3 weeks, obtaining a license is expensive and takes more time. The regulations are very strict, while 100% foreign ownership is allowed.
Do you ever think about the cost of business operations for each financial hub (GIFT City, Dubai’s DIFC, and Singapore)? Look at the table below with subheadings to find out how cost-effective business operations are in the financial hubs.
GIFT City is emerging as one of Asia’s most cost-effective financial hubs. The rent for Grade A office space is lower. The cost per square foot is much less than in Dubai or Singapore. Employee salaries are also comparatively lower due to the easy availability of Indian talent.
Furthermore, licensing and compliance costs are limited. The presence of a single regulator eliminates the need for repeated fee payments. All these factors make GIFT City very cost-effective for new startups and international funds.
Office rent and employee costs in Dubai are moderate. As an international city, skilled employees command higher salaries. Licensing and regulatory fees are also at a moderate level. However, the absence of taxes somewhat balances the overall cost. It remains acceptable for large companies.
Doing business in Singapore is the most expensive. Office rent is very high. Salaries for skilled staff are also high. Regulatory compliance and licensing fees are often substantial. This can create pressure for small and medium-sized businesses.
Read the sections below to find out the conditions of market access and trade connectivity for all global financial hubs.
GIFT City connects you directly to the Indian market of over 1.4 billion people. India is currently one of the world’s fastest-growing economies. This creates immense opportunities for funds, fintech, and banking companies. It facilitates working with Indian companies and investors.
Dubai is located between Europe, Asia, and Africa. Therefore, it provides easy access to the markets of the Middle East, Africa, and Europe. This has established it as a strong location for international trade and logistics.
Singapore is a business hub for ASEAN, China, and the Asia-Pacific region. One can easily access the rapidly growing economies of Southeast Asia. Many multinational companies have their regional headquarters here.
The growth potential seems highly promising for GIFT city, DIFC and Singapore, all these financial hubs in coming years. Read all sub-sections given below.
India is opening its capital markets internationally through GIFT City. Foreign investment, funds, and offshore banking are increasing. The government is supporting new sectors such as aircraft and ship leasing, fintech, and bullion trading. GIFT City could become India’s largest financial gateway in the future.
Dubai has already established a strong position in Islamic finance and commodity trading. The DIFC will become even more important with the growth of economies in the Middle East and Africa.
Singapore maintains its leadership in global wealth management and fintech. It will remain strong in the future through digital banking and investment platforms.
Picking one global financial hub among the best three seems quite difficult for a business setup. To make this easier for you, here are procedures to setup your company for each global financial hub.
The process of starting a business in GIFT City is relatively simple and streamlined. The steps are:
Since everything is handled through a single regulator in GIFT City, both time and costs are reduced.
The company formation process in Dubai is very fast. The steps are:
Although the regulations are a bit more extensive in Singapore, the process is clear. The steps are:
Choosing the right financial hub according to your business type is important. If you want to run offshore funds, private equity, or hedge funds, then GIFT City is the best option. Tax exemptions and lower costs offer advantages here.
If your business is involved in trading or logistics in the Middle East and Africa region, then Dubai DIFC is more suitable. It provides easy access to that region.
Singapore is a good choice for those who work with global wealth management, private banking, or large investments.
If you are a fintech company, you can choose either GIFT City or Singapore. GIFT City offers lower costs, while Singapore offers technology and investor networks. GIFT City is now becoming the most profitable center in Asia for aircraft or ship leasing.
GIFT City, Dubai DIFC, and Singapore are the powerful financial hubs. However, choosing the right location determines the future of your business. If you want to conduct international finance at a lower cost, GIFT City is suitable. Dubai is ideal, and for Asia-Pacific and global finance, Singapore is the best for access to the Middle Eastern market.
Enterslice can be your trusted partner in this journey. We provide complete support for company setup, licensing, tax planning, and compliance in GIFT IFSC, Dubai, and Singapore. So, contact us today to find out the best hub for your business.
GIFT City is a special financial zone in India. Here, foreign companies can do international business. Companies can operate in dollars or other foreign currencies. They can also provide services from outside the main Indian market. The government has introduced a special rule to make it easier and less costly for foreign companies to do business.
Dubai DIFC is a free zone where most companies do not have to pay taxes. There is no corporate tax and no personal income tax. Capital gains or dividends are also not taxed in many cases. However, there may be fees or small charges for certain services. Still, the total tax burden is very low.
A company's profits are taxed at 17% in Singapore. However, there are some exemptions for new companies or small businesses. Dividends are partially taxed, and 9% GST is applicable. Singapore has tax treaties with many countries, so you don't have to pay double taxation on foreign income.
Yes, GIFT City is a safe place for foreign investors. It is supervised by the Indian government and controlled by a special regulator. Here, companies can send their profits abroad. The rules and reporting are of international standard, so investors know their money is safe.
You can easily do business in the Middle East and Africa from Dubai DIFC. Many large banks and companies are here because Dubai is in the middle of these two regions. Transactions, payments, and client meetings can all be done quickly. So, Dubai is a good base to grow businesses in these regions.
Foreigners can open a bank account in Singapore, but some documents are required. Banks want to know the owner of the company, the type of business, and the source of the money for security reasons. If all the information is correct, an account can be opened, and international transactions can be made very easily later.
It usually takes 4-6 weeks to open a company in GIFT City. It can be faster if all the paperwork is in order. Since there is only one regulator, there is no need to go to different offices. Bank account and tax registration are all together; the entire process is relatively simple.
The license and compliance costs are low in GIFT City. The cost is moderate in Dubai DIFC. The cost is relatively high in Singapore because the rules and reporting are stricter there. So, GIFT City is affordable for small or new businesses. Dubai or Singapore is more suitable for large companies.
Singapore is good if your clients are in Asia. Dubai is more convenient for the Middle East and Africa. GIFT City is becoming popular for the Indian market and international funds. So, the easier hub for doing business depends on the region.
Enterslice helps you choose the right country or hub based on your business type. We handle company registration, licensing, bank accounts, and tax setups. We make the whole process easy, whether you want to go to GIFT City, Dubai, or Singapore.
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