Startup

How to Start a Business in the Gift City Gandhinagar?

How to Start a Business in the Gift City Gandhinagar?

With globalization, the importance of international finance, setting up a business in a well-established and business-friendly place has become crucial. The Gujarat International Finance Tec-City (GIFT City) is one such destination for businesses looking to enter India’s financial markets. GIFT City is an initiative taken by the Government of India and the Government of Gujarat to capitalize on India’s potential in the international financial services sector.

Steps to Start a Business in GIFT City

Let’s walk through the procedure to set up an IFSC Unit in the GIFT City:

Step 1: Identify a Suitable Office Space in GIFT City SEZ

The first step towards starting a business in GIFT City is to identify and select office space within the GIFT City SEZ. This step includes entering into an agreement with the developer or co-developer of GIFT SEZ. The office space selected will serve as a location for establishing business operations within the SEZ.

Step 2: Obtain a Provisional Letter of Allotment (PLOA)

Post the finalization of the agreement with the developer, you must obtain a Provisional Letter of Allotment (PLOA). A PLOA officially confirms the allocation of the selected office space within the GIFT City SEZ for your entity. PLOA is an important document for initiating the establishment of your business operations in the SEZ.

Step 3:File an Application in Form F to SEZ Authorities

In this step, you will have to prepare and submit FORM F along with the following annexures:

  1. Demand Draft of INR 5000.
  2. PLOA issued by the Co-Developer.
  3. Detailed Project Report with projections for the next five years.
  4. Entity ID such as PAN Card, License, IEC Code, etc.
  5. Self-certified copies of the Memorandum of Association and Articles of Association.
  6. Self-certified copies of the Board Resolution for setting up an office in the GIFT City SEZ.
  7. Certificate of Incorporation.
  8. List of Directors with their identity proofs.
  9. Last 3 years audited financial statements and IT returns of the entity or directors.
  10. Brief presentation covering the entity’s profile and scope of activities in the GIFT City IFSC.
  11. Affidavit.
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Three sets of the above documents have to be prepared and submitted as follows:

  1. The original set has to be submitted to the Office of the Development Commissioner.
  2. The second set has to be submitted to the developer of the GIFT City SEZ to facilitate the submission of the NOC from the developer to the Office of the Development Commissioner.
  3. The third set is for the entity itself.

Step 4: Unit Approval Committee (UAC) Meeting

After submission of Form F along with the documents, the Development Commissioner contacts the entity for a meeting with the UAC. In this meeting, the entity’s authorized representative will present the case on their behalf.

Step 5: Letter of Permission/Approval (LOA)

If the UAC is pleased with the entity’s presentation, then the Development Commissioner will give the entity a Letter of Permission or Approval (LOA).

Step 6: Letter of Acceptance

Within 45 days from the date of issue of the LOA, the entity must deliver a Letter of Acceptance to the Development Commissioner expressing acceptance of the LOA’s terms and conditions.

Step 7: Execution of Lease Deed

The next step is for the entity to sign a lease deed with the co-developer of GIFT SEZ within 6 months of getting the LOA and submit it to the Development Commissioner.

Step 8: Issue of SEZ License and Registration with NSDL Portal

When the SEZ License is issued to the entity, it must obtain registration with the NSDL portal1 for SEZ Online Registration. Registration with the NSDL Portal allows reporting and other import, procurement and services-related services.

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Step 9: Bond cum Legal Undertaking

The next step for the entity is to prepare and sign a Bond cum Legal Undertaking with the Development Commissioner and GIFT SEZ’s Specified Officer and then submit it.

Step 10: Obtain Registration Certificates and Exemption Eligibility

Before commencing business operations, the entity must obtain various registration certificates such as GST, IEC, RCMC, etc. Further, the entity should also apply for eligibility certificates for exemption from various taxes from the Central and State Governments.

Step 11: Registration with the International Financial Services Centres Authorities (IFSCA)

Obtaining a Certificate of Registration from the IFSCA is necessary before commencing business operations. For this, the entity should prepare and submit an application along with the required fees to the IFSCA.

Step 12: Commencement of Business Operations

After completing all the above steps, the entity becomes eligible to commence its business operations. The date of the first export of services should be mandatorily informed to the Office of the Development Commissioner through an application titled “Commencement of Business Operations” and provide supporting evidence like a tax invoice. A copy of the application should also be marked to the GIFT City SEZ Developer.

Conclusion

At last, it can be said that with the growing popularity of doing business in GIFT City, it is important to have an idea about the process to start a business in GIFT City. The process is simple and not very time-consuming, so you can easily start your business in GIFT City.

FAQs

  1. How much does it cost to make a GIFT City?

    It costs around Rs. 78,000 crores to make a GIFT City.

  2. How to start a business in GIFT City?

    The steps to start a business in GIFT City are as follows: Step 1: Identify suitable office space in GIFT SEZ Step 2: Obtain a Provisional Letter of Allotment (PLOA). Step 3: Prepare and submit Form F to SEZ Authorities Step 4: Unit Approval Committee (UAC) Meeting Step 5: Letter of Permission or Approval Step 6: Letter of Acceptance Step 7: Execution of Lease Deed Step 8: SEZ License and Registration with NSDL Portal Step 9: Bond cum Legal Undertaking Step 10: Obtain registration certificates and exemption eligibility Step 11: Registration with IFSCA Step 12: Commencement of Business Operations

  3. Which company is making GIFT City?

    The government of Gujarat, through its undertaking – Gujarat Urban Development Company Ltd. (GUDC) and Infrastructure Leasing and Financial Services Ltd. (IL&FS) have established a 50:50 joint venture company, i.e., Gujarat International Finance Tec-City Company Limited (GIFTCL).

  4. Who can trade in GIFT City?

    Any trading member, whether Indian or foreign, registered or non-registered, setting up its office through a subsidiary or branch model can start trading in GIFT City.

  5. Who is the owner of GIFT City Gandhinagar?

    The Government of Gujarat is the owner of GIFT City, Gandhinagar.

  6. Is GIFT City good for investment?

    Yes, GIFT City is a remarkable place to invest. It shows India’s ambition to become a global financial hub. It boasts a modern infrastructure, a thriving business environment, and innovative technology, making it an ideal destination for investors and companies to establish a presence in India.

  7. What are the benefits of opening an office in GIFT City?

    Some of the benefits of opening an office in GIFT City are: a) Ease of Doing Business b) Duty Relaxation c) Incentives d) 100% tax exemption for 10 years out of a 15-year block e) No GST on services received by a unit of IFSC and provided to IFSC /SEZ units, offshore clients.

  8. Who is the MD and CEO of GIFT City?

    Mr. Tapan Ray is the MD and CEO of GIFT City.

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References

  1. https://nsdl.co.in/

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