{"id":89696,"date":"2025-12-06T10:21:36","date_gmt":"2025-12-06T04:51:36","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=89696"},"modified":"2025-12-06T10:21:40","modified_gmt":"2025-12-06T04:51:40","slug":"nbfc-registration-in-gift-city-step-by-step-guide","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/nbfc-registration-in-gift-city-step-by-step-guide\/","title":{"rendered":"How to Register\u00a0an\u00a0NBFC in\u00a0a\u00a0Gift City\u00a0(IFSC): Step-by-Step Guide\u00a0"},"content":{"rendered":"<p>Gift City (Gujarat International Finance Tec-City) is a perfect hub for the set-up of NBFCs in Gift City, which serves as India&rsquo;s international finance ecosystem regulator. It is a finance company\/finance unit under the IFSCA framework, allowing all Indian financial institutions and fintech firms to&nbsp;establish&nbsp;and provide services to the overseas <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a>.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Establishing an <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;NBFC&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Non-Banking Financial Companies (NBFC) operate similarly to banks but do not possess the legal status of a bank. Registered under the Companies Act 2013 and governed by the RBI Act&amp;#039;s section(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/nbfc\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>NBFC<\/a> in a Gift City promotes foreign business, tax incentives, and aligns with global regulations. Presently, Non-Banking Financial Institutions (NBFCs) play&nbsp;an important role&nbsp;in expanding access to global finance and supporting cross-border transactions.&nbsp;&nbsp;<\/p>\n\n\n\n<p>In this insightful blog, we will walk you through a step-by-step overview of the process, eligibility, documentation, and regulatory framework for setting up an NBFC in a Gift City.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is NBFC in a Gift City?&nbsp;<\/h2>\n\n\n\n<p>An NBFC in a Gift City is a&nbsp;finance company&nbsp;registered&nbsp;under the&nbsp;India&rsquo;s first International Financial Service Centre (IFSCA Official)&nbsp;Company Regulations, 2021.&nbsp;It offers&nbsp;a conducive environment for financial services and global business operations. For NBFCs&nbsp;setting up a Gift City,&nbsp;it&nbsp;presents unique opportunities to&nbsp;operate&nbsp;under regulatory oversight while tapping into the global markets.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Unlike conventional NBFC licensing&nbsp;in India,&nbsp;which falls under the RBI&rsquo;s&nbsp;jurisdiction, NBFCs in a&nbsp;Gift City&nbsp;are regulated solely by&nbsp;IFSCA. This helps streamline the licensing framework by&nbsp;aligning with&nbsp;internationally compatible,&nbsp;and&nbsp;efficient institutions that offer global financial services.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the Benefits of Setting up an NBFC in a Gift City?&nbsp;<\/h2>\n\n\n\n<p>Tax benefits, global market access, less&nbsp;compliance&nbsp;and many benefits are discussed below for the financial institutions looking to set up their NBFC in a Gift City:&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Tax Incentives&nbsp;<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Financial institutions setting up an NBFC in a Gift City have access to various tax incentives, such as 100% income tax exemption, reduced minimum alternate tax, and exemptions from indirect taxes.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Strategic Regulatory Environment<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/enterslice.com\/nbfc-registration\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>NBFC registration<\/strong><\/a>&nbsp;in a Gift City provides access to a strategic regulatory environment aligned with a world-class smart city, advanced connectivity, and a robust financial ecosystem for attracting global institutions.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Access to Global Markets<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Operating an NBFC in a Gift City gives access to serve international clients and&nbsp;participate&nbsp;in cross-border financial activities, beyond the conventional restrictions imposed in the domestic Indian economy.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Reduced Compliance Burden<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>An NBFC operating in a Gift City enjoys a significantly reduced compliance burden compared to an RBI-regulated domestic NBFC.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Liberalized Foreign Exchange Operations<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>NBFCs in a Gift City can liberalize their foreign exchange operations by using freely convertible foreign currency within the international marketplace.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Access to a Range of Activities&nbsp;<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Registering with an NBFC under the IFSCA framework&nbsp;permits&nbsp;engagement in a broader range of activities, including specialized services such as factoring, forfaiting, and other forms of leasing.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Types of NBFCs Allowed in Gift City&nbsp;&nbsp;<\/h2>\n\n\n\n<p>The NBFCs operating under the IFSCA regulations are not simply traditional&nbsp;NBFCs, but&nbsp;are considered finance companies or finance units. Have a look at the following types of NBFCs allowed in a Gift City:&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Finance Company<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>A finance company is either set as a subsidiary or a joint venture, incorporated under the Companies Act, 2013, or any other form as may be specified by the authority from time to time.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Finance Unit<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>A finance unit, especially a branch or unit of a foreign financial institution, is&nbsp;established&nbsp;if the investing entity, or the ultimate parent of the investing entity, carries out a regulated financial activity in its home&nbsp;jurisdiction.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">NBFC Licensing IFSCA Framework: Key Features&nbsp;&nbsp;<\/h2>\n\n\n\n<p>The NBFC licensing framework, designed by the International Financial Services Centre Authority (IFSCA), aims to promote innovation, global competitiveness, and ease of doing business in Gift City. It further helps simplify the globally aligned regulatory environment for financial institutions. Have a look at the key features of the NBFC licensing IFSCA framework, as discussed below:&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li>Faster approvals compared to traditional domestic licensing&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Flexibility in business models, leasing, factoring &amp; financial international transactions&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Rationalized minimum capital requirements based on activity type&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Globally benchmarked prudential and governance norms&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Reduced reporting obligations compared to domestic NBFCs&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Eligibility Criteria for NBFC Unit in IFSC-GIFT City&nbsp;<\/h2>\n\n\n\n<p>The financial institutions applying for NBFC (referred to as finance company or finance unit) registration in the Gift City must&nbsp;comply with&nbsp;the IFSCA-specified eligibility criteria, as discussed below:&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>FATF-Compliant&nbsp;Jurisdiction&nbsp;<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The applicant entity or its promoters must be from a FATF-compliant&nbsp;jurisdiction&nbsp;and must ensure&nbsp;<a href=\"https:\/\/enterslice.com\/nbfc-annual-compliance\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>NBFC&nbsp;compliance<\/strong><\/a>&nbsp;with the FATF&rsquo;s international standards.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Business Plan<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The NBFC units&nbsp;seeking&nbsp;to apply for IFSC-Gift City registration must mandatorily have a business plan with financial projections.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Registered&nbsp;Office Space<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The entities must have a registered&nbsp;office&nbsp;space&nbsp;within the Gift SEZ, as documented by&nbsp;a provisional letter of <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Allotment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An allotment is the systematic distribution of business resources, often pertaining to the distribution of shares during initial public offerings (IPOs) to underwriting firms or to new and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/allotment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>allotment<\/a>.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Obtain No Objection Certificate<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The financial units carrying out core activities within&nbsp;their home&nbsp;jurisdiction&nbsp;must obtain a No-Objection Certificate (NOC) from their home regulator to&nbsp;establish&nbsp;an&nbsp;FU in the IFSC.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Maintain Minimum Capital Ratio&nbsp;<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The entities must&nbsp;maintain&nbsp;a&nbsp;minimum capital ratio of 8% of&nbsp;their&nbsp;regulatory capital to risk-weighted assets or such percentage as specified by the IFSCA.&nbsp;&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Maintain Liquidity Coverage Ratio&nbsp;<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The entities must&nbsp;maintain&nbsp;a&nbsp;liquidity coverage ratio (LCR) on a stand-alone <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a> at all times,&nbsp;as&nbsp;determined&nbsp;by the IFSCA&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Maintain&nbsp;Exposure&nbsp;Ceiling&nbsp;<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The sum of all&nbsp;exposure&nbsp;to a single counterparty or a group of connected counterparties&nbsp;must not exceed&nbsp;25%&nbsp;of its available eligible capital base without approval of the IFSCA.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the&nbsp;Documents Required for NBFC Setup in a Gift City?&nbsp;<\/h2>\n\n\n\n<p>The list of relevant documents&nbsp;required&nbsp;for NBFC setup in a Gift City is as discussed below:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Basic details such as name and address proof of the director&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Details of&nbsp;activity to be carried out in the SEZ unit&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Details of Foreign exchange outflow and inflow&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Duly signed Application Form F&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Copy of the company incorporation certificate&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Copy of Board Resolution of&nbsp;authorized&nbsp;director\/person in case&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Copy of power of attorney (if any)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Copy of residential address proof of the directors of the company&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Detailed project report, including a detailed description of the business&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Consent letter from the SEZ developer&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>An affidavit&nbsp;for submission of true and correct information&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>No Objection Certificate from the pollution board (if applicable)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Copy of draft export contract or Master Service agreement&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Banker certificate for the purpose of opening a separate account&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Copy of audited financials (for past years)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Copy of IEC, if already obtained&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Step-by-Step Approach to Start an NBFC in a Gift City&nbsp;<\/h2>\n\n\n\n<p>The financial entities looking to apply for NBFC in a Gift City must&nbsp;comply with&nbsp;the following steps, as discussed below:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1:&nbsp;Incorporate an Entity in GIFT IFSC&nbsp;&nbsp;<\/h3>\n\n\n\n<p>The&nbsp;entities must initially apply for mandatory company registration in the Gift City, as and when prescribed under the Companies Act, 2013.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2:&nbsp;Submit&nbsp;Application for NBFC Registration to IFSCA&nbsp;&nbsp;<\/h3>\n\n\n\n<p>The next step requires the applicants to submit an application for NBFC registration with the International Financial Services&nbsp;Centres&nbsp;Authority.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Apply for SEZ\/ IFSCA Approval&nbsp;<\/h3>\n\n\n\n<p>The next step after incorporation requires the applicants to&nbsp;submit&nbsp;an Application Form F to the Development Commissioner, Gift City.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4: IFSCA Review and&nbsp;Verification&nbsp;<\/h3>\n\n\n\n<p>Before&nbsp;forwarding&nbsp;the application to UAC, it undergoes review and verification at the Development Commissioner&rsquo;s and IFSCA offices to seek&nbsp;additional&nbsp;details during this stage.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5: Appear for&nbsp;UAC Personal Hearing&nbsp;<\/h3>\n\n\n\n<p>After the application is reviewed, the applicants are invited to appear for a Unit Approval Committee (UAC) personal meeting conducted by the Gift SEZ Authority.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 6: Issuance of NBFC Licensing by IFSCA&nbsp;<\/h3>\n\n\n\n<p>Once approved, the International Financial Services&nbsp;Centres&nbsp;Authority&nbsp;grants NBFC licensing to&nbsp;operate&nbsp;within the Gift City.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Activities Permissible&nbsp;in IFSC-Gift City&nbsp;<\/h2>\n\n\n\n<p>Under Chapter IV of the&nbsp;IFSC Finance Company&nbsp;Regulations, the activities permissible for NBFCs in IFSC-Gift City are divided into three broad categories. Have a look at the table clarifying the different permissible activities in the IFSC-Gift City:&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Permissible&nbsp;Specialized&nbsp;Activities&nbsp;<\/strong>&nbsp;<\/td><td><strong>Permitted&nbsp;Core Activities&nbsp;<\/strong>&nbsp;<\/td><td><strong>Permitted&nbsp;Non-Core Activities&nbsp;<\/strong>&nbsp;<\/td><\/tr><tr><td>Credit enhancement services&nbsp;<\/td><td>Lending and credit facilities (including term loans, working capital loans, revolving credit)&nbsp;<\/td><td>Registrar and Share Transfer Agent&nbsp;<\/td><\/tr><tr><td>Structured finance and&nbsp;securitization&nbsp;support&nbsp;<\/td><td>Guarantees and credit enhancements&nbsp;<\/td><td>Investment advisory services (subject to separate registration)&nbsp;<\/td><\/tr><tr><td>Aircraft, ship, and other high-value asset leasing&nbsp;<\/td><td>Trade finance, including export\/import financing&nbsp;<\/td><td>Portfolio management services (PMS)&nbsp;<\/td><\/tr><tr><td>Factoring&nbsp;&amp;&nbsp;forfaiting&nbsp;of receivables&nbsp;<\/td><td>Securitization&nbsp;and asset-backed financing&nbsp;<\/td><td>Merchant banking or capital market services&nbsp;<\/td><\/tr><tr><td>FinTech-driven cross-border financial solutions&nbsp;<\/td><td>Purchase, sale, or transfer of loan portfolios and receivables&nbsp;<\/td><td>Distribution of financial products (mutual funds, insurance, AIFs)&nbsp;<\/td><\/tr><tr><td>Any specific activity notified by IFSCA as &ldquo;specialized&rdquo;&nbsp;<\/td><td>Buying and selling of derivatives&nbsp;<\/td><td>Trusteeship services and custodial support&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Equipment leasing, including&nbsp;aircraft, ships, and vehicles leasing&nbsp;<\/td><td>Back-office operations and financial research&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Operating as a Global or Regional Corporate Treasury Centre&nbsp;<\/td><td>Acting as a trading\/&nbsp;clearing member in IFSC exchanges&nbsp;&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Any other core financial activity&nbsp;permitted&nbsp;by IFSCA&nbsp;<\/td><td>Any other non-core activity, as may be&nbsp;permitted&nbsp;with prior approval of the Authority&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">NBFC Licensing Timeline and Costs in a Gift City&nbsp;<\/h2>\n\n\n\n<p>NBFC Licensing timeline ranges from 6 to 12 months. The company registration takes 3 to 5 days. Application with all documents&nbsp;submitted&nbsp;to the RBI for evaluation, which takes 4 to 8 weeks. Then, RBI issues in-approval within 1 to 2 weeks (12 months valid). The Certificate of Registration (CoR) is issued after 4 to 8 weeks by the RBI.&nbsp;&nbsp;<\/p>\n\n\n\n<p>However, the processing timeline varies depending on the business structure and the activities carried out. Many external commentators and guides mention longer durations for obtaining&nbsp;SEZ approval, compliance set-up, and practical contingencies. So, while the formal regulatory timeline is shorter, the actual timeline may vary.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The cost of securing an NBFC-type entity under the IFSCA in Gift City&nbsp;comprises&nbsp;both government and professional fees, starting from US$1000 (one-time application fee). However, the fees vary depending on certain special activities and any&nbsp;additional&nbsp;regulatory or infrastructural compliance requirements.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>Gift City, under the unified regulatory framework of IFSCA, has&nbsp;emerged&nbsp;as a transformative hub for financial service providers in India. For NBFCs looking to expand operations globally, it offers an unmatched combination of tax incentives, simplified regulations, faster approvals, and access to the international financial ecosystem.&nbsp;&nbsp;<\/p>\n\n\n\n<p>With the right guidance and structured compliance support, setting up an NBFC in a Gift City enables businesses to&nbsp;establish&nbsp;their global footprint with confidence. At&nbsp;<a href=\"https:\/\/enterslice.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Enterslice<\/strong><\/a>, we will help you with registering&nbsp;an NBFC&nbsp;in gift city. &#8239;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions NBFC registration in GIFT City<\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3>What are the challenges faced while securing NBFC licensing in a Gift City?<\/h3><p class=\"saswp-faq-answer-text\">The&nbsp;common challenges&nbsp;faced while securing an NBFC license in a Gift City are as discussed below:&nbsp;<br>Ensuring compliance with consistently evolving RBI guidelines&nbsp;<br>Challenge while managing effective KYC and consumer grievance systems&nbsp;&nbsp;<br>Challenges while&nbsp;retaining&nbsp;a sufficient pool of skilled financial and technical talent&nbsp;<br>Faces operational limitations compared to banks&nbsp;<br>Delays in&nbsp;finalizing&nbsp;an office space in Gift City&nbsp;<br>Lack of sector-specific legal advice&nbsp;&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What is GIFT IFSC?&#8203;&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">Gift IFSC is an International Financial Services Centre (IFSC) located in Gift City, Gandhinagar, Gujarat.&nbsp;It is a special economic zone designed to offer world-class financial services, attract global investors, onboard offshore financial activities, and a platform for Indian and International firms to conduct financial business in foreign currencies.&nbsp;&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What are the tax benefits of operating in GIFT City?&#8203;&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">The tax benefits of&nbsp;operating&nbsp;a Gift City are as follows:&nbsp;<br>Allows a 100% income tax exemption for 10 consecutive years&nbsp;&nbsp;<br>Reduced the minimum alternative tax to 9% of book profits&nbsp;<br>Tax exemption for interest paid on account of monies borrowed by FC\/ FU&nbsp;<br>Reduced 10% tax on&nbsp;dividends&nbsp;paid by&nbsp;an&nbsp;FC to&nbsp;a&nbsp;non-resident&nbsp;<br>Nil Goods and Services Tax on the services received by a unit in the IFSC&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>What is the process for registering an NBFC&nbsp;in GIFT City?&#8203;&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">The process for registering an NBFC in a Gift City requires compliance with the following steps, as provided below:&nbsp;<br><strong>Step 1:&nbsp;<\/strong>Incorporate an Entity in GIFT IFSC&nbsp;&nbsp;<br><strong>Step 2:<\/strong>&nbsp;Submit&nbsp;Application for NBFC Registration to IFSCA&nbsp;&nbsp;<br><strong>Step 3:<\/strong>&nbsp;Apply for SEZ\/ IFSCA Approval&nbsp;<br><strong>Step 4:<\/strong>&nbsp;IFSCA Review and Verification&nbsp;<br><strong>Step 5:<\/strong>&nbsp;Appear for UAC Personal Hearing&nbsp;<br><strong>Step 6:&nbsp;<\/strong>Issuance of NBFC Licensing by IFSCA&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>How long does it take to set up an NBFC&nbsp;in GIFT City?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">It takes&nbsp;45 days to 2 months&nbsp;to set up an NBFC in a Gift City, depending on the business structure and&nbsp;activities carried out.&nbsp;&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>Is TDS applicable&nbsp;to&nbsp;GIFT City?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">No, TDS is&nbsp;generally not&nbsp;applicable to specified payments made to eligible entities and investors in the Gift City. However, it is considered a key incentive, positioning it as a global financial hub for major businesses.&nbsp;&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>Does GIFT City have 0&nbsp;tax?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">Yes, Gift City offers a highly concessional tax regime with many 0% tax scenarios for eligible investors, rather than a&nbsp;blanket&nbsp;0% tax for all. In simple terms, the zero-tax aspect of Gift City applies only to specific types of income, transactions, and&nbsp;timeframes&nbsp;for eligible entities, making it a highly attractive, universally tax-free financial hub.<\/p><\/li><li style=\"list-style-type: none\"><h3>What are the benefits of registering&nbsp;an NBFC&nbsp;in the GIFT City?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">The benefits of registering an NBFC in a Gift City are as&nbsp;follows:&nbsp;<br>Allows access to various tax incentives and exemptions&nbsp;<br>Access to a strategic regulatory business environment&nbsp;<br>Serve international clients and&nbsp;participate&nbsp;in cross-border financial activities&nbsp;<br>Enjoys a significantly reduced compliance burden&nbsp;&nbsp;<br>Helps&nbsp;liberalize&nbsp;foreign exchange operations&nbsp;&nbsp;<br>Permits&nbsp;engagement in a broader range of&nbsp;permissible&nbsp;activities&nbsp;<\/p><\/li><li style=\"list-style-type: none\"><h3>Can a normal person&nbsp;from&nbsp;India invest in GIFT City?&nbsp;<\/h3><p class=\"saswp-faq-answer-text\">Yes, a normal Indian resident is eligible to invest in a Gift City through the&nbsp;Liberalized&nbsp;Remittance Scheme, with an annual limit of USD $250,000.&nbsp;&nbsp;<\/p><\/li><\/ol><\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gift City (Gujarat International Finance Tec-City) is a perfect hub for the set-up of NBFCs in Gift City, which serves as India&rsquo;s international finance ecosystem regulator. It is a finance company\/finance unit under the IFSCA framework, allowing all Indian financial institutions and fintech firms to&nbsp;establish&nbsp;and provide services to the overseas <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\" href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a>.&nbsp;&nbsp; Establishing an <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;NBFC&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Non-Banking Financial Companies (NBFC) operate similarly to banks but do not possess the legal status of a bank. Registered under the Companies Act 2013 and governed by the RBI Act&amp;#039;s section(...)&lt;\/div&gt;\" href=\"https:\/\/enterslice.com\/learning\/terms\/nbfc\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>NBFC<\/a> in [&hellip;]<\/p>\n","protected":false},"author":61,"featured_media":89700,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[35,56],"acf":{"service_id":"8"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NBFC Registration in GIFT City: Step-by-Step Guide<\/title>\n<meta name=\"description\" content=\"Step-by-step guide to NBFC registration in GIFT City. Learn key requirements, documents, and compliance essentials for setting up in IFSC.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/nbfc-registration-in-gift-city-step-by-step-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NBFC Registration in GIFT City: Step-by-Step Guide\" \/>\n<meta property=\"og:description\" content=\"Step-by-step guide to NBFC registration in GIFT City. Learn key requirements, documents, and compliance essentials for setting up in IFSC.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/nbfc-registration-in-gift-city-step-by-step-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-06T04:51:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-06T04:51:40+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2025\/12\/How-to-Register-an-NBFC-in-a-Gift-City-IFSC-Step-by-Step-Guide-1.webp\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Monisha Chaudhary","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2022\/04\/Monisha-Chaudhary-150x150-1.jpg","authorDescription":"Monisha Chaudhary is a distinguished partner at Enterslice with 10+ years of relevant industry experience in company incorporation, fintech, regulatory compliance, insurtech consulting, and M&amp;A. Her creative thought process pushes her to draft excellent writeups. Besides effortlessly tackling business challenges, she invests her free time in writing blogs and articles.","postViews":177,"readingTime":7,"nextPost":{"id":89702,"slug":"sohar-vs-salalah-vs-duqm-vs-khazaen-vs-kom"},"prevPost":{"id":89691,"slug":"british-virgin-islands-annual-company-compliance-filings-and-deadlines"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2025\/12\/How-to-Register-an-NBFC-in-a-Gift-City-IFSC-Step-by-Step-Guide-1.webp","postTerms":"NBFC","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/89696"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=89696"}],"version-history":[{"count":4,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/89696\/revisions"}],"predecessor-version":[{"id":89701,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/89696\/revisions\/89701"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/89700"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=89696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=89696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=89696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}