Business Setup at GIFT IFSC

A Step-By-Step Guide to Incorporating Your Business in GIFT City IFSC

Overview

Are you interested in setting up your business in GIFT City, Gujarat, India? GIFT City has gained prominence as a prime destination for businesses aiming to access India's financial markets. To take advantage of this opportunity and capitalize on India's potential in the international financial services sector, follow these steps to incorporate your business in GIFT City.

Sure, here is a step-by-step guide to incorporating your business in GIFT City IFSC:

1. Eligibility and Registration: Ensure that your business is eligible to be incorporated in GIFT City IFSC. Indian companies, as well as foreign companies, are eligible to incorporate in GIFT City IFSC. To register, visit the GIFT City website and click on the "Apply for Entity Registration" button.
Choose Business Structure and Name: You can choose from various business structures, including branch office, LLP, or a company limited by shares. Select a unique name for your business entity that complies with the guidelines and regulations.
Obtain a Digital Signature Certificate (DSC): Your application for incorporation must be digitally signed by authorized persons using a DSC.
Obtain Director Identification Number (DIN): All proposed directors of the company must apply for a DIN, a unique identification number assigned by the Ministry of Corporate Affairs.
Draft Memorandum of Association (MOA) and Articles of Association (AOA): Prepare the MOA and AOA that outlines the objectives and regulations of your business entity. Ensure compliance with the legal requirements and regulations applicable in GIFT City IFSC.
File Incorporation Forms: Submit the incorporation forms, including the MOA and AOA, with the Registrar of Companies (RoC) in GIFT City IFSC. Pay required filing fees, stamp duty, and other charges applicable.
Obtain Certificate of Incorporation: Upon verification and approval of your application, the RoC will issue a Certificate of Incorporation, confirming the legal existence of your business in GIFT City IFSC.
Open Bank Account and Register for Taxes: Open a bank account with a bank authorized to operate in GIFT City IFSC. Register your business entity for taxes, such as GST (Goods and Services Tax), and comply with applicable tax regulations.
Obtain Business Licenses and Permits: Obtain necessary licenses and permits required to operate your business in GIFT City IFSC. This may include approvals from regulators or authorities governing your business industry.

Details in Brief about Business Setup in Gift IFSC

The procedure for establishing IFSC Unit in GIFT City is as follow:

Steps to Incorporate Your Business in GIFT City IFSC

If you're considering establishing an IFSC unit in GIFT City, this step-by-step guide will help you through the process.

Step 1: Identify Suitable Office Space in GIFT SEZ

The first step is to choose office space within the GIFT SEZ. This involves reaching an agreement with the developer or co-developer of GIFT SEZ. The selected office space will be where your business operations will be based in the SEZ.

Step 2: Obtain Provisional Letter of Allotment (PLOA)

After finalizing the agreement with the developer, you need to obtain a Provisional Letter of Allotment (PLOA). This letter confirms the allocation of the office space within GIFT SEZ for your entity. The PLOA is an important document for initiating the establishment of your business operations in the SEZ.

Step 3: Submit Application in FORM F to SEZ Authorities

Prepare and submit FORM F along with the following annexures:

Demand Draft of Rs 5,000/-
Provisional Letter of Allotment from the Co-Developer
Detailed Project Report with projections for the next five years
Entity ID documents (License, PAN Card, IEC Code, etc.)
Self-certified copies of Memorandum of Association and Articles of Association
Self-certified copies of Board Resolution for setting up an office in GIFT IFSC
Certificate of Incorporation
List of Directors with their identity proofs
Last 3 years' audited financial statements and IT returns of the entity or directors
Brief presentation covering the entity profile and scope of activities in GIFT IFSC
AFFIDAVIT

Prepare three sets of the above documents and submit them as follows:

Original set to the Office of the Development Commissioner
Second set to the developer (GIFT SEZ) for NOC submission to the Office of the Development Commissioner
Third set for your entity

Step 4: Unit Approval Committee (UAC) Meeting

Once the FORM F is received, the Development Commissioner will schedule a meeting with the Unit Approval Committee (UAC). In this meeting, the entity's representative will present the case on behalf of the entity.

Step 5: Letter of Permission / Approval (LOA)

If the UAC is satisfied with the entity's presentation, the Development Commissioner will issue a Letter of Permission / Approval (LOA) to the entity.

The revised content provides a clear and concise explanation of the Unit Approval Committee (UAC) meeting and the subsequent issuance of the Letter of Permission / Approval (LOA).

Step 6: Letter Of Acceptance.

Within 45 days of the LOA being issued, submit a Letter of Acceptance to the Development Commissioner accepting the LOA terms and conditions.

Step 7: Execution of Lease Deed.

Sign a lease deed with the co-developer of GIFT SEZ and submit it to the Development Commissioner within six months of receiving the LOA.

Step 8: SEZ License and Registration with NSDL Portal.

Obtain a SEZ License and register with the NSDL portal for SEZ Online Registration.

Step 9: Bond Cum Legal Undertaking.

Prepare and sign a Bond Cum Legal Undertaking with the Development Commissioner and GIFT SEZ's Specified Officer before submitting it.

Step 10: Obtain Registration Certificates and Exemption Eligibility.

Obtain various registration certificates such as GST, RCMC, IEC, etc. Apply for eligibility certificates for exemption from various taxes from the Central and State Government.

Step 11: Registration with IFSCA.

Obtain a Certificate of Registration from the International Financial Services Centres Authorities (IFSCA) before commencing business operations.

Step 12: Commencement of Business Operations.

Inform the Office of the Development Commissioner about the date of the first export of services through an application titled "Commencement of business operations" and provide supporting evidence such as a tax invoice. A copy of the application should also be marked to the GIFT SEZ developer.

This revised content presents the steps to establish an entity in the GIFT SEZ in a concise and clear manner with a bulleted list and simplified instructions. This is aimed to enhance the reader's understanding and emphasize the key aspects of the process.

Important Knowledge: The Gujarat government has decided to waive off stamp duty for brokers' transactions if they have registered offices in the Gujarat International Finance Tec-City (GIFT City), a Special Economic Zone. This is to encourage more stock broking houses to establish their presence in GIFT City. The move is expected to attract more business entities to the GIFT SEZ, India's first International Financial Services Centre (IFSC)

Conclusion on Business setup at Gift City

In conclusion, setting up a business in GIFT City offers several advantages and opportunities. As India's first International Financial Services Centre (IFSC), GIFT City provides a conducive environment for financial services companies to thrive. The streamlined processes and regulatory framework make it easier for businesses to establish themselves in the Special Economic Zone (SEZ).

By following the necessary steps, such as obtaining provisional allocation, executing lease deeds, obtaining licenses and registrations, and fulfilling other requirements, businesses can successfully incorporate their operations in GIFT City. The recent announcement of waiving off stamp duty for brokers further incentivizes businesses to establish their presence in the IFSC.

Overall, GIFT City presents a promising ecosystem for businesses looking to operate in the international financial services sector in India. With its strategic location, world-class infrastructure, and supportive policies, GIFT City is an attractive destination for businesses seeking growth and opportunities in the global financial landscape.

How we will help in setup your business at Gift City

We are dedicated to assisting you in setting up your business at GIFT City. Our team has extensive knowledge and experience in navigating the process and requirements involved in establishing a presence in the International Financial Services Centre (IFSC).

Here's how Estabizz Fintech can help:

Consultation: We will provide you with a thorough consultation to understand your business requirements, objectives, and plans for operating in GIFT City. This will allow us to tailor our services to your specific needs.
Guidance on Regulations: We will guide you through the regulatory framework and compliance requirements specific to GIFT City. This includes understanding the applicable laws, licenses, and registrations that your business needs to obtain.
Documentation Assistance: Our team will assist you in preparing and organizing all the necessary documents required for the incorporation of your business at GIFT City. We will ensure that these documents meet the standards and requirements set by the authorities.
Application Process: We will handle the entire application process on your behalf. This includes submitting the necessary forms, paperwork, and supporting documents to the appropriate authorities. We will keep you updated on the progress and communicate with the relevant authorities to expedite the process.
Liaison with Authorities: We will act as a liaison between your business and the authorities involved in the setup process. This ensures effective communication and coordination, allowing for a smooth and efficient establishment of your business at GIFT City.
Networking and Partnerships: We can facilitate networking opportunities and connect you with relevant stakeholders within GIFT City. Building meaningful relationships with other businesses, service providers, and industry professionals can have significant benefits for your business growth and expansion.
Ongoing Support: Even after your business is successfully set up, we will continue to provide support and assistance. This can include guidance on ongoing compliance requirements, changes in regulations, and any other queries or challenges you may encounter.

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