IFSCA Aircraft Leasing Registration in IFSC - Complete GIFT City Aircraft Lessor Setup Guide

Regulator: International Financial Services Centres Authority Location: GIFT IFSC, Gujarat, India Applicable Framework: Framework for Aircraft Lease issued under IFSCA Finance Company Regulations Registration Type: Finance Company or Finance Unit as aircraft lessor Permitted Structures: Company, LLP, Trust or any other form as specified by IFSCA Operating Lease Capital: Minimum owned fund of USD 200,000 or equivalent Financial / Hybrid Lease Capital: Minimum owned fund of USD 3 million or equivalent Currency: Freely convertible foreign currency; administrative expenses may be defrayed in INR Promoter Jurisdiction: Promoter / partners / trustees must be located in FATF-compliant jurisdiction Application System: IFSCA Single Window IT System / SWITS Office / Manpower Sharing: Permitted subject to applicable IFSCA and SEZ rules Timeline: Indicative and subject to IFSCA review The above details are indicative and must be evaluated based on the applicant's lease model, entity structure, ownership, promoter jurisdiction, capital plan, group structure, proposed assets and the latest IFSCA circulars at the time of filing.

IFSCA Aircraft Leasing Registration refers to registration granted by the International Financial Services Centres Authority to an eligible entity operating from IFSC as a Finance Company or Finance Unit for undertaking aircraft leasing activities. The framework covers leasing of aircraft, helicopters, engines of aircraft or helicopter, aircraft parts, aircraft ground support equipment and aviation training simulation devices. An applicant cannot undertake permissible activities as a Lessor unless it has obtained a Certificate of Registration from IFSCA under the Finance Company Regulations.

GIFT IFSC has been developed to onshore international financial services business that was historically undertaken from offshore centres such as Singapore, Hong Kong, Dubai, London, Luxembourg and Ireland. Aircraft leasing is one of the niche financial services promoted within IFSC to support India's aviation and financial ecosystem.

Regulator: International Financial Services Centres Authority Primary Regulation: IFSCA Finance Company Regulations, 2021 Specific Framework: Framework for Aircraft Lease, updated as on February 26, 2025 Financial Product: Aircraft lease, including operating lease, financial lease and hybrid lease Application Mode: Single Window IT System / SWITS Registration Requirement: Certificate of Registration under Finance Company Regulations Regulatory Basis: IFSCA Act, 2019 and applicable IFSCA circulars Compliance Areas: Capital, KYC/AML, governance, reporting, books of accounts, currency rules and permissible activity restrictions The Framework for Aircraft Lease facilitates the setting up of aircraft leasing business in IFSC and specifies eligibility, permissible activities, capital requirement, fees, currency rules, reporting and general compliance conditions.

A Lessor means an entity registered with IFSCA as a Finance Company or Finance Unit in accordance with the Finance Company Regulations and engaged in the business of providing aircraft, helicopters, engines, aircraft parts, aircraft ground support equipment or aviation training simulation devices under operating lease, financial lease or hybrid lease.

• 'Aircraft', 'Helicopters', 'Engines of aircraft or helicopters', 'Parts of aircraft or helicopters', 'Aircraft Ground Support Equipment', 'Aviation Training Simulation Devices', 'Any other related activity specified or approved by IFSCA'

Company: Eligible - Promoter must be located in FATF-compliant jurisdiction LLP: Eligible - Partners must comply with FATF jurisdiction requirement Trust: Eligible - Trustees must comply with FATF jurisdiction requirement Other form specified by IFSCA: Eligible if permitted - Subject to IFSCA approval / specification Entity using wholly owned subsidiaries in IFSC: May be deemed Lessor - Applicable where aircraft lease is undertaken through WOS in IFSC The applicant must set up operations in IFSC and must satisfy eligibility criteria under the IFSCA Finance Company Regulations and Framework for Aircraft Lease.

The final structure should be evaluated based on tax, ownership, funding, asset holding, airline contracts, lease type and group requirements.

Operating lease for aircraft lease arrangement: Leasing of aircraft or helicopter under operating lease Operating lease for aircraft ground support equipment: Leasing of eligible ground support equipment Operating lease for aviation training simulation device: Leasing of simulation devices permitted by IFSCA Asset Management Support Services: For assets owned or leased by the lessor or group entities set up in IFSC Sale and leaseback / purchase / novation / transfer / assignment: Permitted in relation to specified activities, subject to restrictions Other related activity: With prior approval of IFSCA

Financial lease for aircraft lease arrangement: Financial lease of aircraft or helicopter Hybrid lease: Hybrid of financial lease and operating lease Financial / hybrid lease for aircraft ground support equipment: Leasing of eligible ground support equipment Financial / hybrid lease for aviation training simulation device: Leasing of permitted simulation devices Sale and leaseback / purchase / novation / transfer / assignment: Permitted in relation to specified activities, subject to restrictions Operating lease activities: Financial lease registered entities may undertake permitted operating lease activities as applicable Other related activity: With prior approval of IFSCA

Regulatory Classification: Permitted non-core activity - Permitted core activity Minimum Owned Fund: USD 200,000 or equivalent - USD 3 million or equivalent Capital Maintenance: At all times - At all times Permitted Assets: Aircraft, helicopter, engines, parts, ground support equipment, simulation devices - Aircraft, helicopter, engines, parts, ground support equipment, simulation devices Additional Prudential Requirements: As applicable - Subject to prudential regulations, KYC/AML, corporate governance and disclosure requirements for core activities Fees: Application, registration and annual fees as per fee circular - Application, registration and annual fees as per fee circular

Operating Lease: USD 200,000 or equivalent in freely convertible foreign currency - Maintained at all times Financial Lease / Hybrid Lease: USD 3 million or equivalent in freely convertible foreign currency - Maintained at all times Owned fund for a Lessor means paid-up capital and free reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of asset, excluding reserves created by revaluation of asset, as reduced by accumulated loss balance, book value of intangible assets and deferred revenue expenditure, if any. IFSCA may specify additional capital as a risk management measure based on the nature and scale of business of the Lessor.

Operating Lease: USD 1,000 - USD 12,500 - USD 5,000 Financial Lease / Hybrid Lease: USD 1,000 - USD 12,500 - USD 12,500 Fees should be verified from the latest IFSCA fee circular at the time of filing.

Transaction Currency: Freely convertible foreign currency only Administrative Expenses: May be defrayed in INR through separate INR account Books of Accounts: Maintained as required under applicable law Financial Information: Submitted to IFSCA in USD unless otherwise specified Records: Books, records and documents must be maintained properly

[ ['Business Model and Lease Type Assessment', 'Identify whether the proposed model is operating lease, financial lease, hybrid lease, asset management support service, sale and leaseback or group entity structure.'], ['Entity Structuring in IFSC', 'Set up or identify the entity structure as Company, LLP, Trust or other permitted form in IFSC.'], ['Promoter / Partner / Trustee Jurisdiction Review', 'Confirm that promoter, partners or trustees are located in FATF-compliant jurisdiction.'], ['Capital Planning', 'Arrange owned fund requirement of USD 200,000 for operating lease or USD 3 million for financial / hybrid lease, as applicable.'], ['Document and Policy Preparation', 'Prepare business plan, ownership structure, financial documents, compliance policies, KYC/AML framework and governance documents.'], ['SWITS Application Filing', 'Submit the application on the IFSCA Single Window IT System along with prescribed fees and supporting documents.'], ['IFSCA Review and Clarifications', 'IFSCA may review eligibility, capital, promoter background, lease structure, asset details, business plan and compliance readiness.'], ['Grant of Certificate of Registration', 'Upon regulatory satisfaction, IFSCA may grant Certificate of Registration as Finance Company / Finance Unit for aircraft leasing activities.'], ['Post-Registration Operational Setup', 'Commence permitted activities, maintain books, file reports, comply with KYC/AML, maintain capital and meet ongoing reporting obligations.'] ].map(([title, body], index) => ( Step index + 1 title body )) The applicant shall not undertake permissible activities as a Lessor unless it has obtained Certificate of Registration from IFSCA.

Entity Documents: Certificate of incorporation / registration, constitutional documents, LLP agreement or trust deed as applicable IFSC Setup Documents: IFSC unit setup documents, office details, SEZ / IFSC approvals as applicable Promoter / Partner / Trustee Documents: KYC, FATF jurisdiction confirmation, ownership details, financial background and declarations Business Plan: Lease model, aircraft asset strategy, target lessees, revenue model, financial projections and risk framework Capital Documents: Proof of owned fund, bank statements, auditor certificate and capital infusion documents Governance Documents: Board / governing body approvals, authorised signatory details, corporate governance framework KYC / AML Documents: Policy aligned with IFSCA AML, CFT and KYC Guidelines Lease Structure Documents: Operating lease / financial lease / hybrid lease model, asset acquisition plan, sale and leaseback structure if applicable Group Entity Details: Details of group entities if asset management support services or group sharing structure is proposed Application Documents: SWITS application forms, fee payment proof and IFSCA-prescribed documents

Tax and fiscal benefits are subject to applicable law, eligibility, notifications and amendments. Applicants should obtain tax advice before finalising structure.

Capital Maintenance: Maintain applicable owned fund at all times Annual Financial Statements: Submit within 15 days from finalisation Regulatory Compliance Confirmation: Submit confirmation of compliance with applicable regulations and circulars Capital Compliance Confirmation: Submit confirmation and details of capital compliance Material Regulatory Action: Disclose material regulatory action against promoters, KMPs or controlling persons Financial Information: Submit in USD unless otherwise specified KYC / AML Compliance: Comply with IFSCA AML, CFT and KYC Guidelines Books and Records: Maintain books, records and documents as required Cape Town Convention: Comply with Cape Town Convention and Protocol and other applicable obligations Information Calls: Furnish information, documents or records as called by IFSCA

The revised framework contains specific restrictions for transactions involving persons resident in India. A Lessor cannot purchase, lease or otherwise acquire assets covered under the framework from persons resident in India where, after acquisition, the asset will be operated or used solely by persons resident in India or to provide services to persons resident in India. Acquisition from non-group Indian person: Restriction does not apply where acquisition is from a person who is not a group entity of the Lessor First import sale and leaseback: Restriction does not apply where acquisition is part of sale and leaseback of assets being imported into India for the first time Acquisition from Indian manufacturer: Restriction does not apply where the asset is acquired from a manufacturer of such asset in India This section is specific to aircraft leasing and should not be mixed with ship leasing restrictions.

An IFSC aircraft lessor may share office space or manpower or both with another aircraft lessor being a group entity, subject to applicable IFSCA circulars and Rule 21B of the SEZ Rules, 2006. Sharing arrangements should be properly documented and aligned with IFSCA and SEZ requirements.

Confusing ship leasing and aircraft leasing framework: Wrong regulatory content or application approach Wrong classification of operating vs financial lease: Incorrect capital and compliance assessment Insufficient owned fund planning: Application delay or regulatory concern Promoter not from FATF-compliant jurisdiction: Eligibility issue No clear lease structure: IFSCA may seek clarification Weak business plan: Regulatory query risk Ignoring person resident in India restrictions: Transaction structuring risk No KYC/AML framework: Compliance concern No clarity on currency and accounting: Reporting issue Failure to plan ongoing reports: Post-registration compliance gap

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CS Devyani Khambhati Designation: Compliance Expert | Estabizz Fintech Private Limited Expertise: IFSCA, RBI, SEBI, IRDAI, GIFT City registrations, aircraft leasing framework, finance company regulations, cross-border financial services and post-registration compliance. This content has been prepared from a regulatory advisory perspective to help aircraft lessors, aviation finance groups, investors and financial sector professionals understand the broad IFSCA framework for aircraft leasing in IFSC. This content is for general informational purposes only and should not be treated as legal, regulatory, tax, financial or investment advice. IFSCA requirements, application formats, capital thresholds, fee structures, tax benefits, compliance expectations and approval processes may change from time to time. Applicants should verify the latest regulatory position and obtain professional advice before filing any application with IFSCA.

Build your aircraft leasing setup in GIFT IFSC with structured regulatory support, lease model assessment, IFSC entity structuring, capital readiness review, SWITS application, business plan, documentation and post-registration compliance assistance. Speak to IFSCA Compliance Expert Apply for Aircraft Leasing Registration WhatsApp Estabizz Team