🌐 IFSCA Regulatory Advisory🏦 Finance Company / Finance Unit Setup📊 Core & Non-Core Activity Structuring💼 GRCTC Advisory💰 USD 0.2 Million / USD 3 Million Owned Fund Guidance🖥️ SWIT Application Support Post-Registration Compliance

Finance Company in GIFT IFSC - Complete Regulatory Guide

Finance Company in GIFT IFSChas become one of the most powerful structures for global financial institutions, multinational groups, fintech platforms and treasury centres looking to operate from India's International Financial Services Centre. Under the IFSCA Finance Company framework, eligible entities may undertake lending, credit arrangements, investments, treasury operations, derivatives, factoring, forfaiting, leasing and other permitted financial activities from GIFT City, subject to registration and ongoing compliance.

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📅 2026
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⏱️ 25 min read
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👁️ Regulatory Guide
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Expert Reviewed
Focus: Finance Company in GIFT IFSC
Regulator
IFSCA
Location
GIFT City IFSC
Regulation
FC Regulations 2021
Structures
Finance Company / Finance Unit

Finance Company in GIFT IFSC: Quick Overview

Regulator

International Financial Services Centres Authority

Location

GIFT City - International Financial Services Centre, Gujarat, India

Governing Regulation

IFSCA Finance Company Regulations, 2021

Registration Type

Certificate of Registration as Finance Company or Finance Unit

Finance Company Structure

Separate incorporated entity in IFSC

Finance Unit Structure

Branch of an incorporated entity

Public Deposits

Not permitted

Banking Unit

Finance Company / Finance Unit cannot be registered as Banking Unit

Core Activity Capital

USD 3 million, subject to activity-specific requirement

Non-Core / Treasury Activity Capital

USD 0.2 million, subject to applicable framework

GRCTC Owned Fund

USD 0.2 million

Application System

IFSCA Single Window IT System / SWIT

Currency

Freely convertible foreign currency; INR account permitted for administrative and statutory expenses

Balance Sheet

Maintained in USD

Timeline

Indicative and subject to IFSCA review
The above details are indicative and must be evaluated based on the applicant's proposed activity, legal structure, ownership, promoter jurisdiction, capital plan, service recipient profile, FEMA position, and latest IFSCA circulars at the time of filing.

What is a Finance Company in GIFT IFSC?

A Finance Company in GIFT IFSC is a financial institution incorporated or set up within an International Financial Services Centre that undertakes permitted financial activities such as lending, credit arrangements, investments, treasury management, derivatives, leasing, factoring and other financial services.

The entity must obtain a Certificate of Registration from IFSCA before commencing operations. Unlike a traditional RBI-regulated NBFC operating in domestic India, a Finance Company in GIFT IFSC primarily operates in foreign currency and focuses on cross-border or international financial services.

Finance Company / Finance Unit cannot accept public deposits from residents or non-residents and cannot be registered with IFSCA as a Banking Unit.
ParticularDetails
RegulatorInternational Financial Services Centres Authority
Governing LawIFSCA Act, 2019
Primary RegulationIFSCA Finance Company Regulations, 2021
LocationGIFT City - International Financial Services Centre
Registration RequirementCertificate of Registration from IFSCA
Application ModeIFSCA Single Window IT System / SWIT
Permitted StructuresFinance Company or Finance Unit
Public Deposit RestrictionPublic deposits not permitted
Currency FrameworkFreely convertible foreign currency; INR account permitted for administrative and statutory expenses
Balance SheetUSD only
AML / KYCIFSCA AML, CFT and KYC requirements apply
FEMAApplicable where Indian residents or cross-border flows are involved

The IFSCA Finance Company framework allows financial institutions to operate within the IFSC ecosystem and provide financial services primarily in foreign currencies. It supports India's objective of onshoring international financial services that were historically undertaken from overseas jurisdictions.

Finance Company vs Finance Unit in IFSC

ParticularFinance CompanyFinance Unit
Legal NatureSeparately incorporated entityBranch of an incorporated entity
Setup FormSubsidiary, joint venture, newly incorporated company or other form specified by IFSCABranch of company incorporated in India or outside India
Public DepositsNot permittedNot permitted
Banking Unit StatusCannot be Banking UnitCannot be Banking Unit
Owned FundMaintained by Finance CompanyMaintained on unimpaired basis, and in some cases at parent level as permitted
Home Regulator NOCRequired where parent carrying regulated financial activity, wherever applicableRequired for core activities where applicant is regulated in home jurisdiction, wherever applicable
AccountsBalance sheet in USDAccounts of Finance Unit transactions must be distinct from parent

Who Should Apply for Finance Company in GIFT IFSC?

Global Financial Institutions

Foreign financial institutions seeking to establish treasury, financing or investment operations in India's IFSC.

NBFC Groups

Indian NBFC promoters planning to access international capital markets or structure cross-border finance operations.

Leasing Companies

Entities involved in aircraft leasing, ship leasing or equipment leasing from IFSC.

Corporate Treasury Centres

Multinational corporations managing liquidity, funding and treasury operations across group entities.

Investment and Financing Platforms

Groups engaged in structured finance, securitisation, credit arrangements or global investment activity.

Factoring and Trade Finance Businesses

Finance Companies intending to undertake receivable financing, factoring or forfaiting within IFSC.

Forms of Establishment for Finance Company in GIFT IFSC

StructureDescription
New CompanyNewly incorporated company under Companies Act, 2013 for IFSC operations
SubsidiarySubsidiary of existing financial institution or corporate group
Joint VentureJoint venture structure between Indian or foreign promoters
Finance UnitBranch of Indian or foreign company established in IFSC
Other Permitted StructureAny other structure permitted by IFSCA from time to time
The choice of structure must align with the proposed financial activities, ownership model, tax considerations, FEMA position, capital requirement and regulatory expectations.

Permitted Core Activities under IFSCA Finance Company Regulations

Core ActivityMeaning / Scope
LendingLoans, commitments, guarantees, credit enhancement, securitisation, financial lease and sale / purchase of portfolios
Factoring and ForfaitingSubject to IFSCA factoring registration requirements
InvestmentsSubscribing, acquiring, holding or transferring securities or other permitted instruments
DerivativesBuying or selling derivatives
Global / Regional Corporate Treasury CentreGRCTC activities under separate framework
Other Core ActivityAny other core activity as permitted by IFSCA
A Finance Company / Finance Unit undertaking one or more core activities with or without non-core activities, except GRCTC, generally requires minimum owned fund of USD 3 million or higher applicable amount.

Permitted Non-Core Activities under IFSCA Finance Company Regulations

Non-Core ActivityRemarks
Merchant BankingSubject to relevant framework
Authorised PersonSubject to applicable IFSCA conditions
Registrar and Share Transfer AgentSubject to specific registration
Trusteeship ServicesSubject to applicable framework
Investment Advisory ServicesSubject to applicable framework
Portfolio Management ServicesSubject to applicable framework
Operating LeaseIncludes aircraft lease, ship lease or other equipment as specified by IFSCA
International Trade Financing Services PlatformSubject to ITFS guidelines
Distribution of Financial ProductsIncludes mutual fund and insurance product distribution
Trading / Clearing MemberFor exchanges and clearing corporations in IFSC
Asset Management Support ServicesSubject to ancillary services framework
Facilitators of Permissible ActivitiesAs and when permitted by IFSCA
Activity without Customer InterfaceWith prior approval where classified as non-core
Other Non-Core ActivityAs permitted by IFSCA
Each non-core activity must comply with the respective framework specified by IFSCA for that activity.

Minimum Capital Requirement for Finance Company in GIFT IFSC

Activity CategoryMinimum Owned Fund
Non-Core Activities OnlyUSD 0.2 million or activity-specific requirement, whichever is higher
Core Financial ActivitiesUSD 3 million or activity-specific requirement, whichever is higher
Treasury Centre / GRCTC ActivitiesUSD 0.2 million or as prescribed
Factoring ActivityGoverned through Finance Company framework plus Factor registration requirements
Aircraft / Ship Operating LeaseUSD 0.2 million or framework-specific amount
Aircraft / Ship Financial LeaseUSD 3 million or framework-specific amount

What is Owned Fund?

Owned fund generally includes paid-up capital, free reserves, balance in share premium account and capital reserves arising from asset sale surplus. It excludes revaluation reserves, accumulated losses, book value of intangible assets and deferred revenue expenditure.

Owned Fund = Paid-up Capital + Free Reserves + Share Premium + Eligible Capital Reserves - Accumulated Losses - Intangible Assets - Deferred Revenue Expenditure
Where multiple activities are proposed, the applicant should maintain the higher of the minimum capital / owned fund / net worth prescribed for each activity or category of activity.

FATF Compliance Requirement for Finance Company in GIFT IFSC

The applicant entity and its promoters must originate from jurisdictions that comply with Financial Action Task Force standards. The parent or promoter should not be from a FATF high-risk jurisdiction subject to call for action.

AML Compliance Readiness

The applicant should demonstrate AML policy readiness and screening controls.

CFT Compliance Readiness

Controls for countering terrorist financing should be documented.

Clean Promoter Jurisdiction

Promoters and parent entities should not be from high-risk FATF jurisdictions.

Transparent Ownership Structure

Beneficial ownership and control should be clearly disclosed.

Regulatory Track Record

Regulatory history and supervisory standing may be reviewed.

Fit and Proper Declarations

Directors, KMPs and controlling persons should satisfy integrity expectations.

Prudential Norms for Finance Company in GIFT IFSC

RequirementPosition
Capital RatioMinimum 8% of regulatory capital to risk-weighted assets or such percentage as specified by IFSCA
Liquidity Coverage RatioMaintain LCR on standalone basis; Finance Unit may maintain through parent with IFSCA approval
Exposure CeilingExposure to single counterparty or connected group should not exceed 25% of available eligible capital base without IFSCA approval
Speculative TransactionsFinance Company / Unit shall not undertake or fund speculative transactions
Derivative Transactions by Non-Core EntitiesPermitted only for hedging underlying exposures
Certain categories such as GRCTC and non-core only entities may receive specific exemptions subject to Board-approved prudential policy and fit and proper criteria.

Risk Management Framework for Finance Company in GIFT IFSC

Credit Risk

Counterparty evaluation, exposure limits, credit monitoring and default risk controls.

Market Risk

Monitoring interest rate, currency, commodity and financial market exposures.

Liquidity Risk

Cash flow monitoring, liquidity buffers, funding plan and stress scenarios.

Operational Risk

Internal control, process documentation, system controls and audit trail.

Compliance Risk

Monitoring IFSCA regulations, FEMA, AML / KYC obligations and reporting.

Counterparty Risk

Risk assessment of banks, financial institutions, borrowers, group entities and counterparties.

Governance Requirements

Governance AreaRequirement
Corporate Governance PolicyBoard-approved governance policy
Risk Management PolicyBoard-approved risk framework
Activity Approval PolicyDelegation matrix and control framework for permissible activities
Board OversightPeriodic review of financial activities and risk exposures
Internal AuditInternal control and audit mechanism
Compliance FunctionCompliance monitoring and regulatory reporting
Change in ControlPrior approval / intimation as applicable

Global / Regional Corporate Treasury Centre under Finance Company in GIFT IFSC

A Finance Company / Finance Unit may undertake Global / Regional Corporate Treasury Centre activities under the specific GRCTC framework. GRCTC is designed to allow corporate groups to centralise treasury, liquidity, funding, risk management, re-invoicing and financial management functions from IFSC.

ParticularRequirement
Applicable FrameworkFramework for Finance Company / Finance Unit undertaking GRCTC activity dated April 04, 2025
Legal FormCompany or branch of a company incorporated in India or outside India
Owned FundUSD 0.2 million at all times
Qualified PersonnelAt least 5 qualified personnel based in IFSC including Head of Treasury and Compliance Officer before commencement
ApplicationThrough SWIT
Service RecipientsGroup entities and / or group entities of parent and / or branches of parent or group entities
FATF ConditionParent should not be from FATF high-risk jurisdiction subject to call for action
CommencementWithin 6 months from grant of CoR, extension up to 3 months may be granted
FeesApplication USD 1,000; Registration USD 12,500; Recurring USD 25,000 per annum

Permissible Activities for GRCTC

ActivityScope
Raising CapitalIssuance of equity shares
BorrowingIncluding inter-company deposits
Credit ArrangementsLending, credit guarantee, performance bonds and other credit facilities
InvestmentsFinancial instruments issued in IFSC or outside IFSC
DerivativesOTC and exchange-traded derivatives in IFSC or outside IFSC as permitted
Foreign Exchange TransactionsIn currencies specified by IFSCA
Factoring and ForfaitingSeparate factor registration required
Re-invoicing CentreFinancing purchase and sale of goods on behalf of service recipients without taking physical possession
Liquidity ManagementFund pooling, cash concentration, payment processing and surplus fund management
Financial Counterparty ManagementBanks, rating agencies, valuation, treasury accounting, covenant testing and audit trail
Insurance / Pension ObligationsManaging group obligations towards insurance and pension commitments
Advisory ServicesFinancial management, financial risk management, funding and capital market activities
Holding CompanyPermitted holding company activity
Other ActivityWith prior approval of IFSCA
A GRCTC intending to undertake factoring and forfaiting must obtain registration under IFSCA Registration of Factors and Registration of Assignment of Receivables Regulations, 2024.

Factoring and Forfaiting under IFSCA Finance Company Framework

Factoring and forfaiting may be undertaken as a core activity by a Finance Company / Finance Unit, subject to the IFSCA Registration of Factors and Registration of Assignment of Receivables Regulations, 2024.

RequirementPosition
RegistrationFactor must obtain certificate of registration from IFSCA
Pre-conditionFactor must have Certificate of Registration under IFSCA Finance Company Regulations, 2021
ExperienceRelevant Persons should possess adequate experience in factoring
InfrastructureAdequate office space, equipment, communication facilities and manpower
Fit and ProperFactor and Relevant Persons must satisfy fit and proper requirements
Financial SoundnessRequired
CommencementFactoring business must commence within six months from grant of CoR
TReDS FilingAssignment of receivables financed through TReDS must be filed with Central Registry within prescribed timelines

Conduct of Factoring Business in IFSC

Direct Factoring

The Factor may purchase receivables directly from businesses or assignors.

Platform-Based Factoring

Factoring may be undertaken through ITFS or trade finance platforms.

Receivable Assignment

Receivables are assigned in favour of the Factor.

Central Registry Filing

Where trade receivables are financed through TReDS, filing must be made with the Central Registry within prescribed time.

Trade Finance Use Case

Suitable for exporters, importers, MSMEs, supply chain participants and global trade finance businesses.

Currency of Operations and Balance Sheet

AreaRequirement
OperationsFreely convertible foreign currency
INR Business TransactionsMay be permitted if denominated in INR but settled in freely convertible foreign currency, as specified
INR AccountPermitted from freely convertible foreign currency for administrative and statutory expenses
Balance SheetMaintained only in USD
Finance Unit AccountsTransaction accounts must be distinct from parent
GRCTC Outside IFSC TransactionsMay undertake transactions outside IFSC in currencies other than specified foreign currencies
SNRR AccountGRCTC may open SNRR account with authorised dealer in India for business-related transactions outside IFSC

Step-by-Step Process for Finance Company in GIFT IFSC

Step 1

Business Model and Activity Assessment

Identify whether proposed activity is core, non-core, GRCTC, factoring, leasing, holding company or other permitted activity.

Step 2

Entity Structure Selection

Evaluate Finance Company or Finance Unit structure, subsidiary, joint venture, newly incorporated company, branch or other permitted form.

Step 3

Promoter / Parent and FATF Review

Check promoter jurisdiction, parent background, home regulator NOC requirement and FATF compliance.

Step 4

Owned Fund Planning

Determine applicable owned fund based on proposed activities and arrange capital / parent support as required.

Step 5

Document and Policy Preparation

Prepare business plan, financial projections, prudential policy, risk management policy, corporate governance policy, KYC/AML framework and activity-specific policy.

Step 6

SWIT Application Filing

Submit application through IFSCA Single Window IT System with documents and applicable application fee.

Step 7

Provisional Registration

IFSCA may issue provisional registration if the application prima facie satisfies conditions.

Step 8

Condition Compliance

Fulfil capital, infrastructure, personnel, LoA and registration fee requirements.

Step 9

Grant of Certificate of Registration

Upon IFSCA satisfaction and receipt of specified fees, IFSCA may grant Certificate of Registration.

Step 10

Commencement of Operations

Commence permitted activities only after grant of CoR and maintain valid SEZ Letter of Approval where applicable.

Step 11

Post-Registration Compliance

Maintain owned fund, file reports, comply with KYC/AML, governance, disclosure, fees and activity-specific conditions.

Provisional Registration and Deficiency Rectification

SituationRegulatory Position
Provisional RegistrationMay be granted where applicant requires additional time to fulfil specific conditions
Deficiency CommunicationIFSCA may communicate deficiencies in application
Rectification PeriodApplicant may be given 30 days to rectify deficiencies
Failure to RectifyApplication may be refused
Opportunity of Written SubmissionApplicant should receive opportunity to make submissions before refusal
The application should be complete and properly supported at the first filing stage to reduce avoidable query cycles.

Documents Required for Finance Company in GIFT IFSC

CategoryDocuments / Information
Entity DocumentsCertificate of incorporation / registration, constitutional documents, board resolution, PAN / tax details and registered office details
IFSC Setup DocumentsIFSC unit setup documents, SEZ Letter of Approval, office details and infrastructure plan
Promoter / Parent DocumentsOwnership structure, FATF jurisdiction confirmation, financial statements, group profile, regulator NOC where applicable
Activity Scope NoteDescription of proposed core / non-core / GRCTC / factoring / leasing / holding company activity
Business PlanRevenue model, service recipients, target market, financial projections, risk framework and operational roadmap
Capital DocumentsOwned fund certificate, capital infusion proof, bank statements, parent undertaking where applicable
Fit and Proper DocumentsDeclarations for applicant, KMPs, controlling persons and relevant persons
Governance DocumentsCorporate governance policy, risk management policy, prudential policy, delegation matrix and Board-approved activity policy
KYC / AML DocumentsKYC/AML/CFT policy aligned with applicable IFSCA guidelines
GRCTC DocumentsService recipient list, Head of Treasury and Compliance Officer details, personnel plan and treasury policy
Factoring DocumentsFactor registration documents, receivables assignment process, TReDS / Central Registry filing process
Application DocumentsSWIT application, fee payment proof and IFSCA-prescribed forms

Government Fees for Finance Company in GIFT IFSC

CategoryApplication FeeRegistration FeeAnnual Recurring Fee
Finance Company / Unit undertaking core activitiesUSD 1,000USD 12,500USD 12,500
Finance Company / Unit undertaking GRCTCUSD 1,000USD 12,500USD 25,000
Permissible activities without customer interfaceUSD 1,000USD 12,500USD 12,500
Factoring RegistrationAs prescribed by IFSCAAs prescribed by IFSCAAs prescribed by IFSCA
Application without applicable fee shall not be entertained. Registration fee is payable within 15 days of intimation of provisional or in-principle approval, where applicable. Recurring fee for first year is calculated on a pro-rata basis. For subsequent years, flat recurring fee becomes due on April 1 and payable by April 30. Interest on delayed fee payment is 0.75% per month or part thereof. Delay or non-submission of periodic reports attracts USD 100 per month or part thereof for each instance. Change in management or control processing fee is 20% of licence / registration / recognition / authorisation fee.
Fees should be verified from the latest IFSCA fee circular applicable at the time of filing.

Indicative Timeline for Finance Company in GIFT IFSC

StageEstimated Duration
Business Structuring2 to 3 weeks
Application Preparation1 to 2 weeks
Regulatory Review4 to 8 weeks or more
Query ResolutionCase-specific
Total Estimated Timeline6 to 10 weeks or longer, depending on IFSCA review
Once registration is granted, the company must commence operations within six months unless an extension is approved by IFSCA.

Corporate Governance and Disclosure Requirements

RequirementPosition
Corporate Governance PolicyRequired for applicable Finance Companies / Units
Risk Management PolicyRequired where applicable and should cover identification, measurement, monitoring and management of risks
Board-approved Activity PolicyRequired for undertaking permissible activities
Policy ReviewBoard should review policies periodically
Prior Approval for Change in ControlRequired for Finance Company where mergers, acquisitions, takeover or change in management results in change in control of at least 20% share capital or business decision authority
Finance Unit Parent ChangeMust be intimated to IFSCA within 15 days from event
Corporate governance guidelines were amended in 2025 to clarify applicability and exclude GRCTC from certain generic / detailed governance guidelines, while GRCTC remains subject to its own governance framework and Board-approved policies.

KYC, AML and CFT Requirements

Finance Companies and Finance Units must follow KYC norms, AML and CFT requirements as applicable to IFSC entities. GRCTC entities must adhere to IFSCA AML, CFT and KYC Guidelines, 2022, as amended, to the extent applicable.

Customer Due Diligence

Customer and counterparty due diligence must be properly documented.

Beneficial Ownership

Ownership and control checks should be built into onboarding.

Sanctions Screening

FATF, sanctions and risk jurisdiction screening should be applied.

Transaction Monitoring

Transactions should be monitored for suspicious or unusual patterns.

Record Maintenance

KYC, transaction and approval records should be retained.

STR Escalation

Suspicious transaction escalation process should be defined.

Board AML Policy

Board-approved AML policy should be maintained.

Compliance Oversight

Compliance officer oversight should be demonstrable.

Why GIFT IFSC for Finance Company Setup?

Dedicated Unified Regulator

IFSCA operates as a unified financial services regulator for IFSC.

Full Convertibility with Foreign Currencies

GIFT IFSC supports operations in specified foreign currencies.

Globally Benchmarked Regulations

The IFSC framework is designed to align with international financial services practices.

Attractive Tax Regime

Eligible IFSC units may avail tax benefits subject to applicable law.

Cost and Talent Advantage

India professional talent pool and GIFT City ecosystem support efficient operations.

Onshoring Offshore Financial Services

GIFT IFSC helps bring international financial services activity from overseas jurisdictions into India.

Wide Financial Ecosystem

Banking, funds, capital markets, insurance, aircraft leasing, ship leasing, treasury centres, ITFS and finance company activities operate within the IFSC ecosystem.
Tax, FEMA, SEZ and state incentives are subject to eligibility, notifications, approvals and amendments. Professional tax and FEMA advice should be obtained before finalising the structure.

Ongoing Compliance for IFSCA Finance Companies / Units

Compliance AreaRequirement
Owned Fund MaintenanceMaintain applicable owned fund at all times
Prudential NormsCapital ratio, LCR and exposure ceiling as applicable
KYC / AMLFollow applicable IFSCA KYC, AML and CFT requirements
Financial ReportingFinancial reporting to IFSCA in USD unless otherwise specified
Operational ReportingFurnish operational information in manner, interval and form specified by IFSCA
Balance SheetMaintain balance sheet in USD
Change in ControlPrior approval / intimation as applicable
Material ChangesInform IFSCA of relevant changes
Activity-Specific ReportingFollow additional reporting under GRCTC, factoring, leasing, ITFS or other framework
Fee CompliancePay recurring and applicable fees within prescribed timelines
Report Delay ChargesUSD 100 per month or part thereof for delayed / non-submission, subject to fee circular

NBFC vs Finance Company in GIFT IFSC

ParticularNBFC in IndiaFinance Company in GIFT IFSC
RegulatorReserve Bank of IndiaInternational Financial Services Centres Authority
Governing LawRBI Act and RBI NBFC DirectionsIFSCA Finance Company Regulations, 2021
Operational JurisdictionDomestic IndiaGIFT IFSC / International Financial Services Centre
CurrencyPrimarily INRFreely convertible foreign currency
Typical BusinessDomestic lending and financial intermediationCross-border finance, treasury, investment, leasing, factoring and financial services
Client BaseIndian borrowers and businessesGroup entities, service recipients and international counterparties
Minimum CapitalAs per RBI NBFC categoryUSD 0.2 million / USD 3 million depending on activity
Corporate TreasuryGenerally not a standard NBFC activityGRCTC specifically permitted
Derivative TransactionsRestricted and regulatedPermitted within IFSCA framework
Tax EnvironmentDomestic tax frameworkIFSC tax framework, subject to applicable law
LocationAnywhere in IndiaGIFT IFSC

Action in Case of Default

If a Finance Company or Finance Unit fails to fulfil any conditions subject to which registration has been granted, IFSCA may take action including suspension, withdrawal or cancellation of registration after giving opportunity of making submissions.

DefaultPossible Regulatory Action
Failure to maintain owned fundSupervisory action or registration risk
Violation of activity scopeRestriction or cancellation risk
KYC / AML non-complianceRegulatory action
Failure to submit reportsCharges and supervisory action
Failure to pay feesInterest and possible regulatory consequences
Speculative transactionRegulatory concern
Change in control without approvalEnforcement risk
Non-compliance with CoR conditionsSuspension, withdrawal or cancellation

Common Mistakes in Finance Company in GIFT IFSC

MistakeRisk
Confusing Finance Company with RBI NBFCWrong regulatory positioning
Wrong classification of core and non-core activityIncorrect capital and application approach
Ignoring activity-specific frameworksQuery or rejection risk
Insufficient owned fund planningApplication delay
Missing home regulator NOCEligibility gap
Promoter not from FATF-compliant jurisdictionRegulatory concern
No clear business planIFSCA queries
No prudential / risk policyGovernance gap
No KYC/AML frameworkCompliance gap
Incorrect fee paymentApplication not entertained or delayed
No SEZ / LoA planningOperational delay
No USD balance sheet planningReporting issue

How Estabizz Helps with Finance Company in GIFT IFSC

Activity Classification

We help identify whether the proposed activity is core, non-core, GRCTC, factoring, leasing, holding company or activity without customer interface.

IFSC Entity Structuring

We assist in evaluating Finance Company vs Finance Unit, subsidiary, branch, joint venture, LLP / trust possibility for non-core activities and group structure.

Owned Fund Readiness

We assist in mapping USD 0.2 million, USD 3 million or activity-specific owned fund requirements and supporting documentation.

Business Plan and Financial Projection

We prepare regulator-facing business plans, activity notes, service recipient details, revenue model, financial projections and operational roadmap.

Policy Documentation

We assist with prudential policy, risk management policy, corporate governance policy, KYC/AML policy and activity-specific policy documents.

GRCTC Advisory

We support GRCTC setup, service recipient mapping, treasury activity classification, Head of Treasury and Compliance Officer documentation and SWIT filing.

Factoring Registration Support

We assist Finance Companies intending to undertake factoring and forfaiting with Factor registration documentation.

SWIT Application and Query Support

We support SWIT application preparation, fee documentation and structured responses to IFSCA queries.

Post-Registration Compliance

We support annual and periodic reporting, fee compliance, change approvals, policy reviews, KYC/AML compliance and regulatory update tracking.

Ticket-Based Execution

Estabizz follows a structured task-tracking system so clients receive organised updates throughout the engagement.

Why Choose Estabizz for Finance Company in GIFT IFSC?

IFSCA Regulatory Expertise

Our team works across IFSCA licensing and compliance matters and understands IFSC regulatory expectations.

Finance Activity Structuring

We help clients classify activity correctly across core, non-core, GRCTC, factoring, leasing and holding company structures.

Business Plan Strength

We prepare regulator-facing business plans and financial projections suitable for IFSC financial institutions.

Multi-Regulator Experience

Estabizz experience across RBI, SEBI, IRDAI and IFSCA enables a wider financial regulatory perspective.

100+ Associate Professionals

Our professional network supports legal, finance, compliance, documentation and regulatory advisory requirements.

End-to-End Support

From IFSC structuring to SWIT application, IFSCA query support and post-registration compliance, we provide organised professional handholding.

FAQs on Finance Company in GIFT IFSC

1. What is a Finance Company in GIFT IFSC?

A Finance Company in GIFT IFSC is an entity registered with IFSCA to undertake permitted financial activities such as lending, investments, treasury management, derivatives, liquidity management and financial advisory within the IFSC ecosystem.

2. Who regulates Finance Companies in GIFT IFSC?

Finance Companies and Finance Units in IFSC are regulated by the International Financial Services Centres Authority.

3. What is the difference between Finance Company and Finance Unit?

A Finance Company is a separately incorporated entity in IFSC, while a Finance Unit is a branch of an incorporated entity permitted to undertake specified activities in IFSC.

4. Can a Finance Company accept public deposits?

No. Finance Company and Finance Unit cannot accept public deposits from residents or non-residents.

5. Can a Finance Company also be a Banking Unit?

No. A Finance Company or Finance Unit cannot be registered with IFSCA as a Banking Unit.

6. What are permitted core activities?

Core activities include lending, commitments, guarantees, credit enhancement, securitisation, financial lease, sale and purchase of portfolios, factoring, forfaiting, investments, derivatives, GRCTC and other permitted core activities.

7. What are permitted non-core activities?

Non-core activities include merchant banking, investment advisory, portfolio management, operating lease, ITFS, distribution of financial products, trading and clearing member activities, asset management support services and other activities permitted by IFSCA.

8. Is a Finance Company in IFSC the same as an NBFC?

No. An NBFC is regulated by RBI and operates mainly in domestic India, while a Finance Company in GIFT IFSC is regulated by IFSCA and generally undertakes international financial services in foreign currency.

9. What is the minimum owned fund for non-core activities?

The minimum owned fund is generally higher of USD 0.2 million or the specific amount required for the proposed activity, or any higher amount specified by IFSCA.

10. What is the minimum owned fund for core activities?

For core activities, except GRCTC, the minimum owned fund is generally higher of USD 3 million, activity-specific capital requirement or any higher amount specified by IFSCA.

11. What is the owned fund requirement for GRCTC?

A Finance Company / Finance Unit undertaking GRCTC activity must maintain minimum owned fund of USD 0.2 million at all times.

12. What is GRCTC?

GRCTC means Global / Regional Corporate Treasury Centre, which allows group treasury, liquidity, funding, risk management, derivative, re-invoicing, factoring, advisory and financial management activities for eligible service recipients.

13. Can a GRCTC undertake factoring and forfaiting?

Yes, but it must obtain registration under IFSCA Registration of Factors and Registration of Assignment of Receivables Regulations, 2024 before undertaking factoring and forfaiting.

14. Is application filed through SWIT?

Yes. Applications are filed through IFSCA Single Window IT System.

15. Is provisional registration possible?

Yes. IFSCA may issue provisional registration where the application prima facie satisfies requirements, but it does not automatically guarantee final registration.

16. When can business commence?

Business can commence only after receipt of Certificate of Registration and fulfilment of applicable conditions, including valid SEZ Letter of Approval where applicable.

17. What currency can Finance Company use?

Operations are generally carried out in freely convertible foreign currency. INR account may be maintained for administrative and statutory expenses as permitted.

18. In which currency must balance sheet be maintained?

Balance sheet must be maintained in United States Dollars.

19. Are prudential norms applicable?

Prudential norms such as capital ratio, liquidity coverage ratio and exposure ceiling apply where relevant, subject to category-specific exemptions.

20. What is the capital ratio requirement?

The minimum capital ratio is 8% of regulatory capital to risk-weighted assets, or such percentage as specified by IFSCA.

21. What is the exposure ceiling?

Exposure to a single counterparty or connected group should not exceed 25% of available eligible capital base without IFSCA approval.

22. Can Finance Company undertake speculative transactions?

No. Finance Company / Finance Unit shall not undertake or fund speculative transactions.

23. Is home regulator NOC required?

Home regulator NOC may be required where the parent or applicant carries on regulated financial activity in its home jurisdiction, wherever applicable.

24. Is FATF jurisdiction requirement applicable?

Yes. Applicant entity and / or promoters should be from FATF-compliant jurisdiction and comply with AML/CFT standards.

25. Is prior approval required for change in control?

Yes, prescribed mergers, acquisitions, takeovers or change in management resulting in change in control require IFSCA approval or intimation as applicable.

26. What are the fees for Finance Company core activity registration?

As per the FY 2026-27 fee circular, application fee is USD 1,000, registration fee is USD 12,500 and annual recurring fee is USD 12,500 for specified core activities.

27. What are the fees for GRCTC?

As per the FY 2026-27 fee circular, application fee is USD 1,000, registration fee is USD 12,500 and annual recurring fee is USD 25,000.

28. Can IFSCA cancel registration?

Yes. IFSCA may suspend, withdraw or cancel registration if the Finance Company / Unit fails to comply with registration conditions, after giving opportunity to make submissions.

29. How can Estabizz help with Finance Company in GIFT IFSC?

Estabizz assists with activity classification, IFSC entity structuring, owned fund readiness, business plan, policy drafting, SWIT application, IFSCA query support and post-registration compliance.

Reviewed by Estabizz Compliance Expert

Reviewed by: CS Devyani Khambhati

Designation: Compliance Expert | Estabizz Fintech Private Limited

Expertise: IFSCA, RBI, SEBI, IRDAI, GIFT City registrations, Finance Company Regulations, GRCTC framework, factoring registration, cross-border financial services and post-registration compliance.

This content has been prepared from a regulatory advisory perspective to help financial groups, treasury centres, fintech founders, corporate groups and financial institutions understand the broad IFSCA framework for Finance Company / Finance Unit registration in GIFT 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, fee structures, capital thresholds, prudential norms, tax benefits, FEMA implications, 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.

Start Your Finance Company in GIFT IFSC Journey with Estabizz

Build your Finance Company or Finance Unit setup in GIFT IFSC with structured regulatory support, activity classification, IFSC entity structuring, owned fund readiness review, SWIT application, business plan, policy documentation and post-registration compliance assistance.

Start Your Finance Company in GIFT IFSC Journey with Estabizz

Build your Finance Company or Finance Unit setup in GIFT IFSC with structured regulatory support, business model assessment, IFSC entity structuring, owned fund readiness review, GRCTC advisory, factoring registration support, SWIT application, policy drafting and post-registration compliance assistance.