Gift City India

GIFT City (Gujarat International Finance Tec-City) is India’s first smart city, hosting an International Financial Services Centre (IFSC). It is located strategically in Gandhinagar, Gujarat. It was developed to act as a catalyst for the country’s rapidly growing economy and international trade. With the inspiration of rapid economic development. The Government of India established this IFSC under the Special Economic Zones Act 2005.

The city has been designed to work as an international finance and business services hub. Advanced infrastructure and a business-friendly environment are facilitated there. The GIFT City welcomes companies in industries such as finance and technology with world-class facilities and focuses on sustainability. Coming out at 67th globally in the Global Financial Centers Index in 2023 from its previous ranking of 75 positions, GIFT City India is rapidly acquiring the status of an international financial hub.

Discover GIFT City Business Opportunities in India

Recently, the Government announced its plan to expand GIFT City India from its current 886 acres to over 3,300 acres of commercial, office, and residential space. It is conceptualized as a global financial and information technology services hub, designed to be at or above par with globally benchmarked financial centers such as New York, Singapore, London, Luxemburg, DIFC, etc.

Various GIFT City Business Opportunities are available as a growing number of financial institutions and businesses are establishing themselves in GIFT City India, including banking, ITeS, leasing, and family office units. GIFT City Technology Sector is focused on attracting and retaining skilled professionals by improving social infrastructure, connectivity, and accessibility, besides providing businesses with clarity on available tax and investment benefits and the applicability of regulatory reforms. Setting up in GIFT City comes with various benefits:

a) International Financial Services

GIFT City India offers cross-border banking, insurance, and capital market services through the only IFSC in India.

b) Banking and Fintech

Providing offshore banking and fintech innovation in a business-friendly regulative environment.

c) Capital Markets

Allow for international trading and raising of capital through exchanges of stock and commodities worldwide.

d) Insurance and Reinsurance

Provides renascent worldwide insurance and reinsurance businesses with very favorable regulatory conditions to prosper.

e) Investment Funds

An ideal domicile for investment funds of a global and domestic nature, providing attractive tax incentives.

f) IT and ITeS

A prime destination for IT, BPO, and software development companies leveraging advanced infrastructure.

g) International Trade and Commerce

Provides an attractive regulatory environment for global trading operations.

h) Real Estate and Infrastructure Development

Opportunities abound for developers in commercial and residential smart city projects.

i) Startups and Innovation Hubs

Supports fintech and tech startups with incubation and access to global markets.

j) Sustainability and Green Businesses

A platform for businesses focused on sustainable technology and eco-friendly infrastructure.

Gift City Tax Benefits & Other Features

Financial and Regulatory Benefits: It is called a Gift City Financial Services Hub due to the number of tax and regulatory advantages to the businesses. It is optimum for new ventures, making it a GIFT City Startup Hub.

a) Tax Incentives

Investing in GIFT City India provides substantial tax benefits designed to enhance profitability and ease of operations. It provides 100% income tax exemption for 10 consecutive years out of 15, significantly reducing tax liabilities. There are additional exemptions from dividend distribution tax (DDT), securities transaction tax (STT), and commodity transaction tax (CTT). Transactions executed by IFSC units are also exempt from goods and services tax (GST). The tax regime includes reduced minimum alternate tax and corporate tax rates, along with various indirect tax incentives, making GIFT City a highly attractive destination for businesses.

b) Reduced Regulatory Burdens

GIFT City India provides a less burdensome regulatory environment through a simpler regulatory framework with greater flexibility to support international business operations. Fast-tracking of approval processes and smooth compliance procedures under unified regulators reduce the scope for delays. Easy capital and foreign exchange regulations provide access to global financial markets, making the operations and expansions of companies easier internationally.

c) Special Economic Zone (SEZ) Status

Exemption on import-duty goods and services required by the business; The SEZ status allows single window interface for establishment and operation with minimum administrative hassle. Such businesses also extend a facility for 100% foreign ownership, re-invested profit, and unrestricted profit repatriation, adding ease towards the management and growth of international investments.

d) International Financial Services

GIFT City India is likely to strengthen one of the significant international financial service hubs, acting as an entry point for offshore banking, insurance, and capital markets. The city facilitates global fund management, access to international stock exchanges, as well as cross-border financial services. To this end, IFSCA is empowered under the Fund Management Regulations, 2022 to uncoil the rigid enforcement of regulations so as to smoothen the operations and investments in the financial sector.

e) Simplified Business Registration and Operations

GIFT City India has provisions for faster registration and approval processes, which reduce the time for establishment and expansion. Easy exit policies, flexibility in operations give enough scope to businesses to affect smooth transitions and adjust according to one’s needs, hence creating an opportune atmosphere for the growth and management of businesses.

World Class Infrastructure

GIFT City Infrastructure and Benefits is unparallel making it an optimal location. It offers:

a) Advanced IT Networks

GIFT City India will have high-speed internet connectivity and state-of-the-art IT infrastructure to ensure fluent and smooth digital communication and processes.

b) Eco-Friendly Buildings

All the buildings in GIFT City India are made under the concept of sustainable practices, with the incorporation of energy-efficient systems, green roofs, and proper waste disposal mechanisms to reduce environmental degradation.

c) Modern Office Spaces:

The city provides modern office facilities with the latest amenities to appeal to global enterprises and increase productivity.

d) Residential Complexes

The presence of high-class residential areas with all sorts of modern amenities and a comfortable living style supports a high quality of life among the residents.

e) Green Spaces

GIFT City India contains an abundance of green area and parks, which in turn support healthy, balanced living among its citizens within the urban setup.

Strategic Location and Connectivity

Establishing Operations in GIFT City is a strategic move for growth and expansion due to it’s excellent location and connectivity. It offers various benefits such as:

a) Prime Location

GIFT City finds itself at the heart of one of the most dynamic economic regions of India, owing to its strategic location between Ahmedabad and Gandhinagar in Gujarat.

b) Excellent Air Connectivity

The city is well connected due to Sardar Vallabhbhai Patel International Airport, Ahmedabad, with direct flights to major Indian and international cities.

c) Robust Road Networks

GIFT City has a network of four-lane highways and expressways that link it to other important cities and industrial centers, making access by road easy and convenient.

d) Efficient Rail Links

The city has proximity to major railway lines for swift and efficient rail connectivity with the rest of India.

e) Access to Key Markets

It offers convenient access to critical markets in India as well as financial hubs, making business and opportunities more accessible.

f) International Trade Routes

GIFT City’s connectivity supports access to international trade routes, therefore making the city an attractive hub for the expansion of global business.

Setting Up in Gift City India

If you want to take advantage of Global Business GIFT City, consider the below steps for Establishing Operations in GIFT City India.

Step 1: Understanding GIFT City’s Business Environment

For Business Registration GIFT City India is the best place. Gain a thorough understanding of the regulatory, financial, and operational landscape to make informed decisions about your business setup.

Step 2: Eligibility Criteria for Businesses

Determine your business’s eligibility to operate within GIFT City, focusing on SEZ-specific requirements that cater to different industries, apply for Unit SEZ approval with the Development Commissioner.

Step 3: Choosing the Right Business Structure

Select an appropriate business structure (LLP, Pvt. Ltd. Company, etc.) based on your operational needs using the Gift City office address and obtain PAN.

Step 4: Navigating the Business Registration Process

Follow the streamlined registration process facilitated by IFSC’s regulatory framework. Attend (virtually) Unit Approval Meeting held by DC.

Step 5: Office Space and Infrastructure

Identify office spaces within GIFT City, to suit your business enterprise needs, and lease or purchase them with the latest facilities available in the city. Receive Provisional Letter of Allotment from a Developer for an office space in GIFT IFSC.

Step 6: Compliance and Regulatory Requirements

GIFT City must follow all licensing-related requirements and other regulatory obligations, periodic reporting to concern authorities. Get all corporate registrations, like RCMC, GST, IEC, Eligibility Certificate, etc.

Step 7: Financial and Government Incentives Availing

The different types of financial incentives and government schemes providing various grants in GIFT City have also attracted businesses for growth and investment.

Step 8: Hiring and Workforce Considerations

Consider workforce needs, including hiring local talent and meeting employment compliance standards to build a strong operational team.

Step 9: Finalizing Setup and Starting Operations

Complete the setup process, finalize infrastructure needs, and commence business operations in GIFT City, taking full advantage of the city’s supportive ecosystem.

Why GIFT City Investment is a Smart Choice

a). Economic Incentives

Investing in GIFT City India offers a host of economic incentives designed to maximize business benefits:

i. Tax Exemptions

Under the Gujarat Special Economic Zones Act, 2009, businesses enjoy significant tax exemptions, including income tax on profits for a specified period, customs duties, and central excise duties.

ii. Government Grants and Schemes

GIFT City investors can access various government grant schemes and subsidies, including those under the Make in India and Startup India programs.

iii. Exemptions under the Companies Act

Companies operating in GIFT City benefit from certain exemptions and relaxations under the Companies Act, 2013, including easier compliance requirements for corporate governance and reduced regulatory burdens.

iv. FEMA Benefits

The Foreign Exchange Management Act (FEMA) provisions facilitate the easy movement of foreign capital into and out of GIFT City. This includes relaxed norms for foreign direct investment (FDI) and repatriation of earnings, making it simpler for international investors to participate and manage their investments.

b). Advanced Infrastructure and Facilities

GIFT City is designed with cutting-edge infrastructure to support efficient operations and global competitiveness:

i. High-Speed IT Networks

The city boasts modern IT infrastructure comprising high-speed internet, thereby having data centres at an internationally accepted level and supporting cross-border digital activities.

ii. Modern Facilities:

Firms enjoy world-class offices and commercial estates, which also conform to international standards on energy efficiency and environmental sustainability, as outlined in the Environment Protection Act of 1986.

iii. Efficient Transportation

Enhanced connectivity through well-maintained road networks, proximity to major airports, and efficient rail systems ensures smooth logistics and operational efficiency.

c). Strong Growth Potential and Government-Backed Initiatives

GIFT City India offers robust growth potential and is supported by strategic government initiatives:

i. Long-Term Returns

There is long-term return potential because the development of the city is in tune with long-term economic planning, thus assuring stability in growth and attractiveness of return on investment. Key frameworks like FSC and IFSC add to its role in world financial markets.

ii. Business-Friendly Regulatory Framework

The Gift City regulatory environment is built in such a way that it is friendly to business; various processes are streamlined to reduce bureaucratic red tape, including simplified licenses and permit procedures that follow international financial regulations set by bodies like SEBI.

iii. Ease of Foreign Capital Movement

FEMA allows easy mobility of foreign capital as part of free FDI, with repatriation of earnings. Such flexibility is essential when one tries to attract or manage investments from other countries.

GIFT City India Financial Services Hub: Unlocking Potential

a) Exploring GIFT City Technology Sector Growth

Gift City’s technology infrastructure is right on course, with world-class infrastructure and investment in smart technologies. This infrastructure is designed for a technology park and data centers supportive of innovation and research. Technology businesses are able to use top-class infrastructure that would also support the needs for research and development activities.

b) Business Registration in GIFT City India

In order to get your business registered in GIFT City, prepare the necessary documents that must include a business plan and proof of address, along with all the legal forms, for submission to the GIFT City Authority. The process for incorporation involves compliance with the Companies Act, 2013, and any other local regulations. Ensure meeting the requirements of the Foreign Exchange Management Act of India as far as foreign investments are concerned and those related to tax obligations under the Income Tax Act, 1961.

c) Establishing Operations in GIFT City

Establish your operations in GIFT City with state-of-the-art office spaces that boast high-speed internet and energy-efficient designs. It is very crucial that due compliances with local regulations are made, right from the Gujarat Special Economic Zones Act, 2009. Also, provide for compliance by the business venture with environmental regulations under the Environment Protection Act, 1986, and also the labor laws.

d) GIFT City Startup Hub: Nurturing Innovation

With GIFT City, a strong ecosystem for startups is created, affording easy access to incubators and accelerators to promote business enterprise initiatives. They shall further be assisted with innovation programs and competitions, and appropriate legal frameworks under the Startup India initiatives.

e) Global Business Opportunities in GIFT City

The strategic location and excellent connectivity of GIFT City India open great avenues for doing business globally. This connects one to the international route for trade and thus attracts more and more global investors with its favorable business environment. A business operating in GIFT City has to be aware of international trade regulations. It will have to adhere to the Foreign Trade (Development and Regulation) Act of 1992 for cross-border operations and investments. Opening the doors of business in GIFT City opens onto a global network and potential investment.

CONCLUSION

It is not only a business district, but GIFT City has been a transformational urban development that showcases India’s aspiration to become a global financial and technological hub. In fact, through a judicious mix of smart city features, regulatory advantages, and economic incentives, GIFT City India offers unparalleled opportunities for businesses to function in a progressive and globally connected environment.