How to invest in GIFT City SEZ?

Various sectors are already operating in GIFT City SEZ. It is important to choose the sector (e.g., banking, fintech, or IT services) in which you are establishing the business. Move ahead by applying to register with the International Financial Services Centres Authority (IFSCA). Once you establish a legal business entity in GIFT City SEZ in compliance with the SEZ ACT, get approval for regulatory, environmental, and operational permits via a single-window clearance system.

What are the sectors operating in GIFT City SEZ?

The following sectors are operating in GIFT City SEZ: Banking Finance Company Insurance Capital Markets IT and ITeS Fintech Alternative Investment Funds (AIFs) Aircraft Leasing and Financing Global In-House Centre Bullion Exchange Education and Training Ancillary Services Ship Leasing

What social facilities are available or planned at GIFT City SEZ?

The social facilities planned at GIFT City SEZ include residential complexes, educational institutions, healthcare facilities, recreational areas, cultural and community centres, shopping malls, retail hospitality, public transportation with integrated transport systems, etc.

Gift City SEZ: Area, Features and Benefits

Gujarat International Finance Tec-City, or GIFT City, started in April 2015, is an initiative in India to serve as a global financial services and information technology hub. Situated between Ahmedabad and Gandhinagar in Gujarat, this ambitious project places an aspiration of placing India among the leading international financial centers, competing with global giants. GIFT City is conceptualised to position India on the international financial map, thus making it a competitive environment for offshore services.

GIFT City has a unique structure that combines advantages of a Special Economic Zone (SEZ), and its treatment as an offshore entity outside India's border. With a favourable regulatory framework, GIFT City offers the benefits of an SEZ, such as tax incentives, operational ease, and simplified regulations to attract businesses from all over the world.

An overview of GIFT City SEZ:

GIFT City has a special economic zone that comes under the SEZ Act 2005 to help export-oriented financial services and foreign direct investment. The International Financial Services Centers Authority (IFSCA) regulates all the activities in this economic ecosystem.

The government conceptualised GIFT City to address various strategic, developmental, and economic objectives for India and developed it in partnership with Infrastructure Leasing & Financial Services (IL&FS). This multi-service SEZ is divided into two main areas –
The processing area comprises IFSCs, insurance, offshore banking, IT/ITes, global trading exchanges, and other service units.
This includes the following facilities within the non-processing Gift City SEZ area: commercial and office buildings, residential flats, service apartments, hotels, food courts, shopping centres, medical centres, and other recreational facilities.

The GIFT City SEZ has addressed strategic economic goals, thus placing India on a larger scale among other global players in the financial services industry.

Build a successful Gift City Gandhinagar career in India’s growing financial hub.

Key Features of GIFT City SEZ

The following are the key features of GIFT City SEZ:

International Regulatory Framework: GIFT City SEZ is governed by the International Financial Services Centers Authority (IFSCA). These globally aligned regulations offer a robust, transparent, and business-friendly regulatory environment. IFSCA’s regulation enables financial institutions to conduct cross-border transactions under a unified framework.
Strong promoters: GIFT City is initiated by the Government of Gujarat and supported by the Government of India. Backing by the government builds credibility for establishing international business units within the GIFT City SEZ.
Sustainable world-class infrastructure: GIFT City is a sustainable and smart urban development model with state-of-the-art infrastructure. Features include high-speed connectivity, green buildings, advanced digital governance, round-the-clock power supply and water, and robust IT systems to support uninterrupted operations. Availability of these facilities makes the area more liveable.
Ease of business operation: Features such as streamlined single-window clearance for approvals and registration reduce delays along with simplifying business operations.
Tax incentives: GIFT City SEZ benefits include tax holidays (for 10 consecutive years) for entities operating within the framework. Exemptions granted on GST, capital gains tax, stamp duty and dividend distribution tax makes GIFT City attractive for the international businesses for setting up their units.
International financial services hub: GIFT SEZ is a new global destination for banking, capital markets, insurance, and fintech activities. It also hosts exchanges like India International Exchange (India INX) and NSE (National Stock Exchange) IFSC to facilitate trade. This makes GIFT City as an international hub to facilitate trade in one zone for easy accessibility.

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Benefits of GIFT City SEZ

GIFT City SEZ offers several benefits that make it an attractive destination for businesses and investors:

GIFT City SEZ offers great tax benefits.

Entities operating in GIFT City's International Financial Services Centre (IFSC) enjoy a 100% income tax exemption for 10 consecutive years out of 15 years, aligning it with global offshore destinations.

Along with this IFSC units have GST exemptions, duty free imports and exports permitted in the SEZ to make it cost-efficient for businesses to operate.

The GIFT City SEZ provides favourable infrastructure for the business to operate out of

Along with tax breaks, advanced infrastructure like reliable power supply, IT-enabled facilities, good connectivity and integrated transport networks increases operational efficiency , and reduces costs for the businesses to operate out of GIFT City.

The GIFT City SEZ provides the benefit of a true global network.

GIFT City is India's first IFSC that serves as an international hub for banking, IT, capital markets, insurance, and fintech activities, attracting both domestic and international businesses. This facilitates international operations and collaborations within GIFT City.

The GIFT City SEZ helps in job creation as well.

The GIFT City initiative has led to significant job creation, with over 20,000 people already working in the area. International businesses have good talent to hire from in the GIFT City region. Operations of global businesses foster skill development and knowledge transfer within the zone, and improve workforce capabilities.

Conclusion

To sum it up, GIFT City SEZ by the Government of India has created a unique ecosystem for international business operations and endless opportunities for people in the country. The tax incentives under the SEZ attract global entities to invest and operate within its premises. Features such as liberalised regulations, ease of operation, and top-class infrastructure make GIFT City as a global hub for financial and business operations. All the benefits the SEZ provides have set the ground for GIFT City to be a competitive destination for businesses seeking access to global markets.