Services Allowed in GIFT City
Ask most business owners what happens in GIFT City and you will hear one word: banking. But did you know a chartered accountancy firm can now serve global clients from GIFT City as a registered service provider? Or that a shipping company, a fintech startup or a family office can each hold its own licence there?
So which services are actually allowed? Which ones are off-limits? And what does it take to get the licence that fits your business?
Is GIFT City Only for Banks and Big Corporates?
These questions matter more than ever. GIFT IFSC now has 1,260 final registrations and banking assets above USD 120 billion (IFSCA, June 2026). Standard Chartered received approval in August 2026 to offer wealth management from GIFT City. Bank of Baroda raised USD 500 million through its GIFT City unit in March 2026. In September 2026, GIFT City climbed nine places to 37th in the Global Financial Centres Index.
This guide maps every major service allowed in GIFT City, the boundaries you must respect, and a clear, step-by-step route to entry.
Why This Topic Matters Now?
GIFT City is no longer a one-product zone. In the last three years, the regulator has steadily widened what is allowed:
- January 2024: Book-keeping, accounting, taxation and financial crime compliance were notified as financial services in IFSC, opening the door for professional firms.
- July 2025: IFSCA brought in the TechFin and Ancillary Services Regulations, 2025, covering technology, data and professional support services.
- February 2026: Union Budget 2026-27 extended the tax holiday for IFSC units to 20 consecutive years out of 25, with a 15% rate after that.
- April to September 2026: IFSCA allowed leasing SPVs, notified market abuse rules for securities markets, and began consulting on dual listing of Indian companies.
In short, the menu has grown, and so has the opportunity for businesses that were never considered "financial" before.
The 12 Service Categories Allowed in GIFT IFSC
Under the International Financial Services Centres Authority Act, 2019, IFSCA regulates financial products, financial services and financial institutions in the IFSC. Each service below has its own regulation, eligibility rules and capital requirement.
Financial services
- Banking: IFSC Banking Units (IBUs) offer foreign currency loans, deposits from eligible clients, trade finance and FX. Thirty-seven banks operate here, including HSBC, Citi, JP Morgan, DBS and SBI.
- Capital markets: Two international exchanges, NSE IX and India INX, offer derivatives, debt listings and global stock access. GIFT Nifty trades here.
- Fund management: AIFs, family investment funds, retail schemes and portfolio management. Fund commitments have crossed USD 45 billion.
- Insurance: Insurance and reinsurance offices and intermediaries. Gross premiums roughly quadrupled to USD 648.7 million in FY26 (Business Standard).
- Finance companies and treasury centres: Lending, factoring, ITFS trade finance and Global or Regional Corporate Treasury Centres.
- Aircraft and ship leasing: Operating and finance leases. Aircraft and ship assets leased have reached 454.
- Bullion: Trading through the India International Bullion Exchange (IIBX).
Professional, technology and support services
- BATF services: Book-keeping, accounting, taxation and financial crime compliance for non-resident clients.
- TechFin and ancillary services: Technology, data, back-office and professional support services to IFSC financial institutions. IFSCA counts 127 such providers.
- Global In-House Centres (GICs): Support services exclusively for a group's own financial services entities worldwide.
- FinTech: Payments and innovative solutions, including a regulatory sandbox for testing new products.
- Foreign universities: Deakin, Wollongong, Queen's University Belfast and Coventry are registered to offer programmes in finance, fintech and technology.
What Is Allowed, and What Is Not
GIFT IFSC is treated as a foreign jurisdiction for exchange control purposes. That single principle explains most of the boundaries.
A common mistake
Many businesses assume they can "move" existing Indian work to GIFT City for the tax holiday. They cannot. For units commencing from 1 April 2026, the tax holiday is not available if the unit is formed by splitting up or reconstructing an existing Indian business. For BATF services, existing contracts cannot be transferred from Indian group entities either.
Two further boundaries are worth knowing. First, IFSC units can spend in rupees only for administrative and statutory expenses; all other business is in foreign currency. Second, BATF providers can serve only non-resident clients, and none from jurisdictions FATF identifies as high-risk.
Step-by-Step: How to Enter GIFT City
Whatever the service, the route to a licence follows a similar path through IFSCA's Single Window IT System (SWIT), which brings IFSCA registration and SEZ approval into one workflow.
- Step 1: Choose your service - Identify the right IFSCA regulation: banking, fund management, finance company, BATF, ancillary or another.
- Step 2: Check eligibility - Confirm promoter track record, a FATF-compliant home jurisdiction, fit-and-proper directors and any home regulator NOC.
- Step 3: Prepare the business plan - Set out activities, target clients, projections, staffing and capital.
- Step 4: Secure office space - Take premises in the GIFT IFSC SEZ. BATF providers, for instance, need at least 60 sq. ft. per employee.
- Step 5: Apply on SWIT - File the application with the prescribed fee.
- Step 6: Get in-principle approval - Incorporate, bring in capital and appoint your Principal Officer and Compliance Officer.
- Step 7: Receive the Certificate of Registration - Open your IBU account and complete PAN, GST and LUT registrations.
- Step 8: Start and stay compliant - Maintain reporting, audits, AML/KYC, governance and renewals.
Documents You Will Need
Requirements vary by regulation, and IFSCA can ask for more during review. Preparing a complete file up front is the single biggest factor in a faster approval.
Real Stories: Brands Using GIFT City Today
- Standard Chartered expands into wealth management: In August 2026, Standard Chartered received IFSCA approval to roll out wealth management services from GIFT City (Business Standard, 6 August 2026). It shows how global banks are moving beyond lending to serve Indian and NRI wealth from Indian soil.
- Bank of Baroda raises USD 500 million: In March 2026, Bank of Baroda raised USD 500 million through a five-year syndicated loan via its GIFT City IFSC unit (Business Standard, 12 March 2026), a clear example of GIFT City as a dollar-funding hub.
- Corporates centralise treasury: ArcelorMittal holds approvals for two treasury centres, while Adani Group, Bharti Airtel and Genpact are among firms planning treasury operations (Reuters, May 2026).
- Airlines bring leasing home: IndiGo, Air India and Akasa Air run leasing arms in GIFT IFSC, with plans to lease over 200 aircraft through the zone.
- Global universities open campuses: Deakin University, University of Wollongong, Queen's University Belfast and Coventry University are registered to set up campuses in GIFT City, building the talent pipeline the financial centre needs.
Before You Plan Your Entry: Things to Consider
The businesses that succeed in GIFT City treat it as a real operating base, not a tax address. They pick the right licence, staff it properly, keep clean group structures and build compliance in from the start.
The Future of Services in GIFT City
The direction of travel is clear. IFSCA is consulting on direct listings and dual listing of Indian companies, has proposed a unique KYC ID across GIFT City entities, and has notified market abuse rules for its securities markets. The government is considering real-time euro settlement at GIFT City to support trade with the EU. Each step adds new services and new users.
For professional firms, fintechs and mid-sized businesses, the window is now. The rules are clearer, the ecosystem is deeper, and the 20-year tax runway rewards early entry.
The Major Crux
In one line: GIFT City now welcomes far more than banks: from accounting and fintech to leasing, funds and universities. Choosing the right licence and respecting the foreign-currency and no-splitting rules decides whether your entry succeeds.
Summary: Key Takeaways
- GIFT IFSC allows 12 broad service categories, each under its own IFSCA regulation.
- Professional services such as book-keeping, accounting, taxation and compliance are now permitted for non-resident clients.
- Business is in foreign currency; rupees only for administrative expenses.
- Splitting an existing Indian business or transferring existing contracts is not allowed for key benefits.
- Entry follows eight steps through IFSCA's SWIT portal, typically over a few months.
- Standard Chartered, Bank of Baroda, ArcelorMittal, IndiGo and leading universities are already active.
How Panchal S K & Associates Can Help
At Panchal S K & Associates (PSK), we advise businesses, professional firms, NBFCs and fintechs on regulatory, tax and compliance matters across RBI, SEBI and IFSCA frameworks. For your GIFT City journey, we support you at every stage:
| Stage | How PSK supports you |
|---|---|
| Service selection | Identify the right IFSCA licence for your business model and clients |
| Eligibility and structuring | Promoter checks, FEMA/ODI compliance, avoiding the splitting trap |
| Application | Business plan, SWIT application, documentation and IFSCA/SEZ coordination |
| Setup | Incorporation, capital, IBU bank account, PAN, GST and LUT |
| Ongoing compliance | Reporting, audits, AML/KYC, transfer pricing and tax holiday claims |
Frequently Asked Questions
Which services are allowed in GIFT City?
Banking, capital markets, fund management, insurance, finance companies, treasury centres, aircraft and ship leasing, bullion, fintech, book-keeping, accounting and taxation (BATF), ancillary services, global in-house centres and foreign universities, each under its own IFSCA regulation.
Can a CA firm operate from GIFT City?
Yes. Firms can register to provide book-keeping, accounting, taxation and financial crime compliance services to non-resident clients, subject to IFSCA's BATF Regulations.
Can GIFT City entities transact in Indian rupees?
Only for administrative and statutory expenses. Business transactions must be in freely convertible foreign currency.
What is not allowed in GIFT City?
Routine INR business, units formed by splitting an existing Indian business, transferring existing Indian group contracts (for BATF), clients from FATF high-risk jurisdictions, and any regulated activity without IFSCA registration.
How long does it take to get registered?
Typically a few months, depending on the service, the completeness of the application and approvals.
Disclaimer: This article is for general information, educating purpose only and does not constitute legal, tax or investment advice. Regulations change frequently; please consider this.