In April 2015, the Government of India took the initiative to develop an IFSC at Gujarat International Finance Tec-City (GIFT City), a Special Economic Zone (SEZ) to help India realize its potential in the international financial services industry.
Ever since 2015, there has been tremendous progress on all fronts in terms of regulations, businesses and entities coming in and continuous to attract large institutions and global business.
How to set up Office in GIFT SEZ?
1. First and the foremost step is to identify office in GIFT SEZ to start a SEZ Unit.
2. Once an agreement is stricken with the developer / co-developer, the Entity needs to obtain ‘Provisional Letter of Allotment (PLOA)’
3. Preparation of FORM F: The Entity needs to submit FORM F along with the below stated annexures:
- Demand Draft of Rs 5,000/- in Favour of REGIONAL PAY AND ACCOUNT OFFICER MUMBAI payable at GANDHIDHAM
- Provisional Letter of Allotment issued by the Co-Developer
- Detailed Project Report – inclusive of Projections for 5 years
- Entity ID’s such as License, PAN Card, IEC Code etc
- Self-Certified copies of Memorandum of Association, Articles of Association
- Self-Certified copies of Board Resolution for setting up office in GIFT IFSC
- Certificate of Incorporation
- List of Directors with their Identity proofs
- Last 3 Years Audited Financial Statement and IT return of the Entity or Directors.
- Brief Presentation covering the Entity profile and scope of activities to be carried out from GIFT IFSC.
- AFFIDAVIT
Above mentioned documents are to be prepared in 3 Sets and are to be submitted in below stated manner:
- Original set to be submitted to the Office of the Development Commissioner
- Second set to be submitted to the developer i.e GIFT SEZ so as to enable submission of NOC from the developer directly to the office of Development Commissioner
- Third copy is for the Entity itself
4. After FORM F is submitted, Development Commissioner would call the entity for appearing in the “Unit Approval Committee” (UAC) meeting where in the Entity’s authorised representative will present himself on behalf of the Entity for the hearing
5. Upon satisfaction of UAC, a Letter of Permission / Approval (LOA) shall be issued by Development Commissioner, SEZ to the Entity
6. The Entity will be required to submit a Letter of Acceptance of terms and conditions to Development Commissioner within 45 days of issuance of LOA
7. Thereafter the Entity has to execute lease deed with his co-developer within 6 months of issuance of LOA and is required to submit the same to the Development Commissioner
8. Once SEZ License is issued Entity needs to obtain registration with NSDL portal for the purpose of SEZ Online Registration from which reporting and other services lime creation of Bill of entry for Import., recording of import of goods or local procurements, induction of any services etc., will be entered and recorded
9. Afterwards, the Entity is required to prepare and execute Bond Cum Legal Undertaking with the Development Commissioner and Specified Officer, GIFT SEZ and submit the same
10. After that the Entity shall move forward with obtaining various registration certificates like GST, RCMC, IEC etc and obtaining eligibility certificate for exemption of various taxes from Central and State Government
11. Registration with IFSCA:
Regulatory powers of four financial services regulators in India are vested in IFSCA (International Financial Services Centres Authorities) with respect to regulation of financial institutions, financial services and financial products in the IFSC, making it a unified regulator for the IFSC. The said four regulators are IRDA, RBI, SEBI and PFRDA.
Therefore, after the Entity has set up unit in IFSC but prior to commencement of operations of its office, the Entity is required to obtain Certificate of Registration from the IFSCA.
For obtaining the Certificate of Registration from IFSCA, the Entity is required to prepare and submit an application to IFSCA along with necessary application fees.
12. After completing the above, the unit will be eligible to start its business operations (export of services). It is mandatory to intimate the date of first export of service to the Office of Development Commissioner, through an application containing subject line “Commencement of business operations” with a supporting evidential document like Tax Invoice. Please mark a copy to us (GIFT SEZ Developer) also.
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