IFSCA has issued a circular outlining the fee structure for entities operating or intending to operate in IFSCs, as well as those seeking guidance under the Informal Guidance Scheme. The circular details vari-ous fees, including application, license/registration/authorization, annual recurring (both flat and condi-tional), activity-based, processing, late, and informal guidance fees. It specifies the payment timelines, calculation methods (including pro-rata and turnover-based recurring fees), and conditions for each fee category. The circular also covers aspects like fee waivers, refunds (generally not permitted), and the mode of payment in USD, with an option for Indian applicants to pay application and registration fees in INR at the prevailing RBI reference rate. Additionally, it addresses fees for relaxation requests, modifica-tions to licenses, utilization of resources for aircraft/ship leasing, changes in key managerial personnel, and the fees associated with the Informal Guidance Scheme. This circular supersedes several previously issued circulars related to fees.
International Financial Services Centres Authority
Circular No. IFSCA-DTFA/1/2025 Dated: April 08, 2025
To,
All Regulated Entities (REs) in International Financial Services Centres (IFSC)
All applicants to the International Financial Services Centres Authority (IFSCA)
All persons seeking guidance under IFSCA (Informal Guidance) Scheme, 2024 (Informal Guidance Scheme)
Dear Sir/Madam,
Subject: Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or seeking guidance under the Informal Guidance Scheme
1. Any applicant desirous of obtaining registration, licence, authorization or recognition, as the case may be, from the IFSCA (herein after referred to as ‘applicant’), the entities regulated by the IFSCA (herein after referred to as ‘Regulated Entities’ or ‘REs’) or any person seeking guidance under Informal Guid-ance Scheme, shall remit the applicable fees under the following categories to the designated account of the IFSCA :
a. Application fees;
b. Licence/Registration/Recognition/Authorization fees;
c. Annual Recurring fees;
d. Activity based fees;
e. Processing fees;
f. Late fees;
g. Informal Guidance fees.
The details of fees to be remitted by any applicant, the Regulated Entities or any person seeking guidance under the Informal Guidance Scheme, to the designated account of the IFSCA, are provided hereinafter.
2. APPLICATION FEES
i. An applicant shall pay the application fee, as specified at Schedule-I of this circular, at the time of making an application to the IFSCA (hereinafter referred to as the ‘Authority’). If an application is not accompanied by the mandated application fee, such an application shall not be considered by the Authority.
ii.Applications for rendering different financial services shall be made sep-arately under the respective regulations, circulars, guidelines or frameworks, except as otherwise pro-vided by the Authority.
iii. Multiple applications from a single entity for rendering different finan-cial services shall be treated as separate applications and shall attract separate specified application fees, as indicated at Schedule-I of this circular.
3. LICENCE/REGISTRATION/RECOGNITION/AUTHORIZATION FEES
i. On intimation of the decision by the Authority to grant provisional or in-principle approval, the applicant shall, within 15 days of such an intimation, pay the applicable li-cence, registration, recognition or authorization fees, as specified at Schedule-I of this circular.
ii. In the instance where the license, registration, recognition or authori-zation is to be granted directly, the applicant shall pay the fees within the period specified by the Author-ity, before grant of final licence, registration, recognition or authorization.
iii. In those cases where the applicant fails to pay the requisite licence, registration, recognition or authorization fees within the specified time, it shall be presumed that the applicant does not wish to continue the process. In such a case, the Authority may at its discretion reject the application. An application once rejected, shall be treated as non-est. The rejection of the application however, shall not render the entity ineligible for making a fresh application.
iv. In case the Authority decides not to grant a licence, registration, recognition or authorization to an applicant to whom a provisional / in-principle approval has been granted, the fees paid by the applicant towards obtaining licence, registration, recognition or authoriza-tion fee shall not be refunded.
4. RECURRING FEES – FLAT
i. Upon obtaining licence, registration, recognition or authorization, the REs shall pay flat recurring fee to the Authority as specified at Schedule-I of this circular.
ii. For the financial year in which the license, registration, recognition or authorization has been granted, recurring fee shall be calculated on a pro rata basis for every remaining month in that financial year. The REs shall pay the applicable recurring fees within 15 days from the grant of license, registration, recognition or authorization. For the purpose of calculation of the recurring fees, a part of a month shall be considered as a full month.
iii. For the ongoing financial year, after the financial year in which the li-cense, registration, recognition or authorization has been granted, a flat recurring fee shall be payable by 30th April of such financial year to which the fee pertains. For e.g. a flat recurring fee for FY 2025-26 shall be payable by April 30, 2025.
5. RECURRING FEES – CONDITIONAL
i. Upon obtaining licence, registration, recognition or authorization, the REs shall pay the conditional recurring fee, based on turnover or number of employees, to the Authority, as specified at Schedule-I of this circular.
ii. For the financial year in which the license, registration, recognition or authorization, has been granted, the conditional recurring fee shall be determined on a pro rata basis. For the purpose of calculation of such fees, the lowest slab applicable to the RE shall be considered. Such a fee shall be payable within 15 days of grant of license, registration, recognition or authorization. For the purpose of calculation of the recurring fees, a part of a month shall be considered as a full month.
iii. Further, at the end of financial year, the conditional recurring fee shall be calculated based on the actual turnover/no. of employees of that financial year and shall be payable, latest by 30th April of the next financial year, after adjustment of the fees paid earlier.
Illustration 1
In case of a Stock Exchange which has been granted the recognition first time on May 20, 2025, the ap-plicable fee shall be calculated as under:
- Fee applicable for lowest slab [Please refer to Schedule-I of this circular] = USD 1,500
- Pro rata fee to be paid = USD 1,500 X 11/12 = USD 1,375 [by June 04, 2025]
- Turnover of FY 2025-26 (assumed) = USD 20 Billion
- Conditional recurring fee based on turnover of FY 2025-26 = USD 75,000
- Fee paid earlier in advance = USD 1,375
- Remaining Fee to be paid for FY 2025-26 by April 30, 2026 = USD 75,000 – USD 1,375 = USD 73,625
Accordingly, the total conditional recurring fee payable for FY 2025-26 i.e. USD 75,000 is payable as un-der:
√ USD 1,375 on or before June 04, 2025; and
√ USD 73,625 on or before April 30, 2026
iv. For the financial years, after the financial year in which the license, registration, recognition or author-ization has been granted, the conditional recurring fee shall be payable by 30th April of such financial year, to which the fee pertains, as under:
- The fee shall be calculated based on the turnover or number of employees of the preceding financial year. [A]
- At the end of the financial year, the conditional recurring fee shall be calculated based on the actual turnover or number of employees of such Financial Year [B]
The difference of [B] and [A] shall be paid by April 30th of next financial year.
Illustration 2
The case explained in Illustration 1 is being considered again as under:
- Date of grant of recognition of stock exchange: May 20, 2025
- Total conditional recurring fee payable for FY 2025-26 as explained at Illustration 1 above: USD 75,000
- Turnover of FY 2026-27 (assumed) = USD 110 Billion
- Conditional recurring fee payable for FY 2026-27 by April 30, 2026 based on turnover of pre-ceding FY = USD 75,000 [Please refer to Schedule-I of this circular for slabs]
- Total conditional recurring fee Payable for FY 2026-27 based on actual turnover: USD 1,50,000
- Fee paid earlier in advance = USD 75,000
- Remaining Fee to be paid for FY 2026-27 before April 30, 2027 : USD 1,50,000 – USD 75,000 = USD 75,000
Accordingly, the total conditional recurring fee payable for FY 2026-27 i.e. USD 1,50,000 is payable as under:
√USD 75,000 on or before April 30, 2026; and
√USD 75,000 on or before April 30, 2027
6. ACTIVITY-BASED FEES
An activity-based fee is payable to the Authority, as specified at Schedule-I of this circular.
7. PROCESSING FEES
i. Relaxation from strict enforcement of any requirements
Every application from the RE seeking relaxation from strict enforcement of any requirement specified in the applicable regulation, circular, guideline or framework, shall be ac-companied with the processing fees of USD 2,500, unless specified otherwise at Schedule-I of this circu-lar.
ii, Modification to the terms and conditions of the licence, registra-tion, recognition or authorization (of substantive nature)
Every application from the RE requesting for modification to the terms and conditions of the licence, registration, recognition or authorization, which in the opinion of the Au-thority is of a substantive nature, shall be accompanied with a processing fee, which shall be equivalent to 20% of the license, registration, recognition or authorization fees, or such fee as may be specified by the Authority.
Provided that, such fees shall also be applicable in cases where specific activity-wise fees have not been specified in the corresponding regulations, circulars, guidelines, etc.
For purpose of deciding on the substantiveness of modification, the fol-lowing shall be taken into consideration:
a. Modifications due to expansion of business activities, that are beyond those specified at the time of grant of licence, registration, recognition or authorization;
b. Change in management or control;
c. Withdrawal/surrender of licence, registration, recognition or authori-zation;
d. Any other modification as may be specified by the authority from time to time.
iii. Processing fee for application related to utilisation of office space or manpower or both (resources) by the Finance Company/Unit undertaking aircraft leasing or ship leasing activities
An application received from a Finance Company / Unit engaged in undertaking aircraft leasing or ship leasing activity, in accordance with IFSCA (Finance Company) Regulations, 2021, to be read with circular F. No. 535/IFSCA/FC/ALF/2023-24/02 dated April 18, 2023, and circular F. No. 496/IFSCA/FC/SLF/2024-25/003 dated October 04, 2024, as applicable, shall be accom-panied with a one-time fee of USD 2500.
8. LATE FEES
i. If an RE fails to pay the outstanding dues or fees, in part or full, to the Authority within the specified time, then such dues or fees shall increase by a simple interest of 0.75% per month.
ii. If an RE fails to submit the periodic returns to the Authority within the specified deadline, then a late fee of $100 per month shall be paid by the RE for each such instance of default.
iii. For the purpose of calculation of late fees, a part of a month shall be considered as a full month.
iv. Such acceptance of delayed payment of outstanding fees or dues or periodic returns shall be without prejudice to any other action that the Authority may take for the de-faults indicated at (i) and (ii) above.
9. FEES UNDER INFORMAL GUIDANCE SCHEME
i. An application or request received under the Informal Guidance Scheme, for seeking guidance either under the no-action letter or interpretative letter, as the case may be, shall be accompanied by a fee of USD 1000.
ii. In those cases where the application or request is not in accordance with the relevant provisions of the Informal Guidance Scheme, an amount of USD 250 i.e. 25% of the total fee paid by the person, shall be deemed to be treated as processing fees and the remaining amount of USD 750 i.e. 75% of the total fee paid by the applicant, shall be refunded to the said person.
10. ADDITIONAL OR SUPPLEMENTARY FEES
In exceptional circumstances, the Authority may, at its discretion, levy additional or supplementary fees on an applicant or an RE, if it is of the opinion that such an additional or supplementary fee is justified by the resources allocated or to be allocated by the Authority towards processing the license, registration, recognition or authorization application of the applicant or regulating the RE.
11. REQUEST FOR APPROVAL FOR CHANGE OF KEY MANAGERIAL PERSONNEL
Any request for approval for change of Key Managerial Personnel (KMP), Director, Designated Partner, Trustee or any person holding an equivalent position in the RE, by whatever name called, shall be ac-companied with a fee of USD 250 or as specified at Schedule-I, whichever is lower.
Provided that, if an RE holds more than one licence, registra-tion, recognition or authorization, then such RE shall pay the abovementioned fee only once for every instance.
Explanation: For removal of doubt, it is hereby clarified that no fee shall be applicable for intimation of appointment or resignation of a KMP, Director, Designated partner, Trustee or any person holding an equivalent position in the RE.
12. WAIVER OF FEES
The Authority may, in exceptional circumstances, suo moto or on a request by the applicant or RE, waive the whole or part of any fee.
13. REFUND OF FEES
i. Any fee once paid by the applicant or RE shall not be refunded under any circumstances, inter-alia including those circumstances where:
a. the application is withdrawn by the applicant for any reason;
b. the RE surrenders the license, registration, recognition or authorization; or
c. the Authority withdraws/revokes the license, registration, recognition or authorization.
ii. In case the RE remits an amount, exceeding the amount of fees due, for the concerned period or purpose, the excess amount shall be adjusted against any other applicable fee.
14. MODE OF PAYMENT OF FEES
i. The fees as specified at Schedule-I of this circular shall be paid in USD to the following bank account of the Authority:
Account Name: International Financial Services Centres Authority
Account Number: 970105000174
Type of Account: USD Current Account
Bank Name: ICICI Bank Limited
SWIFT Code: ICICINAAXXX
NOSTRO Details: CHASUS33XXX
JP MORGAN CHASE BANK NA, NEWYORK, USA
Account no: 833999532
ii. An applicant from India (other than an entity already set up in GIFT-IFSC) desirous of obtaining licence, registration, recognition, or authorization from the Authority, shall have the option to remit only the application fee and registration fees, as specified at Schedule-I of this circular, in equivalent INR, to the following bank account of the Authority:
Account Name: IFSCA FUND 2
Account Number: 39907189884
Name of the Bank: State Bank of India
Type of Account: INR Current Account
IFSC Code: SBIN0060228
iii. For the entities remitting the fees in INR, the RBI reference rate for USD-INR, for the date on which the remittance is being made, shall be applicable. The RBI reference rate is available at the URL: https://www.rbi.org.in/scripts/ReferenceRateArchive.aspx
iv. The applicable fee shall be paid in full, as indicated in this circular, net of any deductions or charges. All applicable charges towards remittance of the amount, shall be borne by the applicant / RE.
v. After the payment of the applicable fees, the applicant or RE shall sub-mit the documentary evidence of such a payment to the Authority, along with the details of such a payment in the form and manner specified at Schedule-II.
vi. All dues or fees payable to the Authority shall be paid by the applicant or RE either from the bank account of the entity or that of its KMPs. In case the payment has been made from the account of the KMPs, the same shall be informed to the Authority during submission of the documentary evidence, as mandated at point (vi).
However, in case of an initial payment of application and registration fee, such amount can be paid either by the parent or the promoter of the applicant.
15. In case any of the provisions of this circular are found to be in contravention with any provision of any applicable Act, Rules or Regulations, then such provision of the applicable Act, Rules or Regulations shall prevail.
16. REPEAL AND SAVINGS
i. On and from the date of issuance of this circular, the following circulars shall stand superseded:
a. Circular F.No.865/IFSCA/ Banking/ Fee Revision/2022-23 dated May 17, 2023;
b. Circular F. No.865/IFSCA/Banking/Fee Revision/2022-23 dated March 01, 2024;
c. Circular IFSCA-DTFA/1/2025-DTFA dated February 26, 2025;
d. Circular IFSCA-FCR0FCR/3/2023-Banking/2024-25/002 dated March 07, 2025; and
e. Circular IFSCA-FMPP0BR/12/2023-Banking-Part (2) – PSO/001 dated April 02, 2025.
ii. On and from the date of issuance of this circular, Schedule-I of the circular F. No.865/IFSCA/Banking/Fee Revision/2022-23 dated July 03, 2024, shall cease to have effect and the other provisions of the said circular shall continue to be in force.
iii. Notwithstanding such supersession, any action taken, purported to have been taken or initiated under the said superseded circulars shall be deemed to have been done or taken or commenced under the corresponding provisions of this circular.
iv. Any reference in other Circulars/Guidelines/Notifications containing reference to the said superseded circulars, shall mean the reference to this circular.
17. This circular is issued in exercise of the powers conferred by Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs) and shall come into force with immediate effect.
18. A copy of this circular is available on the website of the International Financial Services Centres Au-thority at ifsca.gov.in .
Yours faithfully,
Praveen Kamat
General Manager
Department of Treasury, Finance & Accounts
Email: praveen.kamat@ifsca.gov.in
Tel: +91-79-6180 9820
