IFSCA unveils framework for lawyers, consultants at GIFT City

The regulator for international financial services centres (IFSCS) on Wednesday announced a framework for those providing ancillary services in such jurisdictions.

The International Financial Services Centres Authority (IFSCA) framework covers services, including legal, compliance, secretarial, audit, accounting, consulting, and asset management support services, among others. The IFSCA is the regulatory body for IFSCS. The government established it in April 2020.

The regulatory body on Wednesday issued rules for service providers wanting to set up operations at such centres.

Any existing or newly incorporated entity set up at the centre can provide these services. An Indian or foreign entity can also provide it by establishing a branch or subsidiary at the centre, stated the circular. They can provide services to entities already set up there. They can also target foreign entities conducting business at IFSCS or ‘other related activities overseas’.

Services can also be provided to Indian entities setting up at the IFSC or foreign jurisdiction, so long as the fee paid is in a freely convertible foreign currency. The Indian rupee (INR) can be used for meeting administrative expenses. “Service providers shall transact in freely convertible foreign currency only. However, the service providers may defray their administrative expenses in INR by maintaining an INR account,” read the circular.

The government has set up the first

IFSC at the Gujarat International Finance TEC-(GIFT) City. It is located in Gandhinagar, Gujarat.

The move may already be nudging service providers to make the shift.

An executive at one of the major tax consultancy firms said they would be looking to open a branch in GIFT City to help provide services to nonresidents.

The framework is the latest in a series of moves to get things moving at Gandhinagar.