Ancillary Services
The financial centre of the world is a very intricate ecosystem that demands a special army of professional support services, including the legal organization as well as intensive auditing services, to operate in a smooth, safe, and lawful manner. That is the role of the Ancillary Service Providers.
The GIFT City International Financial Services Centre (IFSC), GIFT City, Gandhinagar, acknowledges the need. A lucid, holistic, and most incentivised system of these professional expert firms has been provided under the IFSCA (TechFin and Ancillary Services) Regulations, 2025.
This regulatory transparency is one of the biggest reasons that lead to the choice of starting a business in India and, in particular, starting a business in Gift City Gandhinagar as a provider of professional services.
Core Opportunities: Who is eligible to establish a shop?
The strategy employed by IFSCA is aimed at getting the best talent in the world. The regulations have a definitive list of the possible categories of eligible professional services in the First Schedule, which is actively encouraged in GIFT City.
| Service Category | Primary Function in IFSC | Relevance / Demand |
|---|---|---|
| Legal Services | Advising on international contracts, fund structuring, and cross-border litigation. | Essential for all financial service entities within GIFT City establishment and operations. |
| Auditing & Accounting | High-quality Auditing Services, compliance management (IFRS standards), and financial reporting. | High demand due to hundreds of funds and entities requiring transparent, global-standard compliance. |
| Trusteeship Services | Protecting beneficiary interests for AIFs (Alternative Investment Funds) and performing facility agent functions. | Mandatory function for all AIFs and collective investment schemes. |
| Valuation Services | Independent, transparent valuation of complex, illiquid assets for NAV determination. | Crucial for Private Equity and Venture Capital funds (Category II AIFs). |
| Secretarial Services | Ensuring corporate governance, board reporting, and statutory filings for IFSC entities. | Guarantees continuous regulatory compliance. |
Looking to Start Business in the Gift City?
Lets connect. Start Business. Now!
The Operational Model: The Intermediary Connection
The framework of the ancillary services gives a clear definition of how the relationship is provided between the financial client and service provider. This enables flexibility in operation without losing control by the IFSCA.
- Professional Firm (e.g., Fund Administration or Accounting firm): referred to as Ancillary Service Provider.
- Intermediary: The financial entity regulated in GIFT City (e.g., a Fund Manager, Bank, or Insurer).
- Service Recipient: The end client (e.g., a global investor or corporate organisation).
Flow Excerpt: In this example, a Fund Administration company (Provider) does the fund accounting and compliance audits on a Hedge Fund Manager (Intermediary). The Manager records the performance figures that have been validated as final and reports them to the investor (Service Recipient).
The Operational Model: The Intermediary Connection
Ancillary Services framework is very clear which establishes the relationship between the financial client and the service provider. This provides the ability to be flexible in operations with IFSCA control.
- Ancillary Service Provider; The professional firm (e.g., Fund Administration or Accounting firm).
- Intermediate: The controlled financial institution within GIFT City (e.g., a Fund Manager, Bank or Insurer).
- Service Recipient: The end client (e.g., an international investor or corporation).
Flow Excerpt: A Fund Administration company (Provider) conducts intricate fund accounting and compliance tests on a Hedge Fund Manager (Intermediary). The Manager, in turn, gives the investor (Service Recipient) the final validated performance figures.
Niche markets and Critical Gateways
The framework outlines certain positions that are critical to the growth of the IFSC:
- Corporate Service Providers (CSPs): The CSPs are the main professional entrance of foreign companies to establish operations in Gift city gandhinagar. Services include:
- Company GIFT City incorporation and registration.
- Registered agent services.
- Helping in licensing and regulatory authorization.
- Niche Specializations:
- Leasing Broking Services: Catering the expanding aircraft and ship leasing hub.
- Risk Management Consulting: Risk analysis and mitigation solutions to large IFSC Banking Units (IBUs) and insurers.
ESG Consulting: Specialises in the compliance and reporting of Environmental, Social and Governance in flowing sustainable finance.
Frequently Asked Question (FAQ)
Q: What are the Ancillary Services of GIFT City IFSC?
A: These are the basic professional support services that include legal, auditing, valuation, trusteeship and secretarial services needed to ensure that regulated financial entities (such as banks, funds, and insurers) operate safely and in compliance with the IFSC.
Q: What regulations cover Ancillary Service Providers in GIFT City?
A: These professional firms are mainly regulated by the IFSCA (TechFin and Ancillary Services) Regulations, 2025, which stipulates the scope, the licensing criteria, and the compliance standards of such professional firms.
Q: What motivates Indian professional firms (CAs, Lawyers, etc.) to establish an IFSC unit?
A; The largest reward is the 10 years 100% tax exemption based on the income received by serving IFSC entities and other non-resident clients, along with the strategic flexibility to charge international clients fully in foreign currency.
Q: What is the key position of a Corporate Service Provider (CSP)?
A: CSPs play an essential role as a professional gateway, helping foreign entities incorporate in GIFT City, providing registered agent services, and obtaining the requisite regulatory approvals to effectively establish business in GIFT City Gandhinagar.
Q: What is possible under the Intermediary Connection model?
A: It enables an Ancillary Service Provider to work through a regulated financial organisation (the Intermediary, such as a Fund Manager), which then incorporates and provides the professional service to the final client (Service Recipient).
Collaboration to Prosperity: Compliance and Certification
The IFSCA has strict Fit and Proper requirements of key persons. Special consultation is required to navigate the application process in order to get the most out of tax benefits.
How Experts Help You Succeed:
- Regulatory Navigation: A seasoned IFSCA Consultant or Gift City Consultant will make sure that your application and your intended scope of service fits perfectly well into the IFSCA First Schedule.
- Structural Optimization: The companies such as GiftCityAdvisor can help to realize the structure of your IFSC unit to be as much compliant and tax efficient as possible.
- Fast Tracked Approval: We assist in the preparation of sound documentation, setting up of reporting guidelines, and administration of the whole approval cycle making the whole process to open the door to this lucrative world market hassle free.