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India’s financial and technological ecosystem has been expanding exponentially, and the newest feather in its cap is the Gujarat International Finance Tec-City, popularly known as GIFT City.
This initiative, nestled in the heart of Gujarat can be a hotspot for Indian FinTech companies catering to a global clientele. Here’s a deep dive into why this initiative offers an unparalleled advantage.
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Broad Mechanics:
- Indian FinTech companies can opt to establish a unit within GIFT City. This could either be in the form of a branch or a wholly-owned subsidiary. The primary purpose? To service its roster of global clients as well as other enterprises located within the IFSC.
- Existing employees of such companies can be relocated to GIFT City. Alternatively, companies can also scout and hire local talent from the vicinity of GIFT City.
- One of the major operational benefits is the ability for the unit in GIFT City to receive payments in foreign exchange directly from its global clientele and IFSC clients.
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Key Benefits:
- 100% income-tax exemption for 10 consecutive years out of 15 years
- Reduced MAT / AMT @ 9% on book profits – not applicable for companies opting for new regime
- No GST on services:
(i) Received by unit in IFSC
(ii) Provided to IFSC / SEZ units
(iii) Provided to global clients
- State subsidies such as lease rental, provident fund contribution, electricity charges
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Want to know more about GIFT City?
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