How to Register a Fund Management Entity in GIFT City IFSC: 2025 FAQs & Guide

Introduction: Why Fund Managers Are Moving to GIFT City

India’s GIFT City IFSC is now a strategic launchpad for global asset managers and investment platforms. The IFSCA (Fund Management) Regulations, 2022 offer a comprehensive and liberalized framework for setting up:

• Fund Management Entities (FMEs)

• Alternative Investment Funds (AIFs)

• Exchange-Traded Funds (ETFs)

• Portfolio Management Services (PMS)
  

This FAQ-based guide, updated to reflect 2024 IFSCA guidelines, will help you navigate FME registration, fund authorization, key documentation, timelines, and compliance essentials.

A professional reviews fund management documents in a high-tech office, with GIFT City skyscrapers in the background

Q1. Where can I find the FME and Fund registration forms?

Download forms from the “Application Process” section of the IFSCA website.

Applications should be:

• Submitted in a searchable digital format

• Emailed to 📧 applications@ifsca.gov.inWith CC to IFSCA officers listed in the FAQ
  

Q2. What’s the checklist for FME registration?

Key documents include:

• Certificate of Incorporation

• MoA & AoA / Trust Deed / LLP Agreement

• Business Plan for GIFT IFSC

• Net Worth Certificate

• Audited financials (last 3 years)

• Shareholding structure up to Ultimate Beneficial Owners (UBOs)

• KYC of promoters, KMPs, directors

• SEZ approval letter

• Proof of application fee payment
  

For the complete list, refer to Annexure 01 in the IFSCA FAQ.

Q3. Who are the required Key Managerial Personnel (KMPs)?

Each FME must designate:

• Principal Officer

• Compliance Officer
  

Their CVs, qualifications, certifications, and work history (in Annexure 03 format) must be provided.

Q4. What are the net worth requirements for FME registration?

Type of Applicant	Requirement
Branch office	Parent entity’s Net Worth Certificate + capital allocation letter
Standalone or Subsidiary	Applicant’s own Net Worth Certificate
New entity (<1 year)	Submit 3-year ITRs of promoters or a CA/banker declaration

Certificates must be issued within 6 months of application.

Q5. What financials are required?

• Audited standalone/consolidated financial statements

• Should show revenue, profit, and net worth

• New entities without audited accounts: submit promoter ITRs or CA-certified declarations
  

Q6. What’s required in the business plan?

The business plan must include:

• Types of funds/schemes to be launched from GIFT IFSC

• Step-by-step roadmap to operationalize those plans

• Target investors, strategy, and growth projections
  

Include a visual shareholding chart up to UBOs.

Q7. What are the accounting and reporting standards?

FMEs and funds can use:

• Indian GAAP

• IND-AS

• IFRS

• US GAAP

• Or any legally permitted standard
  

Annual fund reports must be submitted to IFSCA within 4 months of the financial year-end.

Q8. Can schemes use leverage or borrow?

Yes, subject to the fund category.

Conditions:

• Leverage details must be disclosed in the Placement Memorandum (PPM)

• Include the calculation method and maximum leverage ratio

• Clearly explain how leverage is managed for investor transparency
  

Q9. What must be included in the Placement Memorandum (PPM)?

Key sections of a PPM:

• Fund structure diagram

• Distribution waterfall

• FME contribution clause

• Custodian details

• Past regulatory actions

• Initial/final closing definitions

• Warehoused assets disclosures

• Grievance redressal mechanism
  

These requirements are detailed in Section I of the FAQ.

Q10. What are the fees for FME and Scheme registration?

Refer to the IFSCA Fee Circular dated May 17, 2023 (updated July 5, 2023).

Use RBI’s reference rate if paying in INR. Proof of payment (e.g., SWIFT MT103) must be attached to the application.

Q11. How long does the approval process take?

• IFSCA raises queries within a few weeks

• Applicant must respond within 15 working days

• If no response within 7 working days of a reminder, the application may be rejected
  

Q12. What KYC and declarations are required?

Submit self-attested KYC for:

• Shareholders

• Directors

• KMPs

• UBOs

• Trustee (if applicable)
  

Also include:

• Authorization/Board Resolution

• SEZ LoA

• Signed declarations per Form Sections 6.2, 6.3, 7
  

Q13. What’s required for Scheme/Fund authorization?

Must first register as an FME

Then submit (see Annexure 02):

• Scheme application form (digital)

• PPM

• Trustee details and KYC

• FME’s Certificate of Registration

• PAN, GSTIN

• Fee payment proof

• SEZ Letter of Approval

• Commitment letter

• Applicable declarations
  

Conclusion: GIFT City is the Future of Global Fund Management. Start Now

India’s GIFT City offers a streamlined, globally compliant route for fund managers, AIF platforms, and family offices to launch and scale cross-border investment vehicles. The IFSCA regulations and updated FAQ provide clear documentation and compliance paths to make onboarding smoother and faster.

Need expert help with FME registration or fund authorization? Connect with GIFT CFO — your trusted partner for GIFT City advisory, fund structuring, and IFSCA filings.