DPNC Global

Family Investment Fund: A Blueprint for Wealth Management Excellence

Gujarat International Finance Tec-City (“GIFT City”), is a major infrastructure project, Special Economic Zone (SEZ) and First International Financial Services Center, located in the state of Gujarat, India designed to attract businesses, especially in finance and IT. It offers tax incentives, regulatory support, world-class infrastructure, and a sustainable urban environment. It aims to establish an international financial and tech hub in India, enhancing the country’s global financial presence.

 

GIFT City boasts state-of-the-art infrastructure, modern architecture, and regulatory support designed to attract domestic and international businesses in the banking, finance, insurance, and technology sectors. With its SEZ and IFSC status, GIFT City provides several tax incentives and regulatory advantages, promoting business growth and economic development.

 

Through a strategic focus on capital markets, fund management, and insurance, GIFT City has attracted numerous leading financial institutions and insurance companies. In addition to its strength in traditional finance, the city has become a significant player in emerging sectors, including bullion trading, aircraft leasing, and ship leasing. It is also a sought-after destination for global in-house centers (GICs) and cutting-edge FinTech enterprises, which find an ideal ecosystem for innovation and growth.

 

To harness the potential of private equity, venture capital, alternative investment, family offices etc., IFSC Authorities issued International Financial Services Centres Authority (Fund Management) Regulations, 2022, overhauling the fund regime in IFSC and introduced Family Investment Fund (“FIF”) for managing family wealth and ensure its continuity.

 

FIFs offer a well-structured approach to wealth management, emphasizing transparency, governance, and tax efficiency as core tenets. FIFs require a minimum investment of USD 10 million within three years from registration and can be set up as a company, limited liability partnership, or trust.

 

Permitted FIF investments include various financial instruments, physical assets, and investment schemes. FIFs in GIFT City receive tax benefits, including a 100% tax exemption on prescribed business income for up to ten out of fifteen years and lower MAT/AMT rates. Additionally, they enjoy GST exemptions.

 

In summary, Family Investment Funds in GIFT City offer a sophisticated approach to wealth management, aiding in wealth preservation, capital growth, and supporting future generations. They promote diversification, tax efficiency, and long-term wealth continuity, providing a legacy of financial security and prosperity for multiple generations.

 

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About Our Gift City / IFSC Services and Family Investment Fund Services

DPNC Global LLP is a full service consulting firm providing multi-disciplinary services to clients ranging from MNCs, Indian Corporates from across industries to Family Offices and UHNIs, both in and outside India.

 

Our Regulatory Advisory & Support Services team consistently works towards providing simple and practical solutions to complex issues. Any entity operating in India would need to navigate the dynamic eco system and endeavor to ensure due regulatory compliance with the wide spectrum of applicable legislations. We advise & assist clients to be fully compliant with a wide spectrum of applicable regulations including Company Law, Limited Liability Partnerships (LLP) Act, SEBI Regulations, Non-Banking Financial Companies (NBFCs) Law etc. To know more about our services, visit https://dpncglobal.com/regulatory-advisory-support/

 

DISCLAIMER:

The information contained herein is in summary form and is prepared based on the provisions of IFSC Act and allied laws and related Rules, Circulars, Notifications therein. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.