Navigating GIFT City IFSC Regulatory Ecosystem: The Corporate and Tax Implications of Special International Financial Services Centre LLPs

India has already taken steps to becoming a global financial hub by establishing Gujarat International Financial Technical-City (GIFT City) which also houses the first International Financial Services Center (IFSC) in India. GIFT City is a unique regulatory and tax regime designed to make the city a compelling destination for international financial institutions, fintech firms and their associated investment funds, insurers and professional service providers, as it looks to challenge existing financial hubs like Singapore and Dubai. The Limited Liability Partnership (LLP) is one of the several business structures that have gained popularity in the IFSC because of its flexibility, limited liability and favorable tax treatment. However, a business in LLP form within GIFT City has to deal with a specialized legal regime that is very distinct from the one that exists in the regular legal form of LLPs in mainland India. However, businesses need to be familiar with the interaction of corporate laws, industry-specific regulations and tax benefits before deciding to set up in the IFSC.