A company that operates in the International Financial Services Centre (“IFSC”) at GIFT City is subject to a distinct regulatory regime. The company is incorporated under the Companies Act, 2013 (“the Act”), but it is regulated by the International Financial Services Centres Authority (“IFSCA”), and it enjoys several exemptions from the Act.
The Applicability
The IFSC company is a company incorporated under the Act, and it must comply with the incorporation, the governance, and the filing requirements. The company is also subject to the IFSCA Act, 2019, and the regulations made thereunder. The IFSCA is the unified regulator for the IFSC, and it exercises the powers of the RBI, SEBI, IRDAI, and PFRDA in the IFSC.
The Exemptions
The MCA has exempted the IFSC companies from several provisions of the Act, including the provisions relating to the board meetings, the related party transactions, the CSR, and the secretarial audit. The exemptions are designed to make the IFSC companies competitive with the entities in other international financial centres.
The IFSC company is also eligible for tax exemptions under the Income-tax Act, and it can access the foreign exchange facilities available in the IFSC.
The Compliance
The IFSC company must comply with the IFSCA's regulations, including the capital requirements, the governance requirements, and the reporting requirements. The company must file the annual return and the financial statements with the ROC, and it must also file the reports with the IFSCA.
Call to Action
Anuj Desai & Associates advises IFSC companies on the Companies Act and IFSCA compliance—from the incorporation and the exemptions to the annual filings and the regulatory reporting. If you are setting up an IFSC company, we can help you navigate the regime.
📧 office@anujdesaiassociates.com
📞 9619456656
🌐 https://anujdesaiassociates.com
🔗 linkedin.com/in/ca-anuj-desai-122547230
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