A Finance Company is the GIFT City licence for non-bank financial activity. If a business wants to lend, lease aircraft or ships, factor receivables or run treasury activity from the IFSC without being a bank, this is usually the route.
What it is, in simple words
A Finance Company is a newly formed entity registered in the IFSC. A Finance Unit is the same licence taken by a branch of an existing financial institution. Both operate in foreign currency and choose from a list of core and non-core activities.
Who typically sets one up
- Non-banking lenders and private credit groups building an offshore book
- Aircraft and ship leasing platforms — one of the fastest-growing IFSC segments
- Corporate treasury and global treasury centres
- Factoring, receivables finance and equipment leasing businesses
What a Finance Company can do
Core activities include lending in various forms, factoring and forfaiting, and financial and operating leases. Non-core activities can include treasury operations, investment in securities, and permitted advisory or distribution work, each subject to the conditions attached to it.
Why businesses choose GIFT City
- Aircraft and ship leasing has a purpose-built framework here
- Foreign-currency lending without an offshore holding structure
- A concessional tax framework for IFSC units
- One regulator across lending, leasing and treasury permissions
Broad requirements at a glance
- A company, LLP or branch registered as a unit in the GIFT SEZ
- Registration with IFSCA under the IFSCA (Finance Company) Regulations, 2021
- Owned-fund and prudential requirements matched to the activities chosen
- Governance, risk and reporting obligations, plus framework-specific rules for leasing
Questions people usually ask
Is this the same as an NBFC? No. It is a separate IFSC licence with its own activity list and prudential rules.
Can it lend to Indian borrowers? Foreign-currency lending to Indian entities is possible within the permitted routes, commonly external commercial borrowing structures.
Can one entity do lending and leasing? Often yes, if the activities are chosen at registration and the requirements for each are met.
Company or branch? A new company suits standalone platforms; a Finance Unit suits an existing regulated institution extending into the IFSC.
Where to go next
Try our eligibility and fit check, read the detailed finance company guide, or see who is registered in the entity directory.
