GIFT City- A Likely Hub for Family Offices - 5 Key Points

GIFT City- A Likely Hub for Family Offices - 5 Key Points

Here are the facts that may make a difference.

Global Investment Attraction: GIFT City's IFSC serves as a global investment hotspot, offering Indian high-net-worth families access to international markets and financial opportunities comparable to leading hubs like Singapore and Dubai.

Family Investment Funds (FIFs): GIFT City provides the platform for setting up Family Investment Funds (FIFs), enabling family offices to manage their investments. Indian entities can invest up to 50% of their net worth in FIFs.

Tax Advantages: FIFs in GIFT City enjoy tax benefits, including income tax exemptions for up to 10 out of 15 consecutive years and GST exemptions, making it a tax-efficient choice for family offices.

Diverse Investment Portfolio: FIFs offer flexibility for investments, including overseas real estate, leveraging activities, and diversification across various asset classes such as bullion and art.

Effective Succession Planning: Trust structures utilized by FIFs are becoming increasingly popular as tools for effective succession planning, providing a structured approach to wealth management and asset protection.

What are your thoughts on these developments? Do you thinkGIFT City will replace other global destinations as the family office capital of the world?