Family Office in India (GIFT City): Rules, Tax, Costs 2026

How is a family office licensed in India (GIFT City)?

The family sets up its own fund management entity (FME) in GIFT IFSC as a company, LLP or branch and registers it with IFSCA as an Authorised FME, the category for 'FMEs set up by a Single Family to manage its Family Investment Fund', under the IFSCA (Fund Management) Regulations 2025 (Regulation 3(4)(a)(ii)); no entity may start fund management in an IFSC without this certificate of registration. The 2025 regulations (notification IFSCA/GN/2025/002 of 10 February 2025, consolidated up to 10 September 2026) replaced the 2022 regulations, and IFSCA's FAQs on the 2025 regulations still describe a Family Investment Fund as 'a self-managed fund pooling money only from a single family'. Resident Indian individuals can send up to USD 250,000 each per financial year abroad under RBI's Liberalised Remittance Scheme (LRS), which is not available to companies, partnership firms, HUFs or trusts. IFSCA lets IFSC banking units open foreign currency accounts for resident individuals to receive LRS remittances and use them for financial products or services in IFSCs (circular of 13 December 2024), and law firm Nishith Desai Associates (2023) says investments into GIFT IFSC pooling vehicles count as overseas portfolio investment under this cap. [2, 4, 5, 6, 7, 8, 9]

What is the minimum wealth for a family office in India (GIFT City)?

No family net worth test was found; the test is on the fund's size. IFSCA's FAQs on the 2025 regulations say a Family Investment Fund 'should have and maintain a minimum corpus of USD 10 million within a period of 3 years from the date of obtaining certificate of registration', the same figure as in its FAQs on the 2022 regulations. The family fund chapter of the 2025 regulations itself could not be read. [2, 5, 10]

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Who counts as family?

The fund may pool money only from a 'single family': a group of individuals who are lineal descendants of a common ancestor, with their spouses (including widows and widowers, whether remarried or not) and children (including stepchildren, adopted and ex-nuptial children), plus entities such as sole proprietorships, partnership firms, companies, LLPs, trusts or bodies corporate that the family controls and in which it holds a substantial economic interest (Regulation 2(1)(ii), 2025). IFSCA's March 2023 circular sets 'substantial economic interest' at 'at least 90% economic interest' and says the fund 'shall not seek money from individuals or entities outside of the single family'. Employees, directors, the FME and other service providers may contribute only to receive an economic interest, capped at an aggregate of 20% of the fund's profits. [2, 11]

Can one office serve several families?

A Family Investment Fund may take money from one family only. To serve several families, a Registered FME (Non-Retail) registered with IFSCA may provide portfolio management services 'including for multi-family office' (Regulation 3(4)(b)(ii), 2025). A portfolio manager may not accept less than USD 75,000 in funds or securities from a client, with an exception for accredited investors (Regulation 77(1)). [2]

Which law and courts apply?

GIFT IFSC is part of India and Indian central laws apply there; for example, the Income-tax Act 2025 extends to the whole of India and has IFSC-specific provisions. IFSCA, set up under the International Financial Services Centres Authority Act 2019, is the IFSC's unified regulator. No separate IFSC court system was found in the sources opened. [1, 3, 12]

What substance is required?

Every FME must designate a principal officer responsible for its overall activities, and the principal officer must be based out of IFSC (Regulations 7(1) and 7(5), 2025). The FME needs adequate office space, equipment, communication facilities and manpower, and an office that is 'dedicated, secured and accessible only by authorised person(s) of the FME' (Regulation 10). IFSCA's brochure and its FAQs on the 2025 regulations give a minimum net worth of USD 75,000 for an Authorised FME, with no separate figure for a family fund's FME; whether the 2025 family fund chapter relaxes any of these rules could not be checked. [1, 2, 5]

Which holding vehicles are available?

A Family Investment Fund can be set up in IFSC as a company, contributory trust or LLP, or any other form IFSCA permits (IFSCA FAQs on the 2022 and 2025 regulations), and may use more than one investment vehicle; additional vehicles need IFSCA's prior approval and the fee that applies to a family fund (2023 circular). The family's fund management entity must be a company, LLP or branch (Regulation 5(1), 2025). No foundation or private trust company regime was found in the sources opened. [2, 5, 10, 11]

What is the corporate tax rate?

The Income Tax Department's rate table for assessment year 2026-27 shows 25% for domestic companies with turnover up to INR 4 billion (Rs 400 crore) in 2023-24 and 30% above that, plus surcharge of 7% on income above INR 10 million and 12% above INR 100 million; the optional regime is 22% with a flat 10% surcharge; 4% health and education cess applies on top. Under the Income-tax Act 2025, in force from 1 April 2026, section 200 keeps the 22% option for domestic companies, and an IFSC unit using it can still claim the section 147 deduction. [12, 13, 14]

Are there tax incentives for family offices?

No tax regime specific to family offices or Family Investment Funds was found. A unit of an IFSC set up in an SEZ can deduct 100% of income from its approved business for any 20 consecutive tax years out of the 25 years that begin with the year it obtained IFSCA registration (section 147, Income-tax Act 2025, as amended from 1 April 2026; it was 10 out of 15 years under section 80LA of the 1961 Act), and a unit starting on or after 1 April 2026 must not be formed by splitting up or reconstructing an existing business; minimum alternate tax (companies) and alternate minimum tax (others) is 9% for IFSC units deriving income solely in convertible foreign exchange, against 14% for other companies (section 206). Fund exemptions in Schedule VI apply to 'specified funds' in IFSC (such as Category III AIFs) whose units are all held by non-residents apart from the sponsor or manager and a small exception, and no source opened says whether a family fund's investment income qualifies for the section 147 deduction. [3, 15, 16, 17]

Is there personal income tax?

Under the default new regime (section 202, Income-tax Act 2025, in force from 1 April 2026), individuals pay nil up to INR 400,000 (Rs 4 lakh), then 5% to 25% in INR 400,000 steps, and a top rate of 30% above INR 2.4 million (Rs 24 lakh). The Income Tax Department's rate page for assessment year 2026-27 (income of 2025-26, under the 1961 Act) lists a new-regime surcharge of 10% above INR 5 million, 15% above INR 10 million and 25% above INR 20 million (capped at 15% on dividends and certain capital gains), plus 4% health and education cess; surcharge for tax year 2026-27 under the 2025 Act was not checked separately. [13, 18]

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Is there inheritance or estate tax?

India levies no estate duty: on 23 August 1985 the Lok Sabha passed the Estate Duty (Amendment) Bill, moved to abolish it, and the Union Receipt Budget 2026-27 shows nil estate duty for 2025-26 (revised) and 2026-27 (budget) and lists no other inheritance or gift tax; it says wealth tax was abolished from 2016-17. Gifts are taxed as income of the person who receives them: under the Income Tax Department's guide to the 1961 Act (as amended by Finance Act 2025), money received without consideration above INR 50,000 in a year, or property worth more than INR 50,000, is taxable, but gifts from relatives (including the spouse, siblings and lineal ascendants and descendants), gifts on marriage, and property received under a will or by inheritance are not taxed. The matching rule in the 2025 Act was not checked. [19, 20, 21]

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How do wills and succession work?

Succession depends on religion. The Hindu Succession Act 1956 (amended by Act 39 of 2005) applies to Hindus, Buddhists, Jainas and Sikhs and to anyone who is not a Muslim, Christian, Parsi or Jew unless shown not to be governed by Hindu law, and lets a Hindu leave by will any property that he or she can lawfully dispose of (sections 2 and 30). The Indian Succession Act 1925's intestacy rules do not apply to the property of Hindus, Muslims, Buddhists, Sikhs or Jainas (section 29), and its rules on wills do not apply to Muslims (section 58), so Muslims are outside both Acts' succession rules. The Muslim Personal Law (Shariat) Application Act 1937 could not be opened, so Muslim succession rules, including any limit on wills, are not stated here. Law firm Nishith Desai Associates (2023) says Family Investment Funds are investment vehicles only and are not meant for succession planning. [9, 22, 23, 24]

Can the family get residence?

Not found in official sources. No residence or visa route linked to GIFT IFSC or to investing there was found in the official sources opened.

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How long does set-up take?

Not found in official sources. IFSCA's fund management brochure lists the steps (FME set-up, IFSCA approval, fund set-up, registration, SEZ approval, authorisation, start of investment) but gives no durations. [1]

What are the official fees?

Indicative. IFSCA's FAQs on the 2025 regulations (FAQ 188, information updated to 30 June 2026) set out the fees under circular IFSCA-DTFA/1/2026 of 2 March 2026: a Family Investment Fund pays a USD 2,500 application fee and a USD 15,000 registration fee (other Authorised FMEs pay USD 5,000), then a flat recurring fee of USD 3,000 a year for the FME registration. In the first financial year the recurring fee is charged pro rata for the remaining months and is due within 15 days of registration; in later years it is due by 30 April, in US dollars only, and late payment adds simple interest of 0.75% a month (FAQs 189 to 194). The annual fee was USD 2,000 under the 2022 and April 2025 fee circulars, and the 2022 circular also described the USD 15,000 as the family fund's registration fee. [5, 25, 26, 27]