Where this stage begins
IFSCA's July 2026 workflow for setting up on SWIT treats the Letter of Approval and, where the regulations provide for one, IFSCA's in-principle approval as the start of the post-approval stage. The applicant sends the Letter of Approval to the IFSCA regulatory team through SWIT or by email. Where in-principle approval is granted, the licence or registration fee under IFSCA's fee circular is payable within 15 days of the intimation, before the permission is granted.
IFSCA describes the workflow as indicative. The steps below follow its order. Several of them can run at the same time.
Parallel workstreams
The workflow allows these steps to run together:
- SEZ undertaking. Submit the bond-cum-legal undertaking in Form H to the Administrator (IFSCA). The approved undertaking and an eligibility certificate come back by email. Upload the approved undertaking on SEZ Online.
- Importer-exporter code. Register with DGFT for an IEC.
- RCMC. Obtain a registration-cum-membership certificate through DGFT.
- Bank accounts. Open a foreign currency account with an IFSC Banking Unit, and a Special Non-Resident Rupee (SNRR) account with a domestic bank branch for its business-related rupee transactions, as IFSCA's circular of 29 January 2025 permits (see where rupees can and cannot be used).
- Capital. Where required, bring in capital and funds, including under the overseas direct investment rules for an Indian parent, after IFSCA's in-principle approval.
- GST. Apply for GST registration through SWIT.
See the rupee interface and Indian groups and ODI.
Lease and certificate of registration
Enter into the lease agreement with the co-developer and file a copy with IFSCA on SWIT within 6 months of the Letter of Approval. Do not sign the lease before the Letter of Approval issues, and diarise the 6-month date on the day the letter arrives.
IFSCA then grants final approval, the certificate of registration, licence or authorisation, through SWIT. Fees follow at once. The flat recurring fee for the rest of that financial year is payable pro rata within 15 days of grant, counting part of a month as a full month. Where a turnover-based fee applies, the first instalment, calculated on the lowest slab, is also payable within 15 days.
State registrations and access
- Shop and establishment. Register the unit under the Gujarat shops and establishments law through the GIFT City portal.
- Professional tax. Register for professional tax for the employer and employees, through the same portal.
- ID cards. Obtain SEZ identity cards for employees through the GIFT SEZ identity card portal.
See State registrations.
Commencement and intimation
Commencement has two notifications:
- To the SEZ Administrator. Once the unit issues its first invoice or carries out its first transaction, it submits a request for its date of commencement on SEZ Online to the Administrator (IFSCA).
- To IFSCA. Where the regulations require it, the unit separately tells the IFSCA regulatory team that operations have started.
The timing matters on the SEZ side. Under rule 19 of the SEZ Rules, the Letter of Approval is valid initially for one year, within which the unit is to start operations and report the date. Extensions are available only on conditions.
Setting up for ongoing compliance
The months before commencement are the time to build the compliance machinery:
- IFSCA reporting. Map the periodic reports for the activity. Late or missing reports cost USD 100 for every month or part of a month, for each report.
- Annual fee. Diarise the annual fee, which is due by 30 April each year.
- AML and CFT. Put the governance in place, including registration with the Financial Intelligence Unit, before the first client transaction.
- SEZ. Prepare for annual performance reporting in Form I and keep records of positive net foreign exchange earnings.
- Tax. Keep records that support the section 147 deduction, which is claimed with a report in Form No. 35.
See the compliance calendar and AML and CFT.