Onshoring Indian Family Offices: Why GIFT City’s 20-Year Tax Holiday Beats Singapore

Indian family offices can be onshore from jurisdictions like Singapore to GIFT City, and as of May 2026, the regulatory and tax case for doing so has reached its strongest point yet.

Indian family offices can be onshore from jurisdictions like Singapore to Gujarat’s GIFT City, and as of May 2026, the regulatory and tax case for doing so has reached its strongest point yet. Under the Income-tax Act, 2025, the framework for cross-border wealth management has been fully modernized, offering a decade more of fiscal certainty than previously available.

“Onshoring” refers to the process of moving business, investment, operational, or financial activities back to the country of origin or domestic jurisdiction. In terms of its applicability in India, onshoring means shifting business entities back into the country from offshore financial centers such as Singapore, Dubai, and Mauritius. Most recently, there is a broader shift in global wealth management and a strategic push to establish GIFT City (Gujarat International Finance Tec-City), India’s first International Financial Services Centre (IFSC), as a primary alternative to traditional offshore hubs.

Understanding family offices and onshoring

Family offices are private entities that high-net-worth individuals and business families establish to manage their financial, investment, and wealth-related affairs. These entities typically handle functions such as investment management, succession planning, treasury operations, tax structuring, philanthropy, and global asset allocation.

“Onshoring” involves shifting these functions into India’s IFSC framework. Several factors are driving the growing interest in onshoring in 2026:

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• Extended tax certainty: The Union Budget 2026 announcement on the extension of the tax holiday to 20 years.
• Regulatory alignment: Stronger integration with India-based businesses.
• Operational oversight: Improved transparency and easier access to domestic markets.
• Risk mitigation: Reassessing overseas risks, including rising compliance costs and global regulatory scrutiny.

Why Indian family offices historically chose Singapore

For decades, Singapore remained the preferred jurisdiction due to its stable regulatory environment and sophisticated financial ecosystem. As per a market analysis, by the end of 2024, the number of single-family offices (SFOs) in Singapore crossed 2,000. For Indian families, it offered a mature ecosystem for venture capital and private investment, alongside cultural familiarity and established business networks.

Indian family offices onshoring to GIFT City

GIFT City is now a strategic jurisdiction for onshoring, functioning as an “offshore hub within India.” Under the Foreign Exchange Management framework, IFSC units are treated as non-residents, allowing them to transact freely in foreign currencies and manage international investments with flexibility that domestic entities lack.

The IFSC framework facilitates efficient repatriation of profits and dividends, which is particularly attractive for globally diversified promoter families seeking proximity to India-focused businesses without sacrificing global reach.

Key legal, tax, and regulatory considerations (2026 update)

GIFT City’s tax regime is also a compelling differentiator. Following the Union Budget 2026 announcement, IFSC entities benefit from the following:

• 20-Year tax holiday: A 100 percent tax exemption for 20 consecutive years (out of a 25-year block), doubling the previous 10-year limit.
• Concessional post-holiday tax: A flat 15 percent tax rate applies after the holiday period ends, providing long-term predictability.
• Form 41 compliance: Under the Income-tax Act, 2025, the legacy Form 10F has been replaced. Non-resident entities must now file Form 41 to claim Double Taxation Avoidance Agreement (DTAA) benefits.

Check Out Double Taxation Avoidance Agreements (DTAAs) and Your India Investment Strategy

Case study: IFSCA grants first operational license for a FIF

In April 2026, the IFSCA granted the first operational license for a Family Investment Fund (FIF) in GIFT City to Poornam Asset Management IFSC Private Limited. The approval marked a significant milestone in India’s efforts to position GIFT City as a competitive global wealth management and private capital hub.

The license enabled Poornam Asset Management to establish and manage a FIF under the IFSCA’s evolving family office framework. The company, linked to UK-based investment management operations and led by a London-based fund manager, became the first entity to receive full operational clearance under the Family Investment Fund regime introduced by IFSCA.

Strategic considerations for Indian promoters

Family offices should assess whether the IFSC structure supports long-term succession planning, intergenerational wealth transfer, family governance, and centralized investment oversight.

Assess tax and regulatory implications

Before restructuring, family offices should evaluate the following:

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1. Foreign Exchange Management Act (FEMA) and overseas direct investments (ODI) compliance
2. Round-tripping and General Anti-Avoidance Rule (GAAR) risks
3. Place of Effective Management (POEM) implications
4. Beneficial ownership disclosures, and
5. Cross-border tax residency considerations.

Choose the appropriate IFSC vehicle for onshoring to GIFT City

Family offices should determine the most suitable structure based on their investment and operational objectives, including:

1. Family Investment Funds (FIFs);
2. Alternative Investment Funds (AIFs);
3. Treasury platforms; or
4. Investment holding structures.

Is India’s GIFT City ready to compete with Singapore?

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With the establishment of an IFSC, India has accelerated regulatory and fiscal support for GIFT City through tax incentives, foreign exchange liberalization, and dedicated IFSC frameworks. The central government recently extended tax holidays and eased several treasury and fund management regulations.

This policy push is beginning to produce tangible results. Indian-origin corporations such as Adani Group, Bharti Airtel, and ArcelorMittal are establishing treasury operations in GIFT City, reflecting growing institutional confidence in the IFSC ecosystem.

GIFT City may not need to fully replace Singapore to succeed.

Its primary strategic objective appears to be attracting India-linked offshore activity back into an Indian-regulated ecosystem. This includes:

• Family offices
• Treasury centers
• India-focused investment platforms
• Fund management structures
• Cross-border holding entities.

In that context, GIFT City’s competition is narrower and more targeted. It is positioning itself as the preferred jurisdiction for Indian-origin capital rather than attempting to immediately become a universal global financial center.

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