Ship leasing framework in Gift City, India: a concise overview.

The International Financial Services Centres Authority (IFSCA) has taken steps to promote the Gujarat International Finance Tec-City (Gift City) as a global hub for ship leasing. An expert committee was formed to examine the existing legal and regulatory regime in Gift City and compare it with other top-ranking marine hubs. The committee submitted a report with recommendations for realizing the potential of India’s shipping industry. Following these recommendations, the IFSCA issued a notification to notify ship leasing as a financial product under the IFSCA Act. They also issued a framework for ship leasing activities in Gift City, allowing voyage charters and other commercial transactions for the employment of ships.

Entities interested in undertaking ship leasing activities in Gift City can set up a company, LLP, branch, or trust, with promoters or partners located in FATF compliant jurisdictions. They must obtain a certificate of registration from the IFSCA and a letter of approval from the development commissioner before commencing operations. The Framework permits operating and finance ship leasing, with different minimum owned fund requirements. Entities registered in Gift City are considered non-residents for foreign exchange regulations. The IFSCA has also allowed ship broking services in Gift City to facilitate ship leasing activities. The Indian government has announced fiscal incentives for entities in Gift City, making it an attractive destination for ship leasing companies.

The development of ship leasing in Gift City is a significant advancement for the Indian maritime sector. The favorable tax regime, regulatory framework, and skilled workforce make it an appealing choice for global investors. The growth of ship leasing activities in Gift City is expected to parallel the aircraft leasing and financing industry, benefiting allied sectors like insurance and financing activities in India.

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