Ancillary Service Providers in IFSC In GIFT City, IFSC

Global Overview:

The origins of management consulting can be traced back to the early 20th century. Frederick Winslow Taylor, known as the “father of scientific management,” pioneered principles of efficiency and productivity. Taylorism laid the groundwork for consultants to offer expert advice on improving organizational processes.
The COVID-19 pandemic accelerated the adoption of remote work and digital communication tools, influencing consulting practices. Firms adapted to provide virtual consulting services, and agile methodologies gained prominence as organizations sought flexibility and adaptability.

In recent years, environmental, social, and governance (ESG) consulting has gained significance as companies prioritize sustainability. Additionally, there is a growing emphasis on diversity, equity, and inclusion (DEI) consulting to address social issues within organizations.


Ancillary Service Providers history in India:

After independence, India undertook significant legal reforms to establish a legal framework aligned with democratic principles. Legal professionals played a crucial role in shaping and interpreting laws during this period. 

The 2000s saw a significant expansion of law firms and consulting practices in India. Legal process outsourcing (LPO) also gained traction, with Indian firms providing legal support services to international clients.

Consultancy and legal advisory services in India have evolved to meet the changing needs of businesses and individuals in a dynamic regulatory and economic environment.


Define the word “Ancillary services” :

Ancillary services shall mean those services which directly or indirectly aid, help, assist or strengthen or are attendant upon or connected with the services, as detailed under sub-clauses (i) to (xi) of clause (e) of sub- section (1) of section 3 of the IFSCA Act, 2019.


Regulatory Requirement:

1.Permissible Activities:
The service providers may engage in any one or more of the following activities:

(i) Legal, Compliance and Secretarial;

(ii) Auditing, Accounting, Bookkeeping and Taxation Services;

(iii) Professional & Management Consulting Services;

(iv) Administration, Assets Management Support Services and Trusteeship Services;

(v) Any other services as approved by IFSCA from time to time.
2.Eligibility Conditions:

The following entities are eligible to act as a service provider so as to provide permissible ancillary services pertaining to activities in relation to financial products, financial services and financial institutions in the IFSC:

(i) Any existing or newly incorporated entity set up in the IFSC or
(ii) Any Indian or foreign incorporated entity by establishing a branch or a subsidiary
The entity set up in the IFSC in the form of a company or a limited liability partnership or a registered partnership firm, their branch thereof may act as a ancillary service provider in IFSC.

3.Service Recipients:

Service providers can provide permissible services to any one or more of the following:

(i) Entity(ies) set up in the IFSC;

(ii) Financial services entities from foreign jurisdictions for various activities in the IFSCs in India or other related activities overseas;

(iii) Indian entities who propose to open, set up or carry out operations in IFSCs or foreign jurisdiction, provided consideration is received in freely convertible foreign currency.

4.Currency for conduct of business:

Service providers shall transact in freely convertible foreign currency only. However, the service providers may defray their administrative expenses in INR by maintaining an INR account

Download Brochure