The International Financial Services Centres Authority (IFSCA) has officially released a new, comprehensive fee structure that will govern all businesses operating within India’s International Financial Services Centres (IFSCs).
These new rules, detailed in a circular dated 2 March 2026, are set to take effect for the 2026-27 financial year and beyond.
The update clarifies exactly what companies must pay to start and continue their operations in these global financial hubs.
The fees apply to everyone from major banks and stock exchanges to smaller fintech firms and even individuals seeking official advice.
Breaking down the fees
The IFSCA has divided its charges into several clear categories to help businesses plan their costs. These include:
Application fees: These must be paid right at the start when a company first applies for a licence or registration.
Licence and registration fees: Once a company receives "in-principle" or provisional approval, they have 15 days to pay this fee before their official licence is issued.
Recurring fees: These are ongoing costs for staying registered. They are split into "flat" fees (a fixed yearly amount) and "conditional" fees, which often change based on how much business (turnover) the company does.
Activity-based and processing fees: Specific actions, such as changing a company's management or modifying a fund’s documents, will trigger separate charges.
Important deadlines and rules
Timing is critical under the new guidelines. For most companies, the flat annual fee will be due on 1 April each year and must be paid by 30 April. If a company starts in the middle of a year, they only pay for the remaining months on a "pro rata" basis.
The circular also introduces "Conditional Recurring Fees" for entities like stock exchanges and banks. These firms pay an advance based on the previous year's business, and then a final adjustment is made at the end of the year once their actual turnover is known.
Penalties for late payments
The IFSCA is also tightening rules on delays. If a company fails to pay its dues on time, a simple interest of 0.75% per month* will be added to the outstanding amount. Furthermore, firms that are late in submitting their mandatory reports or returns will face a penalty of USD 100 for every month of delay.
Currency and refunds
While the IFSC is an international hub where most fees are set in US Dollars (USD), there is a special provision for Indian applicants. New Indian firms can pay their initial application and registration fees in Indian Rupees (INR) using the current exchange rate.
Businesses should also note that fees are generally **non-refundable**. Even if a company decides to withdraw its application or if the Authority cancels a licence, the money paid will not be returned.
For those who are not yet registered but need "Informal Guidance" on the rules, the IFSCA offers a scheme for a fee of USD 1,000 per application.
This new fee structure aims to provide a clear and stable financial environment for all participants in the IFSC. Detailed tables for every sector, including banking, insurance, and capital markets, are available in the official schedules.
Source: https://ifsca.gov.in/
