IFSCA, vide ref. No. F. No. 865/IFSCA/Banking/Fee Revision/2022-23 dated July 3, 2024, has issued a Circular on Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC (“Circular”).
Background
Reference is drawn to the IFSCA Fee Circular No.865/IFSCA/Banking/Fee Revision/2022-23 dated May 17, 2023 (“Fee Circular”), as amended from time to time wherein inter-alia Schedule 1 of the said Circular, stipulated that:
“an entry for various fees applicable for BATF Service Providers to be registered under the IFSCA (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) Regulations, 2024, shall be inserted as sr. no. “L’’ immediately before the heading “CLARIFICATORY NOTES” as indicated in Annexure hereto”
Fee payable by applicants/Regulated Entities in IFSCA:
1. Application Fees: $1,000
2. Registration Fees: $ 5,000
3. Flat Recurring Fees: Nil
4. Conditional Recurring Fees (Annual):
a. No. of Employees less than 500: $5,000
b. No. of Employees between 500-1000: $7,500
c. No. of Employees more than 1000: $10,000
5. Activity based Fee: NIL
6. Processing Fees-
a. Modification of terms and conditions of grant of registration of substantive nature: 20% of Registration fee.
b. Relaxation/waiver of provisions of applicable regulations or removing difficulties: $1000
For existing BATF Service providers:
IFSCA has observed that existing ancillary service providers in IFSC, currently engaged in bookkeeping, accounting, taxation, or financial crime compliance, and have expressed readiness to operate under BATF Regulations for these activities, will not need to pay application fees . Moreover, any annual or recurring fees applicable under the BATF Regulations will be adjusted based on fees already paid under the previous ancillary services framework, starting from the date they expressed their willingness to comply with BATF Regulations.
Key highlights of the Circular
1. The circular introduces a new entry (“ L” ) in Schedule I for various fees applicable to BATF Service Providers under the IFSCA (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) Regulations, 2024.
2. Exemption from Application Fees : Existing ancillary services providers in IFSC, currently engaged in activities like Bookkeeping, Accounting, Taxation, or Financial Crime Compliance, and who have expressed willingness to operate under BATF Regulations for these activities, are exempt from paying application fees.
3. Adjustment of Annual/Recurring Fees : For these existing providers, any Annual Fees or Recurring Fees under the BATF Regulations shall be adjusted based on the fees already paid under the previous ancillary services framework. This adjustment starts from the date the providers submitted their willingness to comply with BATF Regulations.
4. Immediate Implementation : The circular is effective immediately upon issuance.
A copy of the circular is attached for your ready reference.
Source category: IFSC Insurance Office
Attachments
- /2024/409_2024-07-03_Fee_structure_for_entities.pdf
- /2024/409_IFSCA_fee_structure_amended_upto_February_6,_20241.pdf
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