The International Financial Services Centres Authority (“ IFSCA/Authority ”) has issued a corrigendum to circular titled “Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or persons seeking guidance under the Informal Guidance Scheme” (” Fee Circular “) dated March 13, 2026, bearing Ref. No. IFSCA-DTFA/2/2026 (“ Circular ”), applicable to all regulated entities of IFSCA or all entities seeking license, registration, recognition or authorisation from IFSCA, or any person seeking guidance under IFSCA (Informal Guidance) Scheme, 2024.
Key highlights of the Circular are as follows:
- Reference is drawn to the Fee Circular, dated March 02, 2026, bearing Ref. No. IFSCA-DTFA/1/2026.
- Clarification was sought from the Authority regarding applicability of Fee Circular. To bring clarity it is decided that clause 15.1 of the Fee Circular shall be amended as follows:
| Sl. No. | Clause | Existing Provision | Changes Introduced | Revised Provision |
|---|---|---|---|---|
| 1 | 15.1 | On and from the date of issuance of this circular, the following circulars shall stand superseded:
| To replace the phrase ‘date of issuance’ with the phrase ‘date of commencement’. | On and from the date of commencement of this circular, the following circulars shall stand superseded:
|
- The Fee Circular shall be applicable for FY 2026-27 and onwards.
- The Circular is issued in exercise of powers conferred by Section 12 and 13 of the IFSCA Act, 2019, to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs).
Further, key highlights of the Fee Circular, for insurance industry are as follows:
A. Fee Applicable for IFSC Insurance Offices (IIOs)
| Sl. No. | Type of Fee | Applicable for | Amount in USD | Due Date | Frequency |
|---|---|---|---|---|---|
| 1. | Application Fee | Applicant Insurance Entity | $1,000 | At the time of making application | One-time |
| 2. | Registration Fee | Applicant Insurance Entity | $5,000 | Within 15 days of demand from the Authority, unless specified otherwise | One-time |
| 3. | Annual Fee | Registered Insurance Entity | $12,500, or 1/20th of 1% of total gross premium written (GPW) by IIO, whichever is higher | On or before 30th April of each financial year | Annual |
Note: for calculation of payment of annual fee of any particular financial year, the IIO shall consider the audited GPW of preceding to the preceding financial year.
Illustration for payment of annual fee by IIOs
- ABC Insurer is granted registration as IIO on 12-Feb-2025 (i.e. in the FY 2024-25).
- FY wise annual fee payable by ABC IIO will be as under –
- For FY2024-25, the IIO shall pay annual fee on pro rata basis for two months i.e. February and March 2025. Hence, amount payable is USD 2,083 [12,500*2/12] to be paid within 15 days of grant of Certificate of Registration.
- For FY 2025-26, the IIO shall pay minimum annual fee of USD 12,500 to be paid on or before 30th April 2025.
- For FY 2026-27, the IIO shall pay minimum annual fee of USD 12,500 or as per specified formula using GWP based on Audited Financials of FY 2024-25, whichever is higher, to be paid on or before 30th April 2026.
- Similarly, for FY 2027-28, the IIO shall pay minimum annual fee of USD 12,500 or as per specified formula using GWP based on Audited Financials of FY 2025-26, whichever is higher, to be paid on or before 30th April 2027.
B. Fee Applicable for IFSC Insurance Intermediary Offices (IIIOs)
| Sl. No. | Type of Fee | Applicable for | Category | Amount in USD | Due Date | Frequency |
|---|---|---|---|---|---|---|
| 1. | Application Fee | Applicant Insurance Entity | Broker | $500 | At the time of making application | One-time |
| Corporate Agent | $500 | |||||
| TPA | $500 | |||||
| SLA | $500 | |||||
| 2. | Registration Fee | Applicant Insurance Entity | Broker | $1,000 | Within 15 days of demand from the Authority, unless specified otherwise | One-time |
| Corporate Agent | $500 | |||||
| TPA | $500 | |||||
| SLA | $500 | |||||
| 3. | Annual Fee | Registered Insurance Entity | Broker | $2,200 | On or before 30th April of each financial year | Annual |
| Corporate Agent | $250 | |||||
| TPA | $250 | |||||
| SLA | $250 |
A copy of the Circular incorporating changes in the Fee Circular is attached herewith for your ready reference.
Source category: IFSC Insurance Office
Comments are closed