Categories
Gift City Legal Alerts

GIFT City Update – Fee Structure for KYC Registration Agencies

Overview of India’s Insolvency and Bankruptcy Code

GIFT City Update – Fee Structure for KYC Registration Agencies

The International Financial Services Centres Authority (“IFSCA”), in exercise of powers conferred by Section 12 of the International Financial Services Centres Authority Act, 2019, read with Regulation 3 of IFSCA (KYC Registration Agency) Regulations, 2025, vide Circular No. IFSCA/CMD/DMIIT/KRA/2025-26/1,[1] dated June 13, 2025, has introduced a detailed fee framework for entities intending to operate as KYC Registration Agencies (“KRAs”) within the International Financial Services Centre (IFSC) (“Framework”).

Under this new Framework, there are 3 (three) distinct categories of fees are prescribed:

  1. Application Fee: Entities applying to be registered as KRAs must remit a non-refundable application fee of USD 1,000 (One Thousand United States Dollars) at the time of submitting their application to the Authority.
  2. Registration Fee: Upon receiving a communication from the Authority granting either a provisional or in-principle approval, the applicant is required to pay a registration fee of USD 5,000 (Five Thousand United States Dollars). This payment must be made within 15 (Fifteen) days of such notification.
  3. Annual Fee: A fixed annual fee of USD 5,000 (Five Thousand United States Dollars) shall be applicable to all registered KRAs. The fee becomes payable post-registration and is subject to the following conditions:
    • For the financial year in which the registration is granted, the annual fee shall be computed on a pro rata basis, taking into account each remaining month in that financial year. Importantly, any partial month is to be treated as a full month for calculation purposes.
    • The pro rata annual fee must be paid within 15 (Fifteen) days of obtaining the registration.
    • For every subsequent financial year following the year of registration, the full annual fee is due by April 30 of the respective financial year. For instance, the annual fee for the financial year 2026-27 must be paid no later than April 30, 2026.

[1]https://ifsca.gov.in/Viewer?Path=Document%2FLegal%2Ffee-strcuture-for-kyc-registration-agencies-in-ifsc13062025024652.pdf&Title=%20Fee%20structure%20for%20KYA%20Registration%20Agencies%20in%20IFSC&Date=13%2F06%2F2025