How many family offices are there in India?

While there is no official count of family offices in India, there is an estimated 195+ registered single family offices (Tracxn), with some reports from industry reports (MARC Global) predicting a higher number between 300 to 1,000.

Regional Intelligence

India

India is fast becoming a firm favourite for investments, peaking the interests of family offices. According to BlackRock, the country is set to become the world’s third-largest economy by 2027, overtaking Japan and Germany. Its ongoing economic reforms have created a stable and attractive landscape, providing ample opportunities for wealth creation and diversification.

Family Offices

300

Regulatory Body

Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI)

Tax Environment

Corporate income tax of 25% to 40%, with a concessional 22% rate for existing domestic companies, plus SEZ and GIFT City IFSC exemptions

Introduction

Timeless Heritage, Vibrant Future India's ancient civilisation, with roots dating back over 4,500 years, has had a global impact through practices such as yoga and Buddhism, as well as the popularity of curry spices. Despite enduring centuries of British rule, the country eventually gained independence in 1950, thanks partly to leaders like Mahatma Gandhi. After gaining independence, India has become a major force with a flourishing democracy and strong economic growth. For family offices, investing in India offers significant opportunities. Engaging with India can provide valuable insights into how ancient practices and ideologies influence contemporary business, governance, and societal values.

Key Numbers

Henley Passport Index 2023 Rankings81

Corporate Income Tax Rate25%

Family offices300

Evaluation

Despite the relatively high corporate income tax rates in the country, India remains an appealing location for family offices. This is due to the available tax incentives that offer them multiple ways to decrease their total tax burden. Whether structured as corporate entities or otherwise, family offices in India must navigate a complex tax landscape. Indian companies are subject to corporate income tax (CIT) on their worldwide income, while foreign companies are taxed only on income earned within India. The CIT rate for the fiscal year 2022/23 varies by income bracket, ranging from 25% to 40%, with potential increases due to additional surcharges and taxes.

Corporate tax rates and structure

Indian companies are taxed on their worldwide income, while foreign companies only need to pay tax on income earned in India. The corporate income tax (CIT) rate for the year 2022/23 varies depending on the income bracket. And tax rates range from 25% to 40%. The rates can go higher when extra charges and taxes are added.

Family offices structured as corporate entities can benefit from reduced corporate tax rates. For existing domestic companies, a beneficial Corporate Income Tax (CIT) rate of 22% is available if certain conditions are met, such as not claiming specified deductions and allowances. Newly set-up manufacturing companies and those engaged in electricity generation can get further reduction rate of 15% (plus surcharge and applicable cess).

Special Economic Zones (SEZs) incentives

Families that have offices in Special Economic Zones (SEZs) receive numerous tax benefits. These benefits include a 100% tax exemption on export income for the first five years, a 50% exemption for the subsequent five years, and the option to reinvest up to 50% of the export profit for the following five years. Additionally, SEZ units are exempt from paying the Minimum Alternate Tax (MAT).

International Financial Services Centre (IFSC) Incentives

Family offices set up in International Financial Services Centres (IFSCs) like GIFT City are entitled to several tax incentives. These include a 100% tax exemption on income for ten consecutive years out of 15 years, exemption from dividend distribution tax, and concessional tax rates on certain incomes. Furthermore, transactions carried out in foreign currency are exempt from Goods and Services Tax (GST).

Charitable contributions

When family offices donate to certain charities or funds, they can get a tax break under a rule called Section 80G of the Income Tax Act. This allows family offices to engage in philanthropic activities while availing tax benefits.

Overall, the economic and political climate in India is conducive to the establishment and growth of family offices. The combination of a robust economy, large market potential and stable political environment makes it an attractive jurisdiction for family offices looking to expand their global footprint.

Robust economic growth

India is one of the fastest-growing big economies in the world, and its economy is expanding quickly. This creates ample opportunities for family offices to invest across various sectors, including technology, real estate, infrastructure, and consumer goods. The country’s growing middle class and increasing consumer spending further strengthen investment prospects.

Moreover, the Indian government actively promotes foreign investment and has introduced policies to attract international businesses. Measures such as liberalised Foreign Direct Investment (FDI) norms, tax incentives, and the establishment of special economic zones (SEZs) make India an attractive destination for family offices.

Stable democratic framework

India has a stable democratic political system with regular elections and a robust legal framework. This political stability provides a predictable environment for long-term business planning and investment decisions. The rule of law and independent judiciary ensure that business operations can be conducted with legal recourse available in case of disputes.

India’s regulatory framework also supports business operations while ensuring compliance with international standards. Regulatory bodies such as the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) provide oversight and guidance, ensuring a transparent and fair business environment.

Market size and potential

India boasts a large and young population, providing a vast market with significant growth potential. The diverse economy includes emerging sectors such as fintech, renewable energy, and e-commerce, which offer promising avenues for investment. This broad market base is attractive for family offices looking to diversify their investment portfolios.

The availability of professional services and access to a skilled talent pool in India provide a robust foundation for family offices to operate. The combination of high-quality financial, legal, and accounting services, along with a large supply of talented professionals, make it easy to access family office services.

Professional services

India has a well-developed financial services sector, including banks, investment firms, and wealth management companies. Major international banks such as HSBC, Citibank, and JPMorgan Chase have a significant presence in India. And domestic banks also provide sophisticated financial products and advisory services.

Leading law firms offer specialised services for family offices, including estate planning, tax advisory, and regulatory compliance. These firms help family offices navigate the complex legal landscape in India and ensure adherence to local and international regulations. And finally, top accounting firms like PwC, Deloitte, Ernst & Young, and KPMG operate extensively in the country to provide high-quality accounting, auditing, and tax advisory services.

Talent access

India is home to a large number of highly skilled professionals in finance, law, technology, and management. The country graduates a significant number of students from prestigious institutions like the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs), guaranteeing a consistent supply of talented individuals for family offices.

Family offices can access expert advice in areas such as investments, estate planning, and philanthropy. There are many specialised firms and advisors who are dedicated to helping wealthy families and their offices to ensure that their unique requirements are met. Finally, the country has several premier educational and training institutions that offer courses and certifications in wealth management, financial planning, and family business management. This means there are specialised training programs to enhance the skill sets of professionals working in family offices.

Supporting infrastructure

India is at the forefront of integrating technology into its financial fabric, boasting an impressive infrastructure that spans across high-speed internet access, comprehensive mobile connectivity, and widespread adoption of digital payment platforms. This robust framework positions the country as a prominent figure in the realm of Information Technology services, facilitating family offices with state-of-the-art technology and exceptional support systems.

Moreover, the country’s dynamic commercial landscape, particularly in thriving metropolises such as Mumbai, Delhi, Bengaluru, and Hyderabad, creates an ideal setting for family offices. These cities stand out as financial and tech powerhouses, offering seamless access to markets, ample investment prospects, and a vast network of experienced service providers.

India is a diverse blend of cultures, languages, and traditions, with each region showcasing its unique heritage. This diversity is evident in the country's festivals, cuisine, music, dance, and art. Family offices should take into account these cultural nuances, as they are instrumental in personal and business interactions. Embracing cultural diversity can help build stronger relationships and improve the overall experience for family members and staff.

Cultural diversity and adaptability

India is renowned for its rich cultural heritage, which includes diverse traditions, languages, festivals, and cuisines. This cultural diversity offers a vibrant and dynamic environment for expatriates and their families, enriching their living experience. Major cities like Mumbai, Delhi, and Bengaluru host numerous cultural events, exhibitions, and festivals throughout the year, providing ample opportunities for cultural immersion and enjoyment.

Language and communication

English is widely spoken and understood in India, especially in business and professional settings. This makes communication easier for international family offices and expatriates. Additionally, India’s multilingual environment, with over 20 officially recognised languages, fosters a culturally inclusive atmosphere where diverse linguistic backgrounds are respected and accommodated.

Healthcare services

India has a robust healthcare system with access to world-class medical facilities and professionals. Major cities are home to top hospitals such as Apollo Hospitals, Fortis Healthcare, and Max Healthcare, which provide comprehensive medical services and specialised treatments. The availability of high-quality healthcare ensures that family office members and their families can receive excellent medical care when needed.

Recreational and social opportunities

India offers a wide range of recreational activities, including exploring historical landmarks and cultural sites and engaging in outdoor adventures and sports. Family members can enjoy activities such as trekking in the Himalayas, visiting heritage sites like the Taj Mahal, and participating in yoga and wellness retreats. The country’s diverse geography and rich history provide numerous opportunities for leisure and exploration.

The country also has a rich culinary landscape, offering a wide range of regional and international cuisines. Major cities have a vibrant dining scene, with restaurants serving everything from traditional Indian dishes to global gourmet cuisine. This culinary variety ensures that expatriates can enjoy familiar tastes from home while exploring new and exciting flavours.

Resources Directory

GIFT City PWC: India Overview Deciphering India’s tax landscape: An insight for foreign investors

Key Highlights

GIFT City IFSC

India's first smart city hosts over 100 international organisations and offers family offices ten-year tax exemptions.

SEZ tax incentives

Special Economic Zone units get full export-income exemption for five years and escape the Minimum Alternate Tax.

Deep professional talent pool

IIT and IIM graduates, alongside PwC, Deloitte, EY and KPMG, give family offices consistent access to skilled advisers.

Flexible wealth structures

Families can organise wealth as a Private Limited Company, a Trust, or a Hindu Undivided Family arrangement.

Companies in this region

WealthSpectrum

Technology Providers

Frequently Asked Questions

Tier cities in India classify urban centers based on economic development, infrastructure, and population, using a widely recognized but unofficial system with three tiers. India's Tier 1 cities are its most developed urban centers, featuring robust infrastructure, significant business opportunities, numerous multinational corporations, and a diverse population. The eight recognized Tier 1 cities are Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune, and Ahmedabad. Tier 2 cities are rapidly developing, with growing economies and populations, serving as regional business hubs offering a good balance of affordability and amenities. Notable Tier 2 cities include Amritsar, Bhopal, Bhubaneswar, Chandigarh, Coimbatore, Indore, Jaipur, Lucknow, Patna, and Surat. Tier 3 cities, such as Agra, Dehradun, Goa, Kochi, Mysore, Ranchi, Shimla, Thrissur, Udaipur, and Visakhapatnam, are emerging with a focus on urban development and infrastructure, offering lower living costs and becoming attractive for new businesses and industries.

While is no definitive record of which city tier has the highest number of family offices, traditionally, Tier 1 cities like Mumbai and Delhi have been hubs for wealthy families and established businesses, resulting in a higher concentration of family offices. However, there is a growing trend of family offices emerging in Tier 2 and 3 cities, where wealthy families are increasingly seeking to manage their wealth through dedicated family offices. This shift may be driven by various factors, reflecting the changing economic landscape and the rise of new wealth in these regions.

Family offices in India are not directly regulated but must comply with various regulations based on their activities and structures. There is no single regulatory framework for family offices; however, if they manage investments, they may need to follow SEBI's regulations, and if they use trust structures, they must adhere to the Indian Trusts Act and relevant tax laws. Recent developments include the introduction of the Fund Management Regulations by the International Financial Services Centres Authority in 2022, allowing Family Investment Funds (FIFs) within GIFT City, providing a regulated environment with flexible structures and a simplified regulatory framework. This new option offers family offices a more structured regulatory environment while operating within the broader landscape of financial and tax regulations.

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