Global Capability Centre Setup Services in India

Establish and scale your Global Capability Centre in India with coordinated support covering entry strategy, entity formation, tax, transfer pricing, FEMA, payroll, accounting, employment compliance and ongoing business operations.

EzyBiz India supports international companies in planning and establishing Global Capability Centres in India. We provide an integrated advisory platform for regulatory, tax, financial and operational requirements and coordinate with specialist recruitment, technology, real-estate and infrastructure partners wherever required.

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Build a Future-Ready Global Capability Centre in India

Global Capability Centres have evolved beyond traditional back-office and cost-support functions. They increasingly perform strategic activities such as software development, artificial intelligence, engineering and research, data analytics, cybersecurity, finance, customer support and global business operations. India has developed one of the world’s largest and most mature GCC ecosystems, supported by skilled professionals, technology infrastructure and an expanding innovation network.

Setting up a GCC requires more than incorporating an Indian company. The parent organisation must determine the appropriate operating model, legal structure, location, talent strategy, funding arrangement, transfer-pricing framework and compliance system. These decisions influence the centre’s cost, operational control, scalability, risk exposure and long-term effectiveness.

EzyBiz India assists foreign companies in coordinating the legal, tax, FEMA, accounting, payroll and regulatory aspects of their GCC establishment. Our objective is to help clients create a compliant and scalable Indian operation aligned with the strategic requirements of their global organisation.

Global Capability Centre Setup in India – At a Glance

Strategy and Feasibility

Assessment of the proposed functions, operating model, location, estimated workforce, ownership structure, implementation requirements and regulatory considerations.

Entity and Regulatory Setup

Selection and incorporation of an appropriate Indian entity, together with foreign investment reporting, tax registrations, banking and other applicable regulatory registrations.

Tax and Operational Framework

Development of an appropriate intercompany arrangement covering transfer pricing, service agreements, funding, cost allocation, invoicing, payroll, accounting and tax compliance.

Ongoing Business Support

Continued assistance with bookkeeping, payroll, direct and indirect taxes, FEMA, corporate compliance, labour regulations, management reporting and coordination with operational service providers.

What Is a Global Capability Centre?

A Global Capability Centre, commonly referred to as a GCC, is an offshore or international unit established by a multinational organisation to perform specialised functions for its parent company, group entities or global operations.

A GCC may undertake one or several functions, including:

• information technology and software development;
• engineering and product development;
• research and development;
• artificial intelligence and data analytics;
• cybersecurity and cloud operations;
• finance, accounting and treasury support;
• procurement and supply-chain management;
• human resources and talent operations;
• customer service and business support;
• risk management, compliance and internal controls.

Government and industry sources describe Indian GCCs as having progressed from transaction-oriented support centres to strategic hubs undertaking innovation, research, technology development and enterprise-wide functions.

A GCC generally operates as an integral part of the international group rather than as an independent outsourcing service provider. It allows the parent organisation to retain greater control over its people, intellectual property, processes, technology, data and service quality.

Why Establish a Global Capability Centre in India?

India offers a combination of professional talent, technology capabilities, business infrastructure and a well-developed ecosystem of multinational enterprises, service providers, educational institutions and technology companies.

Access to Skilled and Scalable Talent

India provides access to a large pool of professionals across technology, engineering, finance, analytics, research, compliance and business operations. This enables international organisations to build multidisciplinary teams and expand them as the responsibilities of the GCC grow.

The availability of technology and engineering professionals has enabled GCCs in India to undertake increasingly specialised work, including artificial intelligence, semiconductor design, product engineering and advanced research and development.

Strong Technology and Innovation Ecosystem

India’s technology ecosystem includes established IT clusters, startups, research institutions, universities, technology-service providers and Centres of Excellence. GCCs can use this ecosystem to support product development, digital transformation, automation, cybersecurity and emerging-technology initiatives.

Recent government and industry initiatives have also focused on improving collaboration between GCCs, startups, innovation centres and research organisations.

Mature GCC and Professional-Services Network

India already hosts GCCs operating across technology, banking and financial services, manufacturing, healthcare, retail, automotive, professional services and several other sectors. This established ecosystem provides access to experienced employees, advisers, recruiters, technology partners, office-space providers and support-service organisations.

The presence of a mature professional-services network can help a new GCC establish its legal, financial, employment and operational systems more efficiently.

Multiple Location Options

Companies may evaluate established GCC locations such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai and the National Capital Region, as well as selected emerging cities.

The appropriate location will depend on factors such as:

• availability of the required talent;
• employee and office costs;
• connectivity and infrastructure;
• proximity to clients, vendors or group operations;
• state-level policies and incentives;
• business-continuity considerations;
• anticipated future expansion.

More than 90% of Indian GCCs have historically been concentrated in major urban hubs, although emerging locations are receiving growing attention as companies consider cost, talent availability and operational resilience.

Long-Term Value Beyond Cost Efficiency

Cost optimisation may remain an important consideration, but modern GCCs are increasingly established to access specialised skills, improve operational control, accelerate innovation, protect institutional knowledge and support global transformation.

A properly structured GCC can gradually move from performing support functions to owning processes, products, technology platforms and strategic responsibilities for the wider international group.

Who Should Consider Setting Up a GCC in India?

A Global Capability Centre may be suitable for an international organisation that:

• requires a dedicated and scalable team in India;
• wants greater control than a conventional outsourcing arrangement;
• plans to centralise technology, finance, engineering or business processes;
• requires access to specialised professional and technical talent;
• wants to develop long-term capabilities rather than outsource isolated tasks;
• intends to protect and retain process knowledge within the group;
• expects its Indian operations to expand over time;
• requires a structured platform for global innovation or operational transformation.

A GCC may be established by a large multinational enterprise or by a mid-sized international business with sufficiently defined functions, an appropriate implementation plan and a long-term commitment to building operations in India.

Global Capability Centre Operating Models in India

The appropriate GCC operating model will depend on the parent organisation’s proposed functions, ownership requirements, implementation timeline, investment commitment, employee strength and desired level of operational control.

Before selecting a structure, the organisation should evaluate whether it wants to build the Indian operation independently, establish it with a strategic partner or initially use a managed arrangement before transferring the operations to its own entity.

Wholly Owned Captive GCC

Under this model, the foreign parent establishes a wholly owned Indian subsidiary to employ personnel and provide agreed services to the parent company or other overseas group entities.

This model generally provides the parent organisation with greater control over:

• employees and leadership;
• intellectual property;
• operating processes;
• technology and data;
• service quality;
• financial management;
• future expansion.

The Indian entity may receive equity investment from the foreign parent and subsequently charge the overseas group entities for services under an appropriate intercompany agreement and transfer-pricing framework.

Foreign investment in an Indian company is governed by the applicable provisions of FEMA, the Foreign Exchange Management (Non-Debt Instruments) Rules and the relevant sectoral conditions. RBI reporting may also be required when the Indian company issues equity instruments to a foreign investor.

Joint Venture GCC

A GCC may also be established through a joint venture between the foreign company and an Indian strategic partner.

This structure may be considered where the Indian partner contributes:

• specialised industry knowledge;
• access to talent;
• existing infrastructure;
• local technology capabilities;
• customer or vendor relationships;
• operational resources;
• regulatory or market experience.

The joint venture agreement should clearly address ownership, management rights, funding responsibilities, intellectual-property protection, confidentiality, profit distribution, reserved matters, exit rights and dispute resolution.

This model may provide local support during implementation, but the foreign organisation should carefully assess whether the joint venture structure provides sufficient long-term control over critical GCC functions.

Build-Operate-Transfer Model

Under a Build-Operate-Transfer, or BOT, model, a specialist service provider initially assists in establishing and operating the centre. After the agreed transition period and achievement of defined operational milestones, the centre, employees, assets or processes are transferred to the foreign organisation’s Indian entity.

A BOT model may assist a foreign company in:

• entering India more quickly;
• accessing an established recruitment network;
• using ready office and technology infrastructure;
• reducing initial implementation risk;
• testing the GCC model before full-scale investment;
• gradually developing its internal management capability.

The contractual arrangement should clearly define the transfer mechanism, employee migration, asset ownership, intellectual-property rights, data security, service levels, pricing, transition support and exit obligations.

EzyBiz India may assist with the entity, tax, FEMA, accounting and regulatory components of the arrangement and coordinate with suitable operational partners wherever required.

Managed or Hybrid GCC Model

Under a managed GCC model, the foreign company retains strategic control over the functions while selected operational activities are supported by third-party service providers.

The company may outsource activities such as:

• recruitment administration;
• payroll processing;
• accounting and reporting;
• office and facility management;
• IT infrastructure;
• cybersecurity support;
• routine legal and regulatory compliance.

A hybrid structure may be appropriate where the parent company wants to retain control over strategic employees, technology and intellectual property while relying on external specialists for local administration and support functions.

The allocation of responsibilities between the Indian entity, foreign parent and third-party providers should be clearly documented to avoid operational, tax and compliance gaps.

Key Decisions Before Setting Up a GCC in India

A successful GCC begins with a clearly defined business and implementation plan. Decisions taken during the planning stage can affect the centre’s costs, tax position, employee structure, regulatory obligations and ability to scale.

Functions and Scope of the GCC

The parent organisation should identify the functions that will be transferred to or developed in India.

These may include:

• technology and software development;
• engineering and product design;
• finance and accounting;
• analytics and artificial intelligence;
• research and development;
• customer operations;
• procurement and supply-chain support;
• human resources;
• compliance and risk-management functions.

The scope should also identify the expected level of decision-making authority, ownership of processes and interaction between the Indian team and overseas group entities.

Legal and Ownership Structure

The organisation should evaluate whether the GCC will be established as:

• a wholly owned Indian subsidiary;
• a joint venture;
• a managed operation followed by transfer;
• another legally permissible structure suitable to its activities.

The chosen structure should be reviewed from company-law, foreign-investment, tax, transfer-pricing, employment and operational perspectives.

For an Indian company, incorporation is undertaken through the Ministry of Corporate Affairs’ SPICe+ framework, together with applicable linked forms and registrations.

Location and Talent Strategy

The location should be selected after evaluating:

• availability of the required skills;
• employee compensation levels;
• office and infrastructure costs;
• accessibility and connectivity;
• employee retention;
• state policies and incentives;
• business-continuity requirements;
• future expansion plans.

The organisation should also determine whether recruitment will be completed internally, through recruitment agencies or through a managed GCC partner.

Funding and Intercompany Charging Model

The parent organisation should determine how the Indian entity will be funded during its establishment and subsequent operations.

Funding may include:

• equity capital;
• permitted debt or borrowing arrangements;
• service income from overseas group companies;
• reimbursement of eligible expenses;
• another legally permitted funding mechanism.

Where the Indian GCC provides services to overseas associated enterprises, the nature of services, cost base, allocation methodology, pricing method and profit margin should be appropriately documented.

International transactions with associated enterprises are subject to Indian transfer-pricing requirements, including arm’s-length pricing and applicable reporting obligations.

Intellectual Property and Data Management

The organisation should determine:

• who will own existing intellectual property;
• whether the Indian GCC will create new intellectual property;
• how technology and confidential information will be accessed;
• whether personal or sensitive data will be processed;
• what cybersecurity standards will apply;
• how cross-border data access and storage will be managed.

The intercompany agreements, employee contracts and vendor arrangements should contain suitable provisions relating to confidentiality, intellectual-property ownership, data security and permitted use of information.

India’s data-protection framework and its implementation timeline should also be evaluated according to the nature of personal data processed by the GCC.

Governance and Management Control

The parent organisation should establish a governance framework covering:

• board and management responsibilities;
• delegation of authority;
• financial approvals;
• procurement controls;
• employee reporting lines;
• information-security responsibilities;
• risk management;
• internal audit;
• escalation and reporting procedures.

A documented governance structure helps the GCC operate consistently with the parent organisation’s global policies while complying with Indian legal and regulatory requirements.

Our Global Capability Centre Setup Services

EzyBiz India provides coordinated support for the regulatory, tax, financial and administrative components of establishing a GCC in India.

The final scope is customised according to the client’s proposed operating model, activities, workforce, location and implementation requirements.

GCC Entry Strategy and Feasibility Assessment

We assist in evaluating:

• proposed GCC functions;
• suitable operating model;
• entity and ownership structure;
• estimated implementation requirements;
• regulatory considerations;
• tax and transfer-pricing implications;
• funding requirements;
• ongoing compliance responsibilities.

The assessment helps management identify the principal decisions and obligations before committing to the Indian operation.

Entity Incorporation and Corporate Setup

Our support may include:

• company-name evaluation;
• incorporation of the Indian entity;
• preparation and filing of incorporation documents;
• assistance with directors and authorised representatives;
• constitutional-document review;
• Permanent Account Number and tax registrations;
• bank-account opening coordination;
• initial corporate resolutions and statutory records.

The exact incorporation requirements will depend on the ownership structure, proposed activities, directors and foreign shareholder documentation.

Foreign Investment and FEMA Compliance

We assist with:

• review of the applicable foreign-investment route;
• sectoral-condition assessment;
• coordination of inward remittance documentation;
• allotment of shares to the foreign shareholder;
• applicable RBI foreign-investment reporting;
• preparation of supporting certificates and documents;
• ongoing Foreign Liabilities and Assets reporting;
• FEMA advisory for subsequent funding and transactions.

RBI’s foreign-investment framework prescribes reporting requirements for specified transactions, including issuance of equity instruments to foreign investors and annual foreign-liability reporting.

Tax and Transfer-Pricing Framework

We assist in developing an appropriate tax and intercompany framework covering:

• identification of services provided by the GCC;
• review of intercompany transactions;
• transfer-pricing model;
• cost-allocation methodology;
• service-fee arrangement;
• intercompany agreements;
• withholding-tax considerations;
• GST implications;
• tax registrations and return requirements;
• transfer-pricing documentation and reporting.

The framework should reflect the actual functions performed, assets used and risks assumed by the Indian entity.

Banking, Funding and Remittance Support

Our assistance may include:

• coordination with the authorised dealer bank;
• inward-remittance documentation;
• equity-funding support;
• review of permitted funding options;
• assistance with payment and remittance documentation;
• withholding-tax evaluation;
• applicable income-tax remittance forms and certificates;
• coordination for repatriation of eligible amounts.

The documentation required will depend on the nature of the remittance, taxability, contractual arrangement and applicable foreign-exchange regulations.

Employment, Payroll and Labour Compliance

We assist in establishing the employment-compliance framework for the GCC, including:

• payroll structure;
• employment-documentation coordination;
• employee tax withholding;
• payroll processing;
• social-security registrations and compliance;
• leave and attendance policies;
• reimbursement policies;
• statutory registers and records;
• labour-law compliance calendar;
• coordination with HR and recruitment partners.

The applicable requirements may vary according to the location, nature of establishment, employee strength and central or state labour provisions. India’s labour-law framework includes requirements relating to wages, social security, industrial relations and workplace conditions.

Accounting, Finance and Management Reporting

We assist the GCC in establishing financial systems covering:

• chart of accounts;
• accounting policies and procedures;
• bookkeeping;
• accounts payable and receivable;
• expense and vendor controls;
• monthly closing;
• payroll accounting;
• tax reconciliations;
• financial statements;
• management information reports;
• audit support.

Reporting formats may be aligned with the Indian statutory requirements as well as the parent organisation’s group-reporting timetable.

Office and Operational Partner Coordination

Where required, we coordinate with independent specialists for:

• office-location search;
• lease and commercial-document review;
• workspace and facility arrangements;
• recruitment;
• information-technology infrastructure;
• cybersecurity;
• insurance;
• background verification;
• vendor onboarding;
• business-continuity planning.

Technical, recruitment, real-estate and infrastructure services are provided by the respective specialists. EzyBiz India coordinates the relevant tax, regulatory, financial and documentation aspects connected with these arrangements.

Ongoing Corporate and Regulatory Compliance

After establishment, we may provide continuing support covering:

• statutory accounting;
• payroll;
• GST and income-tax compliance;
• transfer-pricing compliance;
• FEMA reporting;
• company-law filings;
• board and shareholder documentation;
• audit coordination;
• labour compliance;
• management reporting;
• regulatory updates.

This enables the GCC management team to focus on building capabilities and delivering services while routine financial and regulatory obligations are managed through an organised compliance framework.

Step-by-Step Process for Setting Up a GCC in India

The precise process will vary according to the proposed activities, ownership structure, location, employee strength and operational model.

Step 1: Preliminary Discussion and Requirement Assessment

We begin by understanding:

• the parent organisation’s objectives;
• proposed functions;
• expected team size;
• preferred location;
• implementation timeline;
• ownership requirements;
• proposed transactions with group entities;
• expected operational support.

This helps define the scope and identify the principal legal, tax and regulatory considerations.

Step 2: Feasibility and Operating-Model Evaluation

The available models are evaluated from the perspectives of:

• operational control;
• implementation speed;
• investment requirements;
• tax implications;
• intellectual-property protection;
• talent acquisition;
• scalability;
• compliance responsibilities.

Management can then select a wholly owned, joint venture, BOT, managed or hybrid GCC structure according to its objectives.

Step 3: Entity and Location Selection

The appropriate Indian entity and proposed location are selected.

At this stage, the organisation may consider:

• sectoral foreign-investment conditions;
• availability of talent;
• office requirements;
• state-level considerations;
• employment costs;
• accessibility;
• business-continuity requirements;
• expansion potential.

Step 4: Incorporation and Initial Registrations

The Indian entity is incorporated and the applicable registrations are obtained.

This stage may cover:

• company-name approval;
• incorporation documentation;
• digital signatures;
• director identification requirements;
• tax registrations;
• bank-account coordination;
• social-security and employment registrations;
• other activity- or location-specific registrations.

Step 5: Foreign Investment and Initial Funding

The foreign shareholder remits the initial capital or provides funding through another legally permitted method.

The process may include:

• banking documentation;
• receipt of foreign investment;
• allotment of shares;
• valuation or certification, where applicable;
• board and shareholder approvals;
• foreign-investment reporting;
• maintenance of statutory records.

Step 6: Intercompany and Transfer-Pricing Framework

The relationship between the Indian GCC and overseas group entities is documented.

This normally includes:

• identification of services;
• allocation of functions and responsibilities;
• service-level expectations;
• ownership of deliverables;
• intellectual-property provisions;
• cost base and mark-up;
• invoicing mechanism;
• payment terms;
• transfer-pricing documentation.

The legal agreements and transfer-pricing analysis should be consistent with the GCC’s actual operations.

Step 7: Employment and Payroll Setup

The employment and payroll framework is established before onboarding personnel.

This may include:

• employment documentation;
• payroll structure;
• employee tax deduction;
• social-security compliance;
• leave and reimbursement policies;
• payroll controls;
• HR and recruitment-partner coordination;
• employee-data management.

Step 8: Finance, Accounting and Compliance Systems

The GCC’s accounting and compliance systems are established, including:

• bookkeeping process;
• banking controls;
• invoicing;
• vendor payments;
• expense approval;
• tax calendar;
• payroll accounting;
• group reporting;
• statutory reporting;
• internal-control procedures.

Step 9: Office and Operational Readiness

The organisation completes the operational arrangements required for commencement, which may include:

• office premises;
• technology and connectivity;
• cybersecurity;
• insurance;
• vendor contracts;
• recruitment;
• internal policies;
• business-continuity procedures.

Specialist service providers may be engaged for technical and operational activities.

Step 10: Go-Live and Continuing Support

Once the entity, employees, systems and operating arrangements are ready, the GCC commences its activities.

Post-launch support may cover:

• monthly accounting;
• payroll;
• tax returns;
• FEMA reporting;
• company-law compliance;
• transfer-pricing documentation;
• audit;
• management reporting;
• regulatory review;
• expansion support.

Indicative Timeline for Setting Up a GCC in India

The time required to establish a Global Capability Centre depends on the chosen operating model, ownership structure, location, proposed workforce, foreign shareholder documentation, banking process and operational requirements.

The following timeline is indicative and should not be treated as a statutory or guaranteed approval timeline.

Planning and Structuring — Approximately 1 to 3 Weeks

This stage may include:

• defining the proposed functions and scope;
• selecting the GCC operating model;
• evaluating the legal and ownership structure;
• identifying the preferred location;
• assessing the funding and transfer-pricing framework;
• preparing a preliminary implementation plan.

The timeline may be shorter where the parent organisation has already finalised the activities, budget, workforce and location.

Entity Incorporation and Initial Registrations — Approximately 2 to 5 Weeks

This stage may include:

• company-name approval;
• obtaining digital signatures;
• preparation and execution of incorporation documents;
• incorporation of the Indian company;
• obtaining tax registrations;
• opening the initial statutory records;
• initiating the bank-account process.

The timeline may be affected by the availability, notarisation, apostille or consularisation of foreign shareholder and director documents.

Banking, Capitalisation and FEMA Reporting — Approximately 3 to 8 Weeks

After incorporation, the Indian company may need to:

• open and activate its bank account;
• receive foreign investment;
• allot shares;
• complete corporate approvals;
• obtain applicable valuation or professional certificates;
• file foreign-investment reports.

Where an Indian company issues equity instruments to a foreign investor, the applicable FC-GPR reporting is generally required through the RBI’s FIRMS platform within the prescribed period. RBI’s reporting framework also requires an annual Foreign Liabilities and Assets return from qualifying entities.

Tax, Employment and Finance Framework — Approximately 3 to 6 Weeks

This stage may include:

• intercompany service-agreement preparation;
• transfer-pricing analysis;
• GST evaluation;
• payroll design;
• employment-documentation coordination;
• accounting-system setup;
• compliance-calendar preparation;
• internal financial controls.

Several of these activities can proceed simultaneously with the banking and capitalisation process.

Operational Readiness — Approximately 6 to 20 Weeks or More

Operational readiness may involve:

• office identification and lease finalisation;
• recruitment and employee onboarding;
• IT and cybersecurity implementation;
• vendor selection;
• insurance arrangements;
• internal-policy implementation;
• testing of financial and reporting systems.

The operational timeline depends significantly on the scale and complexity of the proposed GCC.

Overall Indicative Timeline

A smaller GCC with clearly defined functions and readily available premises may become operational within approximately three to four months.

A larger or more complex GCC involving substantial recruitment, customised infrastructure, advanced technology systems, multiple stakeholders or regulated activities may require six months or longer.

The implementation plan should therefore contain separate timelines for:

• legal and entity setup;
• regulatory and tax readiness;
• office and technology readiness;
• recruitment and operational commencement.

Documents and Information Required for GCC Setup

The exact documentation will depend on the foreign shareholder’s jurisdiction, proposed ownership structure, directors, activities, location and banking requirements.

Foreign Parent Company Documents

Documents may include:

• certificate of incorporation or registration;
• charter, memorandum, articles or constitutional documents;
• registered-office evidence;
• register or list of directors;
• register or list of shareholders;
• ultimate beneficial ownership information;
• board resolution approving the Indian investment;
• authority or power of attorney for Indian filings;
• audited financial statements;
• tax-identification details;
• organisational structure or group chart;
• authorised-signatory documents.

Foreign documents may require notarisation, apostille or consularisation depending on the issuing country and the purpose for which they are submitted.

Proposed Director and Authorised-Signatory Documents

These may include:

• passport;
• recent address proof;
• photograph;
• email address and mobile number;
• tax-identification details, where applicable;
• consent to act as director;
• digital-signature documentation;
• declarations and regulatory forms;
• professional and residential information.

Additional documentation may be required for foreign nationals, non-resident directors or persons signing documents outside India.

Proposed GCC Business Information

The parent organisation should provide information regarding:

• proposed GCC functions;
• expected employee strength;
• preferred location;
• estimated setup and operating budget;
• implementation schedule;
• services to be provided to group entities;
• proposed funding;
• intellectual-property arrangements;
• technology and data requirements;
• expected transactions with associated enterprises;
• management and reporting structure.

This information is required to align the legal entity, tax framework and operational model with the commercial purpose of the GCC.

Ownership and Funding Information

Information may include:

• proposed shareholding pattern;
• amount and form of initial capital;
• details of the foreign investor;
• beneficial ownership structure;
• source-of-funds information;
• estimated future funding requirements;
• proposed intercompany payment arrangements;
• expected service revenue from overseas group companies.

The applicable foreign-investment route, sectoral conditions and reporting obligations should be reviewed before funds are remitted.

Registered Office and Operational-Premises Documents

Depending on the stage of implementation, the following may be required:

• proposed registered-office address;
• ownership document or lease agreement;
• landlord’s no-objection certificate;
• recent utility bill;
• office-layout and employee-capacity information;
• proposed operational-location details;
• local registrations connected with the premises.

A temporary registered office and the eventual GCC operating office may be different, subject to completion of the applicable corporate and regulatory procedures.

Intercompany and Operational Documents

These may include:

• intercompany service agreement;
• cost-allocation policy;
• transfer-pricing analysis;
• service-level agreement;
• intellectual-property licence or assignment;
• confidentiality arrangement;
• data-processing terms;
• employee-assignment or secondment documents;
• vendor and technology contracts;
• group accounting and reporting policies.

The documents should be consistent with the functions actually performed by the Indian GCC.

Common Challenges in Establishing a GCC in India

GCC projects involve legal, tax, employment, technology and operational workstreams. Delays or compliance risks may arise when these workstreams are handled independently without a coordinated implementation plan.

Unclear Definition of Functions and Responsibilities

A GCC project may face difficulties where the parent organisation has not clearly defined:

• the functions to be transferred to India;
• the authority of the Indian management;
• the responsibilities retained overseas;
• the expected service levels;
• the ownership of processes and deliverables.

A well-defined functional scope is important for entity selection, staffing, contracting, transfer pricing and governance.

Selecting an Unsuitable Operating Model

A wholly owned captive centre, joint venture, BOT arrangement and managed GCC provide different levels of control, cost, speed and operational responsibility.

Selecting a structure only for faster implementation or lower initial cost may create long-term difficulties relating to employees, intellectual property, technology, data, transition rights and governance.

Incomplete Foreign Shareholder Documentation

Foreign-company documents may require certification, notarisation, apostille or consularisation. Delays in obtaining correctly executed documents can affect incorporation, banking and foreign-investment reporting.

The document checklist and execution requirements should therefore be confirmed at an early stage.

Transfer-Pricing and Intercompany-Agreement Gaps

A GCC commonly provides services to its foreign parent or other overseas associated enterprises. The service agreement, functions performed, cost base, allocation methodology and pricing arrangement should reflect the actual operating model.

Indian taxpayers entering into applicable international transactions are required to comply with transfer-pricing provisions and obtain the prescribed accountant’s report in Form 3CEB.

Location and Talent Mismatch

A location may offer lower office costs but may not provide the required talent pool, connectivity, employee retention or scalability.

Location selection should balance:

• skill availability;
• salary levels;
• office costs;
• infrastructure;
• employee preferences;
• state support;
• future expansion;
• business continuity.

Data Protection and Cybersecurity Requirements

A GCC may process employee, customer, vendor or other personal data on behalf of group entities. Data flows, access controls, retention, incident response, vendor management and contractual responsibilities should be reviewed during implementation.

India notified the Digital Personal Data Protection Rules, 2025, together with an enforcement timeline, making data-governance planning an important element of new GCC operations.

Coordination Between Multiple Service Providers

GCC setup may involve:

• legal and tax advisers;
• accountants;
• bankers;
• recruitment firms;
• office-space consultants;
• technology vendors;
• cybersecurity specialists;
• payroll and HR providers;
• insurance advisers.

Without clearly allocated responsibilities, important activities may be duplicated, delayed or omitted.

Underestimating Post-Setup Compliance

Incorporation is only the beginning of the GCC lifecycle. The Indian entity may have continuing obligations relating to:

• accounting and audit;
• income tax;
• transfer pricing;
• GST;
• payroll and employee taxes;
• corporate filings;
• FEMA reporting;
• labour and social-security compliance;
• board and shareholder meetings;
• regulatory records.

These requirements should be incorporated into the operating budget and compliance calendar from the beginning.

Why Choose EzyBiz India for GCC Setup Support?

EzyBiz India provides coordinated support across the principal tax, regulatory, financial and compliance areas involved in establishing and operating an Indian GCC.

Integrated India-Entry Support

We assist clients in connecting the different components of GCC establishment, including:

• entity incorporation;
• foreign investment and FEMA;
• taxation;
• transfer pricing;
• accounting;
• payroll;
• corporate compliance;
• labour compliance;
• ongoing business support.

This integrated approach helps reduce gaps between incorporation, funding, contracting and operational readiness.

Tax and Regulatory Focus

Our approach considers the tax and regulatory implications of the proposed GCC model from the planning stage.

We assist in aligning the:

• legal structure;
• funding method;
• intercompany arrangement;
• transfer-pricing model;
• GST position;
• foreign-exchange compliance;
• accounting and reporting system.

Customised Scope for Each GCC

A GCC established for software development may have different requirements from one undertaking engineering, finance, research, analytics, procurement or customer operations.

We therefore customise the engagement according to the client’s:

• proposed functions;
• operating model;
• employee strength;
• location;
• ownership;
• transactions;
• implementation schedule;
• ongoing support requirements.

Single-Point Coordination

EzyBiz India can act as a central coordination point for the tax, accounting, compliance and regulatory workstreams.

Where recruitment, office, infrastructure, technology, cybersecurity or other specialist support is required, we may coordinate with suitable independent service providers.

Transparent Division of Responsibilities

We clearly identify:

• services handled directly by EzyBiz India;
• services requiring independent legal or technical specialists;
• activities to be completed by the client;
• third-party approvals and dependencies;
• recurring post-setup obligations.

This helps establish practical expectations regarding scope, responsibility, fees and timelines.

Continuing Support After Go-Live

Our involvement need not end after incorporation. Subject to the agreed scope, we may support the GCC with:

• bookkeeping and financial reporting;
• payroll;
• GST and income-tax compliance;
• transfer-pricing compliance;
• FEMA reporting;
• corporate filings;
• audit coordination;
• labour compliance;
• management reporting;
• expansion and restructuring support.

Frequently Asked Questions About GCC Setup in India

What is a Global Capability Centre?

A Global Capability Centre is an offshore unit established by an international organisation to perform specialised functions for its parent company or other group entities. Such functions may include technology, engineering, research, analytics, finance, HR, customer operations and other business services. GCCs function as integrated parts of the global corporate structure.

Is a GCC a separate type of legal entity in India?

A GCC describes the purpose and operating model of the Indian operation rather than a separate general category of company.

In practice, the organisation must select a suitable legal structure—commonly an Indian subsidiary, joint venture or managed arrangement—and complete the registrations applicable to that entity, its activities, employees and location.

Which legal structure is generally suitable for a GCC?

A wholly owned Indian subsidiary is frequently considered where the foreign parent requires long-term control over employees, intellectual property, systems and operations.

However, the appropriate structure depends on the proposed activities, foreign-investment rules, sector, implementation model, funding and commercial objectives.

Can a mid-sized foreign company establish a GCC in India?

Yes. A GCC is not limited to very large multinational corporations.

A mid-sized international company may establish a focused GCC where it has clearly defined functions, an appropriate budget, management commitment and a sustainable long-term requirement for an Indian team.

How long does it take to establish a GCC in India?

The legal and regulatory foundation may be completed within a few weeks where documentation is readily available.

However, complete operational commencement involving banking, funding, recruitment, premises, technology, intercompany agreements and internal controls commonly requires several months. A detailed timeline should be prepared after reviewing the proposed size and operating model.

How is an Indian GCC funded?

The initial setup may be funded through foreign equity investment or another legally permitted funding arrangement.

After commencement, the Indian GCC may earn service revenue from its foreign parent or other group entities under properly documented intercompany agreements. The funding and charging structure should be evaluated from FEMA, tax and transfer-pricing perspectives.

Is transfer pricing applicable to a GCC?

Transfer pricing is generally relevant where the Indian GCC enters into international transactions with its foreign parent or other associated enterprises.

The functions performed, assets used, risks assumed, cost base and pricing method should be analysed and documented. Applicable taxpayers are also required to obtain the prescribed Form 3CEB report for international transactions.

Is GST applicable to services provided by an Indian GCC?

The GST position depends on the nature of the services, place of supply, recipient, contractual arrangement and satisfaction of the conditions for export of services.

Qualifying exports of services are treated as zero-rated supplies under the IGST framework, subject to the applicable conditions, documentation and compliance requirements.

Does a GCC need to comply with Indian data-protection requirements?

The applicable requirements depend on the nature of the personal data processed and the role performed by the Indian GCC.

Data mapping, access controls, employee and vendor documentation, security safeguards, incident management and cross-border processing arrangements should be reviewed in light of India’s applicable data-protection framework.

Can foreign nationals be appointed as directors of the Indian GCC company?

Foreign nationals may be appointed as directors subject to the applicable company-law requirements, documentation, identification requirements and the prescribed composition of the board.

The company should also assess whether any government approval, security clearance, residency, visa, tax or sector-specific consideration applies to the proposed appointment.

Can EzyBiz India assist with office selection and recruitment?

EzyBiz India’s direct focus is on entity setup, tax, FEMA, transfer pricing, accounting, payroll and regulatory compliance.

Where office search, recruitment, technology, infrastructure or cybersecurity support is required, we may coordinate with suitable independent specialists while assisting with the connected financial, contractual and compliance requirements.

What continuing compliances apply after GCC establishment?

The applicable obligations may include:

• accounting and statutory audit;
• corporate filings;
• income-tax returns;
• transfer-pricing documentation and reporting;
• GST returns;
• payroll and withholding taxes;
• FEMA reporting;
• labour and social-security compliance;
• board and shareholder documentation;
• maintenance of statutory records.

The exact compliance calendar depends on the entity, activities, employee strength, location and transactions undertaken.

Related Services

India Market Entry Consulting

Strategy, structure and regulatory support for international companies entering and operating in India.

Wholly Owned Subsidiary Setup

End-to-end assistance with the incorporation and initial compliance of a foreign-owned Indian subsidiary.

FEMA and RBI Advisory

Support for foreign investment, funding, remittances, reporting and ongoing foreign-exchange compliance.

International Tax and Transfer Pricing

Assistance with intercompany arrangements, pricing models, documentation, tax compliance and reporting.

Managed Business Services

Accounting, payroll, management reporting, tax compliance and ongoing administrative support for Indian operations.

Labour Law Compliance

Support with payroll-related registrations, employee compliance, statutory records and recurring labour-law requirements.

Plan Your Global Capability Centre in India

Establishing a successful GCC requires coordinated planning across business strategy, legal structure, taxation, transfer pricing, foreign investment, employment, finance and operations.

EzyBiz India can assist your organisation in evaluating the proposed GCC model, establishing the Indian entity and creating an organised tax, financial and regulatory framework for commencement and future expansion.

Discuss Your GCC Setup Plans

Request a Consultation

Share your proposed functions, expected workforce, preferred location and implementation timeline with our India Entry team.

• Country-Specific India Market Entry Pages

  We have prepared dedicated India market entry pages to help overseas businesses understand the regulatory, tax and commercial considerations applicable to their jurisdiction. Explore our country-specific pages below:

  • India Market Entry Services for Chinese Companies
  • India Market Entry Services for Taiwanese Companies
  • India Market Entry Services for US Companies
  • India Market Entry Services for UK Companies
  • India Market Entry Services for Australian Companies
  • India Market Entry Services for German Companies
  • India Market Entry Services for Japanese Companies
  • India Market Entry Services for Singapore Companies
  • India Market Entry Services for UAE Companies

Disclaimer 

The information provided on this page is intended for general guidance and does not constitute legal, tax, investment or regulatory advice. The requirements applicable to a Global Capability Centre depend on its ownership, activities, location, transactions, workforce and operating model. Laws, regulations, policies and procedures may change from time to time. Specific professional advice should be obtained before establishing or operating a GCC in India.