This guide is for general information only and is not legal, tax, regulatory, employment, or accounting advice.
A GCC in India is generally set up as a locally incorporated entity. A wholly owned Indian private limited company is common, though not the only option or automatically the best fit for every company. Setup typically involves MCA registration and an ongoing compliance framework spanning FEMA, tax, transfer pricing, and IP protection. As of FY2026, India is home to 2,117 GCCs, per NASSCOM–Zinnov.
This guide covers what a GCC is, how to think about structure and registration, where to locate it, and the compliance items that most often trip up first-time entrants.
A Global Capability Center (GCC) also called a Global In-house Center (GIC) or captive center is an entity a foreign company sets up in India, typically wholly owned, to run its own business functions directly rather than outsourcing them.
With outsourcing, a vendor’s employees do the work, and the vendor often retains more control over process and IP than clients realize. With a GCC setup in India, you generally own the entity and employ people directly though how IP, data, and control flow back to the parent depends on how the entity and its agreements are structured.
| GCC (Captive) | Outsourcing | EOR / Staffing | |
| Ownership | Typically 100% parent-owned | Third-party vendor | You direct, EOR employs |
| IP | Can stay with parent if structured correctly | Often contested or vendor-retained | Depends on contract |
| Control | Generally full | Limited | Moderate |
| Cost structure | You control it directly | Vendor pricing, often with margin | Per-employee service fee |
Is a GCC right for you?
If most apply, a GCC is worth evaluating against outsourcing or EOR. If you’re still testing the market, a managed or BOT model or an EOR may be a lower-risk start.
Scale. As of FY2026, India is home to 2,117 GCCs, per NASSCOM–Zinnov.
Cost. Many companies cite cost efficiency as a driver, though actual savings depend on role mix, city, seniority, and structure; we’d avoid quoting a specific percentage without current, sourced benchmarking.
Talent. India produces a large annual pool of engineering and STEM graduates, and GCC mandates have broadened well beyond back-office work; several large multinationals run significant GCCs in India covering engineering, data, and analytics.
| Model | How It Works | Key Consideration |
| Build-Own-Operate (BOO) | You incorporate and manage everything – HR, payroll, compliance, office from day one | Full compliance responsibility from the start |
| Build-Operate-Transfer (BOT) | A specialist sets up and runs the GCC, transferring ownership to you at an agreed point | Needs careful planning around transition and IP/employee transfer |
| Managed GCC | A provider owns and runs the center; you direct the work as a client | Less control; IP/data arrangements need careful contracts |
The right model depends on your headcount ambitions, risk tolerance, and internal India-facing bandwidth decided with legal and tax input, not a one-size-fits-all default.
A wholly owned Indian private limited company under the Companies Act, 2013 is a common structure offering full foreign ownership potential, limited liability, and flexibility to hire and scale. It isn’t automatically the right choice for every company; the right structure depends on sector, funding plans, and activity mix, and should be confirmed with Indian counsel.
Alternatives, briefly:
A general registration sequence (confirm specifics with your advisors):
You’ll need at least two directors, one resident in India for 182+ days a year (Companies Act, s.149(3)). Timelines vary by entity type and processing speed confirms current turnaround with your registration agent rather than assume a fixed window.
| City | Commonly Associated With |
| Bengaluru | AI, cloud, deep tech, product engineering |
| Hyderabad | BFSI, life sciences, analytics |
| Pune | Engineering, manufacturing |
| Chennai | Manufacturing, automotive, healthcare |
| Mumbai / Delhi NCR | BFSI, legal, shared services |
| Tier-2 (Indore, Coimbatore, Jaipur, etc.) | Smaller or cost-conscious setups |
Bengaluru is commonly the default for AI-, cloud-, and product-focused GCCs given its ecosystem depth; other cities have built reputations in specific sectors, as above. We’ve left out cost, salary, and attrition comparisons; these shift quickly, so get sourced benchmarking from a local advisor before finalizing.
Most first-time GCC setups run into trouble not at incorporation, but in the months after.
FEMA and RBI filings. After FC-GPR, an entity that has received inbound FDI generally must file an annual FLA Return where applicable. Note: the Annual Performance Report (APR) applies to outbound investment by an Indian party not inbound FDI and is sometimes confused with the FLA.
Tax and transfer pricing. Alongside routine filings (GST, TDS, advance tax, income tax), cross-border related-party transactions between the GCC and its parent generally need arm’s-length pricing with contemporaneous documentation. Coordinate this with intercompany agreements, withholding tax, GST/invoicing, and a functional, asset, and risk (FAR) analysis not as a standalone filing. It’s widely regarded as one of the more closely scrutinized areas for GCCs.
IP ownership. Under Indian copyright law, copyright in employee-created work generally vests initially in the employer the Indian GCC unless otherwise agreed. This does not automatically vest IP in the foreign parent. A complete framework typically covers: an assignment/licence from the GCC to the parent; IP clauses in employment and contractor agreements (different default rules apply); patent/invention assignment where relevant; confidentiality; moral rights (generally non-assignable, waivable only in limited cases); and open-source usage controls. Put these in place before hiring begins, and review with counsel.
Data privacy. Substantive DPDP Act obligations are being phased in, with a compliance deadline of May 2027. Plan your data governance framework well ahead of that date rather than as a single cutover.
Ongoing compliance checklist: corporate secretarial, payroll/TDS, GST, FEMA/RBI filings, transfer pricing documentation, EPF/ESI, professional tax, Shops and Establishments registration, POSH compliance, employment contracts, IP/confidentiality agreements, vendor contracts, and data security/privacy controls (varies by state, sector, and headcount).
Costs vary significantly by entity structure, city, headcount, seniority mix, and scope, and shift over time. Rather than quote generic figures, request current, sourced estimates from your advisors as part of planning.
Delaying IP assignment agreements. Far simpler to formalize on day one than retrofit after a team has been working for a year.
Choosing a city on cost alone. The cheapest city on paper doesn’t always have the talent depth or leadership availability you’ll need at scale. Validate cost, salary, or attrition claims with current data.
Underestimating year-one compliance load. Companies often budget for incorporation but not the FEMA, transfer pricing, and tax filing cadence that begins once the entity has revenue and employees.
A GCC in India is a well-established path for global talent and operating efficiency, but outcomes depend on execution, operating model, location, and a compliance foundation covering FEMA, transfer pricing, and IP ownership matter more than any single cost benchmark. Treat this guide as a starting framework, and confirm current figures and legal positions with qualified advisors before deciding.
Setting up a GCC in India involves more moving parts than any single guide can cover. If you’re evaluating timing, or already mid-setup and want a second opinion, we’re happy to walk through it.
