FAQ: Gcc Setup India
Answers on India market entry, FDI, GCC setup, tax, and compliance.
GCC Setup in India - BOT Model and Global Capability Centre
Does a GCC always require setting up a separate legal entity in India?
No — while a wholly-owned subsidiary is the most common structure for a full-scope GCC, companies can also start under a Build-Operate-Transfer (BOT) model through a local partner's entity and convert to their own legal entity later, or use a branch office structure in narrower cases, depending on how much control and how fast a start they need. Read full answer →
Which Indian city is best for setting up a Global Capability Centre (GCC)?
There's no single best city — Bengaluru and Hyderabad lead for tech/product talent depth, Pune and Chennai for engineering and manufacturing-linked GCCs, and Gurugram/NCR for finance and shared-services GCCs; the right choice depends on the talent pool your GCC needs and your real-estate/cost tolerance. Read full answer →
What functions should a GCC start with before expanding scope?
Most successful GCCs start with well-defined, process-heavy functions like IT support and application maintenance, finance and accounting shared services, or customer support, then expand into higher-value work such as product engineering, analytics, and R&D once the centre has proven delivery reliability and built management credibility with headquarters. Read full answer →
How long does it take to scale a GCC in India from launch to 100+ employees?
A well-planned GCC can go from entity incorporation to 100+ employees in roughly 9 to 15 months, with the first 3-4 months consumed by legal setup and leadership hiring, and headcount ramping steadily once core team leads and delivery processes are in place. Read full answer →
Is a GCC cheaper than outsourcing to a third-party BPO in India?
A GCC typically costs more upfront to set up than outsourcing to a BPO vendor, but delivers a lower fully-loaded cost per employee at scale (usually beyond 100-150 headcount) along with full IP ownership, direct process control, and no vendor margin — the crossover point depends on function complexity and how long you plan to run the operation. Read full answer →
Sources and rules
The rules behind this topic are published by the authorities below. Laws and circulars change, so check the current text at the source before you act on any point on this page.
- DPIIT: Foreign Direct Investment policyFDI rules that apply to a captive entity
- Ministry of Electronics and Information TechnologyIT and data rules relevant to technology and service centres
- Income Tax Department: India (CBDT)Transfer pricing and safe harbour for captive service providers
- Ministry of Corporate Affairs: ActsCompanies Act, 2013