What is a Global Capability Centre (GCC) in India?

A Global Capability Centre (GCC) is an offshore entity established by multinational corporations in India to deliver technology services, R&D, business process support, and innovation capabilities. India hosts over 1,800 GCCs employing more than 1.9 million professionals, making it the world's largest GCC destination. GCCs operate as wholly owned subsidiaries, joint ventures, or branch offices, providing cost arbitrage, access to skilled talent, and 24/7 operational capabilities.

What is the typical cost of setting up a GCC in India?

GCC setup costs in India typically range from USD 50,000 to USD 500,000 for legal, regulatory, and initial operational expenses, depending on complexity. This includes incorporation fees (Rs 10,000-50,000), legal advisory (USD 15,000-50,000), initial office setup (varies by city—Bengaluru and Mumbai are most expensive), and compliance registrations. Ongoing annual compliance costs range from USD 20,000-100,000 depending on entity size and regulatory requirements.

Which cities in India are best for establishing a GCC?

Bengaluru leads with 870+ GCCs, strongest for deep tech, AI/ML, and product engineering. Hyderabad (500+ GCCs) excels in cloud infrastructure and pharma R&D. Pune (400+ GCCs) is ideal for automotive engineering with highest retention rates. Chennai (350+ GCCs) offers manufacturing expertise. NCR (400+ GCCs) provides regulatory proximity. Mumbai (300+ GCCs) leads in financial services. Ahmedabad (150+ GCCs) is emerging with GIFT City benefits and 30-40% lower costs.

What are the tax benefits for GCCs in India?

GCCs can benefit from: (1) Section 115BAA concessional corporate tax rate of 22% (effective ~25.17%); (2) SEZ units enjoy 100% income tax exemption for first 5 years, 50% for next 5 years; (3) GST zero-rating for export services with input tax credit refunds; (4) State incentives including capital subsidies (15-30%), stamp duty exemptions, and employment incentives; (5) GIFT City IFSC offers 100% tax exemption for 10 of 15 years and zero GST/STT.

How long does it take to incorporate a GCC entity in India?

GCC incorporation typically takes 3-6 weeks: SPICe+ form processing (7-10 days), DSC procurement (2-3 days), name reservation (3-5 days), document drafting (1 week), and post-incorporation registrations including PAN, TAN, bank account (2 weeks). SEZ unit approval adds 4-6 weeks. Branch office RBI approval requires 8-12 weeks. Expedited timelines possible with pre-planning and professional advisory.

What is DPDPA compliance requirement for GCCs?

The Digital Personal Data Protection Act 2023 (DPDPA) requires GCCs to: (1) Obtain informed, specific consent for personal data processing; (2) Implement data minimization and purpose limitation; (3) Appoint Data Protection Officer if classified as Significant Data Fiduciary; (4) Notify breaches to Data Protection Board and affected individuals; (5) Ensure cross-border transfers only to non-restricted countries; (6) Implement children's data protections with verifiable parental consent.

What transfer pricing method is used for GCC services?

Transactional Net Margin Method (TNMM) is most common for GCC software development services, using operating margin (OP/TC or OP/Sales) as profit level indicator. Arm's length range typically 15-25% for software development. Cost Plus Method (10-15% markup) applies for routine services. Advance Pricing Agreements (APAs) provide 4-5 year certainty. Safe harbor rules under section 92CB offer cost-plus 15-20% for eligible services.

Should a GCC be located inside or outside an SEZ?

SEZ location offers substantial tax benefits (100% income tax exemption for 5 years) but with constraints: minimum export obligation, DTA sales restrictions, physical infrastructure requirements, and DESH Bill sunset risk. Non-SEZ provides operational flexibility for domestic market pivot. Decision matrix: For export-focused R&D/IT services GCCs with minimal India revenue, SEZ is attractive. For GCCs supporting India sales or anticipating domestic expansion, non-SEZ offers flexibility.

DPDPA Hub AI Intelligence Hub AMLEGALS Hub

+91-8448 548549[email protected]

Legal Advisory for Global Capability Centres

Global Capability
Centres in India

Comprehensive legal guidance for establishing and operating GCCs across India's regulatory landscape. From corporate structuring to tax optimization, labor compliance to state incentives.

Explore GCC Services Get in Touch

Scroll

1,800+

Global Capability Centres

1.9M

Professionals Employed

2,100+

Projected by 2030

India's GCC Advantage

India hosts over 1,800 Global Capability Centres employing 1.9 million professionals, projected to exceed 2,100 centers by 2030. As the world's largest GCC hub, India offers a unique combination of technical talent, cost efficiency, and evolving regulatory frameworks that demand sophisticated legal navigation.

Comprehensive GCC Legal Services

Ahmedabad

Gujarat

150+

GCCs Operating

Specialization

Shared ServicesBFSI OperationsPharma & Life Sciences

End-to-End Support

GCC Lifecycle Advisory

Sector Expertise

Industry-Specific GCC Considerations

BFSI & Fintech

Explore BFSI GCCs

Technology & SaaS

Explore Technology GCCs

Healthcare & Pharma

Explore Healthcare GCCs

Manufacturing & IoT

Explore Manufacturing GCCs

Retail & E-Commerce

Explore Retail GCCs

Energy & Clean Tech

Explore Energy GCCs

Compliance Framework

Multi-Dimensional Regulatory Matrix

Cross-Border Compliance

FEMA • ODI • LRS

View Framework

Data Protection & Privacy

DPDPA 2023 • GDPR Alignment

View Framework

Intellectual Property Rights

Patents • Trademarks • Copyright

View Framework

Infrastructure & Incentives

SEZ • IFSC • State Schemes

View Framework

Ready to Establish Your GCC in India?

From entity structuring to state incentive monetization, we guide you through every legal dimension of GCC establishment and operation.

Get in Touch About Our Firm

Global CapabilityCentres in India

India's GCC Advantage

End-to-End GCC Advisory

Corporate Structuring & Entity Formation

Tax & Transfer Pricing Compliance

Labor & Employment Law

Data Privacy & DPDPA Compliance

Intellectual Property & Technology Transfer

Real Estate, SEZs & IFSCs

FEMA & Cross-Border Transactions

State Policies & Incentives

Major GCC Hubs in India

Bengaluru

Hyderabad

Pune

Chennai

NCR (Gurugram/Noida)

Mumbai

Ahmedabad

GCC Lifecycle Advisory

Setup & Structuring

Talent Onboarding

Operational Compliance

Scale & Optimize

Industry-Specific GCC Considerations

BFSI & Fintech

Technology & SaaS

Healthcare & Pharma

Manufacturing & IoT

Retail & E-Commerce

Energy & Clean Tech

Multi-Dimensional Regulatory Matrix

Cross-Border Compliance

Data Protection & Privacy

Intellectual Property Rights

Infrastructure & Incentives

Ready to Establish Your GCC in India?

Global Capability
Centres in India