How to Set Up a Global Capability Centre (GCC) in India — Complete Guide for US and UK Companies (2026)

By CA Rohit Lohade, KRPR & Associates  ·  Updated June 2026  ·  18 min read

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1. Why Are US and UK Companies Setting Up GCCs in India in 2026?

The Global Capability Centre model has fundamentally shifted. What began in the early 2000s as a cost-reduction play — back-office processing, data entry, call centres — has evolved into something far more strategic. India's GCC ecosystem is accelerating, with approximately 50 new centres launched in the first two quarters of 2025 alone. The question companies were asking ten years ago — "should we go to India?" — is gone. The question now is "what more can we do from India?"

For US and UK companies specifically, three forces are driving GCC investment in 2026:

Driver	What it means in practice
Talent depth at scale	India produces 2.5 million STEM graduates annually. Senior engineering, AI, data science, and finance talent is available at all levels — not just junior roles. Google, Microsoft, JPMorgan, Walmart, and Goldman Sachs now run some of their largest global operations from Indian cities.
Cost arbitrage	Leading US and UK organisations are reducing operating costs by 40 to 60 percent through GCCs in India. A senior engineer in Pune costs approximately 20-25% of an equivalent hire in London or San Francisco.
Innovation, not just execution	Over 50% of Indian GCCs now function as transformation hubs driving digital transformation, with 58% investing in agentic AI and 83% scaling generative AI projects. GCCs are writing code, owning products, and leading global mandates — not just supporting them.
IP ownership and control	Unlike outsourcing where IP sits with a vendor, a GCC is wholly owned. All code, data, and IP remains with the parent company. This matters significantly in AI and deep tech.
UK-India Free Trade Agreement (2025)	The UK-India FTA, signed in mid-2025, has materially strengthened the commercial case for UK companies entering India — particularly for services, professional functions, and technology delivery.

By 2030, India is expected to host over 2,500 GCCs employing 2.8-2.9 million professionals, contributing an impressive USD 105 billion in revenue to the global economy.

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2. What Exactly Is a GCC — and How Is It Different from Outsourcing?

A Global Capability Centre (GCC) — also called a Global In-house Centre (GIC) or captive centre — is a wholly owned offshore entity through which a multinational company delivers high-value business functions directly. It is legally, financially, and operationally part of the parent company's group.

Dimension	GCC (captive)	Outsourcing / third-party vendor
Ownership	100% owned by parent company	Separate company — you are a client
IP ownership	All IP stays with parent company	IP ownership depends on contract — often contested
Control	Full — you set process, culture, and direction	Limited — vendor manages operations
Data access	Direct — no third-party access to your data	Vendor has access — data governance risk
Talent	Your employees, your culture, your retention	Vendor's employees — attrition affects your delivery
Cost structure	Variable — you control headcount and roles	Fixed per contract — less flexibility
Compliance	You own it — requires CA firm, payroll, FEMA compliance	Vendor manages local compliance
Long-term cost	Lower as you scale — no vendor margin	Higher at scale — vendor margin persists

The key insight for US and UK CFOs: a GCC is not a cost-centre decision. It is a strategic operating model decision. You are building an internal capability — not buying a service. The compliance framework, legal structure, and tax position must reflect that from day one.

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3. What Are the Three GCC Operating Models — and Which Is Right for Your Company?

Before choosing a city, structure, or advisor, choose your operating model. This decision shapes everything that follows.

Model	How it works	Best for	Key risk
Build Own Operate (BOO)	Your company incorporates the Indian entity, owns it from day one, and directly manages all operations — HR, payroll, compliance, office, IT	Companies with 100+ headcount target, prior India experience, and strong internal HR/legal teams	Full compliance responsibility from day one. High early-stage management bandwidth required.
Build Operate Transfer (BOT)	A specialist provider sets up and operates the GCC for 12-24 months under a management agreement. The parent takes ownership at an agreed transition date.	First-time India entrants with 20-100 headcount target. Reduces early-stage compliance risk.	Transition friction at the handover point. Ensure the legal entity is in the parent's name from incorporation — not transferred later.
Managed GCC	The provider owns and operates the GCC permanently. The parent is a client, directing the team but not the legal employer. Simplest entry model.	Early-stage or smaller GCCs (under 50 people), companies testing India before committing to a full BOO setup	Least control. Highest per-head cost at scale. No direct employment relationship with your India team. IP ownership must be carefully contractually managed.

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4. What Legal Structure Should a US or UK Company Use for a GCC in India?

The answer for almost every US and UK GCC is a Wholly Owned Subsidiary (WOS) incorporated as a Private Limited Company under the Companies Act 2013. Here is why the alternatives fall short:

Structure	Suitable for GCC?	Why
Private Limited Company (Wholly Owned Subsidiary)	✅ Yes — standard choice	100% foreign ownership, limited liability, full operational control, transfer pricing defensibility, ability to hire directly, SEZ eligibility, clear IP ownership chain, easiest to scale and restructure
Branch Office	❌ Not recommended	Not a separate legal entity — the US/UK parent's balance sheet carries direct Indian regulatory exposure. Taxed at 40% (vs 25.17% for subsidiary). Restricted activities. RBI approval required.
Limited Liability Partnership (LLP)	⚠️ Limited use cases only	FDI in LLPs requires government approval (not automatic route) for most sectors. Cannot issue ESOPs under Indian law. Limited scalability. Not suitable for most GCC models.
Liaison Office	❌ No	Cannot generate any revenue or deliver any commercial services. Only permitted for market research and promotion. Does not work as a GCC model.

Key legal requirements for a Private Limited Company GCC

• Minimum 2 directors — at least one must reside in India for 182+ days per financial year (Section 149(3), Companies Act 2013)
• Minimum 2 shareholders — both can be the US/UK parent company or its nominees
• 100% FDI under the automatic route for IT services, software, BPO, R&D, and most GCC functions — no government approval required
• FC-GPR filing with RBI within 30 days of share allotment
• INC-20A (commencement of business) filed within 180 days of incorporation

→ Full India subsidiary setup guide — KRPR
→ Resident director services — KRPR

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5. Which Indian City Should You Choose for Your GCC?

GCCs accounted for 38% of office leasing across India's top seven cities in 2025 — the highest volume ever recorded. City selection is one of the most consequential decisions you will make — it determines talent access, cost structure, attrition rates, and your ability to hire senior leadership.

City	Best for	Talent depth	Cost vs Bengaluru	GCC count
Bengaluru	AI/ML, cloud engineering, deep tech, fintech, product companies	Deepest — 870+ GCCs, global AI hub, Microsoft, Google, OpenAI all present	Baseline (highest)	870+
Hyderabad	BFSI, analytics, life sciences, pharma, data engineering	Very strong — 430+ GCCs, strong in precision manufacturing and vaccine/pharma	~10-15% lower	430+
Pune	Engineering, automotive, manufacturing, European company HQs, fintech	Strong — lower attrition than Bengaluru, strong engineering colleges, growing US and UK corporate presence	~15-20% lower	250+
Chennai	Manufacturing, automotive, healthcare, Japanese and Korean company operations	Strong in hardware, embedded systems, and automotive engineering	~10-15% lower	200+
Delhi NCR	Shared services, consulting, telecom, government-facing functions	Strong in finance, HR, legal, and sales functions	~10-15% lower	200+
Mumbai	BFSI, legal, media, trading operations	Strong in financial services — most expensive after Bengaluru	Similar to Bengaluru	150+
Tier-2 (Ahmedabad, Jaipur, Coimbatore, Mysuru)	Nano-GCCs (<150 people), AI engineering, domain-specific analytics, cost-driven setups	Rapidly developing — 15-25% lower cost, lower attrition, but less depth of senior talent	20-30% lower	Growing

For UK companies specifically

UK companies have increasingly favoured Pune for their first India GCC for practical reasons: lower attrition than Bengaluru, a strong and growing European corporate presence, a more manageable cost base, and a maturing talent pool across engineering, fintech, and professional services. Pune and Bengaluru are in the same time zone (IST +5:30) — so time zone overlap with the UK is identical across both cities (approximately 4.5 hours during UK business hours). KRPR & Associates operates across both Pune and Bengaluru and can advise on city selection based on your specific sector, headcount, and talent requirements.

For US companies specifically

Bengaluru remains the structural default for US technology and product companies — the AI, cloud, and deep tech ecosystem is unmatched globally. For BFSI or fintech GCCs, GIFT City's regulatory sandbox and extended tax holiday creates a compelling alternative.

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6. What Are the Core Compliance Obligations for a GCC in India?

81% of GCC leaders identify transfer pricing as their top regulatory priority, followed by SEZ/STPI regulations at 67% and labour laws at 60%. Here is the full compliance framework every US and UK GCC must manage.

Company law compliance (ongoing)

• Annual General Meeting within 6 months of financial year end
• Annual return (Form MGT-7) and financial statements (Form AOC-4) to MCA/ROC
• Statutory audit by ICAI-registered CA — mandatory for all Indian companies
• Director KYC (DIR-3 KYC) by 30 September annually
• Board meeting minutes and resolutions — maintained throughout the year

FEMA and RBI compliance

• FC-GPR — within 30 days of initial share allotment. Most commonly missed first filing.
• Annual Performance Report (APR) to RBI — by 31 December annually. Foreign-owned entities only.
• FLA Return (Foreign Liabilities and Assets) to RBI — by 15 July annually. Foreign-owned entities only.
• Form 15CA/15CB — before every outbound remittance to the US/UK parent (dividends, management fees, royalties)
• FC-TRS — within 60 days of any share transfer

→ FEMA & FDI compliance — KRPR's specialist desk

Tax compliance

Filing	Frequency	Due date
GSTR-1 (GST outward supplies)	Monthly	11th of following month
GSTR-3B (GST summary)	Monthly	20th of following month
TDS payment	Monthly	7th of following month
TDS return (Form 24Q / 26Q)	Quarterly	31st of month after quarter
Advance tax payment	Quarterly	15th June, September, December, March
Income tax return	Annual	31 October (if TP audit applies)
Form 48 (TP documentation)	Annual	31 October
APR to RBI	Annual	31 December
FLA return to RBI	Annual	15 July

→ Monthly accounting and compliance — KRPR

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7. How Does Transfer Pricing Work for an Indian GCC?

Transfer pricing is the most important and most litigated compliance area for GCCs. 81% of GCC leaders identify transfer pricing as their top regulatory priority. Every transaction between the Indian GCC and the US/UK parent must be priced at arm's length under Indian TP regulations.

What transactions require TP documentation?

• IT and software development services delivered by the GCC to the parent
• R&D, analytics, or engineering services recharged to the parent
• Shared services (HR, finance, legal) recharged from parent to India or vice versa
• Management fees charged by the parent to the GCC
• IP licences and software subscriptions between the entities
• Intercompany loans

Form 48 — the major 2026 update US and UK CFOs must know

Union Budget 2026 — Safe Harbour update for GCCs

The GCC TP model — cost plus or principal structure?

Most Indian GCCs operate under one of two transfer pricing models:

Model	How it works	Best for	TP risk
Cost Plus (TNMM)	Indian GCC charges the parent: total costs + a markup (e.g. cost + 15%). The GCC is a limited-risk service provider — the parent bears commercial and market risk.	Back-office, shared services, IT services, BPO — where the GCC delivers defined services to the parent	Lower — Safe Harbour at 15.5% provides protection. Indian Revenue accepts limited-risk entity characterisation if functions, assets, and risks align.
Principal structure	GCC holds IP, contracts directly with customers, earns higher margins, and bears commercial risk. Parent receives royalty/licence fee.	Product companies, R&D centres, entities with genuine market-facing India operations	Higher — more scrutiny, more complex FAR analysis, no safe harbour. Requires robust documentation and management of PE risk in India for the parent.

As GCCs evolve from service delivery to innovation and product ownership, many are transitioning from Cost Plus to Principal structures. This transition must be managed carefully — as GCCs evolve into higher-value centres, transfer pricing models must align with operational reality, or adjustments and litigation can follow.

→ Transfer pricing advisory — KRPR

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8. What Is the GST Treatment for a GCC's Services to Its US or UK Parent?

This is the question most US and UK finance teams ask first — and the answer is commercially important.

Transaction	GST treatment	ITC available?
GCC provides IT/engineering/BPO services to US/UK parent (export of services)	Zero-rated — 0% GST on these invoices. No GST charged to the parent.	✅ Yes — GCC can claim ITC on Indian procurement (office rent, IT equipment, software subscriptions)
GCC provides services to Indian customers	Standard GST rates apply — 18% on most IT and professional services	✅ Yes on inputs used for those services
GCC pays for SaaS subscriptions to US/UK vendors (LinkedIn, Salesforce, etc.)	18% GST under Reverse Charge Mechanism (RCM) — self-assessed and paid by the GCC	✅ Yes — RCM GST paid is recoverable as ITC if used for business
Management fees received from US/UK parent by Indian GCC	Not applicable — GCC receives fees, doesn't charge GST to parent (export)	N/A

The zero-rated export of services treatment is a significant financial advantage — the GCC captures all input tax credit on its procurement costs while paying zero GST on its revenue. This materially reduces the effective cost of the India operation.

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9. How Do US and UK Companies Protect IP Created by Their India GCC?

IP ownership is the single most underestimated risk in GCC setup — and the one most commonly discovered too late.

Under Indian copyright law, IP created by an employee belongs to the employer — the Indian GCC, not the US or UK parent. Without the right agreements in place, the parent company may not legally own the code, AI models, research, or designs created by its India team.

Three documents required before the first hire

Document	What it does	Why critical
IP Assignment Agreement (GCC → parent)	Assigns all IP created by the Indian subsidiary to the foreign parent, executed under Indian law with proper stamp duty	Without this, the GCC legally owns the IP — even if the parent paid for all the work
IP assignment clause in employment contracts	Each employee assigns their IP to the Indian GCC as part of employment terms	Creates the chain: employee → GCC → parent. Must be in every contract before work begins.
Moral rights waiver	Indian copyright law grants individual creators non-assignable moral rights — the right to be credited and to object to derogatory treatment of their work. These must be expressly waived in writing — they cannot be assigned.	Without explicit waivers, individual engineers can assert moral rights over code they wrote, regardless of IP assignment agreements

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10. What Is the DPDP Act and How Does It Affect Your India GCC?

The Digital Personal Data Protection (DPDP) Act 2023 is India's comprehensive data protection law. Full compliance is required by May 2027, with 72-hour breach reporting, mandatory consent management, and restrictions on cross-border data transfers.

For US and UK GCCs, the DPDP Act intersects with your existing data governance frameworks in ways that require specific planning:

DPDP requirement	Impact on US/UK GCC	Action required
Consent management	Any personal data processed by the India GCC (employee data, customer data from US/UK parent) must have valid consent under Indian law	Map data flows between the US/UK parent and the India GCC. Implement consent capture for all personal data processed in India.
72-hour breach notification	Data breaches at the India GCC must be reported to India's Data Protection Board within 72 hours — plus compliance with US/UK breach notification timelines	Build a unified incident response framework covering India (DPDP), UK (UK GDPR/ICO), and US (state breach laws) simultaneously.
Cross-border data transfer restrictions	DPDP restricts transfer of Indian personal data to certain jurisdictions. The approved countries list is not yet finalised — monitor MEITY notifications.	Avoid designing data architectures that depend on unrestricted India-to-US/UK data flows until the approved list is confirmed.
Data localisation for certain sectors	Financial services, health data, and certain government data may face localisation requirements under sector-specific regulations independent of DPDP	For BFSI, healthcare, or government-adjacent GCCs, seek specific advice on data residency requirements before selecting cloud architecture.
Interaction with UK GDPR and US data laws	GCCs processing EU/UK resident data must also comply with UK GDPR (ICO). GCCs processing US consumer data may fall under CCPA and state equivalents.	Build a multi-jurisdiction data governance framework — not three separate compliance programmes. KRPR works with partner privacy counsel on US-India and UK-India data governance for GCC clients.

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11. What Are the Key HR and Payroll Compliance Obligations for India GCC Employees?

The moment you hire your first India GCC employee, you enter a statutory compliance system with monthly, quarterly, and annual filing obligations.

Statutory system	Rate	Filing
Provident Fund (PF)	12% employer + 12% employee (of basic salary) — mandatory for all employees with basic salary up to INR 15,000/month; optional above	Monthly PF ECR upload on EPFO portal
ESIC	3.25% employer + 0.75% employee (for employees with gross salary up to INR 21,000/month)	Monthly ESIC return
Professional Tax	State-specific — typically INR 200/month per employee in Maharashtra/Karnataka	Monthly/quarterly state filing
TDS on salary (Form 24Q)	Based on employee's projected annual income — deducted monthly from salary	Quarterly TDS return (Form 24Q)
Gratuity	15 days' salary per year of service — mandatory for employees after 5 years. Often requires actuarial valuation.	Maintained as a liability; payment on exit
Shops & Establishments Act	State-specific registration — mandatory for all offices	Register within 30 days of first hire

UK-specific: IR35 and the India GCC

A common question from UK companies: does IR35 apply to India GCC employees? The answer is no — engineers in the Indian team are employed by the Indian entity and pay Indian income tax and social contributions. They do not create UK PAYE or NI obligations for the UK parent company. India GCC employees are employed under Indian labour law, not UK employment law. However, if UK-based staff are seconded to India, or if India-based staff work in the UK for extended periods, separate analysis is required.

→ Payroll and HR compliance for foreign companies — KRPR

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12. What Does It Cost to Set Up and Run a GCC in India?

Setup costs

Item	Cost (USD)	Cost (GBP)
Entity incorporation and registrations	USD 3,000 – 5,000	GBP 2,500 – 4,000
Office fit-out (per seat, mid-quality)	USD 1,500 – 3,000 per seat	GBP 1,200 – 2,400 per seat
IT infrastructure (per employee)	USD 1,500 – 2,500	GBP 1,200 – 2,000
First 3 months of compliance setup	USD 5,000 – 10,000	GBP 4,000 – 8,000
Total one-time setup (50-person GCC)	USD 500,000 – 1,000,000	GBP 400,000 – 800,000

Annual operating cost benchmarks (fully loaded per employee)

Role	Bengaluru (USD/year)	Pune (USD/year)	UK equivalent (GBP/year)
Senior software engineer (8+ years)	USD 40,000 – 60,000	USD 32,000 – 50,000	GBP 80,000 – 120,000
Mid-level engineer (4-7 years)	USD 20,000 – 35,000	USD 16,000 – 28,000	GBP 50,000 – 80,000
Data scientist / ML engineer	USD 35,000 – 60,000	USD 28,000 – 50,000	GBP 70,000 – 110,000
Finance / accounting professional	USD 15,000 – 25,000	USD 12,000 – 20,000	GBP 35,000 – 60,000
GCC head / senior leader	USD 70,000 – 120,000	USD 55,000 – 100,000	GBP 130,000 – 250,000

Figures are approximate and include base salary, employer statutory contributions (PF, ESIC, gratuity provision), and annual bonus. Benefits (health insurance, transport allowance) add a further 8-12%.

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13. What State Incentives Are Available for GCCs in India?

Indian state governments are actively competing for GCC investment with increasingly generous incentive packages. These can materially reduce your operating costs for 3-5 years.

State	Key incentives
Karnataka (Bengaluru)	India's first dedicated GCC policy launched November 2024, targeting 500 new GCCs and 350,000 jobs by 2029. Rental reimbursements, EPF support, 45-day fast-track approvals. Dedicated GCC cell in the Investment Promotion Department.
Maharashtra (Pune, Mumbai)	MIISP 2025 — stamp duty waivers, electricity tariff reductions, payroll subsidies for headcount above specified thresholds. Pune and Nagpur designated as GCC growth zones.
Telangana (Hyderabad)	T-Hub GCC programme — dedicated GCC incubation support, fast-track land allocation, AI research partnership access. Strong government-as-partner model.
Tamil Nadu (Chennai)	TIDCO incentives, land allocation support, sector-specific manufacturing GCC subsidies, electronics and EV manufacturing cluster access.
SEZ locations (all states)	Tax holiday under GIFT City extended to 20 years. Standard SEZ benefits: customs duty exemption on imports, duty-free procurement, and state-level tax concessions. Significant for GCCs handling export services.
GIFT City (Gujarat)	GIFT City's tax holiday was extended to 20 years, and foreign cloud providers using Indian data centres get a tax holiday until 2047. Strong for BFSI GCCs, fintech, and financial services operations.

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14. What Most GCC Setup Guides Don't Tell US and UK Companies

The resident director's name appears on public MCA records

Once appointed, the resident director's name, DIN, and address appear on India's MCA public portal — searchable by anyone. For GCCs where the US/UK parent wants a low-profile India presence, this is worth knowing. Some clients opt to use a virtual registered office and keep the resident director's information from wider public disclosure where possible. KRPR's nominee directors are comfortable with this visibility, but clients should be aware before appointment.

The 15.5% safe harbour is a floor, not a ceiling — and it comes with a MAP restriction

The Budget 2026 safe harbour rate of 15.5% applies if your GCC maintains at least a 15.5% operating margin on its cost base. This is commercially achievable for most back-office and IT service GCCs. However, opting for Safe Harbour Rules prevents invoking the Mutual Agreement Procedure (MAP) for the same transaction. If you later face a TP adjustment in both India and the US/UK and want to use MAP to resolve double taxation, you cannot — if you opted into Safe Harbour. For GCCs transacting with US parents, where APA/MAP coordination between Indian and IRS authorities is common, this trade-off should be evaluated carefully.

DPDP and GDPR compliance require separate — but coordinated — frameworks

Most US and UK companies assume their existing GDPR or CCPA compliance programme extends to their India GCC. It does not — DPDP has different consent requirements, different breach notification timelines, and different cross-border transfer rules. The two frameworks must be separately addressed but coordinated to avoid conflicting data governance policies. A GCC employee trained on UK GDPR who receives a breach incident has different notification obligations under DPDP (72 hours to Data Protection Board of India) vs UK GDPR (72 hours to ICO). Identical timelines, different recipients, different documentation requirements.

For UK companies — the financial year mismatch creates reporting complexity

India's financial year runs April 1 to March 31. The UK financial year typically runs April 1 to March 31 (or a company-chosen year). Australia's runs July to June; the US federal government's October to September. For UK companies this is a close match — but not identical, particularly for entities with non-standard UK financial years. The mismatch affects when Indian statutory accounts are available for consolidation, when transfer pricing documentation deadlines fall relative to UK group audit requirements, and when the APR and FLA returns (tied to India's financial year) fall due. Plan your group reporting calendar to account for the India filing deadlines.

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15. Frequently Asked Questions

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

A GCC is a wholly owned offshore entity through which a multinational company delivers high-value business functions — engineering, R&D, analytics, AI, finance, and operations — directly, with full IP ownership and operational control. India hosts over 1,800 GCCs as of 2026, employing nearly 2 million professionals and generating USD 64.6 billion annually.

What legal structure should a US or UK company use for a GCC in India?

A Wholly Owned Subsidiary (WOS) incorporated as a Private Limited Company under the Companies Act 2013. This provides 100% foreign ownership, limited liability, full operational control, and transfer pricing defensibility. 100% FDI is permitted under the automatic route for IT, software, BPO, and most GCC-relevant sectors.

Which city in India is best for a GCC?

Bengaluru for AI, cloud, and deep tech (US tech companies' default). Pune for engineering, European company headquarters, and lower attrition (UK companies' preferred location). Hyderabad for BFSI and life sciences. Chennai for manufacturing and automotive. Tier-2 cities for cost-driven nano-GCCs under 150 people.

How does transfer pricing apply to a GCC in India?

Every intercompany transaction between the India GCC and the US/UK parent must be priced at arm's length. If aggregate transactions exceed INR 1 crore, Form 48 (replaces Form 3CEB from FY 2026-27) signed by a CA is mandatory. Budget 2026 established a 15.5% safe harbour margin covering GCCs up to INR 2,000 crore — simplifying TP compliance for qualifying entities.

What is the GST treatment for services provided by an Indian GCC to its US or UK parent?

Zero-rated — no GST is charged on export of services invoices raised by the Indian GCC to its overseas parent. The GCC can claim Input Tax Credit on all domestic procurement. RCM GST at 18% applies to SaaS subscriptions and other imported services paid by the GCC to foreign vendors.

What is the DPDP Act and how does it affect GCCs in India?

The Digital Personal Data Protection Act 2023 is India's data protection law, requiring full compliance by May 2027. Key obligations: consent management, 72-hour breach notification to India's Data Protection Board, restrictions on cross-border data transfers, and data security safeguards. For GCCs also handling UK or EU data, UK GDPR compliance runs in parallel — they are separate frameworks requiring coordination.

What are the three GCC operating models?

Build Own Operate (BOO) — full parent ownership and management from day one. Build Operate Transfer (BOT) — specialist provider sets up and runs for 12-24 months, then transfers to parent. Managed GCC — provider owns and runs permanently; parent is the client. For companies with a 30+ person headcount target and long-term India commitment, BOO is recommended.

What does it cost to set up a GCC in India?

A 50-100 person GCC costs approximately USD 500,000 to USD 1 million in one-time setup investment, with annual operating costs 40-60% lower than equivalent US or UK operations. A 50-member centre runs approximately USD 1.5 to 2 million annually. Costs vary significantly by city and role type.

How does IP ownership work for a GCC in India?

Under Indian copyright law, IP created by an employee belongs to the Indian GCC — not the US/UK parent. Three documents are required before the first hire: (1) IP assignment agreement between GCC and parent; (2) IP assignment clause in every employment contract; (3) moral rights waiver in every employment contract. These must be in place before work begins — not retrofitted later.

Do US or UK companies need to travel to India to set up a GCC?

No — incorporation is entirely online. However, for GCC setup most companies make at least one visit for city selection, office evaluation, and senior hire conversations. The legal entity setup does not require physical presence.

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KRPR & Associates  ·  Chartered Accountants  ·  ICAI Reg. No. 139415  ·  Peer Reviewed  ·  Pune, India  ·  Practicing since 2012